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Soybeans

The average price received for soybeans in the United States ended the year in 2001/02 lower than the year prior. Expanding foreign production, weaker soybean prices and improving corn prices combined to keep U.S. area planted to soybeans lower in 2002/03. Planted area totaled 73.9 million acres, down from the near record level of 74.1 million acres planted the year prior. Despite the lower area, net returns for soybeans were higher in 2002/03 in part due to higher prices.

Along with the decline in soybean area for 2002/03, lower yields of 38.0 bushels per acre, down from 39.6 bushels the year prior, pushed overall production lower to 74.83 million tons from a record high of 78.67 million tons in 2001/02. As a result, the U.S. season average price increased in 2002/03 to $5.53 per bushel, up from $4.38 in 2001/02. The lower production levels in the U.S. along with higher prices helped push U.S. soybean exports lower in 2002/03 to 28.3 million tons, nearly 650,000 tons below the year prior. This comes despite a near doubling in imports of soybeans by China, the leading market for U.S. soybean exports.

Lower U.S. crush margins, a decline in U.S. soybean meal demand, and lower soybean production in 2002/03 helped push U.S. soybean crush lower in 2002/03 to 44.0 million tons, down from 46.3 million tons in 2001/2002. The lower soybean crush attributed to a decline in soybean meal exports in 2002/03, to 5.5 million tons, nearly 19 percent below 2001/02, and to its lowest level in six years.

World soybean meal demand continues to grow and reached 133.12 million tons, up from 126.79 million tons in 2001/02. Much of the growth in world demand for soybean meal was largely satisfied by increases in exports from Argentina and Brazil, which together were up nearly 4 million tons. The growth in the domestic consumption of soybean meal was particularly evident in China where domestic consumption of soybean meal in 2002/03 rose by nearly 29 percent.

Soybean oil is expected to continue to contribute a higher share of the returns due to especially tight world vegetable oil supplies and resulting higher prices. Although world supplies of vegetable oils in 2002/2003 remained tight, global supplies did improve some on account of increased production in Argentina and China. The decline in U.S. crush in 2002/03 pushed U.S. soybean oil production lower, down nearly 3 percent to 8.35 million tons, from 8.57 million tons the year prior. As a result, ending stocks of soybean oil in 2002/03 will reach its lowest level in four years at 710,000 tons. The season average price in 2002/03 was 21.75 cents a pound, up from 16.5 cents in 2001/02. U.S. exports of soybean oil declined to 1.02 million tons in 2002/03, from 1.14 million tons the prior year.

SOYBEANS: WORLD SUPPLY AND DISTRIBUTION (MILLION METRIC TONS)

1999 2000 2001
PRODUCTION
UNITED STATES 72.22 75.06 78.67
BRAZIL 34.20 39.00 43.50
ARGENTINA 21.20 27.80 30.00
EXPORTS
UNITED STATES 26.54 27.10 28.95
BRAZIL 11.16 15.47 15.00
ARGENTINA 4.13 7.42 6.01
IMPORTS
EUROPEAN UNION 14.22 17.44 18.30
ASIA 22.17 25.44 23.93
CHINA 10.10 13.25 10.39
JAPAN 4.91 4.77 5.02

Cargill soybean history
The Cargill organization was founded in 1865 by William H. Cargill as a frontier grain business. Its first elevator was opened that year in Conover, Iowa, at the head of a railway line. Thereafter Will and his two brothers, Sam and Jim, developed a system of country elevators. Their first formal headquarters, from 1875, were in La Crosse, Wisconsin and a north office was started in Minneapolis in the early 1880s. By 1886 Will Cargill had 37 grain elevators along railroad lines strung across southern Minnesota. He soon expanded into North and South Dakota, and southern Iowa.

In 1942 Cargill first entered the soybean crushing business with the acquisition of expeller plants in Springfield, Illinois, and Cedar Rapids, Iowa. In 1943 Cargill acquired Plymouth Processing Company's soybean processing plant, feed mill, and grain elevator at Ft. Dodge, Iowa, to give the company a soybean meal capacity of about 280 tons a day. In 1945 Cargill acquired Honeymead's solvent-extraction plants in Spencer and Cedar Rapids, Iowa. Dwayne Andreas, later of ADM fame, resigned as vice-president of Honeymead to become general manager of Cargill's Cedar Rapids operations.

