ADM's move to spin off ethanol assets speaks to industry's woes

NEW YORK/CHICAGO - Biofuels pioneer Archer Daniels Midland took another step toward abandoning its pure-play ethanol assets on Friday, the latest sign of the industry’s struggles with U.S. President Donald Trump’s trade wars, thin margins, and overproduction.

They had banked on China to buy excess capacity, but punitive tariffs in the last two years have halted buying, exacerbating the industry’s substantial overcapacity. ADM executives acknowledged that problem on Friday when the company reported that profit tumbled 41 percent in the first quarter. “Our decision to monetize the dry mills is frankly a strategic decision on our part to basically help the industry consolidate,” Young said.

“We don’t have a demand problem as much as we have a supply problem. There are just too many inefficient plants out there, and they need to go before we see a rebound,” said one ethanol trader on Friday. “It’s not like we are producing DVDs or CDs that no one wants.”

Get rid of ethanol.

Italia Ultime Notizie, Italia Notizie

Similar News:Puoi anche leggere notizie simili a questa che abbiamo raccolto da altre fonti di notizie.

Struggling industry saps German business morale as trade woes biteGerman business morale deteriorated in April, bucking expectations for a small i... Martini? Well, mash!
Fonte: Reuters - 🏆 2. / 97 Leggi di più »

In Fast-Moving Industry, Ferrari Stays The CourseSecretive sports car maker Ferrari opens up to Stefan Thomke about how it has bucked industry trends to achieve success. I beat one off the line just now in my 45k Tesla Model 3.
Fonte: Forbes - 🏆 394. / 53 Leggi di più »

Jobs in marijuana industry may make citizenship off-limits for immigrants'Employment in the marijuana industry may constitute conduct that violates federal controlled substance laws,' the USCIS said. Guys on crack plenty of Americans would gladly work those jobs 🤣🤣🤣more power control
Fonte: NBCNews - 🏆 10. / 86 Leggi di più »