Archer Daniels Midland Company
) recently announced that the first loaded ship has departed from
its new port terminal in Barcarena, Brazil. The shipment departed
after receiving final approval from the Brazilian government last
month to begin operations at the new terminal.
The Barcarena terminal which was acquired by the agribusiness
giant in 2012 is situated at the northern Brazilian state of Para
and can handle approximately 1.5 million metric tons of grain
annually. Furthermore, the company intends to increase the capacity
to 6 million metric tons by 2016.
The new facility will help Archer Daniels to access the
country's increasing agricultural outputs especially in the highly
productive northern and western regions. Apart from this, the new
route will also help the company to save about 34% of freight costs
when compared with shipping from Brazil's main port of Santos.
Santos port is located at the southern region of Brazil.
We are expecting the company's competitors such as Bunge Ltd. (
), Ingredion Inc. (
) and ConAgra Foods, Inc. (
) to follow its footsteps in order to capture the rising
opportunity in Brazil. Moreover, it is also expected that the
country will set record for yet another year in soybean
In 1997, Archer Daniels began its operations in Brazil by
purchasing various crushing plants, grain elevators and silos.
Currently, with over 4,700 employees in the country, Archer Daniels
is a major agribusiness company in Brazil. This Zacks Rank #3
(Hold) company currently operates four soy processing facilities,
one cocoa processing unit and one sugar cane processing plant which
produces ethanol, along with more than 40 elevators in the
We expect Archer Daniels' consistent focus on enhancing
processing capabilities and increasing its global footprint will
drive growth going forward. The company intends to invest around
$1.4 billion in capital projects in 2014, the majority of which
will be in high-growth markets outside the U.S.
Archer Daniels Midland is a major global food processing
company. It processes oilseeds, corn, wheat, cocoa and other
foodstuffs. It is also a giant manufacturer of vegetable oil,
protein meal, corn sweeteners, flour, biodiesel, ethanol and other
value-added food and feed ingredients. Moreover, the company has a
worldwide grain elevator and transportation network for
procurement, storage, cleansing and transportation of agricultural
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