recruiting from the ranks. There is the threat that they will continue to attract more Cargill employees or at least compete strongly in the job market. Cargill will have to take decisive steps to make sure they become the preferred employer in the area and keep the talent they recruit. The secondary threats that arise from having have lost key employees tothe competition is that they may drag customers with them due to personal loyalties and may also take the knowledge obtained in the Cargill training.
The same company that has been recruiting people from Cargill and another company called Coast Grain are building new mills that'"rill have great receiving capacity and will mainly produce rolled grains. Cargill is not trying to compete in the commodity business but the perceived threat seems to have encouraged Cargill to make an agreement with a competitor, Foster Farms Commodities, to produce and ship much of the rolled grains Cargill will use for its accounts.
Another possible threat to be aware of is that, since Cargill is aggressively seeking new business in the market as nutrition consultants and feed providers, they pose a threat to private nutrition consultants. In other words, private nutrition consultants may see Cargill as a competitor and might be hesitant to have Cargill make rations for their customers because they would have access to both the formulations and the customers.
One very important threat to mention is the California energy crisis. Cargill has a deal with Pacific Gas and Electric to obtain lower energy charges during the year but for this benefit Cargill is subject to electrical shutdowns whenever PG&E requires it, during the summer months. During a hot summer the plants may be shut down for part of the day two to three times on average. Cargill runs most of its plants 24 hours a day so it finds a way to make up for the lost time and has devised ways to deal with labor.
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