ADM ahead on global growth efforts
May 16, 2012
by Eric Schroeder
NEW YORK — In the more mature oilseeds markets of North America and Western Europe, Archer Daniels Midland Co. is focused on improving existing assets and businesses, executives with the Decatur, Ill.-based company said May 15 at the BMO Capital Markets Farm to Market Conference in New York.
Juan Luciano, executive vice-president and chief operating officer at ADM, said the company is “maximizing the number of fully integrated assets, including crushing, refining and bottling, and growing downstream higher-margin businesses that follow health trends, like protein concentrates, isolates, or our newly launched product, Clarisoy.”
Meanwhile, in regions such as South America, Eastern Europe and China, the company is focused on growth, while in other regions the emphasis is on optimizing operations, Mr. Luciano said.
“In short, we’re making sure that our growing global network feeds a growing global population,” he said.
Shifting to the company’s corn business, Mr. Luciano said ADM is focusing on driving cost improvements through process enhancements and developing higher-value products. The company also plans to grow the East Starch joint venture in Europe that produces value-added starches for food and industrial uses, he said.
Mr. Luciano also used the forum as an opportunity to update several projects in ADM’s portfolio.
He said Elstar Oils, a Polish oilseed processing business acquired in August 2011, has been integrated into the ADM European network of assets, and the company is “capturing synergies with each business unit across our supply chain — origination, crushing, refining, oils and fats, packaging and biodiesel.”
Also last August, ADM announced the Danube River Export Project. The project is on schedule and has increased ADM’s grain origination storage and transportation along the Danube river, he said. Three of the six planned elevators have been built thus far.
In the United States, ADM acquired Wisconsin Elevators in September 2011. Mr. Luciano said Wisconsin was “underrepresented from a footprint perspective” before the acquisition.
“I’m happy to report that the integration is completed ahead of plan, all assets are fully operational, and grain procured at these elevators supply both domestic and export markets,” he said.