Home > Our Responsibility > 2009 Corporate Responsibility Report > Supply Chain Integrity > Safeguarding the integrity of our sugar supply chain

During our 2009 fiscal year, ADM announced a joint venture with Brazil’s Grupo Cabrera to produce sugar and ethanol from sugarcane. The partnership combines ADM's expertise in ethanol production, logistics and marketing with Cabrera's extensive knowledge of sugarcane agriculture and production to help meet the Brazilian market’s growing demand for both sugar and renewable fuels. The joint venture will comprise two processing complexes, each consisting of a sugarcane plantation, a sugar mill with 3 million metric tons of annual crush capacity, an ethanol distillery and a biomass-powered cogeneration facility to provide electricity and steam.

Adding this new feedstock to our raw materials supply chain, ADM launched a thorough review of our sugarcane sourcing arrangements in partnership with Business for Social Responsibility. ADM previously worked with BSR on reviews of the Company’s corn, soy and palm supply chains.

The sugarcane review will consist of an analysis of environmental and social risks and opportunities related to sugarcane production and processing in Brazil, and a plan for addressing risks appropriately and effectively. ADM and BSR also will formulate a draft set of supplier guidelines specific to sugarcane and a framework to integrate these supplier guidelines into our business as seamlessly as possible. The project is slated for completion in 2010.

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