USA – Soybeans continue to see strong demand across the food, feed, and fuel sectors, and ADM is positioning itself to capitalize on the global market, according to Juan Luciano, the company’s chairman, president, and chief executive officer.
Speaking at the Barclays 17th Annual Global Consumer Staples Conference in Boston on Sept. 3, Luciano highlighted ADM’s Ag Services and Oilseeds business as being well-prepared to supply both soybean meal and oil to meet the growing global need for affordable, sustainable, and traceable protein and energy.
In the second quarter that ended on June 30, ADM’s Ag Services and Oilseeds segment experienced a 56% decline in operating profit, falling to US$459 million from US$1.05 billion the previous year.
Luciano attributed the drop to reduced soybean crush margins, impacted by what he described as a “rebalancing of supply and demand” and reduced selling from farmers.
Despite the dip in profit, Luciano expressed confidence about the remainder of the year, pointing to a robust U.S. soybean crop and anticipated international demand for soybean meal.
Luciano also noted that global inflation is leading more consumers to opt for lower-cost protein sources like chicken, as population growth drives protein consumption.
U.S. consumers currently consume around 280 pounds of protein per year, while Chinese consumers average 180 pounds and the global average is 80 pounds, offering significant room for growth, he said.
In November 2023, ADM and Marathon Petroleum Corp. began operations at their joint venture soybean processing facility, Green Bison Soy Processing, in Spiritwood, North Dakota.
The plant supplies soybean oil as a feedstock for renewable fuel production.
The following month, ADM announced plans to expand crush capacity at three of its oilseed processing plants in Brazil by 400,000 tonnes, furthering its commitment to strengthening its role in the global soybean market.
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