USA – Archer Daniels Midland Company (ADM) has announced the creation of a new business unit called Ag Services & Oilseeds, which combines ADM’s Origination and Oilseed business operations in a bid to accelerate growth through value creation.
The new business unit will begin operation on July 1, led by Greg Morris, formerly president, Oilseeds for ADM.
The move is part of the company’s efforts to create a simpler organisational structure to address business operational challenges in some of the markets.
According to the company, the reorganisation will enable it better to integrate the supply and value chains to deliver significant simplification and efficiency to the day-to-day business.
“ADM’s ability to provide value through the entire supply chain – from origination to processing to transportation to ingredients and solutions – is what sets us apart from others in the industry,” said Chairman and CEO Juan Luciano.
“Bringing the unparalleled strength of our global origination, global trade and destination marketing businesses and our transportation network together with our leadership in oilseeds processing and value-added product mix is a natural evolution.
“I am personally committed to the strategic value that simplification can bring to our organization and feel our ability to accelerate purposeful value creation within ADM has never been greater.”
Last year, ADM unveiled a new business structure to help drive growth in the global grain market.
The company separated its operations into four units: Carbohydrate solutions, nutrition, oilseeds and origination.
The restructuring is expected to give the company greater capacity to differentiate its product portfolio, drive innovation and evolve to meet changing consumer demands.
Agricultural commodities giants are restructuring to address factors such as low crop prices and other market challenges including the prolonged US-China dispute which has stifled global trade.
In the first quarter of the year, ADM reported a 40% decline in net earnings impacted by severe drought in North America while the company’s operating profit dropped by approximately US$50 million during the quarter.
The restructuring includes relocation of its sales and commercial staff members at its milling division to its headquarters in Illinois.