OUR COMPANY, OUR ROLE: Understanding ADM and FOOD For more than 100 years, Archer Daniels Midland Company has transformed farmers crops into vital food ingredients. Today, we are an international agribusiness with thousands of global customers and an abiding passion to serve vital needs.
Food: It s the heart of our business Think about your favorite meal, and there s an excellent chance that something you love about its taste, texture, nutrition or convenience comes from ingredients produced by ADM. That s because for generations, we ve processed crops such as corn, wheat, oilseeds and cocoa into a vast array of ingredients our customers use to satisfy people s desire for quality and variety in the foods they love. Whether it s savory, sweet, tart, tangy, tender, chewy, crispy, satisfying, rich or simply delicious we make the ingredients that make foods taste great. Today, many of the world s largest and best-known manufacturers of grocery staples, packaged foods, prepared meals and specialty foods rely on ADM for hundreds of essential ingredients. From the vast range of flours, shortenings, sweeteners, proteins, chocolate, cooking oils and other ingredients we provide, our customers create products that are enjoyed by billions of consumers every day. 2 our company, our role
Serving vital Needs by connecting the harvest to the hometm As a diversified, global agricultural processor, ADM serves vital needs. We connect the harvest to the home and transform farmers crops into products that serve vital needs for food and energy. Every day, millions of metric tons of crops from the most fertile growing regions of the world pass through our vast global network of crop sourcing, storage, transportation and processing assets on their way to the breakfast counters, lunch boxes and dinner tables of the world. understanding ADM and food 3
oilseeds Each day, we process soybeans, canola, sunflower seeds and cottonseeds at more than 120 facilities across North America, South America, Europe and Asia. Many of these operations are crushing plants where we separate meal from crude vegetable oil, which can be transformed into edible oils and shortenings at our oilseed refineries. From soybean meal, we make ingredients such as isolates, concentrates and flours that can add protein to a variety of foods. We also refine palm and palm kernel oil at facilities in the U.S. and Europe. corn ADM processes corn at plants located in Illinois, Iowa, Minnesota and Nebraska. Our operations include both dry mills where corn is ground, crushed and rolled for use in products such as animal feeds and ethanol fuel as well as wet mills, which steep the grain in a water mixture before separating it into four parts. We use two of the parts fiber and gluten primarily in animal feeds. The other two parts are the germ, which we process into oil; and starch, which we use to create a variety of sweeteners and other products. In all, ADM generates more than 24 different products from corn kernels. Baking & cereals ADM provides manufacturers of baked goods and cereals with flours, emulsifiers, oils and complete bakery mixes needed to produce first-quality products for discerning consumers. BevErAGES Beverage makers the world over rely on ADM for quality sweeteners, cocoa powders, and citric and lactic acids. We also supply Vitamin E, soluble soy protein and fiber supplements used in energy drinks and fortified beverages. Candy & confectionery Confectionery companies turn to ADM for quality cocoa, cocoa butter and chocolate, as well as lecithin, food acids, corn sweeteners and starches. 4 our company, our role
wheat At our nearly 60 wheat mills, ADM produces a wide variety of flours, bakery mixes and other products for bakery, pasta, and consumergrocery customers. cocoa ADM is a premier global supplier of chocolate and cocoa ingredients under the brands of Ambrosia, De Zaan, and Merckens. We grind about 16 percent of the world s total cocoa crop. Our manufacturing facilities are located in North and South America, Europe, Asia, and Africa, and our distribution sites are strategically located to meet customer needs. We make high-quality chocolates, cocoa liquor, cocoa butter and cocoa powders for chocolate manufacturers and food processors in the confectionery, bakery, dairy and beverage industries. Dairy For the dairy industry, ADM offers a host of different emulsifiers, sweeteners, and nutritionenhancing ingredients. Meat products Makers of processed meats such as cold cuts, hot dogs and sausages benefit from ADM s complete range of soy proteins, which improve products taste and juiciness. Other Processed foods ADM supplies a variety of flours, sweeteners, cocoa products and oils including trans fatfree products to snack-food manufacturers seeking to provide just the right taste, texture and nutritional balance. understanding ADM and food 5
How our business works Our unique business model enables ADM to offer an unusually diverse mix of food products to thousands of customers worldwide. from farm corn oilseeds wheat cocoa source We source crops such as corn, oilseeds, wheat and cocoa from around the world and either sell them to customers or store them in more than 400 elevators and terminals. transform process transport We apply our deep scientific and commercial expertise to develop innovative products that serve vital needs. Our processing plants then turn crops into hundreds of products for food, animal feed, industrial and energy uses. By producing multiple products from a single crop, we extract the maximum possible value from each seed, kernel or grain. We use a global transportation network comprising railcars, barges, trucks, trailers and oceangoing cargo vessels to transport crops to our processing facilities. distribute sales and marketing to finished product food feed Finished products leave our processing plants and are delivered to customers via our extensive transportation network. Our sales and technology teams serve customers in a host of different industries, where they work to identify opportunities for new products and improve existing ones. fuels industrials 6 our company, our role
