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The secret agricultural empire Going public may be popular with washed-up celebs booked on morning talk shows and ambitious Internet wizards in garage-based startups. But Cargill, the 14-largest corporation in the United States and the sixth-largest food company in the world, prefers to keep things private - it's been privately-owned for over 130 years and is the U.S.'s largest privately owned company. The bull market that muscled its way through much of the 1990s made an initial public offering extremely tempting, true. Many Cargill heirs are mindful of that fact - and eager to cash in. But cooler management heads have thus far prevailed, and the Minnesota-based conglomerate has yet to emerge into the light of public scrutiny and investment. However, in July 1998, the company embarked on a name and image-recognition campaign, hiring a Minneapolis ad agency to launch television and print ads in 1999. The ads are designed to target an elite audience of non-farmers over the next three years by appearing on TV news programs and in such publications as the National Geographic. The goal of the ads is to eliminate the mysterious invisibility of the company and round up long-term clients. All around the world Though Cargill may lack a stock exchange listing, it's got plenty of other assets. The company's annual sales top $50 billion, drawn from its businesses as an international marketer, processor, and distributor of agricultural, food, financial, and industrial products. The company operates all over the globe, with major facilities in Asia, Europe, and Latin America. From turkey farming to steel production, Minneapolis-based Cargill is the "biggest company you've never heard of." The company acquired Grandes Molinos de Venezuela S.A. in 1999 to serve its growing markets in that region, as well as Cinta Azul S.A., the largest cold-cuts meat producer in Costa Rica. Cargill's North American Corn Milling division also received the 1999 addition of the Canadian based St. Lawrence Starch Co., a corn sweetener and cornstarch company. Additionally, Cargill's lawn food, 6X Energy Drink, is in demand throughout the United Kingdom where most independent garden centers are selling the product. These developments will enable Cargill to continue expanding its influence internationally. For prospective employees who have found their way to low-profile Cargill, the company offers a stable and self-consciously ethical alternative to the sometimes volatile and cutthroat dealings of the rest of corporate America. You want it? We've got it Cargill divides its operations into three major groups: commodity trading and processing, financial, and industrial. Despite extremely volatile commodities prices, Cargill posted three consecutive record profits from 1994 to 1996 ($571 million in 1994, $671 million in 1995 and $902 million in 1996). However, revenue and profits leveled off in 1997, with sales stalling at $56 billion and profits dropping to $814 million. And in the first half of 1998, profits dropped precipitously, falling 74 percent from 1997 first-half earnings. The company rebounded in the fourth quarter, but for the year, profits fell 43 percent to $468 million. In June 1998, the company agreed to sell its foreign seed operations to Monsanto Co. for $1.4 billion. Now the company is looking to wash its hands of its coffee and rubber businesses. Still, Cargill retains a commanding share of its markets. The company handles 25 percent of America's grain exports, one-fifth of the country's corn-milling capacity and one-fifth of the nation's cattle slaughtering. Coming out of the shadows Cargill Inc. acquired one of its key rivals, Continental Grain Co., in July 1999. The acquisition enables Cargill to add 83 more grain facilities to the 243 it already holds. The purchase has roused the attention of many local area farmers, however, who are concerned that Cargill will become a monopoly in its industry, leading to higher food prices and fewer places for farmers to market their grain. Surrounding community members are also enraged by Cargill's ongoing plan to build another 20-story mound of phosphogypsum, a byproduct of the phosphate processing that produces fertilizer. The concern revolves around the potential hazards of living within close proximity to the potentially radioactive material. Despite uproars among members of the Minnesota community, Cargill managed to return a 53 percent increase in quarterly revenue in 1999, the first profit the company has seen since 1996. Furthermore, Ernest Micek resigned as Cargill's CEO in June 1999 appointing William Staley to the position. Staley is gaining recognition for his support of free world trade, educating employees, political leaders, and policymakers. Micek, after 40 years of service to Cargill, expects to officially retire from the company in August 2000. Joining the Internet revolution Obviously sensing that the emerging field of business-to-business e-commerce was transforming the way companies interact with each other, Cargill decided to throw their hat into the proverbial ring. In March 2000/1999?, the company entered into an agreement with Cenex Harvest States Cooperatives and DuPont to create Rooster.com, an Internet marketplace designed to include local farm retailers, cooperatives and manufacturers. Through the site, farmers will be able to market their crops and buy fertilizer, crop protection products, and other farm supplies and equipment. Then in April, the company, along with BP Amoco, Clarksons and the Royal Dutch/Shell Group invested in LevelSeas.com, an on-line exchange serving the marketplace where ship owners, shipbrokers and cargo owners conduct business. The site serves freight management services, market intelligence, online chartering, as well as pre and post fixture activities and risk management tools, including freight derivatives. Also in April, Cargill entered into an agreement with six other meat and poultry processing leaders to create an online B2B marketplace for the industry. Then, in May, the company entered into yet another agreement with three other steel manufacturers to create (surprise!) an Internet marketplace for the e-trading of steel. Think that they wanted to stop there? Think again. Cargill's Hohenberg division also entered into an agreement with three other cotton producers to establish a B2B marketplace for the trading of cotton and cotton products. One more? O.K. In June, Cargill, in association with AGRI Grain Marketing, launched AGMConnects.com to provide local, customized Internet-based services to AGRI Grain Marketing's grain elevator customers.
