Ethanol pioneer ADM’s struggle reflects deepening industry woes

3 Feb 2016   Biofuels

When Archer Daniels Midland opened two of the country’s largest ethanol plants in Nebraska and Iowa six years ago, the biofuels market was on the cusp of a boom with prices and profits on the rise. Now, the plants are more of a headache for the Chicago-based company, considered an industry pioneer, amid crushed margins and weak prices as the financial success of its almost 40-year- old business fades. In the industry’s first major capitulation to depressed market conditions, ADM’s chief executive, Juan Luciano, on Tuesday said he would consider options, including a sale, for those two plants as well as another in Peoria, Illinois. The three dry-mill ethanol plants, some of the largest in the country, represent just under half of ADM’s 1.8-billion-gallon-per-year U.S. ethanol capacity. The news […]

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