Archer Daniels Midland 2006 Annual Report Download - page 9

Download and view the complete annual report

Please find page 9 of the 2006 Archer Daniels Midland annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

1516123 Test2.indd 8 8/24/06 1:51:12 PM
7
Archer Daniels Midland Company / 2006 Annual Report
EXPANDING THE CORN
VALUE STREAM
Expanded uses of core crops yield opportunities for
higher returns along the entire value stream. Each use
of renewable resources adds to earnings potential, while
improving the supply/demand balance for the entire
portfolio of products derived from the same crop.
Corn starch—about 55% of each kernel of corn—is
transformed into more than 25 products today, with
potential new applications as varied as biodegradable
packaging and antifreeze. Most recently, demand has
increased sharply for ethanol derived from corn. In the
United States, where essentially all gasoline powered
vehicles can accommodate blends containing 10%
ethanol, demand levels of about 14 billion gallons per
year—approximately 10% of total gasoline supply—are
achievable. Vehicles that use an 85% ethanol blend (E85)
could expand the market further. Meanwhile, all existing
and publicly announced ethanol facilities as of mid-year
2006 have aggregate production capacity well below these
potential demand levels.
With the largest share of the ethanol market and a
successful track record of production and marketing, ADM
plans to expand its 1.1-billion-gallon capacity by the end
of 2008, with two 275-million-gallon expansions: one at
Columbus, Nebraska and the other at Cedar Rapids, Iowa.
Growing demand for ethanol can bring value to farmers
and improve the supply/demand balance for petroleum-
based fuels. ADM plans to maintain its leadership position
in the ethanol market, along with other products from the
corn value stream, capitalizing on new opportunities for
this versatile crop.
At the site of ADM’s
275-million-gallon
ethanol plant expansion
in Cedar Rapids,
Iowa, Brian Miller,
Project Manager, and
Terry Starry, Electrical
Superintendent, review
development plans.