Archer Daniels Midland 2007 Annual Report Download - page 14

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6
Item 1. BUSINESS (Continued)
The Company produces a wide range of edible soy protein products including soy flour, soy grits, soy protein
concentrates and soy isolates that are used in processed meats, baked foods, nutritional products, snacks, and
dairy and meat analogs. The Company further processes these ingredients into dry and frozen meat analogs that
it markets to foodservice operators, retail and private label brand marketers, and direct-to-retail stores.
The Company produces natural source vitamin E, tocopherol antioxidants and phytosterols from co-products of
oilseeds which are marketed to the dietary supplement and food industry. The Company produces soy
isoflavones, a dietary supplement, from a co-product of edible soy processing. The Company processes and
distributes edible beans for use as a food ingredient. The Company produces and distributes formula feeds and
animal health and nutrition products to the livestock, dairy, poultry, and pet food industries.
Gruma S.A. de C.V. and affiliates (Gruma), of which the Company has a 27% interest, is the world’s largest
producer and marketer of corn flour and tortillas with operations in the United States, Mexico, Central America,
South America, and Europe. Additionally, the Company has a 20% interest in a joint venture which consists of
the combined United States corn flour operations of the Company and Gruma. The Company also has a 40%
share, through a joint venture with Gruma, in nine Mexican-based wheat flour mills.
International Malting Company, a wholly owned subsidiary of the Company, operates malting barley plants in
the United States, Australia, New Zealand, and Canada.
Hickory Point Bank and Trust Company, fsb, a wholly owned subsidiary of the Company, furnishes public
banking and trust services, as well as cash management, transfer agency, and securities safekeeping services, for
the Company.
ADM Investor Services, Inc., a wholly owned subsidiary of the Company, is a registered futures commission
merchant and a clearing member of all principal commodities exchanges. ADM Investor Services International,
Ltd. specializes in futures, options and foreign exchange in the European marketplace. ADM Derivatives, Inc.
offers foreign exchange services to institutional and retail clients.
Agrinational Insurance Company, a wholly owned subsidiary of the Company, provides insurance coverage for
certain property, casualty, marine, and other miscellaneous risks of the Company and participates in certain
third-party reinsurance arrangements.
The Company has a 50% interest in Telles, LLC (Telles), a joint venture formed between the Company and
Metabolix to market and sell PHA produced in a facility being constructed by the Company which is expected to
be completed during fiscal 2009. This facility will produce PHA to be sold to Telles for marketing, sale, and
distribution to the end consumer.
The Company is a limited partner in various private equity funds which invest primarily in emerging markets.
Methods of Distribution
Since the Company’s customers are principally other manufacturers and processors, the Company’s products are
distributed mainly in bulk from processing plants or storage facilities directly to the customers’ facilities. The
Company has developed a comprehensive transportation system utilizing trucks, railcars, river barges, and ocean-
going vessels to efficiently move both commodities and processed products virtually anywhere in the world. The
Company owns or leases large numbers of the trucks, trailers, railroad tank and hopper cars, river barges, and
towboats used in this transportation system.