World Grain - July 2018 - 32
FEATURE: THE ANDERSONS SEEK STABILITY THROUGH CHANGE
tion of SAP in its Grain Group in 2017 and has begun
implementing it in its Plant Nutrient Group.
Regarding the company's portfolio, Bowe said one
RIWKHGLI¿FXOWGHFLVLRQVZDVWKHFORVLQJRILWVUHPDLQing four Ohio retail stores in 2017. Since the stores
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tough given the loyal customer following and dedicated workforce. However, the retail stores had been
of annual sales.
Portfolio optimizing has included the sale of other
assets on a highly selective basis, including grain elevators in northwest Iowa, fertilizer locations in Florida
and grain elevators in Tennessee.
"We took a hard look at the company's assets and
long term," Bowe said.
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broadly, but conditions have improved.
"Our grain business really turned around in '17 from
'16, almost a $25-million-dollar improvement for our
core business," Bowe said. "While grain has made a
strong recovery, the fertilizer business has underperformed. We continue to be optimistic about all four
overall grain storage
capacity is 144.3
GRAIN GROUP 'POSITIONED WELL'
Each of the company's four businesses is among the top
10 in the United States, beginning with its grain business.
"We're primarily an eastern grain belt company," he
said. "We have some assets outside of that, but when
you talk about Michigan, Ohio, Indiana, Illinois, that is
where are main key assets are. Many of them are longstanding assets, but we've kept them in good shape,
and they're key storage and distribution points in the
eastern Corn Belt."
bushels, according to the 2018 Grain & Milling Annual
published by Sosland Publishing Company. The total
makes The Andersons the ninth largest U.S. grain company. About two-thirds of its storage capacity is concentrated in the states of Ohio, Michigan and Indiana. According
WRWKHFRPSDQ\¶V¿VFDO.¿OLQJRIWKHFRPpany's 2017 grain sales went to U.S. grain processors and
The Andersons strength in the grain business is comSOHPHQWHG E\ LWV VWDNH LQ /DQVLQJ7UDGH *URXS
completely independently of The Andersons.
³/DQVLQJ7UDGH*URXSKDVEHHQDYHU\JRRGLQYHVWment for The Andersons over the years," Bowe said.
"They are in the core grain merchandising business like
us but have some differences with more merchandizing
in the hard red wheat market, DDG trading, feed ingredients, pet food ingredients and frac sand supply chain
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"smaller, Canadian version of The Andersons" with
fertilizer and grain just across the border.
The Grain Group has been headed since 2016 by
Jorgenson, who earlier spent 20 years at Cargill.
"I think we're positioned well for the future," Bowe
said. "Corey brings a lot of energy into the group, and
we've really focused on growing the food ingredient
business and keeping our grain handling assets strong."
FOOD INGREDIENTS EXPANDING
The Andersons' food ingredient business is "small but
fast growing," Bowe said. It supplies consumer packaged foods companies with oats and food grade corn.
The Andersons also sees this market as one with the
SRWHQWLDOWRSURYLGHKLJKHUSUR¿WPDUJLQVDQGOHVVYRODtility than its other businesses.
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position as commodity oats supplier to a company focused on identify preservation. To support this objective, the company recently purchased two elevators in
The food grade corn business principally involves
July 2018 / World Grain / www.World-Grain.com