There are two main methods to get hired at Cargill. The first way is to go through campus recruitment programs or general resume drops. The other is to apply for a specific job from Cargill's online lists and phone hotline. Hiring practices differ drastically for different divisions in different locations, but at Minneapolis-based branches, promising candidates go through phone interviews and then in-person ones, and, with luck, receive offers a week or two thereafter. Unlike many high-powered companies, Cargill does not recruit heavily at Ivy League schools. The company targets mainly Midwestern schools like the University of Wisconsin at Madison, Iowa State University, Kansas State University, the University of Illinois, and the University of Minnesota. For MBAs, no such geographic distinction exists: Cargill recruits from top schools such as Stanford and Wharton, just like all those other big, publicly traded companies. There are usually two steps to the entry-level interviewing process: an initial screening interview, and then a round in Minneapolis. For non-MBAs hires, the "screening" interview is almost always conducted over the phone. If your screening interviewer likes what he or she hears, Cargill will then bring you into Minneapolis for in-person interviews. This can take anywhere from half a day to a full day. The average applicant meets with many different Cargill interviewers (we have reports of three to seven interviews in this round). Interviews are usually with hiring managers from the division sponsoring the interview, potential co-workers, and sometimes, an employee from a different division, "to provide an outside perspective." For MBAs applying to the company's Strategic Business Development program, one insider reports, Cargill poses a mini-case in the first interview, and a detailed case in the second-round. Another SBD insider says he went through three rounds (two on campus), and received a major case question in the second round. That contact says interviewers come prepared with several cases, and will continue asking them until they feel "comfortable" with a candidate's ability. SBD candidates participate in a "Super Saturday"; the Friday evening before, they are taken to a fancy restaurant in Minneapolis to schmooze with company execs.
Old-fashioned and loyal Cargill is "not for everyone," its employees report. "It's a Midwestern culture, very much interested in working smart and working hard." "I would describe the culture as very conservative and old-fashioned at times," says one employee. "There are certain areas of business that Cargill has allowed itself to fall behind in, like human resources and technology." For those who can deal with a less modern approach, there are benefits. Insiders say that "the company has always emphasized the importance of maintaining a strong code of ethics. The company is very loyal to its employees." This loyalty translates to a very real benefit: "Layoff is a word that is not even in Cargill's vocabulary." Loyalty runs both ways: job satisfaction at Cargill runs high. One employee has worked there "for almost eight years and I can tell you that since the start there has never been a boring moment. Things are so flexible that at any time there will be something new and interesting to do." One big, serious family Despite its large size, employees say "the company is like one big family." "Everyone is addressed on a first-name basis," says one insider. Some employees appreciate the mix of Midwest friendliness with a dose of seriousness: "It's very down-to-earth," says one FMG employee. Below standard pay and perks Current employees, however, say that "Cargill's not really a perks-based company." Perks for Cargill employees seem to have more to do with work than money or objects: "For me the perks are all of the opportunities that exist," rationalizes one employee. And, for a $51 billion company, "the pay's not great." Employee estimates run from "industry standard" to "below industry standard," or the more tactful "competitive for Minneapolis." Employees aren't bitter, claiming that "the job security more than makes up for it." Reasonable workweek While the pay may not be "astronomical," neither are the hours "too bad." One employee says, "You are expected to put in 40 hours a week." Another says it is "closer to 55." The average appears to be somewhere in the range of "40 to 50 hours per week." One employee with FMG, however, reports that you should "get ready to work your ass off ? no less than 10 hours a day." But overall, insiders say, "No one at Cargill is killing himself like someone on Wall Street. It's a lot more relaxed."
Nancy Siska College Programs Human Resources P.O. Box 56971 Minneapolis MN 55440-5697 (800) 741-7431
Agricultural supplies;Sees, feed, and fertilizer production;Meat products;Foodstuffs;Petroleum;Steel;Financial trading;Futures brokering More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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