Posted on Oct 02, 2014
By Jesse McCurry, Sorghum Checkoff Field Services Director
When it comes to storage and milling capacity, ADM is undoubtedly a key player in the U.S. sorghum industry. With the Chinese market exploding for U.S. sorghum in 2014, ADM is optimistic about the crop’s market potential.
“We hope producers are as excited about [China] as we are,” said Pete Goetzmann, vice president of ADM Grain.
For ADM, the Chinese market has resulted in a “dramatic increase in volume as export demand has improved.” The company says China has accounted for the vast majority of increased export demand, which has improved local basis.
Marvin Schlatter, grain originator for ADM grain, says the company is “very much a hub for milo.”
He says grain sorghum creates a lot of opportunity for rail terminals, particulary because the crop’s export potential has been so positive.
ADM Grain has terminals throughout the U.S. grain belt. Its terminals in Hutchinson, Kan., are formidable with features that include high-speed unloading pits, a 1.5 million-bushel Lemar ring, 960,000 bushels of aeration bins, a Zimmerman dryer, and a 1 million-bushel Sukup bin. ADM continues to invest in drying, aeration and monitoring equipment to meet the needs of its customers.
In total around Hutchinson, ADM has a total licensed capacity of 30 million bushels.
ADM has operated a mill in Dodge City, Kan., since 1952. The facility mills sorghum to produce acid modified starch that serves as a binder in gypsum wallboard. ADM Milling Dodge City is the major supplier of binding starches to the gypsum wallboard industry.
Additionally, ADM Milling mills food grade white sorghum into a flour for gluten-free and whole grain food product applications. This is a fast growing market the company feels will offer increased opportunity to sorghum growers in southwest Kansas.
“We are excited about the outlook for milo,” Schlatter said.
From ADM’s perspective, Schlatter said sorghum continues to be a great choice for many producers because of its natural drought tolerance, yield potential, and ability to fit into crop rotations. Furthermore, its non-GMO status is attractive to foreign buyers.
The crop had a strong performance in 2013 and is off to a great start in 2014.