November 4, 2010

ADM to construct biodiesel facility in Brazil's Joacaba

Archer Daniels Midland Company announced today that it will construct a second biodiesel plant in Joacaba, Santa Catarina, Brazil, which will be adjacent to the existing ADM soy crushing and refining facilities.

With an annual biodiesel production capacity of 164,000 tonnes, the plant will increase ADM's biodiesel capacity in Brazil by more than 50%. Construction will begin in March of 2011 and is expected to be completed during the first half of 2012.

"We see exciting opportunities for ADM within the Brazilian biodiesel industry. With strong support from the government, biodiesel is poised to play an increasing role in meeting Brazil's growing demand for renewable fuels. By locating the plant adjacent to our Joacaba soy operations, we're able to leverage our origination, transportation and processing assets," said Patricia Woertz, chairman, chief executive officer and president of ADM.

The Joacaba biodiesel plant will be constructed next to ADM's soy crushing facility and vegetable oil refinery. Acquired from Sadia in 1998, these operations can currently process nearly 475,000 tonnes of soy and can refine approximately 73,000 tonnes of soyoil annually. Once the biodiesel plant is operational, the facility is expected to increase the oil refinery capacity to nearly 110,000 tonnes per year.

"Brazil has been a global leader in creating a robust domestic renewable fuels industry that supports both social and environmental goals. And the recent implementation of 5% biodiesel blends in 2010 – three years ahead of schedule – demand for biodiesel in Brazil continues to grow. With the Joacaba biodiesel plant and our facility in Rondonopolis, ADM will play an important role in meeting that demand," said Domingo Lastra, president of ADM do Brasil Ltda.

This will be the first biodiesel plant in the state of Santa Catarina, which boasts an ample supply of soy produced mainly by small family farms.

ADM in Brazil ADM began operations in Brazil in 1997, after purchasing soy processing plants in Rondonopolis, Campo Grande, Joacaba, Tres Passos and Paranagua. In 2002, ADM opened a fertiliser blending facility in Rondonopolis, and in 2007, the company began biodiesel production in Rondonopolis.

Today, ADM has more than 3,000 employees in Brazil and is the largest domestic meal supplier, second largest soy crusher and second largest producer of bottled oil, with 21% of Brazil's bottled oil market.

ADM owns or leases grain elevators in seven states, including 20 in Mato Grosso, five in Mato Grosso do Sul, six in Goias, eight in Minas Gerais, one in Brasilia, one in Bahia and two in Sao Paulo. In addition to five soy processing facilities and its Rondonopolis biodiesel plant, ADM also operates a cocoa processing facility in Ilheus, Bahia, and three fertiliser blending plants - one in Catalao, one in Paranagua and one in Rondonopolis.

ADM has a partnership with Alianca Da Terra, a leading advocate for sustainability, to encourage Brazilian soy growers to adopt sustainable farming practices, and is a member of the Roundtable on Responsible Palm Oil, which works to promote the growth and use of sustainable palm oil.