ADM reaches agreement for cottonseed processing with Planters Cotton Oil Mill
The agreement marks a significant step in strengthening the cottonseed supply chain and expanding ADM‘s footprint in specialty oilseed processing.
USA – Archer Daniels Midland (ADM), a global leader in agricultural processing and food ingredient solutions, has reached an agreement with Planters Cotton Oil Mill, Inc., to form a joint venture focused on cottonseed processing to enhance supply chain efficiency in the Mid-South region.
Announced in December 2025, the partnership combines ADM’s Memphis, Tennessee facility, where oil refining will continue while seed crushing ceases, with Planters’ Pine Bluff, Arkansas plant and regional storage assets, setting the stage for a Q1 2026 launch.
This strategic move supports ADM’s asset optimization amid stable US cotton markets, promising improved service for gins, farmers, and end users in oil, meal, and hull production.
The new standalone entity will operate with a balanced board featuring equal representation from both partners.
However, ADM holds a controlling 60% stake, aligning with its broader portfolio simplification efforts following earlier ventures like the PYCO deal in Texas.
Planters, a gin-owned cooperative founded in 1977, brings deep regional expertise in high-quality cottonseed outputs for domestic and export markets, while ADM contributes scale and innovation from its vast oilseeds network spanning nutrition and industrial applications.
Executives highlighted synergies: ADM’s Fred Serven noted greater stability from farm to customer, and Planters CEO Cody Young emphasised value creation for members through combined capabilities and a sustainability focus.
“ADM is continuing to strengthen its portfolio, delivering on opportunities for strategic simplification and ensuring we have the right footprint to serve our stakeholders and position ourselves for continued growth going forward,” said Fred Serven, general manager of ADM’s cottonseed business.
“This new joint venture will help ensure the continued strength, stability and efficiency of the cottonseed supply chain, from farmers to gins to end customers.”
“This partnership marks an exciting new chapter for Planters Cotton Oil Mill,” said Cody Young, chief executive officer of Planters.
“By uniting our expertise, facilities, and gin-owned heritage, we are strengthening our ability to deliver high-quality products while creating greater value for our members, customers, and the broader agricultural community. This joint venture represents a thoughtful step in our industry by enhancing efficiency and sustainability for the future.”
Cottonseed processing, a key byproduct of the US$20 billion US cotton industry, faces pressures from volatile yields but gains from biofuel demand and animal feed growth, positioning the joint venture for expanded output.
This joint venture not only strengthens ADM’s presence in the US cottonseed industry but also reinforces the role of cooperative models in ensuring long-term sustainability and profitability for American cotton producers.
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