Record demand for livestock feed hikes profits at ADM

ADM Agriculture, the UK arm of global food conglomerate Archer Daniels Midland, saw a rise in profits as a result of the 2018 heatwave.

The business, formerly known as ADM Arkady, posted a post-tax profit of £11.4m in the year ending December 2018, according to its latest set of accounts.

The results compare favourably to the previous year, with the company suggesting the long winter followed by the summer drought led to record demand for livestock feed.

See also: Grain trader Gleadell and processor Dunns to be bought by ADM 

The 2018 results are significantly higher than the £1.3m post-tax profit posted in 2017, when the business was still operating as ADM Arkady.

Sales volumes rose by 20% between 2017 and 2018, with gross profit after interest rising 317% from £4.2m to £17.6m.

ADM Agriculture is a major grain, seed, feed and fertiliser merchant, buying grain from farmers that is principally used as animal feed or as biomass in the energy industry.

As one of the largest processing facilities in the UK, ADM Erith processes approximately 1 million tonnes of rapeseed each year.

ADM also operates seven flour mills across England and Scotland, serving customers ranging from small craft bakers to large, multinational manufacturers.

Its site at Long Sutton in south Lincolnshire is also one of the largest pulse and agricultural seed processors in the UK.

Gleadell growth

On 1 April 2019, the business merged 100% of the business and net assets of grain trading business Gleadell Agriculture and its pulse and seed subsidiary Dunns into its operations.

Previously, ADM had jointly owned Gleadell with leading French agricultural co-operative InVivo, but decided to purchase the outstanding 50% to help grow its operations in the UK.

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