ADM temporarily shuts down soybean plant in Des Moines for planned maintenance

USA – Archer Daniels Midland (ADM), a global leader in agricultural processing, has temporarily idled its only soybean crushing facility in Des Moines, Iowa, for essential maintenance.

The planned closure, which began in mid-October and will continue through November, comes at a critical time as the soybean harvest season is in full swing.

According to ADM’s statement to World Grain, the company has prepared for this project and made provisions to ensure uninterrupted service to its customers.

 “We forecasted for this project and have plans in place to meet customer needs throughout this timeframe utilizing our vast transportation, origination, and processing network,” ADM noted.

Iowa is a leading producer of soybeans, accounting for nearly 14% of the U.S. total. In 2023, the state’s soybean farmers produced 573 million bushels.

According to the latest data from the U.S. Department of Agriculture (USDA), Iowa farmers had already harvested more than 27% of their crop as of October. This is an important period for farmers, as soybean harvest typically peaks in October and November.

Despite the closure, ADM’s extensive network is expected to mitigate potential disruptions. The company’s transport and logistics infrastructure, which spans across the Midwest, will be leveraged to handle the soybean flow and meet processing demand during the downtime of the Des Moines plant.

ADM has been investing heavily in plant upgrades and digitalization, aiming to increase processing efficiency and minimize downtime in the long run.

The company has also been focusing on expanding its value-added product lines, including plant-based proteins and biofuels. In 2023, ADM made several strategic investments in plant protein processing and bioenergy production, including a joint venture with Marathon Petroleum to produce renewable diesel.

Meanwhile, the maintenance comes at a time when the U.S. soybean market is poised for a record harvest. The USDA has forecasted a total harvest of 124.8 million tonnes for the 2023-2024 season, which began in September.

This marks a significant rise from previous years, positioning the U.S. as a key player in global soybean markets amid rising global demand for plant-based oils and protein.

According to USDA, China, the world’s largest soybean importer, is expected to remain a major buyer of U.S. soybeans, despite some trade tensions and efforts to diversify its supply base.

China imported 96 million tonnes of soybeans in 2022, primarily from the U.S. and Brazil. The country’s large-scale livestock and aquaculture industries are driving similar trends for 2023.

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