ADM expands non-GM capabilities in Hungary with acquisition of multi-seed and corn germ facility

25-Sep-2024 - Last updated on 25-Sep-2024 at 08:04 GMT

ADM has announced an agreement to acquire Vandamme Hungaria Kft, along with its associated entities, which operate a 700 metric ton per day non-GM crush and extraction facility in northern Hungary.

The agribusiness giant said the production site will enhance its ability to meet the growing demand for non-GM food and feed products.

The Komárom-based facility, built in 2010, processes soybeans and corn germ into meal and oils for European and Middle Eastern markets. It employs 38 staff and generated €114m in revenue in 2023.

ADM expects the acquisition, subject to regulatory approval, to be finalized in the coming months.

Sebastian Kuck, ADM's general manager of EU soybean crush, emphasized the importance of this acquisition: "With increasing global concerns around food security and sustainability, demand for non-GM products is rising. In a European survey, 60% of consumers said they preferred non-GM labeling on products. ADM is investing to ensure we can meet this growing demand."

He also highlighted that the acquisition aligns with ADM's ongoing expansion of non-GM soybean offerings from its facilities in Serbia, Germany, and now Hungary, to efficiently serve customers in the food, feed, pet, and oil markets. ADM has been engaged in a multiyear effort to grow its non-GM soybean supply from its crush facilities in Becej, Serbia, as well as its Straubing and Mainz locations in Germany.

"Our growing footprint in the European non-GM soybean segment also supports our farmer suppliers by offering an outlet for a much needed value-added crop which can help with crop rotation and provide a platform from which to enhance their regenerative agricultural practices," said Rene van der Poel, ADM commercial manager.

These investments, he added, enhance ADM's capabilities and position the company to better meet diverse customer demands, particularly as new EU deforestation regulations take effect.

German non-GMO market

Last year, sales of non-GMO products in the German market hit a record €17.4bn.

The German Association for Food without Genetic Engineering (VLOG) manages the certification and regulation of the "Ohne GenTechnik" (non-GMO) seal, introduced in 2009 by former Federal Agriculture Minister Ilse Aigner.

According to VLOG, milk and dairy products dominated 2023 consumer spending on non-GMO items, with sales reaching €11.9bn (68%). Poultry meat products generated €3.4bn (20%), eggs contributed €1.5bn (9%), and other products accounted for €0.5bn (3%). Among these categories, egg sales experienced the highest growth, rising 12.3% compared to the previous year.