ADM, Alltech join forces in North American animal feed venture
The venture will be majority-owned by Alltech and overseen by a board with
equal representation from both partners.
NORTH AMERICA – Archer-Daniels-Midland (ADM) and Alltech have announced that they have signed a definitive agreement to create a North American animal feed joint venture, uniting some of the sector’s most prominent players in a bid to strengthen operations, cut costs, and expand their product offerings.
The new company, expected to launch in the first quarter of 2026, will be majority-owned by Alltech and governed by a board with equal representation from both partners.
Under the agreement, Alltech will contribute its U.S.-based Hubbard Feeds and Canada-based Masterfeeds businesses, including 18 feed mills in the United States and 15 in Canada.
ADM will add its 11 U.S. feed mills to the venture, which will provide products and solutions for livestock, equine, backyard, and leisure animals.
“As the animal nutrition industry continues to reshape itself to support a growing global population, Alltech and ADM are bringing together passionate teams, proven products and shared values to ensure enhanced advantages for our customers,” the companies said in a joint statement. “We’re evolving with purpose to offer an industry-leading range of products and solutions.”
Reshaping the feed industry
The joint venture comes at a time when global feed companies are under pressure to adapt to rising protein demand, shifting supply chains, and sustainability challenges. Analysts say the move also reflects ADM’s push to streamline its portfolio.
The company has announced plans to cut costs by US$500 million to US$700 million over the next five years and is focusing on higher-margin speciality nutrition ingredients.
“ADM has historically grown its animal feed business through acquisition, but the returns have not worked out so far,” Morningstar analyst Seth Goldstein told Reuters. “It makes sense for ADM to look for these kind of partnerships that could add value to its business.”
The new venture will leverage the companies’ complementary strengths, from extensive manufacturing capabilities to deep expertise in nutrition science and long-established product portfolios. Both parent firms will also contribute their research and development networks, logistics operations, and connections across the broader agricultural value chain.
What each company retains
While Alltech will fold Hubbard Feeds and Masterfeeds into the venture, it will keep its Ridley Block Operations, Ridley Feed Ingredients, and speciality ingredients businesses. These units, however, will act as suppliers to the joint venture.
ADM will retain its Canadian feed operations, along with its U.S. premix and additive businesses, which will also provide inputs to the new company.
The deal builds on a relationship that spans decades, with ADM being Alltech’s first customer. Company leaders emphasised that the venture will deliver a broader array of products and services while preserving the customer relationships both brands are known for.
“Our customers know they can depend on us to partner with them, offering personalised service and nutrition expertise to tailor products and solutions that will give them an edge, whether in the market or the show ring,” ADM and Alltech said in their joint statement. “Now our new joint venture is going to be able to offer even more: broader capabilities, more products and new innovative solutions.”
The transaction remains subject to regulatory approval and other closing conditions. If completed on schedule, the joint venture will formally launch in early 2026. Industry observers say the partnership could set a new precedent in the North American feed market, combining financial strength with technical innovation at a scale rarely seen before.
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