Investments will allow elevator to test, clean, grade, dry, store and ship organic grains.

August 20, 2018

2 Min Read
Pipeline Foods acquires ADM elevator in Iowa

Pipeline Foods LLC, the first U.S.-based supply chain solutions company focused exclusively on organic, non-genetically modified and regenerative food and feed, has announced the acquisition of a 3.4 million bu. grain elevator in Atlantic, Iowa.

Pipeline Foods has signed a purchase agreement to buy the facility from Archer Daniels Midland Co. (ADM) and is making capital investments in new equipment and improvements needed to upgrade the elevator to test, clean, grade, dry, store and ship organic grains. ADM will continue its conventional soybean origination at the site through segregated operations.

"This acquisition is a key component in Pipeline Foods' mission to increase organic supply chain efficiency and transparency," Pipeline Foods chief executive Eric Jackson said. "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, thereby increasing transparency and traceability for all stakeholders."

The investment is positioned to support the growing demand from protein producers for U.S.-grown organic grains, Pipeline Foods noted.

Atlantic is located in the heart of the western Corn Belt, at the nexus of major truck and rail routes, which the company said will allow its merchandising team to originate organic grain from Iowa and the surrounding states and improve logistical efficiencies when serving customers on both coasts via the Iowa Interstate Railroad with connections to all Class I major rail lines.

"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," said Pete Goetzmann, regional vice president, ADM Grain.

The Atlantic elevator will be open for operation in mid-September and will accept its first organic grain deliveries shortly thereafter. With the completion of the acquisition, Pipeline Foods will operate six organic processing facilities in the U.S. and Canada.

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