ADM Expands Its Presence In The Asia Market By Constructing Its Fourth Feed Premix Plant

14 Mar 2016

On May 2015, Archer-Daniels-Midland Company (ADM), incorporated on May 02, 1923, is one of the world largest food ingredient and agricultural processors providers. The company is transforming crops into products which serve to meet the dynamic requirement of a developing world. ADM is building its new feed premix plant in southern China in the city of Zhangzhou. This will make company’s number of plants to four in the country.  ADM had also announced to build a new feed plant in Minnesota to support the growing market in the Midwest.

The plant in the Zhangzhou is projected to be complete in the fourth quarter of next year which is 2016. This plant will manufacture a wide range of nutritional feed premixes which will be added to animal feed to promote optimal growth and good health of the animals. Such premix usually contains various minerals and vitamins, amino acids and some of the special feed additives among various other ingredients. At the Zhangzhou facility, the company will manufacture premix products around 30,000 metric tons annually.  Additionally this will also provide capacity of 80,000 metric tons for the production of complete concentrates and feeds.

Analyst View:
This announcement by ADM will help the company to meet the growing demand from China of high quality animal feed. This facility will employ around 150 people and will complement the existing premix facilities of the company in Tianjin and Dalian in northern part of China and a facility under construction in Nanjing, in eastern China. This strategy will help the company to well-positioned itself in the China market and will meet the substantial growing demand for the poultry, aquaculture and swine industries. China has which has an ambitious goal for safety and food security, is creating huge market potential to provide more of the quality, consistent feed products that ADM is known for.

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