| CHICAGO, March 13
CHICAGO, March 13 Archer Daniels Midland Co
, one of the world's largest agricultural traders, will
widen its operations in China to produce fish feed, the company
said on Monday, amid increasing global demand for fish from
Expansion in high-growth regions like China is part of ADM’s
strategy to improve returns and reduce the volatility of
earnings due to swings in crop markets.
The Chicago-based company said it will build a new plant in
Xiangtan, in central China, with capacity to produce 120,000
metric tons of animal and fish feeds annually. It will be ADM's
fifth animal feed plant in the country.
ADM also will add production lines for fish feed at a plant
in Nanjing, in eastern China, to gain "entry into the growing
Chinese high value specialty aquafeed market," according to a
A spokeswoman declined to say how much the projects will
cost. The company expects both to be complete in 2019.
Other major agricultural traders also are expanding in the
aquaculture business as they look to diversify away from bulk
trading of grains and raw materials amid a four-year global
Fish are the fastest-growing protein source in a global food
supply chain straining to feed a population of nearly 7.5
billion people. The surging demand has pushed fish oil prices to
a record high.
ADM said another animal-feed plant in Zhangzhou, in the
southern part of the country, will likely be finished by this
summer. Two years ago, the company was targeting the fourth
quarter of 2016 for completion.
(Reporting by Tom Polansek; Editing by Dan Grebler)