Also in 1945 Cargill acquired Nutrena Mills, a manufacturer of animal feeds. During the late 1940s large agricultural surpluses began to develop in the US; getting rid of them would be top priority throughout the Eisenhower administration (1953-61). Surpluses made for dull markets and low profits, so Cargill, like other major grain traders, began to diversify. It moved rapidly to expand its soybean operations. By 1947 the company had five plants using both naphtha and hexane solvents, and expellers, located in the Midwest at Cedar Rapids, Ft. Dodge, Spencer, and Washington, Iowa; and Springfield, Illinois. The capacity of five of the plants totaled 570 tons of soybeans per day, so total capacity was probably about 685 tons. Storage capacity of the five known plants was 1.6 million bushels. All of the plants produced "Cargill" brand soybean meal and Nutrena feeds and pellets. In 1947 the crude soybean oil was sold to oil refiners; Cargill had not yet begun refining. The solvent meal was 44% protein and the expeller meal 41%.

In 1950 Cargill built its first plant specifically designed to crush soybeans in Chicago to serve US oil and meal markets. It proceeded to open soybean crushing plants in Savage, Minnesota (1954); Philadelphia, Pennsylvania; and Memphis, Tennessee (1956; a second plant was added adjacent to this first one in 1970). Most of Cargill's plants now used hexane solvent.

In 1957 Cargill began soy oil refining, but for industrial use, at a refinery built adjacent to the Chicago plant. The non-edible oil was used in paints and other protective coatings, and in vinyl products.

In 1955 Cargill made its first major move into the international grain market, so long dominated by the great European firms, by setting up a subsidiary called Tradax in Geneva, Switzerland. In 1959 Cargill/Tradax began shipping grain and soybeans to Europe.

Cargill's soybean processing activities expanded with tremendous speed. By 1957 it had passed all of the huge pioneering soybean processing firms, Staley, ADM, and Central Soya, to become America's leading soybean processor in terms of number of tons of soybeans processed per year. Cargill kept the US lead until 1980.

By 1960 Cargill had added new soybean crushing plants at Norfolk, Virginia (an Atlantic seaport); Sioux City, Iowa (on the Missouri River); and Memphis, Tennessee (on the Mississippi River), to bring the US total to eight. It had phased out its plants at Spencer, Iowa (not on a major waterway) and Philadelphia, Pennsylvania (replaced by Norfolk). Clearly the new plants were strategically situated to reach a global market; a new era was arriving. By 1965 new soybean crushing plants had been added at Des Moines, Iowa (on the Des Moines River) and Wichita, Kansas (on the Arkansas River), bringing the US total to ten.

In 1965 Cargill started operating its first overseas soybean crushing plant at Tarragona, Spain. Its first animal feed manufacturing plant had been started in Belgium in 1964, a joint venture. A second soybean processing plant, with 300,000 tons a year capacity, was started at Amsterdam, the Netherlands in 1966, followed by a third, with 500,000 tons a year capacity, at St. Nazaire, France in 1970 (a joint venture with three French firms). The capacity of this latter plant was soon doubled. These three European plants processed soybeans imported from the US. By 1969 Cargill had nine plants manufacturing livestock feeds in foreign countries, five in Latin America, three in Europe, and one in Korea. Cargill's soybeans or soybean meal were used in these feeds.

In 1967 Cargill first began to refine soy oil for food use, by opening a refinery adjacent to its plant at Des Moines, Iowa, for manufacturing salad oil, the most highly refined type of soy oil.

