ADM expands production at German facility

31-01-2007 | |

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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