Archer Daniels Midland invests in Brazilian palm production

By Bryan Sims | February 15, 2011

Archer Daniels Midland Co. announced that it plans to invest in sustainable palm production in Brazil over a five-year period. The investment, according to the company, encompasses approximately 12,000 hectares (29,652 acres) of palm production in the state of Para and includes the construction of a palm processing plant.

According to ADM, construction of the processing facility near Sao Domingos do Capim—located 100 miles east of Belem in the state capital of Para—is expected to break ground in 2013, with operations anticipated to begin in 2016.

“Our strategy for profitable growth is to expand the size and global reach of our origination and processing assets,” said ADM chairman and CEO Patricia Woertz. “This investment adds a new crop to our value chain in Brazil and diversifies our feedstock options for biodiesel production there, while at the same time supporting our commitment to sustainability in terms of both agricultural production and the livelihoods of farm families in Brazil.”

ADM’s sustainable palm and biodiesel production will also be part of Brazil’s Social Fuel Stamp program that provides incentives for biodiesel producers to purchase feedstock from small family farms. As part of this program, ADM will contract with approximately 600 family farms for 6,000 hectares of palm production and provide them with technical assistance focused on sustainable agricultural practices.

“We are encouraged by the commitment of the Brazilian government to promote sustainable agricultural development that not only helps meet the growing energy demands of the country, but also improves the livelihoods of thousands of farm families through the Sustainable Fuel Stamp program,” said Domingo Lastra, president of ADM do Brasil Ltda. “Our investment in sustainable palm production will positively impact the lives of more than 3,000 people through higher farm incomes.”

This investment strengthens ADM’s presence in Brazil since its initial entry in the country 14 years ago when the company purchased soybean processing plants in Rondonopolis, Campo Grande, Joacaba, Tres Passos and Paranagua. In 2002, ADM opened a fertilizer blending facility in Rondonopolis; in 2007, the company began biodiesel production in Rondonopolis and in last November, it announced plans to construct a biodiesel plant adjacent to its existing oilseed operations in Jaocaba. 


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