Archer Daniels Midland 2010 Annual Report Download - page 11

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7
Item 1.
BUSINESS (Continued)
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.
In July 2010, the Company made a $100 million cornerstone investment in Agricultural Bank of China, to help
advance its strategic growth plans in China.
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, towboats, and ocean-going vessels 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
2010
2009
2008
Soybeans
22%
19%
16%
Soybean Meal
12%
11%
11%
Corn
10%
12%
14%
Wheat
6%
9%
10%
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. In addition, the Company is working to develop vegetable oil products with reduced saturated
fats. During the first quarter of fiscal year 2010, the Company successfully introduced oils with lower levels of
naturally occurring trace compounds in Europe.
The Company continues to develop the market for its cooked, dried edible bean products of the Vegefull™ line to
meet customer demands for increased protein and fiber in food.
In 2007, the Company entered into a development agreement with ConocoPhillips to develop affordable, renewable
transportation biofuels from biomass. A technology platform has been developed following extensive evaluation of
potential options for the production of bio-crude materials. The Company is piloting the technology and has
produced quantities of biocrude that can be upgraded to gasoline components by ConocoPhillips.
In December 2009, the Company started production of Mirel®, a renewable plastic in our Clinton, Iowa facility.
This new bioplastic is being marketed by Telles, a joint venture of the Company and Metabolix.