June 19, 2008

ADM to restart Iowa corn processing plant as flood recedes

Agricultural-processing company Archer-Daniels-Midland Co. (ADM) plans to restart its corn processing plant in Cedar Rapids, Iowa as flood waters recede, a company official said Wednesday (June 18, 2008).

"We expect our plant to maybe start up sometime here in the next 7-10 days," said John Rice, ADM Commercial and Production's executive vice-president.

Speaking at the Deutsche Bank Global Consumer and Food Retail Conference in Paris, Rice said currently the company did not foresee any shipment problems of its high fructose corn syrup.

Tuesday competitor Cargill Inc. declared force majeure on some corn syrup contracts due to the closure of its Cedar Rapids plant.

Rice said ADM is currently making corn syrup shipments from other plants and increasing output at those locations.

Flooding has wreaked havoc in the US Midwest over the past week, with Cedar Rapids especially hit.

ADM is likely to delay its crop surveys for two weeks due to extensive flooding in the state.