ADM and QLF form liquid feed joint venture
Archer Daniels Midland Company (ADM) and Quality Liquid Feeds, Inc. (QLF) have announced a 50-50 joint venture between both companies for the production and sales of liquid feed supplements for livestock.
Called "Alliance Liquid Feeds", the joint venture includes the Loomix® brand and four liquid feed production facilities formerly owned by ADM, in Twin Falls (Idaho), Billings (Montana), Fremont (Nebraska) and Johnstown (Colorado).
Alliance Liquid Feeds will serve portions of the Western US. QLF will remain under the ownership of the Berg family and continues to market liquid feed supplements out of their 12 facilities in the Midwest, East and Southwest US.
"One of the ways we are increasing earnings power at ADM is by partnering with other great companies," said Brent Fenton, the president of ADM Animal Nutrition. "In this case, we're joining with a strong partner in QLF, which allows us to expand our capabilities while simultaneously reducing the capital we have invested in the liquid feed business."
"Customers will benefit from the combined expertise, resources and efficiency of the joint venture, and our shareholders will benefit from the improved returns we expect from the business," Fenton added. "By combining resources, we expect to see significant advancements in operational efficiencies, from capital reduction to supply chain enhancements to sales / margin improvements."
According to Cory Berg, QLF's CEO, Alliance Liquid Feeds will allow the company to penetrate markets that QLF had set its sights on for several years. In addition, the joint venture will benefit from QLF's expertise and 38 years of experience in the daily production and supply of liquid feed.
"The joint venture provides us a strong partner in ADM, with its overwhelming supply of ingredients, experience and knowledge in supply chain management, research, and industry connections," Berg commented.
