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How Potential ADM, Bungee Merger Would Impact Farmers | KRVN Radio

How Potential ADM, Bungee Merger Would Impact Farmers

How Potential ADM, Bungee Merger Would Impact Farmers
Archer Daniels Midland reportedly is weighing a takeover of Bunge Ltd. (DTN photo by Chris Clayton)

The possible merger of ADM and Bungee could decrease marketing outlets for farmers as the companies would combine operations.

Chad Hart of Iowa State University told DTN-The Progressive Farmer this week that, however, unlike mergers in the seed business, there still is a fair amount of competition in crop marketing. Hart says there are “plenty of marketing outlets” independent from ADM and Bungee. And, for the broader ag economy, Hart says such a combined company could result in improved efficiency in moving commodities from the farm to end users. The move won’t move grain prices, however.

The speculation of a potential merger between the two grain handling giants continues, while both companies offer little detail or comments regarding a merger. ADM, known as Archer Daniels Midland, is reported to be engaged in talked to take over Bunge.

ADM reported $60.8 billion in annual net sales in 2017, while Bunge made about $45.8 billion in net sales in 2017.

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