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How Potential ADM, Bungee Merger Would Impact Farmers

DanIndustry News Release

The possible merger of ADM and Bungee could decrease marketing outlets for farmers as the companies would combine operations.
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Chad Hart of Iowa State University told DTN-The Progressive Farmer this week that, however, unlike mergers in the seed business, there still is a fair amount of competition in crop marketing. Hart says there are “plenty of marketing outlets” independent from ADM and Bungee. And, for the broader ag economy, Hart says such a combined company could result in improved efficiency in moving commodities from the farm to end users.

The move won’t move grain prices, however. The speculation of a potential merger between the two grain handling giants continues, while both companies offer little detail or comments regarding a merger.

ADM, known as Archer Daniels Midland, is reported to be engaged in talked to take over Bungee. ADM reported $60.8 billion in annual net sales in 2017, while Bunge made about $45.8 billion in net sales in 2017.

From the National Association of Farm Broadcasting News Service.