Leaders with ADM said the company is putting a strong focus on destination marketing to help its feed and grain businesses grow.
Speaking during the Barclays Global Consumer Staples Conference on September 6, ADM CFO Vikram Luthar and president of Nutrition and chief sales and marketing officer Vince Macciocchi talked about the opportunities that destination marketing will provide ADM, which is cycling back after a tough 2022 in its animal nutrition business.
“We continue driving more of a destination marketing business," said Luthar. "We think there’s revenue across the four major commodities – about 120 million metric tons growth over the next 10 years, a 20% growth. We will actively participate in that growth with increased focus in destination marketing, which tends to be less volatile and gives us a much higher margin profile than just dropping the grain at the port.”
Macciocchi mentioned particular areas of focus for the nutrition business, including feed additives and ingredients, as well as the aquaculture industry. He said the company can benefit from taking a destination marketing approach for all of those categories. He praised the “level of professionalism and expertise” in its ag services and oilseeds businesses to help the company achieve its goals of reaching reemerging markets, such as South America and parts of southeast Asia, such as the Philippines and Vietnam.
“We feel like we’re well-positioned for growth again … on the animal nutrition side,” Macciocchi said.