ADM sells Brazil sugar ethanol operation

HOUSTON (ICIS)–Archer Daniels Midland Company (ADM) has sold its sugarcane ethanol operations in Limeira do Oeste, in the Brazilian state of Minas Gerais, the company said in a press release obtained by ICIS on Tuesday.

The facility has the capacity to crush 1.5m tons of sugarcane and produce 37m gallons of ethanol per year.

“As our sole sugarcane ethanol operation in Brazil, this asset is too small for ADM to compete effectively in a challenging ethanol environment,” said Chris Cuddy, president of ADM’s corn processing business unit.

The company is focusing on its corn and sweetener operations, a company representative said. 

“Last November, we completed our purchase of former Eaststarch assets in Europe. Earlier this year, we announced the purchase of a sweetener facility in Morocco. And now, we’ve completed the sale of our sugarcane ethanol operations in Brazil, which we determined were unlikely to meet our long-term returns objectives” Cuddy added.  

ADM is one of the largest agribusiness companies in Brazil. The company also operates the largest biodiesel plant in Brazil, and more than 40 elevators across the country.