50-50 partnership will focus on production and sales of liquid feed supplements for livestock
The joint venture consists of four liquid feed production facilities formerly owned by ADM — in Twin Falls, Idaho; Billings, Montana; Fremont, Nebraska; and Johnstown, Colorado — as well as the Loomix brand. The new venture, which will be called Alliance Liquid Feeds, will serve portions of the Western United States.
Quality Liquid Feeds continues to be owned by the Berg family and will continue to market QLF-branded liquid feed supplements out of their 12 facilities in the Midwest, East and Southwest United States.
“One of the ways we are increasing earnings power at ADM is by partnering with other great companies,” said Brent Fenton, president, ADM Animal Nutrition. “In this case, we’re joining with a strong partner in QLF, which allows us to expand our capabilities while simultaneously reducing the capital we have invested in the liquid feed business.
Customers will benefit from the combined expertise, resources and efficiency of the joint venture, and our shareholders will benefit from the improved returns we expect from the business. And by combining resources, we expect to see significant advancements in operational efficiencies, from capital reduction to supply chain enhancements to sales/margin improvements.”
QLF CEO Cory Berg said: “This joint venture allows us to expand into markets that we had our sights on for a number of years. The new company will benefit from QLF’s expertise and 38 years of experience producing and supplying liquid feed 24 hours a day, seven days a week, 365 days a year. At the same time, it provides us a strong partner in ADM, with its overwhelming supply of ingredients, experience and knowledge in supply chain management, research, and industry connections.”
Existing Loomix customers will see a seamless transition as the new business continues to offer high-quality products, strong customer service and, eventually, new products.