ADM eyes Brazilian ethanol, report says

NEW YORK (CNNMoney.com) — Archer Daniels Midland, the nation’s largest producer of ethanol fuel from corn, is setting its sights on a move into Brazil’s sugar cane-based ethanol business, according to a published report.

The Wall Street Journal says ADM is exploring a variety of strategies to enter Brazil’s ethanol market, ranging from building sugar-cane mills and ethanol plants from the ground up to acquiring sugar-cane companies.


Steve Mills, ADM’s senior vice president of strategy, told the newspaper that sugar-cane ethanol is now “a key component” of its ethanol strategy.

The paper reports estimates that 30 percent of ADM earnings now come from ethanol. The company had net income of $1.3 billion in the most recent year. But the increased demand for ethanol in the United States has driven up the price of corn and squeezed profits from the business.

CNN/Money