Tight Grain Margins Lead ADM to Restructure
Ongoing tight margins in the grain sector have led Archer Daniels Midland (ADM) to restructure its business into four new units. Being seen as a way to remain competitive, and as a better reflection of the company’s operations, a way to provide greater value to the customer, and a way to increase efficiency, ADM has announced its four business segments to be: Carbohydrate Solutions, Nutrition, Oilseeds, and Origination.
Previously, the company’s business was divided into the four units of: agricultural services, corn processing, oilseed processing, and Wild Flavors and Speciality Ingredients.
Under the new structure, agricultural services, including grain trading, will now be conducted within the Origination Unit led by Stefano Rettore, chief risk officer for ADM. Meanwhile, wheat milling operations and corn processing will be a part of the Carbohydrates Solutions unit led by Chris Cuddy, former president of Corn Processing. Wild Flavors will be run under the Nutrition unit led by Vince Macciocchi, former president of the Wild Flavor division, and the oilseed business will remain unchanged.