31/03/2012 (Wisconsin Ag Connection) - Archer Daniels Midland Co. is seeking acquisitions in Europe and India and plans to increase exports from South America as growing incomes and population drive demand for food.

According to Bloomberg News, the company is focusing on growth and consolidation and is looking to expand its high-margin North American business.

Senior Vice President Matt Jansen said in a webcast that ADM expects continued growth in China through its partnership with Wilmar International Ltd.

Global food output must rise 70 percent in the next four decades as the world population grows to 9.1 billion from 7 billion, and wealthier consumers eat more meat, the United Nations Food & Agriculture Organization said. South America accounts for about half of the 245 million metric tons of soybeans the U.S. Department of Agriculture predicted last month will be grown around the world in the 2011-2012 marketing year.

ADM is looking at consolidation and expansion that will meet its targets for returns after reporting an 89 percent slump in fiscal second-quarter profit because of shrinking oilseed- processing margins and a drop in U.S. grain exports. The company’s corn-processing margins in the third quarter may be half of the level in the second quarter, while soybean processing profits may see 'sequential improvement,' according to the webcast.

The company's net income in 2012 may fall 14 percent to $1.7 billion, according to the median estimate of nine analysts surveyed by Bloomberg. Its shares have gained 9.44 percent this year to $31.32.

The company will try to expand its share in the MOU with Wilmar, the world’s largest palm-oil trader, which covers areas including ocean freight and fertilizer, Chief Operating Officer Juan Luciano said. The pact may cut ADM's operating costs by $30 million to $40 million per year, he said.