ADM and Syngenta Group Sign MoU to Support Low-Carbon Next-Generation Oilseeds and Improved Varieties to Meet Growing Demand for Biofuels and Other Products
ADM (NYSE:ADM), a global leader in nutrition and agricultural origination and processing, and Syngenta Group, one of the world's biggest agricultural technology companies, announced today they have signed a memorandum of understanding (MoU) to collaborate in scaling research and commercialization of low carbon-intensity next-generation oilseeds and improved varieties to help meet skyrocketing demand for biofuels and other sustainably-sourced products.
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Camelina is one of the crops Syngenta and ADM are looking to scale in research and commercialization to help meet the skyrocketing demand for biofuels and other sustainably produced products. It's a win-win for farmers, the environment and the rural economy. (Photo: Business Wire)
The MoU envisions a collaboration in which ADM and Syngenta would leverage their existing capabilities to accelerate the research, processing, and commercialization of new, low carbon-intensity oilseeds, such as Camelina, that are typically grown in the fallow period of a crop rotation. The companies have broad capabilities including:
- Syngenta's R&D engine, which offers biotechnology support, seed treatments, and biologicals that further reduce the carbon intensity of crops, and agronomic knowledge from a network of local, field experts combined with excellent farmer relationships.
- ADM's global scale and logistical expertise, including unparalleled production and storage capabilities, a vast logistical network, and relationships with growers and customers spanning food, feed, fuel, industrial and consumer products.
ADM and Syngenta envision fostering partnerships with additional companies to support the creation, commercialization and processing of next-generation oilseeds.
"This exciting MOU with Syngenta demonstrates how we are working with partners to bring the full value chain together to support new seed technologies," said Greg Morris, president of ADM's Ag Services & Oilseeds business. "It builds on our unique capabilities by creating a path to scale the processing of cover crops, a process we've already successfully piloted. We look forward to working with Syngenta to advance this work and continue to meet demand for sustainably sourced fuels and other products."
"Syngenta is excited to join forces with ADM to bring more sustainable and profitable solutions to farmers," said Justin Wolfe, President of Syngenta Global Seeds. "Sustainability is a core enabler of our business strategy. We believe collaborations, such as this one, are important ways to drive quicker innovation that delivers higher yield potential while carrying a lower impact to our environment. Work will begin in North America."
Global demand for biofuels – such as sustainable aviation fuel, which can be made from a wide variety of feedstocks, including oilseeds such as the ones envisioned in this MOU – is expected to grow by 35 billion liters per year, or 22%, over the 2022-2027 period, according to the International Energy Association.
"Farmers have always been stewards of the land," said Alison Taylor, ADM's chief sustainability officer. "We're already expanding our partnerships with farmers through our re:generations™ regen ag program; this MOU represents another pathway for us to help them drive value by positioning their businesses to meet global demand for sustainably-sourced products."
"Transforming agriculture will be fueled by innovation, but it must be achieved at scale," said Daniel Vennard, Syngenta Group's Chief Sustainability Officer. "This cannot be done alone. The whole food and agriculture system needs to work in partnership with farmers at the center. Our collaboration with ADM is a perfect example of our continued commitment and we are excited to see what we will do together and how we can inspire the industry."
The companies expect to sign definitive agreements by the end of the year and are already advancing important work together around growing and processing next-generation varieties.
About ADM
ADM unlocks the power of nature to enrich the quality of life. We're a premier global human and animal nutrition company, delivering solutions today with an eye to the future. We're blazing new trails in health and well-being as our scientists develop groundbreaking products to support healthier living. We're a cutting-edge innovator leading the way to a new future of plant-based consumer and industrial solutions to replace petroleum-based products. We're an unmatched agricultural supply chain manager and processor, providing food security by connecting local needs with global capabilities. And we're a leader in sustainability, scaling across entire value chains to help decarbonize our industry and safeguard our planet. From the seed of the idea to the outcome of the solution, we give customers an edge in solving the nutritional and sustainability challenges of today and tomorrow. Learn more at www.adm.com.
About Syngenta Group
Syngenta Group is one of the world's biggest agricultural technology companies, with roots going back more than 250 years. With more than 59,000 employees, operating in more than 100 countries, the company strives to transform food production through Regenerative Agriculture - a science-driven, technology-enabled approach to improve soil, deliver high productivity and high-quality food, help fight climate change and restore lost biodiversity. Syngenta Group, which is registered in Shanghai, China, and has its management headquarters in Switzerland, draws strength from its four business units: Syngenta Crop Protection, headquartered in Switzerland; Syngenta Seeds, headquartered in the United States; ADAMA®, headquartered in Israel; and Syngenta Group China. Together, these businesses provide industry-leading ways to serve customers around the world. For Syngenta Group photos and videos, please visit the Syngenta Group Media Library.
Forward-Looking Statements Regarding ADM
Some of the above statements constitute forward-looking statements. ADM's filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, ADM assumes no obligation to update any forward-looking statements.
Cautionary Statement Regarding Forward-Looking Statements for Syngenta
This document may contain forward-looking statements, which can be identified by terminology such as "expect," "would," "will," "potential," "plans," "prospects," "estimated," "aiming," "on track" and similar expressions. Such statements may be subject to risks and uncertainties that could cause the actual results to differ materially from these statements. For Syngenta Group, such risks and uncertainties include risks relating to legal proceedings, regulatory approvals, new product development, increasing competition, customer credit risk, general economic and market conditions, compliance and remediation, intellectual property rights, implementation of organizational changes, impairment of intangible assets, consumer perceptions of genetically modified crops and organisms or crop protection chemicals, climatic variations, fluctuations in exchange rates and/or grain prices, single source supply arrangements, political uncertainty, natural disasters, and breaches of data security or other disruptions of information technology. Syngenta Group assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors.
Source: ADM
Source: corporate release
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