News last update:6 Aug 2012

ADM expands production at German facility

US agri firm ADM is to expand production at its rapeseed crushing facility in Germany, which will be converted to a multi-seed crushing facility. The move, which is expected to be complete in April 2007, will expand ADMs product portfolio offering to food oil customers, the company said.

The facility, located in Spyck, Germany, will start to crush sunseed as well as rapeseed. This investment is an example of leveraging our core strengths in agricultural processing in order to create value and capitalize on changing consumer demand for food oils, said Mark Zenuk, ADM Vice President and Managing Director-Europe and Asia.
ADMs move is in line with an increased global production and consumption of these vegetable oils, as food makers continue to turn away from animal fats in favour of vegetable alternatives.

Increase in oilseeds
Indeed, rapeseed, palm oil and soybean, which are all experiencing strong market growth, have been forecast to account for 70% of the US vegetable oil market alone by 2008, according to analysts Business Communications Company.  The latest figures released by the US Department of Agricultures Economic Research Service (USDA ERS) reveal that global production of rapeseed has increased from 13.06 million metric tons in 2001-02 to 16.59 in 2005-06. Global consumption of the oil has increased from 13.23 to 16.67 million metric tons respectively.
Sunflower seed production around the world was set at 7.48 million metric tons in 2001-02, increasing to 10.46 in 2005-06. Consumption increased from 7.52 to 9.84 million metric tons.

ADM invests in oilseed market
ADMs expansion in the European vegetable oil market follows similar moves by competitors in recent years. In 2005, US firm Bunge announced it would build its first sunflower seed crushing and refining plant in Russia. The move came after rival US oils competitor Cargill announced plans the same year to break ground on a Russian refinery for sunflower, rapeseed, corn, palm and coconut oil. And in 2005, raised demand for rapeseed oil led ADM to expand softseed-crushing capacity at Oelmuhle Hamburg. The move invloved the conversion of some soy capacity to rapeseed capacity.

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