ADM and QLF Form Liquid Feed Joint Venture
July 01 2015 - 3:15PM
Business Wire
- Combines QLF production and market
expertise with ADM’s extensive network and global resources
Archer Daniels Midland Company (NYSE: ADM) and Quality Liquid
Feeds, Inc. today announced that the two companies have entered
into a 50-50 joint venture for the production and sale of liquid
feed supplements for livestock. The joint venture consists of four
liquid feed production facilities formerly owned by ADM—in Twin
Falls, Idaho; Billings, Montana; Fremont, Nebraska; and Johnstown,
Colorado—as well as the Loomix® brand. The new venture, which will
be called Alliance Liquid Feeds, will serve portions of the Western
United States. Quality Liquid Feeds continues to be owned by the
Berg family and will continue to market QLF-branded liquid feed
supplements out of their 12 facilities in the Midwest, East and
Southwest United States.
“One of the ways we are increasing earnings power at ADM is by
partnering with other great companies,” said Brent Fenton,
president, ADM Animal Nutrition. “In this case, we’re joining with
a strong partner in QLF, which allows us to expand our capabilities
while simultaneously reducing the capital we have invested in the
liquid feed business. Customers will benefit from the combined
expertise, resources and efficiency of the joint venture, and our
shareholders will benefit from the improved returns we expect from
the business. And by combining resources, we expect to see
significant advancements in operational efficiencies, from capital
reduction to supply chain enhancements to sales/margin
improvements.”
QLF CEO Cory Berg said: “This joint venture allows us to expand
into markets that we had our sights on for a number of years. The
new company will benefit from QLF’s expertise and 38 years of
experience producing and supplying liquid feed 24 hours a day,
seven days a week, 365 days a year. At the same time, it provides
us a strong partner in ADM, with its overwhelming supply of
ingredients, experience and knowledge in supply chain management,
research, and industry connections.”
Existing Loomix customers will see a seamless transition as the
new business continues to offer high-quality products, strong
customer service and, eventually, new products.
Forward-Looking Statements
Some of the above statements constitute forward-looking
statements. ADM’s filings with the SEC provide detailed information
on such statements and risks, and should be consulted along with
this release. To the extent permitted under applicable law, ADM
assumes no obligation to update any forward-looking statements.
About ADM Animal Nutrition
ADM Animal Nutrition is a leading manufacturing, nutrition and
marketing business offering a wide range of innovative products for
the animal nutrition market. Known as a global leader in amino
acids, ADM Animal Nutrition also offers consistent, high-quality
feed products, supplements, premixes, custom ingredient blends and
specialty feed ingredients designed to provide leading-edge
solutions, enabling our customers to meet and optimize animal
health and nutrition goals.
About QLF
Quality Liquid Feeds is a nationwide, innovative leader in the
developing and manufacturing of liquid feed supplements for
livestock. With 12 manufacturing plants across the United States,
QLF is the largest family- and American-owned liquid feed company
in the country. For over 37 years, QLF has been a company with a
reputation for marketing products based on quality, consistency and
service.
About ADM
For more than a century, the people of Archer Daniels Midland
Company (NYSE: ADM) have transformed crops into products that serve
the vital needs of a growing world. Today, we’re one of the world’s
largest agricultural processors and food ingredient providers, with
more than 33,000 employees serving customers in more than 140
countries. With a global value chain that includes more than 460
crop procurement locations, 300 ingredient manufacturing
facilities, 40 innovation centers and the world’s premier crop
transportation network, we connect the harvest to the home, making
products for food, animal feed, chemical and energy uses. Learn
more at www.adm.com.
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Archer Daniels Midland CompanyMedia
RelationsJackie Anderson, 312-634-8484media@adm.com
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