Tag Archives: ADM

Pipeline Foods LLC, an organic, non-GMO company, has acquired a grain elevator in Iowa. In a company news release, Pipeline Foods announced it has signed a purchase agreement to buy the facility from Archer Daniels Midland Company and is making capital investments in new equipment and improvements needed to upgrade the elevator to test, clean, grade, dry, store and ship organic grains.

The Atlantic, Iowa facility has a capacity of 3.4 million bushels. ADM will continue its conventional soybean origination at the site through segregated operations. Pipeline Foods CEO Eric Jackson said the facility will “increase organic supply chain efficiency and transparency.” Pipeline Foods says Atlantic, Iowa is uniquely located in the heart of the western corn belt, “at the nexus of major truck and rail routes.”

The elevator will be open for operation in mid-September and will accept its first organic grain deliveries shortly after that. This is the sixth organic processing facility operated by Pipeline Foods in the U.S. and Canada.

MINNEAPOLIS, — Pipeline Foods LLC ( https://www.pipelinefoods.com/ ), the first U.S.-based supply chain solutions company focused exclusively on organic, non-GMO and regenerative food and feed, has announced the acquisition of a 3.4 million bushel grain elevator in Atlantic, Iowa, USA.

Pipeline Foods has signed a purchase agreement to buy the facility from Archer Daniels Midland Company (ADM) and is making capital investments in new equipment and improvements needed to upgrade the elevator to test, clean, grade, dry, store and ship organic grains. ADM will continue its conventional soybean origination at the site through segregated operations.

“This acquisition is a key component in Pipeline Foods’ mission to increase organic supply chain efficiency and transparency,” said Eric Jackson, chief executive of Pipeline Foods. “In owning and operating another facility dedicated to organic grains and oilseeds, Pipeline Foods will have a direct relationship with farmers in the region, helping to ensure identity preservation of the product and allowing us to take ownership at the farm gate, thereby increasing transparency and traceability for all stakeholders.”

This investment is positioned to support the growing demand from protein producers for U.S.-grown organic grains. Atlantic is uniquely located in the heart of the western corn belt, at the nexus of major truck and rail routes. This will allow the Pipeline Foods merchandising team to originate organic grain from Iowa and the surrounding states, and improve logistical efficiencies when serving customers on both coasts via the Iowa Interstate Railroad with connections to all Class I major rail lines.

“We’re pleased to be able to partner with Pipeline Foods, and look forward to continuing to work with our local farmer partners to source conventional soybeans in and around the Atlantic area,” said Pete Goetzmann, regional vice president, ADM Grain.

The Atlantic elevator will be open for operation in mid-September and will accept its first organic grain deliveries shortly thereafter. With the completion of the acquisition, Pipeline Foods will operate six organic processing facilities in the U.S. and Canada.

CHICAGO—Archer Daniels Midland Company (NYSE: ADM) announced today that it has reached an agreement to purchase certain assets of Brazil-based Algar Agro, including oilseeds processing facilities in Uberlândia in the state of Minas Gerais, and Porto Franco in Maranhão.

“ADM is already the most diversified oilseeds processor in the world, and now we are once more expanding our capabilities to help meet growing global demand,” said Greg Morris, senior vice president and president of ADM’s Oilseeds business. “The acquisition of Algar Agro’s crush and refinery plants in Minas Gerais and Maranhão strengthens our position in key Brazilian demand regions, and continues our strategic global growth. We’ve recently launched our new oilseeds joint venture with Cargill in Egypt, and we have completed several enhancements to our European and North American processing operations. With the addition of these new plants in Brazil, we are further enhancing and strengthening our global network at a time when both the near- and long-term outlook for global meal demand continues to be strong. We’re excited about this bolt-on acquisition, and about all of the actions we are taking to deliver on our strategic plan to enhance shareholder value.”

Under the terms of the deal, ADM will become owner of integrated crush and oil refining/bottling facilities in Uberlândia and Porto Franco. ADM will also gain access to an extensive network of origination and storage silos throughout northeastern and southeastern Brazil.

“Demand for meal and bottled oil in the northeast and southeast regions of Brazil continues to grow, and we are excited to expand our capabilities there,” said Domingo Lastra, ADM’s president, South America. “We’re looking forward to working with the great Algar Agro team, not to mention customers throughout both regions, as we continue to provide the highest quality meal and oils.”

“This deal represents an important step towards the implementation of Algar Group´s portfolio and capital allocation strategy,” said Luiz Alexandre Garcia, CEO, Algar Group. “In the Agribusiness sector, we are exiting the soybean crushing and trading segment and focusing on grains production (Algar Farming). We also are strengthening our position in the Information & Communications Technology (Algar Telecom and Algar Tech), Tourism & Entertainment (Rio Quente Resorts and Costa do Sauipe) and Renewable Energy sectors (Alsol). We firmly believe that ADM was the best partner to engage with and execute this transaction, given the long term relationship we have with ADM and its distinctive capabilities and leadership in the Agribusiness sector.”

ADM’s current Oilseeds operations in Brazil include soy processing plants in Rondonópolis, Campo Grande, Ipameri, Joaçaba and Uberlândia; a sunflower plant in Campo Novo dos Parecis; biodiesel refineries in Rondonópolis and Joaçaba; and a network of storage facilities with a total capacity of 2.2 million metric tons. The company produces and sells the Concórdia™, Corcovado™ and Vitaliv™ brands of cooking oils.

The deal, which requires Brazilian regulatory approval, is expected to close by the end of the year. When the transaction is complete, Algar Agro’s approximately 400 employees will transfer to ADM.

Forward-Looking Statements

Some of the above statements constitute forward-looking statements. ADM’s filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, ADM assumes no obligation to update any forward-looking statements.