Agriculture is one of the most important industries in the world, and this cannot be understated at all. While it may not be the primary industry in the world as it used to be not very long and had been for thousands of years, it is still absolutely integral to the world and its population.
According to the World Bank, development in agriculture is one of the most important tools we have to end extreme poverty while providing at least the basic nutrition to an ever-growing global population which is expected to reach nearly 9.7 billion by 2050. You might be wondering how this can be, but the truth is, growth in the agricultural sector is said to be around two to four times more effective than similar growth in any other sector. This does make sense though when you consider the fact that around 65% of people who earn a poor income are engaged in the agricultural sector. Therefore, improving growth and income in the sector will have a significant effect on the overall median income in the world.
While globally agriculture accounts for around 4% of the total global GDP, that is because many developed countries have a lower focus on agriculture and more on other sectors. For developing countries, especially those with really large populations agriculture can often account for up to a quarter of the total GDP, which is absolutely immense.
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However, the agriculture sector has never been in more peril than it is now, with climate change being the primary factor. As the world has completely failed to deal with the sources of climate change, even though action been taken (which has been underwhelming), the weather patterns are changing drastically which is greatly affecting the yield and growth of crops. This is even more true for low income countries which don’t have the technology to protect their crops, and are more susceptible to the effects of climate change as well. In fact agriculture, forestry and land use change have account for around 25% of all the greenhouse gas emissions and hence, introducing sustainability in this sector is needed to mitigate the effects of climate change.
There are other issues plaguing the agriculture sector as well, which are proving to be completely unsustainable. Agriculture accounts for around 70% of the total water usage while also generating waste and pollution at unprecedented levels, because most countries still use old methods for agriculture which aren’t efficient, while the supply chain in the sector is also not even close to being optimal; a third of all food production goes to waste, which is heartbreaking in a world where nearly 700 million people are hungry, an increase of 60 million in just 5 years. This lack of availability of proper nutrition leads to poor diets which can causes diseases and illnesses, to the point that poor diet and its risks are the biggest cause of death globally. In fact, not having the proper nutrition doesn’t just result in starvation; some poor countries stack up on fats and unhealthy food, which is why you’ll see many poor countries among the 25 most obese countries in the world.
While the US has moved mostly from agriculture to industry, the sector is still significant, and agriculture, food and industries related to this sector contribute around $1.1 trillion to the GPD, making a 5.2% share. This is in line with what we already discussed regarding agriculture contribution to GDP in most developed countries. The farms alone contributed around $136 billion, or 0.6% of GDP. Of course, this is just the direct contribution; many major industries rely on the output of these farms for their own production and supply, such as the food and beverage manufacturing beverages, food services, restaurants, textiles, forestry, fishing and leather among many others. The industry creates around 22 million jobs for Americans which is around 11% of the total employment in the US. On farm employment numbers are around 2.6 million people, which is 1.3% of the total employees in the US. Indirectly, the sector supports an additional 19.6 million jobs, so directly or indirectly more than 41 million employees are related to the agricultural sector.
There is little more important than food and in the US, after housing and transportation, the biggest expense most households incurred was on food, with 13% of income being spent on food. Corn is the biggest crop grown in the US, with over $50 billion worth of corn being produced in 2014, followed by soybeans, wheat and alfalfa. The country is also the largest producer of maize in the world, producing around 392 million tons, and has been the leader for this crop for many decades with no one even coming close to the production of the US. It is also the second largest producer of both apples and strawberries in the world, being second only to China.
The largest agricultural companies companies in the US by revenue include a mix of both private and public companies. To determine the list, we took a look at around 120 companies in the US that are part of the agricultural sector and then determined the revenue of each company, either referring to Forbes, Fortune or even the annual reports of the public companies. We also took a look at the main fertilizer companies in the US because of course, fertilizer companies are also part of the agriculture industry, and some of these companies are also among the largest agricultural companies in the US by revenue. These companies earn billions in revenue each year while the biggest agricultural company in the US has a revenue of over $100 billion. Even the lowest company in this list earns over $4 billion in revenue. You can also compare them to the top agribusiness companies in the world. So let’s take a look at these ten companies alone provide employment to hundreds of thousands of people (if not more than a million) and are absolutely crucial to the continued growth and sustenance of the agricultural sector in the US, starting with number 10:
10. Fresh Del Monte Produce (NYSE:FDP)
Total revenue of the company in 2019 (in millions of dollars): 4,489
Fresh Del Monte Produce was founded in 1886 and is engaged in producing fruits and vegetables in addition to snacks, beverages and juices.
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9. Dole Food Company
Total revenue of the company in 2019 (in millions of dollars): 4,566
Dole Food Company is famous for being the biggest food and vegetable producer not just in the US, but in the world and has nearly 75,000 employees in 90 countries responsible for around 300 different products. It is involved in the production of pineapples, strawberries, grapes and bananas, and is around 169 years old.
