June 15, 2009
ADM eyeing long-term growth
Archer Daniels Midland Co. is expanding its network in anticipation of greater volumes that will result from the cultivation of new land, implementation of advanced technologies and better farming practices, said John Rice, executive vice-president, Commercial & Production, ADM.
Rice, speaking at the Deutsche Bank Securities Global Consumer & Food Retail Conference held June 10 in Paris, France said ADM has already an asset base well-suited to handle today''s crop and is gunning for long-term value of ADM, based in Decatur, Illinois, US
Rice said ADM is adding its elevator network to increase throughput and lower operating costs. The company has already acquired, leased or expanded operations in the US to support increased corn, wheat, soy and soy originations.
ADM is also upgrading its export and import capabilities by loading and unloading of vessels, to reduce the merge cost, increase dispatch revenue and increase our barge utilization. The company is also in the process of expanding its South American barge fleet by 50 percent to add its origination network to improve sourcing capabilities in the region.
Rice also said ADM is evaluating the potential to increase its ownership in ocean-going vessels.
This origination, transportation and logistics network is designed to serve customers as efficiently and cost-effectively as possible, while addressing the customers'' pressing concerns--food security, product quality and timely shipments.
In the processing operation side of its business, ADM continues to show flexibility in corn, Rice said.
The grain giant can produce 24 products from a single kernel of corn, Rice said.
Beyond corn, Rice said ADM is expanding oilseed capacities and crushing, refining, bottling and low trans fat production. The company also has begun operating the recently acquired canola (rapeseed) plant in Germany, is evaluating opportunities for additional capacity additions in Eastern Europe and South America, has expanded fertilizer blending capacity in Brazil and Paraguay, and recently acquired a bottling facility in Peru.