In November, 1969 Cargill disclosed more about its financial and international operations than it had ever done during its 204-year history. Like most of the privately-owned international grain trading companies, it usually operated in relative secrecy. Cargill's sales were reported to exceed $2,000 million during each of the past 4 years; this would place it alongside the top 30 or 40 US industrial corporations which are publicly held. Earnings averaged better than $14 million in each of these years. Then the world largest grain merchant and largest US processor of vegetable oils, Cargill also believed itself to be the second largest producer of animal feeds in the world with 35 US feed plants and 20 overseas. Employing 9,000 people worldwide, Cargill's net worth was $150 million and working capital was close to $90 million. Highly efficient, with profits averaging less than 1% of sales, Cargill sales abroad had contributed as much as $1,000 million in a single year, the second largest of all US corporations. Between 1955 and 1965 Cargill had quadrupled its volume of US grain exports. It had been actively involved in PL 480 programs, making cereal-soy blended foods such as CSM and also selling and shipping PL 480 products overseas.

The 1970s were a period of tremendous prosperity for Cargill and some controversy. At the start of the decade the company had expanded the number of soybean crushing plants to eleven by adding new ones in Gainesville, Georgia; San Francisco, California; and Fayetteville, North Carolina. It had also established a new vegetable oil division.

Starting in the early 1970s Cargill began to figure prominently in Brazil's emergence as the world's second largest soybean producer and exporter. Aside from engaging in the soybean export trade, in 1972 Cargill built one of the world's most modern soybean crushing plants at Ponta Gross, Brazil. The plant became a center of controversy in the US for two reasons. First it was disclosed in NACLA's Latin America and Empire Report in 1975 that the US government's Overseas Private Investment Corporation (OPIC) had lent Cargill Agricola (a wholly-owned subsidiary of Cargill) $2.5 million to build the plant, and the US export-import bank had helped out with loans totaling over $1 million. Critics asked what the government was doing using taxpayer's money to finance expansion of a multinational corporation. The government's position was that it was working to expand US exports to help American farmers and to generate foreign exchange to pay for petroleum imports. American farmers then asked why the US government was promoting Brazil's soybean industry, the arch competitor of the US soybean industry, since exports of soybeans, oil, and meal compete in foreign markets. No answer.

A second controversy arose concerning Cargill's role in the US soybean embargo of 1973. In 1975, after the U.S. Senate Subcommittee on Multinational Corporations held brief and inconclusive hearings on the role of these corporations in American foreign policy, it was suggested that Cargill might have helped precipitate the embargo by placing huge orders for US beans via Tradax, making it look like there would be a large soybean shortage. Prices shot up, until on 13 June 1973 a panicky US government sought authority to embargo soybean exports. On June 20 Cargill canceled the sale of 28 million bushels, but the Nixon administration still instituted the embargo on June 27. After the embargo was lifted, Cargill canceled an additional 28 million bushels in export orders. In total, Cargill canceled 40% of its contracts during that year. Cargill denied that it was a perpetrator of the soybean panic of 1973. It claimed that its orders and their cancellation were justified by the actual supply and demand situation. Regardless, during 1972-73, soybean crushing margins rose to the highest levels in history, three to five times greater than the profit margins one year earlier. All soybean crushers made huge profits. During 1973, Cargill's sales rose 54% to $5,300 million and profits, though still only a slim 2% of sales, nearly tripled, reaching more than $100 million. It was also claimed that Cargill had been able to use the soybean embargo to promote expanded production in Latin America in order to compete with the American export market and increase corporate independence from the US.

Shortly after the soybean embargo the US government established a system requiring the grain companies to report all export orders exceeding 100,000 tons within 24 hours.

By the mid-1970s Cargill handled about 18% of all US soybean exports and 25% of all US grain and soybean exports.

By 1975 Cargill had twenty soybean crushing plants on five continents around the world. In the US, new plants had been added at Minneapolis, Minnesota and Dayton, Ohio, to bring the total to 14. Overseas, new plants had been added at Reus, Spain and Narrabri, Australia, to bring the total to six.

With the immense profits it generated during the early 1970s, Cargill continued its diversification. By 1978, although it was the world's largest grain trading company, only half its revenues came from this activity; the rest came from other agribusiness activities such as selling seeds, chickens, and fertilizers, operating soybean processing and soy oil refining plants, and the like. In 1978 Cargill owned or leased 12,000 "upstream" grain and soybean elevators in the US.

