Archer-Daniels-Midland (ADM), a global leader in grain and oilseed processing, has reported a significant drop in its fourth-quarter profits, marking its weakest adjusted earnings in six years. The downturn is attributed to weak oilseed crush margins and challenges in the U.S. biofuel sector. As part of a broader cost-cutting initiative, ADM has announced plans to reduce expenses by $500 million to $750 million over the next three to five years. This includes laying off up to 700 employees, or approximately 1.7% of its global workforce.
ADM’s struggles come amid declining demand for grain processing and an oversupply of staple crops such as corn and soybeans, which hit four-year price lows in 2024. While this price drop may benefit pork producers by lowering feed costs, it also signals potential volatility in the grain markets. Additionally, ongoing trade tensions and regulatory uncertainty could further impact the supply chain for key feed ingredients.
The swine industry will need to watch these developments closely. ADM remains a major player in feed ingredient supply, and any disruptions to its operations could have ripple effects on availability and pricing. As ADM restructures its business, pork producers should remain proactive in managing input costs and assessing market trends to mitigate potential risks.
