• Condensed by Lynda Kiernan

ADM is in Talks to Exit or Reduce Presence in Ethanol Industry

Reports are circulating that Archer Daniels Midland (ADM) is currently in negotiations with as many as five parties to execute the company’s possible partial or full exit of the ethanol industry. ADM’s total ethanol production capacity is 1.7 billion gallons per year, making it the top producer until POET unseated the company when it achieved a production capacity of 2 billion gallons.

This move reflects the negative state of the ethanol market, as ADM was a pioneer in the space, and was the first large scale ethanol producer in the U.S. From its entry into the industry in the 1970s, ADM has grown to dominate the market, producing as much as 70 percent of the ethanol made in the country, prior to farmer-owned cooperatives across the Midwest moving in to gain market share. Last month ADM shifted its three ethanol dry mills into a wholly owned subsidiary named Vantage Corn Processors, separating the assets from other ADM holdings, clearing the way for a smoother transition.

This news that ADM was planning its exit follows closely upon an announcement made by Bunge North America stating that it was selling its stake in Southwest Iowa Renewable Energy (SIRE) in Council Bluffs, Iowa, ending a 13-year ownership in the plant built between 2007 and 2009.

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Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@highquestgroup.com.

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