Archer Daniels Midland Co. (ADM), the largest soybean meal exporter from Brazil, will be doubling its fleet of barges in South America. Currently ADM owns 2,400 barges globally, and 260 in South America. The expansion is part of the company’s plan to expand outside of the U.S., to increase annual volume shipped from its new port in Belem which it bought in 2012, and to avoid the port congestion experienced early in 2013. ADM plans to increase shipments from Belem to 6 million metric tons per year from the current 1 million tons as it is expanding its crop buying and export networks in South America and Eastern Europe to boost deliveries to emerging markets, particularly in Asia. The port at Belem will be used as an alternative for crops from Mato Grosso that usually are transported to the southern ports of Santos and Paranagua. ADM is also acting to improve storage in the interior of the country and infrastructure to move crops to the north, while improving efficiency at its port in Santos.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free bi-weekly enhanced eNews service