ADM Collaborates With Alltech to Enrich Customers' Experience

Archer Daniels Midland Company ADM is focused on optimizing the organizational and operational structure across Human and Animal Nutrition. In the latest development, the company, in collaboration with Alltech, has agreed to roll out a North American animal feed joint venture that blends decades of proficiency and capabilities to ensure advantages for customers.

Alltech, an agriculture leader, will hold majority ownership and governance will be shared equally through a jointly represented board. Alltech will contribute its U.S.-based Hubbard Feeds and Canada-based Masterfeeds businesses, which comprise 18 feed mills in the United States and 15 in Canada, while ADM will add its 11 U.S. feed mills.

This venture will align the companies’ complementary feed strengths in North America, leveraging team expertise, robust manufacturing capabilities, proven nutrition science experience and recognized product portfolios. Hence, the two companies share a longstanding relationship, dating back to ADM’s role as Alltech’s first customer.

The transaction is likely to be concluded by formally launching the joint venture in the first quarter of 2026. Archer Daniels will retain its Canadian facilities, along with its U.S. premix and additive businesses; however, such capabilities and products will continue to support the new venture. Alltech will keep its Ridley Block, Ridley Feed Ingredients and Alltech specialty ingredients, continuing to supply and partner with the new venture.

Both companies will offer industry-leading products and solutions for livestock, equine, backyard and leisure animals, uniting passionate teams, proven products and shared values to boost customer value.

What’s More for ADM?

Archer Daniels is actively managing productivity and innovation as well as aligning work to the interconnected trends in food security, health and wellbeing. In addition, the company has been advancing key innovation initiatives in areas like biosolutions and health & wellness, supporting increasing customer demand in these parts of the business.

The company’s processing capacities are improving across its production operations. ADM has been creating additional margin opportunities, opening up channels to customers, advancing digital technologies in areas like farmer needs, the extension of Regen Act programs and partnerships and the growth of its BioSolutions platform. The company is focused on strategic simplification.

We note that shares of this Zacks Rank #3 (Hold) company have gained 16% in the past three months against the industry’s 1.5% drop.

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This article originally published on Zacks Investment Research (zacks.com).

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