Introduction
Table of Contents
Archer Daniels Midland (ADM) is one of the world’s largest agricultural processors and food ingredient providers, with approximately 31,000 employees serving customers in approximately 170 countries. With a global value chain that includes more than 460 crop procurement locations, 320 food and feed ingredient manufacturing facilities, 40 innovation centers, and the world’s premier crop transportation network, ADM helps connect the harvest to the home in more than 160 countries.
Archer Daniels Midland is an agricultural processing company that converts crops into products used by businesses.
Archer Daniels Midland (ADM) is a global leader in the food, beverage and feed industries. They process crops into products used by businesses across the globe.
The company’s business is divided into four main operating segments:
Archer Daniels Midland’s business is divided into four main operating segments: oilseeds processing, corn milling and feed ingredients, livestock production and food ingredients. Oilseeds processing accounts for the largest share of revenue at $12 billion in 2018. It creates vegetable oil and protein meal for animal feed, as well as oils for use in human foods such as baked goods or salad dressing. Corn milling and feed ingredients is the second-largest segment by revenue at $9 billion, producing corn sweeteners (a type of sugar), starch used in industrial products like adhesives or paper coatings; other specialty starches are also produced here as well as ethanol–fuel made from fermented corn kernels–and high fructose corn syrup used to sweeten soft drinks. The livestock production segment–which includes pork slaughtering facilities–makes up about 10 percent of total revenues at about $1 billion per year. This segment also sells live animals to farmers who raise them to be slaughtered later on site
- Oilseeds processing–which creates vegetable oil and protein meal for animal feed–is the largest by revenue. It includes crushing facilities; origination and preparation offices that buy, store, transport, and sell oilseeds; corn processing plants; biodiesel facilities; and other operations.
- Grain processing generates about one third of ADM’s sales but accounts for more than half of operating income because it has higher margins than other segments. It consists of ethanol production (in which ADM produces high fructose corn syrup); starch manufacturing (in which ADM makes dextrose, maltodextrin, modified food starch); flour milling (in which ADM produces a variety of specialty flours); rice milling (in which ADM produces white rice flour); soybean processing (which produces edible soybeans in addition to vegetable oils used primarily in food products like margarine); milling technology services related to all its businesses; research into novel ingredients such as high-oleic oils from various sources including non-genetically modified rapeseed or camelina seeds; carbon black from fossil fuels used in tire manufacturing processes; as well as egg products through its subsidiary Quality Egg LLC.
- Agricultural services operates grain elevators; buys and sells grains, oilseeds, and other commodities; transports crops by railcar, truck, barge and ship; stores crops at facilities around the world; conducts risk management activities for customers using futures, options, swaps, and other contracts; and provides financing to farmers.
- The company’s subsidiary Corn Products International LLC produces high-fructose corn syrup (HCFS). It also makes dextrose from corn starch for use in foods. In addition to HFCS and dextrose products it also produces bulk sweeteners such as glucose syrups which are sold as a raw material for other food manufacturers such as bakers or candy makers who want to add sweetness without adding calories or fat into their product mix.
- Corn processing produces sweeteners for use in soft drinks (high fructose corn syrup) as well as ethanol fuel additives.Corn processing is a large part of the business, but it is still only the second largest segment (behind animal feed). This means that Archer Daniels Midland is diversified and has many different opportunities to grow. Corn processing also does not depend on one single crop or market, so it’s much more stable than many other businesses out there.
- Other operations include cocoa processing plants in Europe and oilseed processing plants throughout the world. As you can see, cocoa processing plants in Europe are part of the other operations segment of Archer Daniels Midland.
Conclusion
Archer Daniels Midland has a diversified business model that relies on converting agricultural products into finished goods that are useful to other businesses. This business model requires large-scale manufacturing facilities and extensive supply chain management. It also requires the company to constantly look for emerging trends that might impact its operations, such as the rising price of oil, which could lead to higher prices for its vegetable oil.
Also Read More Articles Below:
English 