Global agritrader Archer Daniels Midland (ADM) has agreed to purchase various assets of Brazilian agri-food firm Algar Agro, including two oilseed processing facilities, to enhance its position in the Brazilian meal and bottled oils markets.
ADM would acquire integrated crush and oil refining and bottling facilities in Uberlândia in the state of Minas Gerais and in Porto Franco in the state of Maranhão, reported World Grain on 16 August.
The company said it would also gain access to an extensive origination and storage silo network throughout northeastern and southeastern Brazil.
According to ADM, demand for bottled oils and oilseed meal was growing in the northeast and southeast regions of Brazil, offering the company good market access with its new acquisition.
Greg Morris, senior vice president and president of ADM’s oilseed business, said the acquisition of Algar Agro continued the global expansion trend that also included the launch of the ADM-Cargill joint venture in Egypt and various enhancements to its European and North American processing operations.
“With the addition of these new plants in Brazil, we are further enhancing and strengthening our global network at a time when both the near- and long-term outlook for global meal demand continues to be strong,” said Morris.
Algar Agro said that with the sale of the oilseed facilities, it was exiting the soyabean crushing and trading segment to focus on its grains production business Algar Farming.
ADM’s current oilseed operations in Brazil include soya processing plants in Rondonópolis, Campo Grande, Ipameri, Jeacaba and Uberlândia; a sunflower plant in Campo Novo dos Percis; biodiesel refineries in Rondonópolis and Joacaba; and various storage facilities with a total capacity of 2.2M tonnes.
ADM sells the Concórdia, Corcovado and Vitaliv cookin oil brands in Brazil.