In 1976 Cargill expanded its soy oil refining operations by opening a large refinery at Gainesville, Georgia, next to its soybean crushing plant. The refinery produced refined edible and hydrogenated oils. During the next few years similar refineries were opened at Chicago, Illinois; Fayetteville, North Carolina; and Hartsville, South Carolina, bringing the total number of soy oil refineries to five by 1980 (including the Des Moines refinery). Most of these plants produced industrial soy oils in addition to the refined edible products. In September 1980 Cargill announced that it would build a sixth soy oil refinery at Wichita, Kansas. Located next to Cargill's crushing facility and costing $12.3 million, it would have the capacity for producing 700,000 lb of refined and hydrogenated edible soy oil and salad oil daily.

In 1980 Cargill also produced defatted soy flour and flakes at Cedar Rapids, Iowa, and textured soy protein (extruded flour), industrial soy flour, and soy oil at Minneapolis, Minnesota.

Cargill's international network in 1981 of 15 soybean crushing plants in the US and 6 overseas, ranging in capacity from 10,000 to 100,000 bushels a day, gave the company maximum flexibility and maneuverability in processing and trading soybeans. Cargill had plants in the two largest soybean exporting countries, America and Brazil, and in the largest market for soybeans and soybean products, Western Europe. Thus Cargill can either export raw soybeans from the US and Brazil, then process them into oil and meal in Europe, or process them close to the point of origin and ship the oil and meal anywhere in the world. Few other refiners of raw materials find themselves in such an enviable position.

Cargill's total operations were also spectacularly successful. Cargill and Continental were the two largest privately held companies in the US. In 1976, Cargill ranked 12th in sales on the Fortune 500 (behind ITT) with $10,700 million in sales, 20,000 employees, and 140 subsidiaries in 36 countries. By 1980 sales had reached roughly $12,000 million and annual profits had increased 8-fold since 1972. The soy processing operations clearly played a major role in this financial success story.

ADM history
The history of ADM goes back to 1902, when John W. Daniels founded the Daniels Linseed Company in Minneapolis, Minnesota. In February 1903 the first mill began crushing flaxseed for its linseed oil, which was used primarily as a drying oil in paint.

On 23 May 1923 Archer-Daniels Linseed Company and the Midlands Linseed Products Company, two of the leading firms in the industry, joined to form a new company, the Archer Daniels Midland Company. Midland, originally incorporated in 1902 at Minneapolis, had expanded very successfully by acquiring mills at Chicago, Toledo, and Edgewater, New Jersey. Its plants at Minneapolis and Edgewater adjoined those of Archer-Daniels. The new company, with assets of $7.5 million, became the world's largest producer of linseed oil. Its nine mills contained a total of 334 presses, or one out of every three in America. In November 1954 John Daniels, then 67 years old, became chairman of the board and turned over the presidency to 36-year-old Shreve Archer, who actively worked to expand ADM's share of the flax processing market; in 1928 he bought up a number of competitors. It was also decided that the company needed to diversify its operations.

Thus in 1929 ADM first started to process soybeans at its Toledo and Chicago plants; the hydraulic presses that had been used for flaxseed were used for soybeans. This move did not seem particularly momentous at the time because the US was just becoming aware of the potential of the soybean and ADM's initial soybean operations were not particularly large. In the late 1920s ADM was stumping the countryside to get farmers to grow more soybeans.

ADM made its first bold step in soybean processing when it decided in the early 1930s to install a solvent extraction system for soybeans at its Chicago plant. As early as 1926 the William O. Goodrich Company (acquired by ADM in 1928) had been experimenting with solvent extraction of soybeans and other vegetable seed oils using a Scott Batch extraction system. Thus ADM had some experience in this area. But solvent extraction had not yet been used for volume production in the US since the extractors were large and expensive, soybean supply was limited, and a satisfactory solvent had not yet been found. Furthermore, it was still the depths of the Depression and ADM's 1933 sales were the lowest they had ever been. Nevertheless, in 1933 Shreve Archer sent plant superintendent E.W. Schmidt to Europe to make a study of solvent extraction and bring back the best equipment. Solvent extraction had originated in Europe but only in recent years had it been widely used. Schmidt brought back a 150-ton-per-day capacity Hildebrandt continuous-flow, counter-current hexane solvent extractor, which was installed in June 1934. ADM now had the largest and most modern soybean processing system in America; it left only 1% of the oil in the meal.

