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Archer Daniels (ADM) & FBN Launch Gradable to Boost Technology
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Archer Daniels Midland Company (ADM - Free Report) is actively managing productivity and innovation, as well as aligning work to the interconnected trends in food security, health and wellbeing.
In the latest development, the company, in collaboration with Farmers Business Network (“FBN”), launched a joint venture, Gradable, to accelerate technology solutions. This will allow farmers and buyers to pursue and boost value from grain produced via sustainable and regenerative practices. Introduced in 2020, the Gradable technology platform, which has a modern digital infrastructure, was built to reinforce the relationship between grain buyers and farmers with greater efficiency and transparency.
Let’s Find Out More
The Gradable platform tracks the regenerative agricultural policies and outcomes, hence allowing farmers to easily earn financial rewards. Gradable is a major grain procurement platform in North America, with more than 20,000 farmer users across above 12 million acres. It scores more than 200 million bushels of corn and soybeans, analyzes 48 million acre-years of agronomic events and facilitates more than $30 million in financial incentives for sustainable practices every year.
For grain buyers, Gradable offers consistent farm-level data, enabling them to identify and buy grain for customers’ needs. Via the latest 50-50 joint venture, Gradable looks to expand and reach new partners and customers at each stage of the grain supply chain, ranging from growers to grain buyers.
Gradable’s current partners include ADM, POET and Attebury Grain, LLC. To resonate well with the growing demand for sustainably-produced crops, Gradable will expand across Archer Daniels' multiple facilities across the United States and Canada and enhance the number of commercial partners and countries. This will also boost its capabilities to meet the supply-chain global demands for sustainable food, feed, fuel and industrial products. The latest joint venture will allow more farmers, commercial grain partners and end customers to gain from regenerative practices and higher demand.
What Else?
Archer Daniels is poised to drive value via better margin opportunities as it enters into the later half of 2024. The company’s processing capacities are improving across its production operations, which consist of the ramp-up of Green Bison to full capacity and growing production in Ukraine.
Image Source: Zacks Investment Research
The company has been creating additional margin opportunities, opening up channels to customers, advancing digital technologies in areas like farmer needs, extending Regen Act programs and partnerships and growing its BioSolutions platform. It expects a major portion of its planned $500 million cost savings from the execution excellence to be generated by the end of the initial year of the program. The company has been seeing solid demand for meals and oil. For soybean crush margins, it expects solid soybean meal demand, thanks to robust livestock margins. For soybean oil, it anticipates renewable diesel production to grow in the second half, with solid demand for vegetable oil.
We note that shares of this Zacks Rank #4 (Sell) company have lost 2.6% in the past three months compared with the industry’s 3.9% decline. Archer Daniels has been witnessing sluggishness across its Ag Services & Oilseeds segment for a while now. The segment’s revenues dropped 12.6% in second-quarter 2024.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings per share (EPS) indicates growth of 26.1% and 257.1%, respectively, from the prior-year reported levels.
Vital Farms (VITL - Free Report) , which provides pasture-raised products, currently sports a Zacks Rank of 2 (Buy). The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and EPS indicates growth of 26.3% and 88.1%, respectively, from the prior-year reported levels.
VITL has a trailing four-quarter earnings surprise of 82.5%, on average.
Post Holdings (POST - Free Report) , a consumer-packaged goods company, is involved in the production of refrigerated, foodservice and nutrition product categories. It currently carries a Zacks Rank #2. POST has a trailing four-quarter earnings surprise of 30.1%, on average.
The Zacks Consensus Estimate for POST’s current financial-year sales and EPS indicates growth of 12.7% and 11.4%, respectively, from the year-ago reported figures.
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Archer Daniels (ADM) & FBN Launch Gradable to Boost Technology
Archer Daniels Midland Company (ADM - Free Report) is actively managing productivity and innovation, as well as aligning work to the interconnected trends in food security, health and wellbeing.
In the latest development, the company, in collaboration with Farmers Business Network (“FBN”), launched a joint venture, Gradable, to accelerate technology solutions. This will allow farmers and buyers to pursue and boost value from grain produced via sustainable and regenerative practices. Introduced in 2020, the Gradable technology platform, which has a modern digital infrastructure, was built to reinforce the relationship between grain buyers and farmers with greater efficiency and transparency.
Let’s Find Out More
The Gradable platform tracks the regenerative agricultural policies and outcomes, hence allowing farmers to easily earn financial rewards. Gradable is a major grain procurement platform in North America, with more than 20,000 farmer users across above 12 million acres. It scores more than 200 million bushels of corn and soybeans, analyzes 48 million acre-years of agronomic events and facilitates more than $30 million in financial incentives for sustainable practices every year.
For grain buyers, Gradable offers consistent farm-level data, enabling them to identify and buy grain for customers’ needs. Via the latest 50-50 joint venture, Gradable looks to expand and reach new partners and customers at each stage of the grain supply chain, ranging from growers to grain buyers.
Gradable’s current partners include ADM, POET and Attebury Grain, LLC. To resonate well with the growing demand for sustainably-produced crops, Gradable will expand across Archer Daniels' multiple facilities across the United States and Canada and enhance the number of commercial partners and countries. This will also boost its capabilities to meet the supply-chain global demands for sustainable food, feed, fuel and industrial products. The latest joint venture will allow more farmers, commercial grain partners and end customers to gain from regenerative practices and higher demand.
What Else?
Archer Daniels is poised to drive value via better margin opportunities as it enters into the later half of 2024. The company’s processing capacities are improving across its production operations, which consist of the ramp-up of Green Bison to full capacity and growing production in Ukraine.
Image Source: Zacks Investment Research
The company has been creating additional margin opportunities, opening up channels to customers, advancing digital technologies in areas like farmer needs, extending Regen Act programs and partnerships and growing its BioSolutions platform. It expects a major portion of its planned $500 million cost savings from the execution excellence to be generated by the end of the initial year of the program. The company has been seeing solid demand for meals and oil. For soybean crush margins, it expects solid soybean meal demand, thanks to robust livestock margins. For soybean oil, it anticipates renewable diesel production to grow in the second half, with solid demand for vegetable oil.
We note that shares of this Zacks Rank #4 (Sell) company have lost 2.6% in the past three months compared with the industry’s 3.9% decline. Archer Daniels has been witnessing sluggishness across its Ag Services & Oilseeds segment for a while now. The segment’s revenues dropped 12.6% in second-quarter 2024.
Key Picks
Freshpet, Inc. (FRPT - Free Report) , a pet food company, has a trailing four-quarter average earnings surprise of 132.9%. FRPT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Freshpet’s current financial-year sales and earnings per share (EPS) indicates growth of 26.1% and 257.1%, respectively, from the prior-year reported levels.
Vital Farms (VITL - Free Report) , which provides pasture-raised products, currently sports a Zacks Rank of 2 (Buy). The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and EPS indicates growth of 26.3% and 88.1%, respectively, from the prior-year reported levels.
VITL has a trailing four-quarter earnings surprise of 82.5%, on average.
Post Holdings (POST - Free Report) , a consumer-packaged goods company, is involved in the production of refrigerated, foodservice and nutrition product categories. It currently carries a Zacks Rank #2. POST has a trailing four-quarter earnings surprise of 30.1%, on average.
The Zacks Consensus Estimate for POST’s current financial-year sales and EPS indicates growth of 12.7% and 11.4%, respectively, from the year-ago reported figures.