Archer Daniels Midland Company (NYSE: ADM) announced 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.
“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," said ADM Chairman, CEO and President Patricia Woertz.
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.
As a member of the Roundtable on Sustainable Palm Oil, ADM said it will meet all RSPO guidelines relating to the palm plantation and processing facility.
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Brazi-based corporation Cosan, the world’s largest sugar and ethanol group, said on Thursday that net income fell 83% in the quarter ending December 31, mainly due to rising costs at its sugar operations.
Read the Reuters story at the link below.
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