Pipeline Foods acquires grain elevator from ADM

US-based supply chain solutions company Pipeline Foods has signed an agreement to acquire 3.4 million bushel grain elevator in Atlantic, Iowa, from Archer Daniels Midland Company (ADM), for an undisclosed price.

Pipeline Foods focuses exclusively on organic, non-GMO and regenerative food and feed.

The company will make capital investments in new equipment and improvements in order to upgrade the elevator to test, clean, grade, dry, store and ship organic grains.

The investment is positioned to support the growing demand from protein producers for US-grown organic grains.

After completing the upgrade works, the Atlantic elevator will be opened for operation by mid-next month and will accept its first organic grain deliveries shortly after.

Pipeline Foods chief executive Eric Jackson said: “This acquisition is a key component in Pipeline Foods’ mission to increase organic supply chain efficiency and transparency.

“In owning and operating another facility dedicated to organic grains and oilseeds, Pipeline Foods will have a direct relationship with farmers in the region, helping to ensure identity preservation of the product and allowing us to take ownership at the farm gate, increasing transparency and traceability for all stakeholders.”

The strategic location of Atlantic will allow Pipeline Foods’ merchandising team to originate organic grain from Iowa and the surrounding states, and improve logistical efficiencies.

With this acquisition, the company now operates six organic processing facilities in the US and Canada.

ADM Grain regional vice-president Pete Goetzmann said: “We’re pleased to be able to partner with Pipeline Foods, and look forward to continuing to work with our local farmer partners to source conventional soybeans in and around the Atlantic area.”

The company noted that it will continue with its conventional soybean origination at the site through segregated operations.