A busy week for US agribusiness Archer Daniels Midland (ADM) with a string of announcements - both negative and positive - from head office.

Firstly, the company said that it will reduce soybean crush rates at several soybean processing facilities due to reduced crush margins.

The company, the largest US soybean processor, said it will reduce crush through plant closures and reduced operating rates at some plants. The facilities involved are Fostoria, Ohio; Fredonia, Kansas; Little Rock, Arkansas; Kershaw, South Carolina; Quincy, Illinois; and Valdosta, Georgia.

On a more positive note signs that the company is strengthening the speciality fats focus arrived with the news that it is forming a new group - the ADM Specialty Oils and Fats Group. The new group will aim to serve customers in the food, pharmaceutical and personal care industries with its product portfolio derived from a variety of vegetable oil-based raw materials.

"The formation of this unit is an extension of our value-added line. The Specialty Oils and Fats Group will provide a variety of unique solutions to our customers' needs by focusing on research and technical expertise in addition to strong sales and marketing support," said Larry Cunningham, senior vice president of corporate affairs.

Products will be manufactured at ADM operations in Hamburg, Germany, Arras, France and Quincy, USA.

In addition to this news comes the announcement that the company will construct - scheduled for completion by 2004 - a new margarine and interesterification plant in Illinois to produce margarine products for institutional and food service customers.

The 106,000 square foot facility will be located adjacent to the existing ADM refinery and packaging plant.