Profile: Archer Daniels Midland Co (ADM)
25 Oct 2016
Archer-Daniels-Midland Company, incorporated on May 2, 1923, is a processor of oilseeds, corn, wheat and other agricultural commodities. The Company manufactures protein meal, vegetable oil, corn sweeteners, flour, biodiesel, ethanol, and other food and feed ingredients. The Company's segments include Agricultural Services; Corn Processing; Oilseeds Processing; Wild Flavors and Specialty Ingredients; Others, and Corporate. The Company also has a global grain elevator and transportation network to procure, store, clean and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats and barley, as well as processed agricultural commodities. The Company is engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products.
The Company's Agricultural Services segment utilizes its the United States grain elevator , global transportation network and port operations to buy, store, clean and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats, rice and barley, and resells these commodities primarily as food and feed ingredients and as raw materials for the agricultural processing industry. The Agricultural Services grain sourcing, handling and transportation network provides a range of services to the Company's customers and agricultural processing operations. Agricultural Services transportation network capabilities include barge, ocean-going vessel, truck and rail freight services. The Agricultural Services segment also includes the activities related to structured trade finance and the processing of wheat into wheat flour.
The Company holds interest in Pacificor, formerly Kalama Export Company LLC, which owns and operates a grain export elevator in Kalama, Washington and a grain export elevator in Portland, Oregon. The Company also holds interest in GrainCorp Limited (GrainCorp), which is engaged in grain receival and handling, transportation, port operations, oilseed processing, malt processing, flour processing, and grain marketing activities.
The Company's Corn Processing segment is engaged in corn wet milling and dry milling activities, with its asset base located in the central part of the United States. The Corn Processing segment converts corn into sweeteners and starches, and bioproducts. Its products include ingredients, which are used in the food and beverage industry, including sweeteners, starch, syrup, glucose and dextrose. Dextrose and starch are used by the Corn Processing segment as feedstocks for its bioproducts operations. By fermentation of dextrose, the Corn Processing segment produces alcohol, amino acids, and other specialty food and animal feed ingredients. Ethyl alcohol is produced by the Company for industrial use as ethanol or as beverage grade. Ethanol, in gasoline, increases octane, which is used as an extender, and oxygenate. The Corn Processing segment also includes activities related to the processing and distribution of formula feeds and animal health and nutrition products. Other Corn Processing products include citric acids and glycols, all of which are used in various food and industrial products. The Corn Processing segment also includes the activities of the Company’s Brazilian sugarcane ethanol plant and related operations.
The Company holds interest Almidones Mexicanos S.A., which operates a wet corn milling plant in Mexico. The Company has interest in Red Star Yeast Company, LLC, which produces and sells fresh and dry yeast in the United States and Canada.
The Company's Oilseeds Processing segment includes global activities related to the origination, merchandising, crushing and further processing of oilseeds, such as soybeans and soft seeds (cottonseed, sunflower seed, canola, rapeseed, and flaxseed) into vegetable oils and protein meals. Oilseeds products produced and sold by the Company include ingredients for the food, feed, energy, and industrial products industries. Crude vegetable oils produced by the segment's crushing activities are sold and further processed by refining, blending, bleaching and deodorizing into salad oils. Salad oils sold are further processed by hydrogenating and/or interesterifying into margarine, shortening, and other food products. Oilseed protein meals are sold to third-parties to be used as ingredients in commercial livestock and poultry feeds.
In Europe and South America, the Oilseeds Processing segment includes origination and merchandising activities as adjuncts to its oilseeds processing assets. These activities include a network of grain elevators, port facilities and transportation assets used to buy, store, clean, and transport grains and oilseeds. The Oilseeds Processing segment produces natural health and nutrition products and other specialty food and feed ingredients. In North America, cottonseed flour is produced and sold primarily to the pharmaceutical industry and cotton cellulose pulp is manufactured and sold to the chemical, paper and filter markets. The Company has interest in Wilmar International Limited (Wilmar), which is engaged in the businesses of oil palm cultivation, oilseeds crushing, edible oils refining, sugar milling and refining, specialty fats, oleo chemicals, biodiesel and fertilizers manufacturing, and grains processing. The Company has interest in Edible Oils Limited, which is a joint venture between the Company and Princes Limited to procure, package and sell edible oils in the United Kingdom.
The Company also formed joint venture with Princes Limited in Poland to procure, package and sell edible oils in Poland, Czech Republic, Slovakia, Hungary and Austria. The Company is a supplier of agricultural commodity raw materials to Wilmar, Stratas Foods LLC and Edible Oils Limited.
Wild Flavors and Specialty Ingredients
The Company's Wild Flavors and Specialty Ingredients segment is engaged in the manufacturing, sales, and distribution of specialty products, including natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products, and other specialty food and feed ingredients. The Wild Flavors and Specialty Ingredients segment also includes the activities related to the procurement, processing and distribution of edible beans.
The Other segment includes the operations of the Company's financial business units, related to futures commission merchant activities and captive insurance. ADM Investor Services, Inc., a subsidiary of the Company, which is a registered futures commission merchant and a clearing member of all principal commodities exchanges in the United States. ADM Investor Services International, Limited, a member of several commodity exchanges and clearing houses in Europe. ADMIS Hong Kong Limited and ADMIS Singapore Pte. Limited, are subsidiaries of the Company offering broker services in Europe and Asia.
Captive insurance includes Agrinational Insurance Company (Agrinational) and its subsidiaries. Agrinational, a subsidiary of the Company, which provides insurance coverage for certain property, casualty, marine, credit and other miscellaneous risks of the Company. Agrinational also participates in certain third-party reinsurance arrangements and retains a portion of the crop insurance risk written by ADM Crop Risk Services, a subsidiary. ADM Crop Risk Services is a managing general agent, which sells and services crop insurance policies to farmers.
Compagnie Industrielle et Financiere des Produits Amylaces SA (Luxembourg) and affiliates, in which the Company holds interest, is a joint venture. Luxembourg targets investments in food, feed ingredients and bioproducts businesses.
Archer Daniels Midland Co
4666 E Faries Pkwy
DECATUR IL 62526-5630
Company Web Links
- BRIEF-Archer Daniels Midland purchases assets of Caterina Foods
- BRIEF-Wilmar International Ltd and ADM receive approvals for Olenex joint venture
- BRIEF-Archer Daniels Midland announces pricing of $1 bln of 2.50 pct notes due 2026
- BRIEF-Archer Daniels Midland sets cash dividend of $0.30 per share
- BRIEF-Archer Daniels expects capital expenditures of $1 bln during 2016