World Grain - August 2022 - 10

NEWS REVIEW
AB Agri opens China's second
largest feed mill
TONGCHUAN CITY, CHINA - AB Agri on July 19 announced
it has opened its ninth feed mill in China, a plant in
Tongchuan City in Shaanxi Province with an annual capacity
of 240,000 tonnes.
The new 34,000-square-meter site becomes AB Agri
China's second largest facility and comprises separate production
lines for swine and ruminant feeds.
The Tongchuan mill is the latest in a significant investment
program in China for Peterborough, England-based AB Agri.
The company's Chinese mills are now producing in excess of
1.7 million tonnes of compound feed equivalent.
" We are passionate about producing affordable, high
quality and responsible food across the globe, " said José
Nobre, chief executive officer of AB Agri. " The new mill
increases our capacity and reliability across the supply
chain and helps develop a sustainable future for the feed
and food industry in China. "
Productivity powers profitable growth at ADM
CHICAGO, ILLINOIS, US - Productivity initiatives are
helping ADM improve its execution and mitigate the impact
of inflation, while also powering profitable growth, said Juan
R. Luciano, chairman, chief executive officer and president.
Net earnings attributable to ADM in the second quarter ended
June 30 totaled $1.24 billion, equal to $2.18 per share on
the common stock, up 74% from $712 million, or $1.26 per
share, in the same period a year ago.
Revenues for the second quarter increased 19%, climbing to
$27.28 billion from $22.93 billion.
The stronger earnings sent ADM's share price up nearly 6%
in mid-day trading on the New York Stock Exchange on July
26, climbing as high as $80 per share before closing at $78.92,
up from $75.62 on July 25.
" Our team executed extremely well in the second quarter,
navigating dynamic conditions to deliver nutrition to billions, "
Luciano said in a July 26 conference call with analysts.
" And even as we work tirelessly to serve our customers and
consumers around the globe, we are continuing to advance
The completion of construction was delayed by two months
because of COVID-19 restrictions and bad weather.
" We are delighted and proud of the effort and passion the
team demonstrated to complete this project with just a twomonth
delay, despite all the obstacles faced, " said Nie Kuo,
managing director, AB Agri China. " As part of our responsible
approach, production at the new site is free of antibiotic
growth promoters (AGPs), which is important given the widespread
restrictions on their use and potential impact on human
health antibiotic resistance. "
China is by far the largest producer of animal feed in the
world. According to Alltech's most recent annual feed survey,
China produced 261 million tonnes of feed in 2021, up 8.9%
from the previous year.
AB Agri last year began construction on a 1-million-tonneper-year
feed mill in eastern England. It will be AB Agri's
11th mill in the UK.
our strategy with productivity initiatives that are improving
our efficiency and cost structure and innovation works that is
powering profitable growth.
" Productivity is how we are improving our execution and
optimizing costs is key to our long-term success, but equally
as importantly, our productivity work is helping us mitigate
the impact of inflation. We have a very strong pipeline of productivity
initiatives. "
Operating profit in the Ag Services and Oilseeds segment
surged 97% in the second quarter of fiscal 2022, climbing to
$1.12 billion from $570 million. Ag services profit rose 114%
during the quarter to $407 million, while crushing profit increased
212% to $468 million from $150 million.
Operating profit in the Carbohydrate Solutions segment increased
23% in the second quarter to $473 million. Starches
and sweeteners profit increased 28% during the quarter,
climbing to $393 million from $306 million. Vantage Corn
Processors posted a profit of $80 million in the quarter, up
from $77 million in the same period a year ago.
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August 2022 / World Grain / www.World-Grain.com

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World Grain - August 2022

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