In 1934 ADM began to produce soy lecithin from their crude soy oil, becoming the first US company to manufacture this product. This lecithin was industrial or feed-grade; food-grade lecithin was not offered until the mid-1940s The soybean meal produced by the new solvent system was 44% protein meal; the meal produced by other companies with expellers or hydraulic presses contained only 41% protein. But the lower oil content made the solvent extracted meal very hard to sell. ADM spent a tremendous amount of money doing research and marketing work on the new meal. Initially it was placed on consignment with all types of dealers and distributors over a wide area. Said vice-president Whitney H. Eastman, "We might just as well have placed it on the shelves of jewelry stores in Iceland". Years of work eventually made the product a great success in high-protein feeds. A key man who spearheaded this drive for acceptance was Dr. James W. Hayward, who had done pioneering studies on soybean meal feeding, first at Purdue, then at the University of Wisconsin. He was brought to ADM in the mid-1930s. During all of this activity with soybeans, the two men who had founded the company died in consecutive years, John W. Daniels on 8 June 1931 at age 74 and George A. Archer on 12 November 1932 at age 82. In the late 1930s ADM started to crush soybeans in its linseed oil plant in Minneapolis on a sporadic or part time basis.

In 1939 Shreve M. Archer made an announcement of great importance in the company's annual report, hinted at, perhaps, by the fact that the word "soybean" was spelled with a capital "S."

Because of the growing importance of the Soybean industry the Board authorized the construction of a modern plant and elevator at Decatur, Illinois. This location was chosen because of the availability of raw material and a favorable rate structure. Construction was started early in the year and the plant should be in operation this fall.

A.E. Staley now had a huge rival in his backyard. Once again Mr. Schmidt, then ADM's general superintendent, went to Europe to investigate the latest developments in solvent extraction. This time he ordered a Hansa Muehle unit which carried the flaked beans in buckets on a moving chain (the Paternoster design) inside a U-shaped tube. The unit, which had a daily capacity of 400 tons, four times the size of any that had been used in Europe, made ADM the largest soybean processor in the world! In November 1939 the plant was ready for operation. The solvent unit occupied a five-story tower; storage capacity for 5 million bushels of soybeans was provided.

With this huge new plant, ADM was ready, just in time, to take full advantage of the phenomenal increase in demand for soyfoods and soybean meal that came as a result of World War II. On the eve of the war, at the end of 1940, ADM, with headquarters still in Minneapolis, had six soybean processing plants located in Decatur, Chicago, Toledo, Milwaukee, Minneapolis, and Buffalo. Soybean products were sold under the Archer brand. By 1942 ADM had become a major producer of soy flour. During the war, while the consumption of soy oil was doubling and tripling, ADM laid plans for expansion, but they could not be implemented until wartime restrictions were lifted. Thus it was 1949 before a second solvent extractor was installed that more than doubled the original capacity of the plant. This plant helped make ADM America's largest producer of soy flour.

Also in 1949 ADM made its first move into edible oils. A continuous-flow refining unit was installed and in 1950 an edible oil refinery was completed. Up to that time ADM had produced only crude soy oil for sale to margarine and shortening manufacturers. The new refinery made it possible for ADM to supply the food industry with cooking and salad oil and to furnish bulk edible soy oil to large consumers such as canners of tuna fish and sardines.

In November 1950 a new 300-ton-a-day soybean solvent extraction plant went into operation at Mankato, Minnesota; it was built adjacent to ADM's feed mill. This plant, enlarged in 1953 and equipped to produce soy flour in 1956, played an important role in the rapid expansion of the soybean crop in Minnesota. In 1953 the 6,000 bushel-a-day capacity Chicago plant was closed because of its small size and proximity to the huge Decatur plant, with its 44,000 bushel-a-day capacity. Because of the demand for soy flours and edible oils, production facilities at Decatur were modernized. Also in 1953 a plant was added that used soy oil to make vinyl plasticizers. At about this same time ADM produced the first 50% protein soybean meal at its Decatur plant, for use in high-energy hog and poultry feeds. The company was vertically integrated. In 1954 the first history of ADM, an excellent book titled From Land, Sea, and Test Tube, was written by Marion E. Cross.

