Investment in sustainable palm production
15 February 2011- Archer Daniels Midland Company plans to invest in sustainable palm production in Brazil. Spanning five years, the ADM investment will encompass approximately 12,000 hectares of palm production in the state of Pará and include the construction of a palm processing plant.
Construction of the processing plant near São Domingos do Capim—approximately 100 miles east of Belém, the state capital of Pará—is expected to begin in 2013, with operations commencing in 2016.
“Our strategy for profitable growth is to expand the size and global reach of our origination and processing assets,” says ADM chairman, CEO and president Patricia Woertz. “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.”
ADM’s sustainable palm and biodiesel production will also be part of Brazil’s Social Fuel Stamp program that provides incentives for biodiesel producers to purchase feedstock from small family farms. As part of this program, ADM will contract with approximately 600 family farms for 6,000 hectares of palm production and provide them with technical assistance focused on sustainable agricultural practices.
“We are encouraged by the commitment of the Brazilian government to promote sustainable agricultural development that not only helps meet the growing energy demands of the country, but also improves the livelihoods of thousands of farm families through the Sustainable Fuel Stamp program,” says Domingo Lastra, president of ADM do Brasil Ltda. “Our investment in sustainable palm production will positively impact the lives of more than 3,000 people through higher farm incomes.”
As a member of the Roundtable on Sustainable Palm Oil, ADM will meet all RSPO guidelines relating to the palm plantation and processing facility.
