09 February 2011 22:37 [Source: ICIS news]
HOUSTON (ICIS)--Archer Daniels Midland (ADM) will invest in palm production and processing for biodiesel feedstock in the state of Para, Brazil, the company said on Wednesday.
ADM said its five-year investment would include 12,000 hectares of palm production and the construction of a palm processing plant.
Construction of the processing plant near Sao Domingos do Capim would begin in 2012 and operations would start in 2016, ADM said.
“This investment adds a new crop to our value chain in Brazil and diversifies our feedstock options for biodiesel production there, while at the same time supporting our commitment to sustainability in terms of both agricultural production and the livelihoods of farm families in Brazil,” said ADM chief executive Patricia Woertz.
ADM said it would make use of Brazil’s Social Fuel Stamp programme, which provides incentives for biodiesel producers to buy feedstock from small family farms. As part of the programme, ADM said it would contract with about 600 family farms for 6,000 hectares of palm production.
ADM did not disclose the investment cost.
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