ADM Outlines Growth Strategy at CAGNY Conference
Chairman, CEO and President Patricia Woertz said growth strategies for each of ADM’s four business units seek to leverage ADM’s current geographic footprint and expand to capitalize on future market opportunities.
17 Feb 2010 --- In a presentation to the annual meeting of the Consumer Analyst Group of New York, executives of Archer Daniels Midland Company outlined the Company’s strategy for growing its business through a combination of increasing its overall volume, expanding its geographic footprint, diversifying its inputs, and growing its product portfolio.
Chairman, CEO and President Patricia Woertz said growth strategies for each of ADM’s four business units seek to leverage ADM’s current geographic footprint and expand to capitalize on future market opportunities.
Woertz noted that ADM has a leadership position in oilseeds processing in North America and Western Europe, and a smaller processing position in South America, where the Company is a leading originator of soybeans. She said, “Our strategy is to grow in South America, Central and Eastern Europe and in India. We will also grow in China with our strategic partner in the region.”
She continued, “We are the world’s largest corn processor, with primarily U.S.-based operations. We will increase the diversity of our product portfolio, and over the longer term, develop a global processing business using a variety of carbohydrate sources.”
And she said, “ADM is a world leader in the origination and transportation of grains and oilseeds. Our strategy here is to extend our origination footprint as we have in Canada and Eastern Europe, and to grow our destination opportunities in the Middle East, Asia and Africa.”
Steve Mills, executive vice president and chief financial officer, detailed ADM’s recent activities to fulfill those growth strategies.
Mills said that the Company’s oilseeds business has consolidated operations into more efficient processing facilities, expanded North and South American oilseed crushing capacities, expanded South American fertilizer blending capabilities, and acquired processing plants in Germany and Czech Republic.
In the corn business, Mills explained, ADM has expanded ethanol production capacity by adding a dry corn mill, ethanol capacity at a wet corn mill, and a joint-venture sugarcane ethanol facility in Brazil. The Company has also built two cogeneration plants that will reduce energy costs. And construction continues at a propylene and ethylene glycol plant and a bioplastics plant.
Woertz also discussed steps ADM is taking to build a stronger company. “We are focused on four corporate priorities—Safety, Performance, Cost Management and Sustainability—and we are making important progress in each area.”
She noted five years of continuous improvement in lost workday incidents, a revised pay-for-performance compensation structure that aligns management compensation with stockholder interests, a cost-management program, and the formation of sustainability working groups to coordinate the Company’s efforts around water use, climate change and supply chain management.
