Archer Daniels Midland Company Thursday announced plans to invest in sustainable palm production in Brazil. Spread over five years, the ADM investment will encompass approximately 12,000 hectares of palm production in the state of Para and include the construction of a palm processing plant.

Construction of the processing plant is expected to begin in 2013, with operations commencing in 2016.

ADM Chairman, CEO and President Patricia Woertz, said the firm’s strategy for profitable growth is to expand the size and global reach of its origination and processing assets. This investment adds a new crop to ADM’s value chain in Brazil and diversifies its feedstock options for biodiesel production in the country, he said. At the same time, it supports ADM’s commitment to sustainability in terms of both agricultural production and the livelihoods of farm families in Brazil, added Woertz.

ADM's sustainable palm and biodiesel production will also be part of Brazil's Social Fuel Stamp program that provides incentives for biodiesel producers to purchase feedstock from small family farms. As part of this program, ADM will contract with approximately 600 family farms for 6,000 hectares of palm production and provide them with technical assistance focused on sustainable agricultural practices.

Domingo Lastra, president of ADM do Brasil Ltda, said the Brazilian government is committed to promoting sustainable agricultural development that not only helps meet the growing energy demands of the country, but also improves the livelihoods of thousands of farm families through the Sustainable Fuel Stamp program. As such, ADM’s investment in sustainable palm production will positively impact the lives of more than 3,000 people through higher farm incomes, he said.

ADM began operations in Brazil in 1997 after purchasing soybean processing plants in Rondonopolis, Campo Grande, Joacaba, Tres Passos and Paranagua. In 2002, ADM opened a fertilizer blending facility in Rondonopolis; in 2007, the company began biodiesel production in Rondonopolis; and in November 2010, ADM announced plans to construct a biodiesel plant adjacent to its existing oilseed operations in Joacaba.

Today, ADM has more than 3,000 employees in Brazil and is the largest domestic soybean meal supplier, second largest soybean crusher and second largest producer of bottled oil, with 21 percent of Brazil's bottled oil market. The company is also the largest soybean meal exporter, the second largest exporter of soybeans and the Brazilian economy's sixth largest exporter overall. ADM currently operates 42 grain elevators in Brazil.

10 Feb 2011