In the mid-1950s ADM made its first move into the modern soy protein products. It bought a plant in Evandale, Ohio, outside Cincinnati) producing industrial-grade soy protein isolates from the Drackett Company; the isolates were used mainly in paper coatings and paints. Because casein prices were low, the plant lost money, so ADM tried to create food uses for the isolates. By the early 1960s they had developed a textured soy protein isolate, made with an extruder in the shape of rods or tubes. It was produced in a small pilot plant and sold to one or two customers for use in chili; not much was sold. Eventually a patent problem arose between ADM, Swift, and Ralston Purina as to who had really invented textured isolates. This was ADM's first venture into soy texturization, and the beginning of the story of TVP. A few years later a textured concentrate was developed, but was never marketed.

The early 1960s were a slow, almost stagnant period for ADM. Net earnings declined yearly in 1963, 1964, and 1965, until the company could not cover its annual dividend. In September 1965 Shreve Archer took the lead in seeking new leadership and management. To his great credit, he invited Dwayne O. Andreas and his brother Lowell to come in and run the company. The Andreases catapulted ADM into its present position of leadership in the industry. Dwayne Andreas, born in 1918 on a 160-acre farm in Lisbon, Iowa, had been in the business of processing soybeans and other commodities constantly since 1938. Once a year from that time he would travel 300 miles to Decatur, Illinois, to negotiate the annual supply of soybean meal for the family business from the A.E. Staley Manufacturing Company. Andreas liked to tell the story of how, on a memorable day in 1938, A.E. Staley, Sr. took him to lunch and suggested that the Andreases build a soybean crushing plant in Iowa, where Iowa farmers were about to plant a lot of soybeans. Staley's people did not want to expand geographically, so here was a golden opportunity. A few days later the Andreas family contracted to build a soybean processing plant in Cedar Rapids, Iowa. Honeymead Products Company was founded; business prospered. Andreas sold the business at a nice profit, then went to work for Cargill for 7 years. In 1965, when considering the invitation to take the lead at ADM, Andreas was greatly impressed with TVP (ADM's brand name for textured vegetable protein), which ADM's labs had developed. At that time TVP was being produced only in the company's laboratories, but Andreas could see a host of possibilities from meat extenders to a key, low-cost protein source in a wide variety of foods. Dwayne Andreas has long had a deep personal interest in food, and especially in those made from the soybean. Unlike typical executives, "he likes to look at fields and talk about protein shortages and world hunger".

In early 1966 the Andreases bought 100,000 shares of ADM stock, later extending their holdings to 181,900 shares. After assuming leadership of the old-line agricultural processor, the Andreases energetically lopped off unprofitable activities and expanded soybean crushing capacity. Charting ADM's future directly into large-scale food processing and technology, the company sold all of its chemical operations in April 1967 for $65 million. With this capital ADM caught up on a generation of soybean processing technology it had missed, renovating its two soybean plants at Decatur, increasing the capacity of one plant to 4,000 tons a day (keeping it the largest in the world) and adding new capacity elsewhere. Over a 3-year period soybean crushing capacity was increased from 50 million to 120 million bushels a year.

In 1965, ADM introduced TVP brand textured soy protein. ADM had received basic patents for TVP, based on an entirely new technology for soybean processing. TVP caught on quickly; it was widely used by 1968 and consumption skyrocketed after 1971 when it was approved for use in the school lunch program. By 1980 similar products were being produced by 12 or 13 companies in America, but ADM was far and away the leader.

