Archer Daniels Midland Company
) recently announced that it has been certified officially to tie
up with Wilmar International Limited. These two companies have
entered the partnership in global fertilizers, European vegetable
oil as well as global ocean freight.
The new partnership will be based in Rolle, Switzerland. The
companies will team up to purchase and distribute global
fertilizers as well as enhance the operation and supervision of
their oceangoing fleets by providing two ships (one from each
company) as an initial effort. Additionally, these two companies
will come together for sales and marketing of vegetable oils and
fats in Europe.
Currently, Archer Daniels Midland holds 16% ownership in
Wilmar. Management at Archer Daniels Midland believes that the
new partnership will extend the company's international footprint
and will enable them to provide better services to their
Archer Daniels Midland and Wilmar share a healthy supplier
relationship since mid-1990s. The two companies started their
partnership with a network of soybean processing operations in
Archer Daniels Midland procures, transports, stores,
processes, and merchandises agricultural commodities and products
in the United States and internationally. The company has
three major business segments: Oilseeds Processing, Corn
Processing, and Agricultural Services. Currently, Archer Daniels
Midland has 30,000 workers around the world and runs around 270
processing plants and provides 420 crop procurement facilities.
The company's prime competitors include Cargill Inc.,
Tyson Foods Inc.
) and Corn Products International Inc.
We maintain our long-term 'Underperform' recommendation on the
stock based on the disappointing fourth quarter results of fiscal
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