Innovations that address sensory, functional and nutritional needs in today s food marketplace As global diets continue to evolve, ADM s food scientists, culinary experts and marketing specialists are working with some of the world s leading food and beverage manufacturers to develop innovative solutions to challenging product-formulation issues. Our expansive food product portfolio includes hundreds of different ingredients designed to improve products taste, texture, nutritional profile and appearance. ADM pioneered a process known as enzymatic interesterification to produce a line of low trans fat and trans fat-free oils under the NovaLipid brand name, and we received a Presidential Green Chemistry Award for our efforts. We invented textured vegetable protein, or TVP a common meat extender made from defatted soy flour. Our Ultralec deoiled lecithin product is an emulsifier and nutritional supplement frequently used in nutrition bars, beverages, spreads, and dressings. And our Kansas Diamond white whole-wheat flour was among the first high-fiber white flours on the market. uunnde d errssta tannddiinngg AAD DM M aa n d f o o d 7
A commitment to responsible crop sourcing and supply-chain integrity ADM has put in place a variety of programs to help ensure that the crops we source are responsibly produced from both environmental and social standpoints. 8 our company, our role
We are working to foster a sustainable palm oil chain by working both independently and with stakeholders to help ensure that palm is cultivated and procured responsibly. As a member of the Roundtable on Sustainable Palm Oil (RSPO), ADM will not knowingly source or purchase palm oil from illegally cleared land or palm oil that does not comply with local laws and regulations. If the RSPO finds that a supplier is not meeting its obligations under the RSPO Principles and Criteria, and if that supplier does not demonstrate a good-faith effort to address the issue in a timely manner, ADM will take appropriate action, up to and including exclusion of that supplier from new direct contracts. In West Africa and Indonesia, two key cocoa-growing regions, ADM is helping to improve the social, environmental and economic standing of cocoa growers and their surrounding communities through efforts such as our Socially and Environmentally Responsible Agricultural Practices program, or SERAP, which has provided more than US$15 million in financial incentives to cooperatives and individual farmers that meet specific criteria for financial transparency, product-quality management, safe farming practices and forest protection. In Brazil, ADM supports a program run by Aliança da Terra, a local NGO formed by farmers, known as Doing It Right. The program offers local soy growers instruction in agronomic and operational best practices and provides them with an action plan for continuous improvement. Giving growers the tools and knowledge necessary to expand yields on existing land can prevent the need to expand farm acreage into environmentally sensitive regions. understanding ADM and food 9
Our history in food innovation ADM s grain division begins operation, handling wheat, corn, rye, barley and oats. The Company hires its first research chemist and becomes Archer Daniels Midland Company. ADM pioneers solvent extraction from soybeans and develops food grade lecithin. Archer Daniels Linseed Company formed. ADM begins crushing soybeans and leads in the rapid development of soybeans in the United States. ADM acquires the third-largest flour milling operation in the U.S. Popular products include Airy Fairy cake flour and ready-tobake Airy Fairy Kwik Biskit. 1900 1910 1920 1930 1940 1950 10 our company, our role
ADM develops soy protein extrusion to produce textured vegetable protein (TVP). ADM enters the isolated soy protein business. ADM completes its first soy oil hydrogenation plant. ADM begins producing sorbitol. ADM introduces Ultralec deoiled lecithin; earns Most Innovative Food Ingredient Award at the 1998 Food Ingredients Europe show. ADM helps develop chromatographic technology that results in 55 percent high fructose corn syrup. ADM offers low trans fat shortenings and margarines via enzymatic interesterification; wins 2005 Presidential Green Chemistry Award ADM produces Arcon soy concentrate. ADM introduces Fibersol digestion-resistant maltodextrin in the United States. ADM launches Prolite wheat protein isolates, which can reduce fat or calories while improving protein in a variety of foods. ADM acquires the global assets of Grace Cocoa and ED&F Man Cocoa, marking the company s entry into the global cocoa business. ADM offers edible bean powder to boost the fiber and protein content of a wide range of foods. ADM employs newly developed enzyme technology to produce Corn Sweet 42. ADM introduces Kansas Diamond white whole wheat flour. 1960 1970 1980 1990 2000 2010 understanding ADM and food 11
For more than a century, the people of Archer Daniels Midland Company (NYSE: ADM) have transformed crops into products that serve vital needs. 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, 460 crop procurement facilities, and the world s premier crop transportation network, ADM helps connect the harvest to the home in more than 140 countries. For more information about ADM and its products, visit www.adm.com. Archer Daniels Midland Company 4666 Faries Parkway P.O. Box 1470 Decatur, IL 62525 www.adm.com i1361-0313