World Grain - January 2025 - 61

traditional grain company - corn, wheat, beans - so
we've really grown those areas. For example, we got
bigger in pet food ingredients. There are a lot of specialty
markets where we add value. "
Bowe described financial and other positives coming
from the Lansing acquisition. In addition to solidifying
The Andersons' position with customers who had broad
geographic footprints, the deal, combined with the sale
of a rail service business at nearly the same time, made
the company easier for investors to understand.
Even though The Andersons has not made large
acquisitions in ethanol along the lines of the Lansing
deal, Bowe said the business has grown during his tenure
through consolidation and plant additions.
" We're interested in growing in renewables, " he
said. " You could see us getting bigger in ethanol in
the future. Now, with the potential for SAF (sustainable
aviation fuel), ethanol for jets, ethanol is strong.
To be successful in ethanol, you have to have really efficient,
large-scale plants in good locations, and we're
fortunate to have that. We also have the potential to
add carbon capture and sequestration projects, which
we are exploring to make low CI ethanol (ethanol
produced using less energy than traditional production
techniques). "
While earnings volatility remains a reality for The
Andersons, Krueger said the Lansing acquisition has
helped tamp down the swings.
" We went through a wet year in 2019 for our eastern
Corn Belt grain assets, " Krueger said. " Having a western
presence helped us. Likewise, 2022-23 was pretty
dry in the west, while the east had pretty good crops. "
Leaving on a high note
Bowe expressed pride in numerous financial objectives
achieved during his tenure. In addition to hitting
steadily rising EBITDA goals in recent years,
Bowe described the company's balance sheets as the
strongest ever. While earnings in 2024 have been
below 2023 record levels, he said the company appears
poised for growth. In June, the company said
World-Grain.com / World Grain / January 2025
61
it was exploring an investment in Ulysses, Kansas,
US-based Skyland Grain, LLC, which operates 72
grain facilities across the hard red winter states.
Krueger noted that Skyland would give The Andersons
a greater presence in southern parts of the hard winter
states and allow the company to build out an agronomy
business in the Southwest modeled on its presence in
that business in the eastern Corn Belt. Rapid expansion
in animal counts in southwestern Kansas, with cattle and
dairy production growing, add to the attraction.
" It's a big demand point for arbitrage and trading,
and we do much of that today, " Bowe said. " But this
would help. If you're a grain merchant, go where the
demand is. It's like Wayne Gretzky's, 'Skate to where
the puck is going to be.' "
Josh Sosland is editor of Milling & Baking News, sister publication of
World Grain. He may be reached at jsosland@sosland.com
We want to hear from you - Send comments and inquiries
to worldgrain@sosland.com. For reprints of WG articles,
email reprints@sosland.com.
Top: The
Andersons'
headquarters
building in
Maumee, Ohio,
which opened in
2016.
Bottom: The
Andersons'
overall grain
storage capacity
is 144.3 million
bushels.
Photos courtesy of The Andersons
https://www.world-grain.com/articles/20081-the-andersons-pursuing-skyland-grain-investment https://www.world-grain.com/articles/20081-the-andersons-pursuing-skyland-grain-investment http://www.World-Grain.com
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