The Archer-Daniels-Midland Company, commonly known as ADM, is an American multinational food processing and commodities trading corporation founded in 1902 and headquartered in Chicago, Illinois. The company operates more than 270 plants and 420 crop procurement facilities worldwide, where cereal grains and oilseeds are processed into products used in food, beverage, nutraceutical, industrial, and animal feed markets worldwide.
ADM ranked No. 54 in the 2020 Fortune 500 list of the largest United States corporations.[1]
The company also provides agricultural storage and transportation services. The American River Transportation Company along with ADM Trucking, Inc., are subsidiaries of ADM.
ADM has been the subject of significant media attention and infamy over the years with its various scandals, one inspiring a novel and subsequent film The Informant!
In 1902, George A. Archer and John W. Daniels started a linseed crushing business in Minneapolis, Minnesota. In 1923, Archer-Daniels Linseed Company acquired Midland Linseed Products Company, and the Archer Daniels Midland Company was formed. ADM expanded its agribusiness to include milling, processing, specialty food ingredients, and cocoa.[2] In 1924 ADM was listed on the New York Stock Exchange.[3]
ADM purchased control of the flour milling company Commander-Larabee Corp. in 1930.[4]
In 1969, ADM relocated its headquarters to Decatur, Illinois[5][6] where they remained for 45 years until moving to Chicago in 2014.[7]
In 1970, Dwayne Andreas became the chief executive officer of ADM and is credited with transforming the firm into an industrial powerhouse. Andreas remained CEO until 1997 when his nephew G. Allen Andreas was named to the position.[8][9] In 2001, Paul B. Mulhollem became the company’s president.[10] ADM was the first U.S. company to sign a contract with Cuba since the embargo against Cuba was imposed in October 1960.[11]
In 1989, ADM purchased Collingwood Grain Inc. based in Hutchinson Kansas, adding 48 million bushels of grain storage at 36 terminal elevators.[12]
In May 2006, Patricia A. Woertz became the company’s chief executive officer.[13][14] In February 2007, Woertz was elected chairman of the board at ADM.[15] In January 2008, ADM signed a three-year memorandum of understanding with Daimler AG and Bayer CropScience to explore the use of jatropha as a feedstock for biofuel.[16][17] Starting in October 2012, the company sought to acquire strategic holdings to support serving Asian markets through the acquisition of GrainCorp, an Australian grain firm with a network of storage and port facilities in Australia.[14] On 29 Nov 2013, this acquisition was blocked by the Australian Treasurer.
On July 7, 2014, the company announced that it would buy Swiss-German natural ingredient company Wild Flavors for $3 billion, a move aimed at diversifying the company and helping brands appeal to consumers who increasingly favor foods with natural ingredients and flavorings.[18]
The appointment of current CEO Juan R. Luciano was announced on November 5, 2014.[19] Luciano joined the company in 2011 as executive vice president and chief operating officer and became president in February 2014. He succeeded Patricia Woertz as CEO in January 2015, and as chairman of the board in January 2016.[20]
In October 2015, ADM announced the sale of its global cocoa business to Olam International. The sale is valued at about $1.2 billion.[21] Approximately 1,500 employees transferred to Olam with the sale.[22] In January 2017, ADM agreed to sell its crop risk services (insurance) unit to Validus Holdings for $127.5 million.[23] On January 19, 2018, it was reported that Archer Daniels Midland Co. (ADM) had approached Bunge Ltd. about a takeover, with details “unclear.” At that point, Bunge had a market value of about $9.8 billion, and was also being pursued by Glencore PLC for acquisition, since May 2017.[24] In 2018 ADM agreed to purchase the British probiotic supplement company Probiotics International Limited for $243 million.[25] In 2019, ADM agreed to purchase the remaining 50 percent stake in British grain and oilseed producer Gleadell from the French company InVivo,[26] and completed the acquisition of animal nutrition company Neovia for $1.54 billion euros (US$1.73 billion).[27][28]