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Cargill to grow Pakistan business with $200m investment
Global food and agriculture producer Cargill on Thursday renewed its long standing commitment to Pakistan by announcing plans to invest more than $200 million in Pakistan in the next three to five years.
The announcement was made after a meeting between Prime Minister Imran Khan and other senior government officials, and Cargill's global executive team at PM Office.
Cargill's team was led by head of Global Strategy and Cargill Asia Pacific region chairman, Marcel Smits, and Cargill Agricultural Supply Chain President Gert-Jan Van Den Akker.
Both sides discussed the company's future investment plans, a press release issued by PMO said. Cargill, which has a strong focus on Asia, intends to partner with Pakistan to bring its global expertise and investment into the country.
Cargill's proposed investments are expected to support Pakistan's overall economic development and contribute to local employment.
The company's strategy includes expansion across agricultural trading and supply chain, edible oils, dairy, meat and animal feed businesses, while ensuring safety and food traceability.
Cargill is expected to use employ its world class innovations to support the flourishing dairy industry in Pakistan ─ which is already moving toward modernisation, as well as the rising demand for edible oils backed by evolving consumption patterns and a growing market for animal feed driven by sustained progress made by the poultry industry.
The visiting delegation informed the prime minister that Cargill intended to invest in Pakistan as far back as 2012 but were discouraged by mismanagement, corruption and non-availability of level playing field during the previous governments.
Prime Minister Khan welcomed Cargill's proposed plans for investment in the area of agriculture development, import substitution and enhancement of agricultural products.
He highlighted the efforts of the government towards ensuring transparency, providing the business community with a level playing field and improving ease of doing business in the country.
The prime minister assured the delegation of the government's full support.
Comments (57) Closed
Great news
In next 5 years Pakistan needs 200 billion (low estimate), to come out of the hole. This is a tiny but good start.
good job pm. its a good policy, action speaks louder then words...
Thank you Mr Cargill and thanks indeed to PM Imran Khan for such an impressive performance so far. Keep it up Sir.
They will import edible oil from Malaysia. Nothing more
As a commercial company Cargill seeks to expand its markets/enhance profitability and Pakistan is attractive due to size of its population and potential sales. While the large companies investments are always welcome, I hope that the government negotiates so that they achieve positive return for Pakistan also.
No monopolies to be granted or concessions other than those which are available to their competitors. An even playing field is a must for any and all of the stakeholders, whether they have access to any one in power in the country.
This is a positive development.Pakistan Agriculture has a lot of potential and players like Cargill can lend a helping hand in developing diary farming and modernizing this component of Pakistan`s economy.
Imran Khan is attending official meetings in Nike shoes and leather jacket. Someone must educate him that a certain professional protocol must be followed for official interaction.
Poor Indians come on our news just to spread negativity
Actual need is to educate, train or facilitate our local investors at every cost so that we may depend less on foreign aids and we may stand on our own. Legal formalities must be made mandatory,loans on easy proceddure and less interest plus guidance centres must be opened. Education must be made functional and practical one for every discipline and rewards should also be given on good efforts. Foreign investors must be there but with much involvement of local employees under legal protection.
@Indian fan, Being positive and Indians to go together.
$200 million in 5 years, good job But do remember $50 billion brought by Nawaz Sharif. CPEC
There are in for a surprise that nothing as changed
This will help Pakistani educated youth to get jobs and pressure government for more developmental work. Slowly militants will be sidelined as youth will look at right areas for employment and earning.
@Patel, It is beginning. The first 1%. In course of time it will be 100%.
@Patel, well said.
@Patel, A journey of thousand steps begins for 1 step at a time....
PM Khan must put the haters, corrupt, naysayers to shame by bringing in such Companies every month....
@Patel,
When one company begins to expand, other potential investers notice with interest, when few firms start expanding, the growth in FDI becomes exponatial in the early growth stage.
That's how you make progress. Create conditions condusive enough for foreign investors to take another look at opportunities in Pakistan.
This is far better for the nation and more promising for long-term prospects than any loans, aid, grants or deals. DFI gives foreigners a stake in making sure the country is stable, their ivestment is safe and the growth prospects are there for them to bring more money to the country.
Every little helps.
