ADM and QLF Form Liquid Feed Joint Venture
By Business Wire News
By Business Wire News
Archer Daniels Midland Company (NYSE: ADM) and Quality Liquid Feeds, Inc. today announced that the two companies have entered into a 50-50 joint venture for the production and sale of liquid feed supplements for livestock. The joint venture consists of four liquid feed production facilities formerly owned by ADM—in Twin Falls, Idaho; Billings, Montana; Fremont, Nebraska; and Johnstown, Colorado—as well as the Loomix® brand. The new venture, which will be called Alliance Liquid Feeds, will serve portions of the Western United States. Quality Liquid Feeds continues to be owned by the Berg family and will continue to market QLF-branded liquid feed supplements out of their 12 facilities in the Midwest, East and Southwest United States.
“One of the ways we are increasing earnings power at ADM is by partnering with other great companies,” said Brent Fenton, president, ADM Animal Nutrition. “In this case, we’re joining with a strong partner in QLF, which allows us to expand our capabilities while simultaneously reducing the capital we have invested in the liquid feed business. Customers will benefit from the combined expertise, resources and efficiency of the joint venture, and our shareholders will benefit from the improved returns we expect from the business. And by combining resources, we expect to see significant advancements in operational efficiencies, from capital reduction to supply chain enhancements to sales/margin improvements.”
QLF CEO Cory Berg said: “This joint venture allows us to expand into markets that we had our sights on for a number of years. The new company will benefit from QLF’s expertise and 38 years of experience producing and supplying liquid feed 24 hours a day, seven days a week, 365 days a year. At the same time, it provides us a strong partner in ADM, with its overwhelming supply of ingredients, experience and knowledge in supply chain management, research, and industry connections.”
Existing Loomix customers will see a seamless transition as the new business continues to offer high-quality products, strong customer service and, eventually, new products.
Some of the above statements constitute forward-looking statements. ADM’s filings with the SEC provide detailed information on such statements and risks, and should be consulted along with this release. To the extent permitted under applicable law, ADM assumes no obligation to update any forward-looking statements.
About ADM Animal Nutrition
ADM Animal Nutrition is a leading manufacturing, nutrition and marketing business offering a wide range of innovative products for the animal nutrition market. Known as a global leader in amino acids, ADM Animal Nutrition also offers consistent, high-quality feed products, supplements, premixes, custom ingredient blends and specialty feed ingredients designed to provide leading-edge solutions, enabling our customers to meet and optimize animal health and nutrition goals.
Quality Liquid Feeds is a nationwide, innovative leader in the developing and manufacturing of liquid feed supplements for livestock. With 12 manufacturing plants across the United States, QLF is the largest family- and American-owned liquid feed company in the country. For over 37 years, QLF has been a company with a reputation for marketing products based on quality, consistency and service.
For more than a century, the people of Archer Daniels Midland Company (NYSE: ADM) have transformed crops into products that serve the vital needs of a growing world. Today, we’re one of the world’s largest agricultural processors and food ingredient providers, with more than 33,000 employees serving customers in more than 140 countries. With a global value chain that includes more than 460 crop procurement locations, 300 ingredient manufacturing facilities, 40 innovation centers and the world’s premier crop transportation network, we connect the harvest to the home, making products for food, animal feed, chemical and energy uses. Learn more at www.adm.com.
Archer Daniels Midland Company
Jackie Anderson, 312-634-8484