Archer Daniels Midland (ADM), one of the world’s largest agricultural processors, is a vital link between farm, factory, and table. The Chicago-based multinational rings up almost $62 billion in annual net sales of soybeans, corn, gluten, and other agricultural products provided by farmers worldwide. ADM’s focus on agriculture and energy requires the adjustment of organizational behavior while operating in a very dynamic and competitive environment. External forces such as changes in technology related to innovation in the supply chain, online purchasing, and digital marketing are complex and require changes in tactics and strategy to help its supply chain operate efficiently. Its vast network of processing plants and distribution centers as well as its extensive transportation network must all work together.

ADM’s clients include several well-known companies. Unilever, for instance, purchases oil from soybeans procured and processed by ADM. Unilever uses this oil to produce its mayonnaise products. As ADM’s executives know, Unilever and other clients are concerned with more than just price. To stay ahead of demand for sustainable agricultural processes, ADM has partnered with Unilever to enroll its farmers in the Iowa Sustainable Soy Fieldprint Project to monitor factors such as soil conservation and land use. In the project’s first year, 43 farms with land totaling more than 44,000 acres were enrolled. ADM also introduced a cost-share initiative to soybean farmers in Iowa to increase the pool of farms with sustainably grown soybeans and provide financial assistance to farmers. 

Questions for Discussion

1. How has the oversupply of grain impacted the supply chain

2. Describe how Archer Daniels Midland can diversify its portfolio to protect itself from external forces

3. How is Archer Daniels Midland staying ahead of demand for sustainable agriculture