This means foreign countries and investment companies have faith and trust on PM Imran Khan and his government and, as results, they are willing to invest in Pakistan. This is a big change and why it is said that if you have honest and diligent leader then you have respect in the world. Keep up the good work PM!
Good news to hear :)
Thank you PM Khan!
Welcome to the club and the clubhouse. Keep it up and hang on tough.
Excellent effort by PM IK....its not even 1 year and PM IK is performing great like a true leader.....
A very positive move by Cargill Inc. in Pakistan This company and other foreign agriculture companies will also introduce the latest technology transfer in Pakistan. Cargill is the largest privately owned company in the world. The company has the expertise in poultry, dairy, animal feed and agriculture processing businesses. In Asia, they have a strong presence in China, Indonesia, Thailand, Vietnam, India, Bangladesh, Philippines, Malaysia and many other countries around the world. A good omen for Pakistan.
Cargill is the largest agricultural corporate entity on the planet.
@Indian fan, .... Are you crazy? Cargill and Archer Daniels Midland combined are bigger than India.
Way to go PMIK! We trust you all the way.
@Indian fan, $200m for just importing oil. Jealousy knows no bounds.
@Sami Kan, .... Exactly. People here do not even know what Cargill produces. Products for animal feed manufacturers.
I'd recommend readers to know more about Cargill. Big mistake by IK allowing them in.
@ali sabir, Cargill is also involved in production and distribution of orange juice, sugar, steel, and other agricultural commodities like soybeans, corn, wheat, flour, cooking oils and the list goes on. Cargill is an American company, which is more than 150 years old and has a very interesting history.
Invest and bluff...
Pakistan has potential to export over a $100 Billion worth of agricultural products. Government should insure solid foundations and should avoid synthetic and GMO (genetically modified) agricultural growth.
This is good news. However, we need to be careful on FDI inflows. We have to allow companies that also take care of the environment, local community participation and investing in modern technologies. Non-GMO, minimum carbon footprint, and improve yields. We have to be careful with someone like Monsanto that destroys cultivation (forever) should be watched.
Imran Khan is in big demand from the foreign investors. Never heard ever Nawaz Shariff, Zardaris or anyone else were ever offered investments in billions for Pakistan. The question was about Trust.
@Patel, You worry about your gvernment.,
when you have a leadership who is not corrupt then definitely companies will return. ExxonMobile and Cargill is just the start..
@Indian fan, Cargill is the largest and biggest player in the edible oil industry in the world. They have refinery in Malaysia also. But the investment will be setting up edible industry in Pakistan, not importing.
@Leoman, it is not aid, it is investment and when a multi national company invests in a country they are obliged to use local available Human Resources.
Good. More food production is needed in fertile and wet land like Punjab. The youth need work.
@Shehzaad, "A journey of thousand steps begins for 1 step at a time...." The sad part is after first step there is no second step.
V Nice
@Indian fan, they will not only do that, but also balance it by buying/producing inside pakistan. Pakistan's agri laws are less onerous than india.
@Ali Sabir , The largest agro-chemical and seed companies in the world are; 1. Bayer (they acquired Monsanto last year), - German Company 2. Chem China (they acquired Syngenta last year) - Chinese Company 3. DowDupont (meger of DowAgro and Dupont last year) - USA Company 4. Cargill - USA Company 5. BASF - German Company
Indians commenting negatively on this news should remember that his name is Cargill not Kargil which still haunts you
I will believe only my eyes.
what is he wearing for a PM
No GMO seeds from Cargill.
More imports coming
@Sami Kan, Ask Cargill to sell GMO seeds and production to India and the world would stop purchasing ediable from India too.
For years now, 365 days the talk is foreign investments and the nationals are investing in foreign lands.
What is it that the foreign investor sees different than the locals.
@Patel, Thanks for your input, but I believe we enough people in Pakistan to do financial forecasting!
A pittance
@Ali A., Dear India is a net importer of edible oils (including seeds), for this combined with pulses India has a good investment in Africa.
To say something on Cargill, it has invested $240 million in 2017 ( and promised to take it up to $ 2 billion) in india, it is actually a marketing company and privately owned (be cautious) .
My opinion is that Cargill should eye the animal fats market in pakistan which is good option for them to export as a proceed ingredient for industrial use. Present population trend and available land in pakistan for oilseeds only widened the avenue for oil imports, which they are producing a lot in other countries.