Archer Daniels Midland 2009 Annual Report Download - page 13

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7
Item 1.
BUSINESS (Continued)
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 is a limited partner in various private equity funds which invest primarily in emerging markets.
Corporate
Compagnie Industrielle et Financiere des Produits Amylaces SA (Luxembourg) and affiliates, of which the
Company has a 41.5% interest, is a joint venture which targets investments in food, feed ingredients and bioenergy
businesses.
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 customers’ facilities. The
Company has developed a comprehensive transportation system 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, ocean-going vessels, and towboats used in this transportation
system.
Concentration of Sales by Product
The following products account for 10% or more of net sales and other operating income for the last three fiscal
years:
% of Net Sales and Other Operating Income
2009
2008
2007
Soybeans
19%
16%
12%
Corn
12%
14%
15%
Soybean Meal
11%
11%
12%
Wheat
9%
10%
8%
Status of New Products
The Company continues to expand the size and global reach of its business through the development of new
products.
For retail and foodservice markets, the Company’s researchers continue to develop custom fats and oils with low
levels of trans fats. The distribution of these new products has been enhanced by Stratas, the Company’s joint
venture with ACH Jupiter, LLC, a subsidiary of Associated British Foods, which markets the packaged fats and oils
products in North America. In addition, the Company is working to develop vegetable oil products with reduced
saturated fats, and oils with lower levels of naturally occurring trace contaminants, particularly for European
markets.
To help meet the growing demand for soy proteins, the Company has developed and commercialized several new
soy protein concentrates.