corn processing

CORN PROCESSING
As the world’s largest corn processor, ADM benefits from growing demand for this versatile crop. With seven major processing facilities across North America, the Company offers farmers ample opportunity to gain added value from their harvest. By developing new products, we expand market opportunities and maximize our ability to shift production among several value streams.
Cornis milled into starch, oil, gluten feed and gluten meal. Oil is processed to create products such as salad oil and cooking oils, while the starch that makes up over half of each bushel of corn is processed into a variety of sweeteners or fermented to yield ethanol or a broad line of food and feed ingredients. Recently, ADM entered into a joint venture to convert starch into bakery yeast.Sweeteners include high fructose corn syrup used in beverages and other food products. The use of corn as a substitute for sugar-based sweeteners is already a well-established market in North America. High fructose corn syrup is virtually identical to sugar in calories and flavor, making it an attractive alternative to sugar in many applications. Demand trends for corn sweeteners, along with sugar,carbohydrates and other foods, are likely to be increasingly influenced by concern about health and nutrition around the world. ADM remains committed to the use of corn-based sweeteners as a nutritionally appropriate ingredient in food products. Meanwhile, we have flexibility to adapt to changing demand patterns, should they occur.
Primary Products
Sweeteners, including high fructose corn syrup.Bioproducts, including ethanol used to increase octane in gasoline, and such specialty products as feed additives (lysine, threonine), and citric acid.
Competitive Position
World’s largest corn processor with largest market share in both high fructose corn syrup and ethanol.





Key Developments
Sweetener market exhibits moderate growth and pricing strength, despite slow growth in end-usemarkets.
High energy prices and implementation of environmental regulations drive demand growth for ethanol across the United States.
High protein meal prices drive strong demand for lysine and threonine as feed additives.
Full-year benefits obtained from fiscal 2003 acquisition and integration of corn processor MCP, which was ADM’s largest acquisition.
ADM's processing of corn to producesweeteners, such as high fructose corn syrup, creates a market for approximately 270 million bushels of corn per year in the United States. Offering the same qualities and taste as natural sugar, along with superior economics, high fructose corn syrup is widely adopted by beverage companies and consumers alike as their sweetener of choice.
Ethanol production for vehicle fuels is an increasinglyimportant component of the corn processing business, with attractive long-term potential. As oil prices spiked during fiscal 2004, demand and pricing for ethanol increased as well, leading to higher volumes and earnings for this renewable fuel. At the same time, it’s important to note that near-term oil price trends have a relatively small impact on ethanol usage.
The primary drivers of ethanoldemand are related to octane needs and environmental concerns. Ethanol sales have increased as states and cities eliminate an alternative fuel additive, MTBE. ADM has expanded its capacity to serve markets previously dependent on MTBE, including California, New York, Connecticut and other key states. In some states, ethanol is blended into reformulated gasoline to reduce carbon monoxide emissions.Ethanol is also blended with gasoline to increase octane ratings.
Already the largest producer of ethanol in North America, ADM has balanced the production from its mills and limited its expansion of ethanol capacity. Recent additions of capacity by farm cooperatives have allowed the industry to meet the strong growth in demand. We expanded both our corn milling and ethanol capacity in fiscal...