World Grain - July 2018 - 35
the eastern region, and we're also a manufacturer of specialty fertilizers distributed nationwide," he said. "We
have 11 retail farm centers - mostly at our grain facilities here in the eastern Corn Belt. Our wholesale assets are really strong like our grain assets. We have key
regional distribution points for NPK and other fertilizer
products. Fertilizer has been a really good business for
us for many years and we anticipate a strong recovery."
NEW ETHANOL JOINT VENTURE
Also subject to cycles and volatility is the ethanol business, which The Andersons continues to view with optimism. The company has ownership interests in four
ethanol limited liability companies with plants in Iowa,
Indiana, Michigan and Ohio. In each of the company's
LLC agreements, The Andersons runs day-to-day operations of the plants and handles administrative functions.
In early March, the company said it is partnering with
ICM, Inc. to establish Element, LLC, a joint venture
that will build and operate an ethanol production facility featuring ICM's equipment and process technologies. Element will build a 70-million-gallon-per-year
to ICM's headquarters.
"ICM has been a technology provider and partner
for us for many years," Bowe said. "They have been
involved in the building of all of our plants, and they
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what makes this unique? This is not just another ethanol plant. This will be the greenest and one of the most
unique plants because we'll have a front end that will
burn waste wood and use other advanced technology.
We will have a very low carbon score as an energy
footprint in the plant. We will be using all the latest
technologies developed by ICM, including cellulosic
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process and converts the residual starch to ethanol. We
will have additional advanced technologies when it
comes to feed and co-products.
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market. We will ship from Kansas via unit trains
to California qualifying for the state's low-carbon
RAIL BUSINESS ON TRACK
Asked why The Andersons is in the rail business, its
fourth segment, Bowe said the business emerged from
the company repairing its own leased railcars with a
fabrication shop in Maumee.
"The rail business was started in the 1990s by Rasesh
6KDKZKREXLOWLWXSWRDWRS86UDLOFDUOHDVLQJFRPpany with more than 23,000 cars," Bowe said. "We also
www.World-Grain.com / World Grain / July 2018
RSHUDWHUDLOVKRSVVFDWWHUHGDURXQGWKH86ZKHUHZH Pat Bowe, CEO,
do repairs. We are uniquely positioned in this business The Andersons.
because we have a strong insight into the ag industry,
The segment operates differently than grain, commodity or milling businesses and more like a banking
"This business is more driven by GDP, so when the
economy is strong and all these goods are needed and
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higher," Bowe said.
Because of the range of its businesses, The Andersons
has a wide span of customers, including farmers, grain
handlers and millers. By moving deeper into food
grains, The Andersons is growing its presence with
"The return of volatility in the ag commodity markets
creates opportunities for The Andersons and the industry
DVDZKROH´%RZHVDLG³6RPHFRQGLWLRQVOLNHZHDWKer, total farm income and fuel prices are outside of our
control. What we can control though is the productivLW\DQGHI¿FLHQF\DWRXUIDFLOLWLHVDORQJZLWKWKHWUDLQing and customer service our salespeople and merchants
stability over the years, the recent changes we have put
in place will position us well for the future."
L. Joshua Sosland is editor of Milling & Baking News,
sister publication of World Grain.
He may be reached at email@example.com.
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