Archer Daniels Midland 2007 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2007 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 94

  • 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
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94

5
Item 1. BUSINESS (Continued)
Corn Processing
The Company is engaged in wet milling and dry milling corn operations. Products produced for use in the food
and beverage industry include syrup, starch, glucose, dextrose, and sweeteners. Dextrose is also produced for use
by the Company as a feedstock for its bioproducts operations. Corn gluten feed and meal as well as distillers grains
are produced for use as feed ingredients. Corn germ, a by-product of the wet milling process, is further processed
as an oilseed into vegetable oil and meal.
By fermentation of dextrose, the Company produces alcohol, amino acids, and other specialty food and feed
ingredients. Ethyl alcohol is produced to beverage grade or for industrial use as ethanol. In gasoline, ethanol
increases octane and is used as an extender and oxygenate. Amino acids, such as lysine and threonine, are vital
compounds used in swine feeds to produce leaner animals and in poultry feeds to enhance the speed and efficiency
of poultry production. The Company also produces, by fermentation, astaxanthin, a product used in aquaculture to
enhance flesh coloration. The Company produces citric and lactic acids, lactates, sorbitol and xanthan gum which
are used in various food and industrial products.
Almidones Mexicanos S.A., of which the Company has a 50% interest, operates a wet corn milling plant in
Mexico.
Eaststarch C.V. (Netherlands), of which the Company has a 50% interest, owns interests in companies that operate
wet corn milling plants in Bulgaria, Hungary, Romania, Slovakia, and Turkey.
Agricultural Services
The Agricultural Services segment utilizes the Company’s extensive grain elevator and transportation network to
buy, store, clean, and transport agricultural commodities, such as oilseeds, corn, wheat, milo, oats, and barley, and
resells these commodities primarily as feed ingredients and as raw materials for the agricultural processing
industry. Agricultural Services’ grain sourcing and transportation network provides reliable and efficient services
to the Company’s agricultural processing operations.
A.C. Toepfer International (Toepfer), in which the Company has an 80% interest, is a global merchandiser of
agricultural commodities and processed products. Toepfer has 38 sales offices worldwide and operates export,
river, and country elevators in Argentina, Romania, and the Ukraine.
The Company has a 45% interest in Kalama Export Company, a grain export elevator in Washington.
Other
The Company is engaged in milling wheat, corn, and milo into flour. Wheat flour is sold primarily to
commercial bakeries, food companies, food service companies, and retailers. Bulgur, a gelatinized wheat food,
is sold to both the export and the domestic food markets. Corn meal and flour is sold primarily to the cereal,
snack, and bakery mix markets. The Company produces bakery products and mixes which are sold to the baking
industry. The Company also mills milo to produce industrial flour used in the manufacturing of wallboard for
the building industry.
The Company processes cocoa beans and produces cocoa liquor, cocoa butter, cocoa powder, chocolate, and
various compounds for the food processing industry.
The Company produces wheat starch and gluten for the baking industry. Lecithin, an emulsifier produced in the
vegetable oil refining process, is marketed as a food and feed ingredient.