November 9, 2006

 

ADM outlines strategy for growth in bio-energy and agricultural processing
 

Press release
 

 

Archer Daniels Midland Company (ADM) has outlined its strategy to be the global leader in bio-energy while expanding its premier position in the agricultural processing value chain. 

 

"ADM is uniquely positioned at the intersection of the world's increasing demands for both food and fuel," said Patricia Woertz, ADM CEO and president.  Woertz added that as one of the world's largest agricultural processors and the biggest bio-fuels producer in the world, ADM was in a position to capitalise on the "exceptional opportunity ahead." 

 

The ADM leadership team recently made presentations to financial analysts in Chicago, US. "We are implementing a strategic programme that will drive both long-term growth and returns by capitalising on our global strengths and the changing dynamics of global energy and food markets," Woertz said.

 

Woertz commented that ADM was distinguished by five global core strengths: its origination, storage and transport operations across the supply chain; its global agricultural processing footprint; the company's diversified product portfolio; ADM's experienced management team; and its financial strength to manage for returns and growth through business cycles.

 

"We have identified three strategic areas that offer the highest potential for significant, value-added growth: expansion of the geographic scope of our core model, diversification of our feedstocks and growth of the bio-energy business," stated Woertz. "Technology and innovation are key to driving growth in these areas."

 

Woertz also announced that the company is considering expansion of its origination presence in palm in Indonesia, sugar in Brazil and other carbohydrates around the world for production of bio-fuels.  

 

ADM reaffirmed its commitment to the future of ethanol and to investment in research and development surrounding feedstocks such as biomass crops. Bio-energy plans that were already announced include expansion of bio-diesel production capacity in the US, Brazil and Germany, as well as a 50 percent increase in US ethanol production capacity.

 

ADM is also considering growing its processing investment in China and increasing origination capacity in Brazil.

 

Woertz said ADM's growth strategy and ongoing operations would be supported by strategic focus areas and management initiatives to align people, processes and investments toward achieving the company's goals. The initiatives include: capital investment screening, project management, performance metrics, development milestones, and performance-based compensation.  

 

Woertz closed her presentation, "We have shared with you the opportunities we see in our key agricultural feedstocks, in the bio-fuels we produce and in the global infrastructure that gives us competitive distinction and underpins our unique positioning for the future."

 

Archer Daniels Midland Company is a world leader in bio-energy and has a premier position in the agricultural processing value chain. ADM is one of the world's largest processors of soybeans, corn, wheat and cocoa, and a leading manufacturer of bio-diesel, ethanol, soybean oil and meal, corn sweeteners, flour and other value-added food and feed ingredients. Headquartered in Decatur, Illinois, ADM has over 26,000 employees, more than 240 processing plants and net sales for the fiscal year ending Jun 30, 2006 of US$37 billion. Additional information can be found on ADM's website at: http://www.admworld.com/