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8. CF Industries Holding (NYSE:CF)
Total revenue of the company in 2019 (in millions of dollars): 4,600
The 56 year old company is the second biggest fertilizer manufacturer in the country, and manufactures and distributes agriculture fertilizers.
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7. Seaboard Corporation (NYSEAMERICAN: SEB)
Total revenue of the company in 2019 (in millions of dollars): 5,523
While Seaboard’s actual revenues are much higher than $5.5 billion, we have only considered their earnings from their pork business and from its commodity trading and milling interests, because only these two branches of the company have a direct or indirect relation to agriculture.
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6. Pioneer Hi-Bred International
Total revenue of the company in 2019 (in millions of dollars): 6,300
It is involved in the production of seeds to be used in agriculture, and have significant involvement in the production of genetically modified organisms (GMOs), which themselves have attracted a lot of controversy. It is a subsidiary of Corteva Agriscience.
5. Perdue Farms
Total revenue of the company in 2019 (in millions of dollars): 7,100
Perdue Farms owns both Perdue Foods and Perdue Agribusiness, where the former is involved in the processing of pork, beef and chicken, while the latter is actually among the biggest grain companies in the United States. It has around 21,000 employees and turned a hundred years old in 2020.
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4. The Mosaic Company (NYSE:MOS)
Total revenue of the company in 2019 (in millions of dollars): 8,900
The Mosaic Company is the biggest fertilizer company in the US, being the country’s biggest producer of phosphate and potash fertilizer. The company is one of the more recent ones in the list, having been established 16 years ago in 2004. It was majority owned by Cargill from its inception to 2011, which was the year when Cargill divested completely from the company. It is headquartered in Tampa, Florida and has around 12,600 employees.
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3. AGCO (NYSE:AGCO)
Total revenue of the company in 2019 (in millions of dollars): 9,040
AGCO is involved in the manufacture of agricultural machinery and is an extremely important player in this sector. AGCO was formerly known as the Allis-Gleaner Corporation, thought the company simply goes by AGCO now. The company was founded 30 years ago in 1990 after the merger of two major companies, and has assets of around $7.76 billion, while its operating income has fallen to around $350 million. The company has around 21,000 employees and has many major brands including Challenger, GSI, Gleaner, Massey Ferguson and Valtra.
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2. Tyson Foods (NYSE:TSN)
Total revenue of the company in 2019 (in millions of dollars): 42,405
Tyson Foods is one of the largest FMCG companies in the world, and operates primarily in the food industry. It is the second largest processor as well as marketer of beef, pork and chicken in the world after JBS, which is a Brazilian company. It is the biggest meat exporter in the United States as well, and employs over 140,000 people and you will most likely be some its biggest brands which include Ball Park, Wright Brand, Jimmy Dean, State Fair and Hillshire Farm.
The company attracted significant negative attention for controversial practices over the years, but perhaps the biggest came during the current year amidst the Covid-19 pandemic, when it failed to adopt best practices and SOPs to avoid the spread of Covid-19 within its factories, with resulted in multiple outbreaks and multiple plants belong to the company having to close down for a period of time. In August 2020, it was reported that over 10,000 employees had been affected by Covid-19 a percentage significantly higher than the national average.
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1. Cargill
Total revenue of the company in 2019 (in millions of dollars): 113,500
Topping the list of the 5 biggest agricultural companies by revenue in the US is Cargill, and it is so far ahead of its competition, it’s like Lewis Hamilton in the F1 championship. Of the combined revenues of the top 10 agricultural companies in the US, more than 56% comes from Cargill alone, which is also the largest private company in the entire United States by revenue. Founded in 1865, the companies is 155 years old and has been majority owned by the Cargill family which is one of the wealthiest families in the world. And with 14 separate billionaires in the family, it is also the family with the most billionaires in the entire world. Had it been a public company, it would’ve ranked number 15 in the Fortune 500 list of biggest companies in the US.
The company also owns assets of nearly $60 billion, while also having a net income crossing the $3 billion threshold. It provides employment to over 166,000 people and is majorly involved in the purchasing, trading and and distribution of gain, in addition to various other agricultural commodities which includes the likes of palm oil. Further, the company has also been known to be involved in raising livestock and producing feed in addition to other food products which can include glucose syrup, vegetable oil, fats and starch. It used to own two thirds of the biggest fertilizer company in the world as well, in the Mosaic Company, though this share was sold off back in 2011. A quarter of all US grain exports are made through Cargill, showcasing its size, strength and power. A surprising fact that many people may now know is that every egg used in McDonalds, which is one of the largest fast food restaurants in the world, is sourced from one of the factories of Cargill.
As is true for all major companies, Cargill has often been found engaged in various controversies which has seen its reputation diminish, with human rights abuses and land grabs topping the list. In addition to these two accusations, it has also been accused of food contamination, deforestation, tax evasion and air pollution, all of which are grievous charges on their own, let alone combined.
See also: 10 largest fruit and vegetable producing countries in the world and top 25 agricultural producing companies in the world
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Disclosure: No positions. Top 10 largest agricultural companies by revenue in the US is originally published on Insider Monkey.