Woertz is the ex-Chevron executive who once said it was, "time to stop mixing agricultural policy with fuels policy." This week, she said ADM has, "three strategic areas that offer the highest potential for significant, value-added growth: expansion of the geographic scope of our core model, diversification of our feedstocks and growth of the bioenergy business. Technology and innovation are key to driving growth in these areas."
You can read all of Woertz's comments after the jump.
ADM Outlines Strategy for Growth in BioEnergy and Agricultural Processing
ADM uniquely positioned for leadership in evolving markets
DECATUR, Ill., Nov. 8 /PRNewswire-FirstCall/ -- Archer Daniels Midland Company (NYSE:ADM) today outlined its strategy to be the global leader in BioEnergy while expanding its premier position in the agricultural processing value chain.
"ADM is uniquely positioned at the intersection of the world's increasing demands for both food and fuel," said Patricia Woertz, ADM CEO and President. "As one of the largest agricultural processors in the world and the largest biofuels producer in the world, ADM is in a category of one to capitalize on the exceptional opportunity ahead."
The ADM leadership team made presentations to financial analysts today in Chicago. "We are implementing a strategic program that will drive both long- term growth and returns by capitalizing on our global strengths and the changing dynamics of the global energy and food markets," Woertz said.
"We see our Company distinguished by five global core strengths: our origination, storage and transportation operations across the supply chain; our global agricultural processing footprint; our diversified product portfolio; our experienced management team; and our financial strength to manage for returns and growth through business cycles," stated Woertz.
"We have identified three strategic areas that offer the highest potential for significant, value-added growth: expansion of the geographic scope of our core model, diversification of our feedstocks and growth of the BioEnergy business," stated Woertz. "Technology and innovation are key to driving growth in these areas."
Woertz also announced that the Company is considering expansion of its origination presence in palm in Indonesia, sugar in Brazil and other carbohydrates around the world for the production of biofuels.
ADM reaffirmed its commitment to the future of ethanol and to investment in research and development surrounding feedstocks like biomass crops. Already announced BioEnergy plans include expansion of biodiesel production capacity in the United States, Brazil and Germany, as well as an increase of 50 percent in U.S. ethanol production capacity. ADM also previously announced plans to open a PHA natural plastics plant and a polyols facility to expand the Company's industrial applications line.
In October, the Company broke ground on a state-of-the-art cocoa processing facility. ADM is also considering growing its processing investment in China and increasing origination capacity in Brazil.
Woertz said that ADM's growth strategy -- and ongoing operations -- will be supported by strategic focus areas and management initiatives to align people, processes and investments toward achieving the Company's goals. The initiatives include: capital investment screening; project management; performance metrics; development milestones; and performance-based compensation.
Woertz closed her presentation: "We have shared with you the opportunity we see in our key agricultural feedstocks, in the biofuels we produce and in the global infrastructure that gives us competitive distinction and underpins our unique positioning for the future."
Archer Daniels Midland Company (ADM) is a world leader in BioEnergy and has a premier position in the agricultural processing value chain. ADM is one of the world's largest processors of soybeans, corn, wheat and cocoa. ADM is a leading manufacturer of biodiesel, ethanol, soybean oil and meal, corn sweeteners, flour and other value-added food and feed ingredients. Headquartered in Decatur, Illinois, ADM has over 26,000 employees, more than 240 processing plants and net sales for the fiscal year ended June 30, 2006 of $37 billion. Additional information can be found on ADM's Web site at http://www.admworld.com/ .