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ADM considers selling ethanol plants

The leader of one of the world’s largest ag processors says his company is considering selling three ethanol plants because of concerns about the industry long-term.

During a fourth quarter earnings conference call Tuesday, CEO Juan Luciano said Archer Daniels Midland (ADM) has brought in an advisor to help project different scenarios as it identifies options for maximizing returns.

He says one consideration would be selling two of its largest ethanol plants located in Iowa and Nebraska, as well as a third ADM plant in Illinois.

Luciano says low crude oil prices and high ethanol production levels are creating historically low margins, and the company will continue to implement cost-reduction strategies in its dry mills.

He says ADM is exploring all options and there’s no rush, as the operation as a whole is still reporting positive cash flows.