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ADM to reduce ethanol grind in response to adverse market conditions

In the United States (US), Archer Daniels Midland Company (ADM), one of the world’s largest agricultural processors and food ingredient providers has announced that due to the "challenging operating environment it is temporarily idling ethanol production at the company’s corn dry mill ethanol facilities in Iowa (IA) and Nebraska (NE).

In the United States (US), Archer Daniels Midland Company (ADM), one of the world’s largest agricultural processors and food ingredient providers is temporarily idling ethanol production at the company’s corn dry mill ethanol facilities in Cedar Rapids, Iowa (IA) and Columbus, Nebraska (NE) due to the “challenging operating environment” (photo courtesy ADM).

In a statement on April 23, 2020, ADM said that it is currently managing ethanol production throughout its American corn processing network to focus on cash flows and to divert corn grind to other products that are in higher demand, such as alcohol for hand sanitizer.

As part of this process, ADM is temporarily idling ethanol production at the company’s corn dry mill facilities in Cedar Rapids, Iowa (IA), and Columbus, Nebraska (NE). ADM has notified approximately 90 employees in each facility that they will be furloughed in the coming weeks.

During the furlough, employees will continue to receive medical benefits and will be eligible to apply for state and federal unemployment benefits. They will also have the option to apply for other open positions at ADM. The anticipated length of the furlough is currently four months, but the timeframe is dependent on market conditions and could change.

ADM has also reduced the ethanol grind at its corn wet mill plants and rebalanced grind to produce more industrial alcohol for the sanitizer market and industrial starches for the containerboard market to better align production with current demand.

These are very difficult decisions in a very challenging time, and unfortunately, the current market conditions and the low consumer demand for gasoline at this time have greatly impacted the entire ethanol industry. Our primary focus is the respect and care of our employees during this time, and we are doing everything we can to support them until market conditions improve and we can look at ways to restart production, said Chris Cuddy, President, Carbohydrate Solutions.

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