USA- Archer-Daniels-Midland Company (ADM), a leading global agricultural processor, is strategically positioned to meet the increasing demand for soybeans, according to CEO Juan Luciano.
Speaking at a recent event, Luciano emphasized the company’s commitment to sustainability and traceability in its supply chain, especially as new European Union regulations on deforestation loom.
ADM’s recent initiatives have successfully shipped 2.4 million bushels (approximately 64,000 metric tons) of verified, fully traceable U.S. soybeans to Europe.
This milestone marks the completion of the initial phase of a pilot program to ensure that U.S. soybeans meet evolving market demands and regulatory requirements.
“At ADM, our future and success depend on the farmers we work with and for,” Luciano stated, highlighting the company’s dedication to supporting agricultural producers.
The pilot program is particularly timely as the EU’s new deforestation regulations are set to take effect at the end of this year.
These regulations require businesses to demonstrate that their supply chains do not contribute to deforestation.
In anticipation, ADM plans to expand its traceable soybean program to additional locations across North America for the 2024 growing season.
“This program demonstrates the value of ADM’s global footprint and our investments in climate-smart agriculture,” said Matt Hopkins, ADM’s vice president of North America River and Export.
During the event, Luciano addressed the challenges posed by the upcoming regulations, acknowledging the complexities of compliance.
“While there are still issues to work through regarding how full compliance will be defined and enforced, we are confident in our ability to continue delivering to customers in Europe,” he remarked.
This confidence stems from ADM’s extensive network and expertise in agricultural supply chains, which allows the company to adapt to changing market conditions.
The traceable soybean initiative is part of ADM’s broader strategy to achieve 100% deforestation-free supply chains by 2025.
This ambitious goal aligns with the company’s commitment to sustainability and responsible sourcing.
The program utilizes advanced technology, including the FBN’s Gradable digital platform, to verify and trace soybeans from farms to their final destinations.
Looking ahead, ADM is preparing for potential fluctuations in the global soybean market. Luciano noted that Argentina, a key player in soybean production, is expected to face shortages by November, which could impact global supply dynamics.
“We continue to expect vegetable oil demand growth from renewable diesel and low single-digit soybean meal demand growth to support structural margin improvement,” he explained.
In addition to addressing supply chain challenges, ADM focuses on financial performance. The company recently reported its fourth-quarter earnings and guided 2024, anticipating adjusted earnings per share to range between US$5.25 and US$6.25, reflecting moderating margin conditions.
Despite these challenges, ADM remains committed to its strategic objectives and enhancing its position in the global agricultural market.
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