- The stock price of Archer-Daniels-Midland Co (NYSE: ADM) increased by 0.53% in the most recent trading session. This is why.
The stock price of Archer-Daniels-Midland Co (NYSE: ADM) increased by 0.53% in the most recent trading session. Investors are responding positively to the company announcing that it will invest approximately $300 million to significantly expand its Decatur, Illinois, alternative protein production, as the company continues to add capacity to meet strong demand growth. ADM will further enhance its alternative protein capabilities by opening a new, state-of-the-art Protein Innovation Center, also in Decatur.
The production increase represents a significant expansion of ADM’s alternative protein capabilities. And the project – which is expected to be completed in the first quarter of 2025, subject to all applicable approvals and permits – will significantly strengthen ADM’s ability to meet growing global demand by increasing soy protein concentrate capacity and nearly doubling extrusion capacity at ADM’s Decatur complex. And the enhancements will improve production capabilities by utilizing the latest cutting-edge technologies and processes, including the best available control technology in line with ADM’s commitments to environmentally sustainable operations.
The project is only the latest to expand ADM’s global alternative protein production capacity. And last year, the company acquired Sojaprotein, a leading European provider of non-GMO human nutrition protein solutions. Between the 2 investments, ADM will increase its global alternative protein production capacity by more than 30%.
The Protein Innovation Center will further expand ADM’s cutting edge Decatur-based innovation complex, joining the company’s Food Application Center and Animal Nutrition Technology Center and enhancing Archer-Daniels-Midland’s ability to work closely with customers to develop custom solutions to meet their needs. And the new Decatur Innovation Center will bring together labs, test kitchens, and pilot-scale production capabilities to power new innovation, from novel and diversified ingredients, to more sustainable and efficient processing, to unique and differentiated texture, taste, appearance, and nutrition solutions.
“The global trends of food security and sustainability are driving structural changes in the food industry, including strong growth in alternative proteins, and we’re investing to ensure ADM remains a leader in this vast and exciting space. The array of opportunity areas for alternative proteins in foods and nutrition solutions is continuing to grow at 10% CAGR, with alternative meat and dairy sales alone expected to grow by 14% a year and reach $125 billion in 2030. Our sales in this space have been growing at rates much faster than the industry’s, and our work to expand our leadership position with new innovation and capacity is an important driver of future growth for our Nutrition business. We’re proud to continue to invest and innovate, delivering on our strategy, supporting global food security, and advancing sustainability for our customers and our future.”
“Our customers choose ADM because we can innovate across the entire value chain, from seed to fork and around the globe, to arrive at the perfect solutions to meet growing consumer demand. We’re proud to be the alternative protein partner of choice for global CPGs, food service companies and startups alike, with the highest-quality ingredients, unparalleled global scale, unmatched speed to market, and a value chain that no other company can offer. The investments we’re announcing today showcase our commitment to supporting their success and growing with them as more and more consumers choose alternative proteins.”
— Leticia Gonçalves, ADM’s president of Global Foods
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.