Archer Daniels Midland Co. is smoothly progressing on its three strategic pillars — optimize, drive, and growth. The company is managing productivity and innovation and aligning work to the interconnected trends in food security, health, and wellbeing. ADM is well-poised for sustainable long-term profit growth across new avenues.
In the latest developments, the company announced shipping its first vessels of verified, wholly-traceable soybeans from the United States to Europe. After the initial phase of the program is complete — along with the anticipation of the new EU deforestation regulations effective at the end of the year — the company plans to expand these capabilities to other important locations in North America in the growing season.
The company’s traceable soybean program shows that it is an outgrowth of its International Sustainability & Carbon Certification (ISCC) certified bean program. This uses cutting-edge technology like FBN’s Gradable digital platform and Archer Daniels’ origination and transportation facilities to verify, trace, and separate participating beans from farms to their final destination.
In its successful pilot, the company delivered 2.4 million bushels (64,000 metric tons) of such traceable soybeans to European customers last year. Moving ahead, ADM plans to widen the program to additional North American locations this year with the opportunity for farmers to continue participating in existing and new global markets that generate higher value and preference for crops.
This program, in addition to the company’s comprehensive plan to accomplish 100% deforestation-free supply chains by 2025, highlights the value of Archer Daniels’ irreplaceable global presence and investments in climate-smart and regenerative agriculture.
What’s the Buzz?
Detailing its strategic pillars, under the optimize pillar, the company revealed plans to expand alternative protein capabilities in Decatur, IL, and starch production in Marshall, MN. The company concluded its alternative protein expansion in Serbia. As part of the company’s optimizing pillar, it continues to adapt to consumers changing nutritional preferences.
Under its drive pillar, the company continues to adapt its organizational structure to meet operational excellence and set goals. Per the growth strategy, the company is looking to expand its footprint in fast-growing alternative protein. ADM inked an agreement with Benson Hill to process and commercialize a portfolio of proprietary ingredients derived from their ultra-high protein soybeans.
ADM Price and Consensus
Archer Daniels Midland Company price-consensus-chart | Archer Daniels Midland Company Quote
In response to growing trends for all things sustainable, the company has been making efforts to expand its solutions portfolio, which forms part of its Carbohydrate Solutions unit. It collaborated with LG Chem to produce lactic and polylactic acids for bioplastics, which are plant-based products.
The company also launched Biosolutions to expand its portfolio of sustainable higher-margin solutions, particularly for pharmaceuticals and personal care markets. Such endeavors are likely to generate 10% revenue growth annually. This Zacks Rank #3 (Hold) company’s shares have increased 2.5% in the past three months versus the industry’s 7.7% decline.
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