Miller Magazine Issue: 128 August 2020

29 NEWS MILLER / August 2020 ADM reports higher profit, food demand during pandemic Viterra making significant investment in Southeast Manitoba U.S. agricultural merchant Archer Daniels Midland Co beat expectations for quarterly earnings, as it benefited from higher margins in its grain trading and oilseeds business. The company and its rivals like Bunge Ltd continued to grapple with ripple effects from the coronavirus outbreak, which has rattled global markets and hurt demand for pro- ducts like ethanol. But ADM said it bought and exported records volumes of crops in South America during the qu- arter as farmers were active sellers of their harvests. “Glo- bal trade delivered another strong quarter, as countries lo- oked to secure stable supplies of food amid the pandemic,” ADM said in a statement. The Chicago-based company said adjusted operating profit in the agriculture services and oilseeds unit, its biggest, rose 14% to $413 million in the second quarter. Its nutrition business was another bri- ght spot, with a 35% jump in adjusted operating profit. The pandemic has shifted food demand to grocers from restaurants as lockdowns have forced people to eat at home. ADM reported lower demand for edible oils in North America and its Europe, Middle East and Africa re- gion. Travel restrictions due to the pandemic have ham- mered biofuel margins. ADM confirmed that industry ethanol margins were down from a year ago, but said the company benefited from strong demand for industrial ethanol, which can be used to make hand sanitizer, and risk management strategies. Viterra Inc. announced it intends to build a new high throughput grain terminal at Rosser, MB. The facility will have a storage capacity of 34,000 metric tonnes, and will be able to load up to 134 railcars th- rough a loop track. Construction on the new facility will begin immediately and is slated for completion in the fall of 2021. “We’re pleased to be renewing our commitment to farm customers in the Rosser and surrounding area through this significant investment,” said Kyle Jewor- ski, Viterra’s President and CEO for North America. “Through our commitment to operational excellen- ce, we continuously evaluate our asset network to ensure we’re aligned with our business environment. By revitalizing our presence in this area through a modern state of the art facility, we will provide custo- mers with convenient access to the superior service, marketing opportunities and advice that makes us an industry leader." “We commend Viterra for the continuous and subs- tantial investments it has been making to enhance its asset network, including its new elevator at Rosser,” said Joan Hardy, CP’s Vice-President Sales and Mar- keting, Grain and Fertilizers. “CP and Viterra share a longstanding commitment to Canadian agriculture. By modernizing our collective grain handling infrastru- cture and transportation network, together we are en- suring the grain supply chain remains strong to meet the growing needs of the agricultural industry today and in the years to come.” Canada's grain industry leader Viterra is part of Glencore Agriculture, a global market leader in origi- nating, handling, processing and marketing agricultu- ral commodities.