ADM Investing in Paraguay
August 7/Karachi, Pakistan/Right Vision News -- Archer Daniels Midland Company (ADM) announced it will increase its South American oilseed crush capacity by more than 25% with the construction of a major new soybean plant in Paraguay.
The new plant, with an anticipated daily crush capacity of 3,300 metric tons, will be located adjacent to an ADM fertilizer-blending plant in Villeta, near the capital city of Asuncion, and will benefit from proximity to a nearby port facility on the Paraguay River. This location will increase local crop-origination and export capacity and enable the company to import fertilizer components more cost-effectively. Construction began in June and is expected to be complete in 2012.
The project will create more than 150 permanent jobs, as well as an estimated 500 jobs at peak construction.
The plant is part of ADM's strategy to increase crop-sourcing and processing capacity in South America's key growing regions. Soybean production in Paraguay has been growing at an annual rate of 13% for the past 10 years.
"This plant will link South America's productive farmers with the world's growing demand for food and energy," said John Rice, executive vice president, Commercial and Production. "ADM will grow oilseed crush volumes over the next five years at about double predicted market rate. We will achieve a compound annual growth rate of 7-10% through both organic growth and acquisitions."
From the August 9, 2010, Prepared Foods' Daily News
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