During the late 1960s Decatur was built into a fully integrated, huge, soybean and soyfoods processing operation. In addition to the expanded and modernized crushing facilities and the TVP plant, hydrogenation equipment was added at Decatur (and at Lincoln) to process refined oil for use in margarine; soy flour production was also expanded. Sales were now about 60% in soybean processing, 21-28% in flour milling, and the rest in miscellaneous activities. In 1968 the company's headquarters were moved from Minneapolis to Decatur, Illinois. The same year ADM introduced a bacon-flavored TVP and began to expand its TVP production at Decatur. Also in the late 1960s ADM started to produce cereal-soy blends such as CSM and WSB, for the US PL 480 program. The production headquarters for these foods became the ADM Milling Co. in Shawnee Mission, Kansas.

In 1973 Fortune magazine did an excellent story on Andreas and ADM entitled "Dwayne Andreas' Bean Has a Heart of Gold." It noted:

No individual has made a greater success of processing and merchandising the pale yellow bean than Dwayne Andreas ... the Andreases brought ADM from No. 3 to No. 2 in the soybean industry (behind Cargill). Net sales went from $371,626,000 in fiscal 1967 to $967,710,000 in fiscal 1973, while net operating earnings rose more than 400%--from $3,225,000 to $16,895,000. Meantime, the price of the stock nearly quadrupled... ADM has over 50% of the textured soy protein business, and has licensed several competitors to make the product.

In 1973 ADM introduced CornSweet high fructose corn syrup into that burgeoning market. In later years it added sweeter varieties.

In a speech to the New York Society of Security Analysts in 1975, Dwayne Andreas gave a nice sketch of ADM, present and future, describing the company as having a four-horse team pulling it in a certain direction for the future. The four horses were edible soy protein products, oil for margarine, dehulled soybean meal for the poultry industry, and corn syrups. Each of these are low-cost, mass-market food items in growing demand by the world market. ADM had 17% of the US soybean crushing business and about 25% of the margarine oil business (80% of their soy and corn oil went into margarine).

In 1977 ADM celebrated its 75th birthday with an attractive brochure titled "What's New," that outlined the company's history and was sent out with the annual report. That same year ADM introduced a host of new soy protein products:
(1) a soy protein concentrate, Ardex 700, used, for example, in more economical and healthful cookies;
(2) a textured soy protein concentrate (TVP2);
(3) a light-colored TVP product developed as a fish extender;
(4) Nutrisoy Fiber, America's first soy bran, containing 41% crude fiber and 10% protein and costing about half as much as other edible cellulose products on the market;
(5) new soy variety breads.
Research was progressing on a new soy beverage based on new technology that was reported to taste great for use in dairy-type applications, such as milk replacers, cheese and dessert bases. ADM's soy proteins were said to be used in more than 600 brands of prepared foods sold on grocers' shelves: soups, chili, frozen dinners, pizza, gravies, and the like. In England, Cadbury's Soya Choice, based on TVP, was a "roaring success;" because of its good flavor and nutrition equivalent to meat at half the price. The latter was produced by the British Arkady Company, a subsidiary of ADM, which had been manufacturing TVP since 1975.

Financial figures were extremely impressive. Between 1968 and 1977, net sales had increased from $280 to $2,114 million (7.5 times) and net earnings or profit had increased from $4.4 to $61.4 million (14 times); a truly spectacular record. Soy processing plants included ten soybean crushing plants, two vegetable oil refineries, one vegetable oil packaging plant, three soy flour manufacturing plants, two textured soy protein plants, and one soy protein concentrate plant, plus a soy flour plant and TVP plant in Manchester, England. ADM refined oils included soy oils for margarine, shortenings, salads, and cooking, plus Yelkin lecithin. ADM protein specialties included, in addition to TVP, TVP2, and Ardex 700, Nutrisoy defatted, low-, and full-fat (whole) soy flours and Nutrisoy grits. ADM was the last major company to produce a full-fat soy flour in America; the product was later dropped. In 1977 ADM Milling Co. published a brochure titled "The Growing Challenge," discussing the new breed of soy-fortified blended foods and their role in meeting protein-calorie malnutrition in Third World countries.

As of 1980 ADM was the second largest soybean crusher in the US and the world (behind Cargill); its Decatur plant was the largest single soybean solvent extraction plant in the world, with a capacity of 4,000 tons a day. It was the leading producer of textured soy protein (TVP), offering 300 different sizes and flavors. And it was one of America's largest suppliers of basic foods.

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