ADM Acquires 2 Oilseeds Processing Facilities in Brazil

Moving to grow its foothold in Brazil’s meal and bottled oil markets, American agribusiness Archer Daniels Midland (ADM) announced plans Thursday to acquire two oilseeds processing plants in the South American country from Algar Agro. 

Located in the state of Minas Gerais, the Uberlândia facility has a grain storage capacity of 180,000 tn and a crush rate of 1800 tn/day, according to the Brazilian company’s website. Algar Agro’s Porto Franco site in the state of Maranhão has a crush capacity of 1600 tn/day and 60,000 tn of grain storage. 

“The acquisition of Algar Agro’s crush and refinery plants in Minas Gerais and Maranhão strengthens our position in key Brazilian demand regions, and continues our strategic global growth,” Greg Morris, senior vice president at ADM and president of the firm’s Oilseeds unit, said in a company press release. 

The agreement between the two firms transfers ownership of the plants to ADM and gives the American company access to storage silos and local producers in the eastern half of Brazil. 400 employees of Algar Agro will be transferred to ADM. 

“Demand for meal and bottled oil in the northeast and southeast regions of Brazil continues to grow, and we are excited to expand our capabilities there,” Domingo Lastra, ADM president of South America, said in a statement. “We’re looking forward to working with the great Algar Agro team, not to mention customers throughout both regions, as we continue to provide the highest quality meals and oils.”

Established in 1978, Algar Agro is the agriculture and food-related division of Grupo Algar. In addition to the company’s two plants, it also operates 17 warehouses in grain production areas, according to the company’s website. 

The deal is subject to regulatory approval in Brazil. ADM said it expects the transaction to reach completion by the end of 2018. 

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