Archer Daniels Midland

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  • Topic: Archer Daniels Midland, Vegetable fats and oils, Agriculture
  • Pages : 6 (1913 words )
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  • Published : August 26, 2012
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Archer Daniels Midland

INDEX

Topic Page No. * About ADM - 3 * History & Evolution - 4 * Value Creation - 5 * Business Model - 6

* Strategy - 8 * Organizational Structure - 9

About ADM
The world's population is growing and along with it the demand for quality foods, livestock feed, alternative fuels, and environmentally friendly alternatives to traditional chemicals is also increasing. As one of the world's leading agricultural processing company, ADM plays a great role in meeting all of these needs. According to Forbe’s Fortune 500 Companies List of 2012, ADM is ranked 92nd . Today, 30,000 ADM employees around the globe convert oilseeds, corn, wheat and cocoa into products for food, animal feed, industrial and energy uses. With more than 265 processing plants, 400 crop procurement facilities, and the world’s premier crop transportation network, ADM helps connect the harvest to the home in more than 160 countries. They trade, transport, store and process corn, oilseeds, wheat and cocoa into products for food, animal feed, chemical and energy uses. The company turns crops, such as soybeans and corn, into renewable products with uses ranging from food to industrial. It is located in Decatur, Illinois. The Company’s operations are classified into three reportable business segments: Oilseeds Processing, Corn Processing, and Agricultural Services.  Each of these segments is organized based upon the nature of products and services offered.  The oilseed processing segment extracts oils from resources like soybeans, cottonseed, sunflower seeds, canola, peanuts, and flaxseed that can be used for food and feed products. The firm processes oilseeds and sells them in the market as raw materials for other processing. The corn processing segment transforms corn into syrup, starches, glucose, dextrose, and sweeteners. These products are mostly used in the food and beverage industry, but can also be used to produce bio-products like ethanol alcohol. The agricultural services segment utilizes the company’s grain elevator and transportation network to buy, store, clean, and transport agricultural commodities, such as oilseeds, corn, wheat, oats, rice, barley, etc. The firm resells these commodities primarily as food and feed ingredients for the agricultural processing industry.

History & Evolution
1902- George A. Archer and John W. Daniels begin a linseed crushing business. 1923- Archer-Daniels Linseed Company acquires Midland Linseed Products Company, and the Archer Daniels Midland Company is formed. Every decade since its corporate inception, ADM has added at least one major profit source to its agribusiness: milling, processing, specialty food ingredients, cocoa, nutrition, and more. 1971- Dwayne Andreas became Chief Executive Officer of ADM, and is credited with transforming the firm into an industrial powerhouse. Andreas remained CEO until 1997. He was one of the most prominent political campaign donors in the United States, having contributed millions of dollars to Democratic and Republican candidates alike. 1999- Executive Marty Andreas announced, under pressure from the European agricultural industry, they were going to separate crops into genetically modified and non-genetically modified groups to give their customers a choice. Previously the company had not disclosed their crop sources. 2001- Paul B. Mulhollem became the President of ADM. The Archer Daniels Midland Company made history by becoming the first U.S. Company to sign a contract with Cuba since the embargo against Cuba was imposed October 1960. 2006- Patricia A. Woertz became CEO. Formerly of Chevron, she is expected to focus on...
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