Archer Daniels Midland Company (ADM) is in the process of realigning its business segments to establish four new units – nutrition, carbohydrate solutions, oilseeds and origination. Previously, the company’s segments included oilseeds processing, agricultural services, corn processing and WFSI (wild flavors and specialty ingredients).
The changes were intended to “enhance and accelerate” the company’s work to provide products and services while continuing to grow its portfolio, said Juan Luciano, ADM chairman and CEO.
“We have made tremendous progress over the last several years in creating a more agile and efficient company, and these changes position us to build on that momentum,” he said.
The new business segments will be referenced in the company’s upcoming first-quarter results presentation on May 1.
In addition to changing the business segments, there have been some alterations to staffing for the new divisions, the Chicago-based company said.
Vince Macciocchi is set to become the head of the nutrition unit, which will include animal nutrition, bioactives, wild flavors and specialty ingredients.
Chris Cuddy, the head of the corn processing unit, is shifting positions to lead the carbohydrate solutions unit. That segment will include both the current corn and milling units.
The oilseed unit, the only one of the previous business units to continue as it currently is, also will continue to be led by Greg Morris.
Media reports, earlier this month, indicated that the takeover talks between Bunge and ADM have stalled.
ADM is said to have approached Bunge about a potential takeover that would see a merger of two of the world’s largest grain trading groups.
Analysts are now saying that the economics of a deal between the two are less than compelling.
The origination segment will be led by Stefano Rettore, who is now senior vice president and president of origination. That business segment will comprise the agricultural services business elements other than milling.
Rettore also will continue to act as ADM’s chief risk officer while Kristy Folkwein is the new senior vice president and chief information officer.
She will be working to ensure data quality and integrity for the company along with focusing on driving process improvements, leading in the shared services organization on a global level and providing the analytics needed to make business decisions.
Joe Taets will be filling the newly created role of senior vice president and president of global business readiness, the company said. “ADM also announced leadership changes to further accelerate its existing readiness initiative to reduce costs, improve efficiency and standardize its business processes and systems to drive improved analytics and decision-making across the organization,” it added.
“In this new role, Taets will leverage the success in delivering cost savings, efficiency and business process initiatives within ag services to scale the implementation of these initiatives and others on a global enterprise-wide basis."
ADM is not the only company making some changes in the face of ongoing headwinds over low feed grain prices.
Bunge announced in July that it was planning a multi-year program to reduce expense spending and capital expenditures. Capital expenditures in 2018 were cut from the $700m level set in 2017 to $500m.