ADM (company)

Archer Daniels Midland logo

Archer Daniels Midland Company (ADM) is a global food processing and commodities trading corporation headquartered in Chicago, Illinois. The company operates more than 270 plants and 420 crop procurement facilities worldwide, where cereal grains and oilseeds are processed into products used in the food, beverage, nutraceutical, industrial, and animal feed markets worldwide.

History

ADM was founded in Minneapolis, Minnesota, in 1902 by George A. Archer and John W. Daniels, initially focusing on the linseed oil business. Over the decades, ADM expanded its operations through acquisitions and by diversifying into various agricultural processing and manufacturing sectors. Notably, in the late 20th century, ADM was involved in a high-profile price-fixing scandal, which led to significant legal and structural changes within the company.

Operations

ADM's operations are divided into four main segments: Carbohydrate Solutions, Nutrition, Oilseeds, and Origination. These segments encompass a wide range of products and services, including the processing of corn, wheat, and cocoa, manufacturing of vegetable oil and protein meal, and the production of ingredients for food and animal feed.

Carbohydrate Solutions

This segment converts corn and wheat into products such as sweeteners, starches, and biofuels. ADM is one of the world's largest corn processors.

Nutrition

The Nutrition segment focuses on providing ingredients and flavors for foods and beverages, as well as health and wellness products. This includes a wide variety of plant-based proteins, natural flavors, and probiotics.

Oilseeds

ADM processes oilseeds such as soybeans, cottonseed, canola, and sunflower seeds into oils and meals for food, animal feed, and industrial uses. It is a leading producer of soybean oil and meal.

Origination

The Origination segment sources, transports, and markets agricultural commodities and products. This includes the procurement of grains and oilseeds from growers and the transportation of these commodities to processing facilities and end users.

Sustainability

ADM is committed to sustainability practices, focusing on reducing its environmental footprint, promoting responsible sourcing, and enhancing the well-being of the communities in which it operates. The company has set ambitious goals to reduce greenhouse gas emissions, improve water stewardship, and ensure sustainable sourcing of its key commodities.

Controversies

In the 1990s, ADM was involved in a lysine price-fixing scandal, which resulted in the company pleading guilty to antitrust violations and paying fines of more than $100 million. The scandal also led to the implementation of stricter compliance and ethics programs within the company.

See Also

• Agriculture in the United States
• Food industry
• Commodity market