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Advancing our Profitable Growth Strategy

With growing global protein demand, we continued to position our company for the future by building our oilseeds origination and processing capacity through acquisitions, plant expansions and new capital projects in key European and South American growth regions.

We acquired an oilseed crushing and refining operation and biodiesel production facility in Olomouc, Czech Republic. This acquisition complements our existing central European softseeds processing assets and enables us to better serve the region’s demand for protein meal and vegetable oil. We are currently expanding the Olomouc plant’s capacity, and are undertaking similar expansions at our oilseeds operations in both Hamburg and Straubing, Germany.

In South America, we announced expansions of our crush capacity and fertilizer blending capabilities, and we increased our biodiesel production output with additions to our Rondonopolis, Brazil, plant. Our crush capacity on the continent will grow more than 25 percent when construction of a plant capable of processing 3,300 metric tons of soybeans per day in Villeta, Paraguay, is complete in 2012. Because the plant will be located next to an ADM fertilizer blending plant and will benefit from proximity to a port facility on the Paraguay River, it will increase local crop origination and export capacity and allow us to import fertilizer components more cost-effectively.

In our Corn Processing business unit, greater processing volumes, reduced operating costs and the increasing diversity of our product portfolio are driving growth. In 2010, we commenced operations at our new ethanol plants in Columbus, Nebraska, and Cedar Rapids, Iowa. Production at our Clinton, Iowa, renewable plastics plant is now under way, and our propylene glycol operation in Decatur, Illinois, is projected to be online by the end of the 2010 calendar year.

In Agricultural Services, we continued expanding our global transportation capabilities with the acquisition of seven dry-bulk vessels—affording ADM the option of using its own assets to cost-effectively transport our products to any port, anywhere in the world. We improved our ability to transport both raw materials and finished products along South America’s inland waterways by adding origination assets, barges and tugboats. And we are continuing to expand destination-market opportunities in the Middle East, Asia and Africa while growing our crop origination capacity in Europe and North America.

In our cocoa processing operations, which are included in our Other business segment, we opened a new cocoa plant in Kumasi, Ghana, and successfully integrated the Schokinag operations we acquired in 2009. These efforts enhance our position as a preferred supplier of cocoa and chocolate products to large food and beverage manufacturers worldwide.

At the end of the fiscal year, we announced that ADM would advance our strategy for profitable growth in China with an investment in the Agricultural Bank of China and the opening of a Beijing office. We anticipate that these strategic actions in one of the world’s fastest-growing agricultural markets will enable ADM to capitalize on growth opportunities throughout the region.


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