On 15 April 2025, ADM Inc. of the United States officially announced that it would gradually withdraw from the domestic trading business area in China

INDUSTRY NEWS:

On 15 April 2025, ADM Inc. of the United States officially announced that it would gradually 

                                                          withdraw from the domestic trading business area in China

Edited by: www.immyhitech.com   www.immy.cn 

On 15 April 2025, ADM Inc. of the United States officially announced that it would gradually withdraw from the domestic trading

 business area in China and carry out a large-scale streamlining of the workforce of its subsidiary in Shanghai.

In the current complex and volatile international trade environment, the significant fluctuation of crop prices, the continuous 

downturn in consumer demand, the continuous decline in processing margins, and the intensification of trade friction between

 China and the United States together constitute a serious challenge to ADM's business in China.

As a globally renowned agribusiness giant, ADM occupies a pivotal position in the global agricultural processing sector. 

Together with Bunge, Cargill and Louis Dreyfus, it constitutes the ‘ABCD’ four major grain traders in the global grain trade. 

Since entering the Chinese market in 1995, ADM has been continuously developing and expanding its business in China, 

and by the end of 2024, it has about 1,200 employees in China, with a wide range of business scope, including agricultural 

services, starch and starch derivatives, nutrition and other important areas.

Since China imposed tariffs on U.S. soybeans, corn and other agricultural products, ADM's operating costs in China have

 risen significantly, profit margins have been severely squeezed, and the pressure on its operations has been increasing 

day by day. At the same time, the company has also been hit by a serious accounting scandal, which has forced the 

company to carry out a comprehensive restructuring plan to optimise its business structure, improve operational 

efficiency and enhance its overall competitiveness.

The U.S. tariff policy has not only affected the short-term profits of grain traders such as ADM, but also weakened the 

competitiveness of U.S. agricultural products in the international market in the long run. This change prompted 

China and other major agricultural importers to seek alternative markets, Brazil, Argentina and other countries with 

its rich agricultural resources and relatively more competitive prices, and gradually become China and other importing

 countries of the new choice. Global grain traders have to face this reality, have adjusted the regional layout, in order to 

maintain their share of the global market.

Nonetheless, ADM made it clear in its statement that it will retain its import business in China and emphasised that other 

business segments in the Shanghai office, such as supply chain support, will not be affected by this realignment.

ADM reiterated that its long term commitment to the Chinese market has not changed and that it remains firmly committed

 to its business development in China.

As part of this realignment, ADM's Shanghai subsidiary (Toepfer Shanghai, Toepfer) will face large-scale headcount 

reductions, with 40 to 50 employees expected to be laid off, representing more than 80 per cent of the local team. 

Among other things, the Agricultural Services and Oilseeds divisions' teams in China will be largely disbanded, with 

only about 10 employees retained to maintain essential business operations.

Meanwhile, ADM is moving forward with a global restructuring plan. The company plans to lay off 600 to 700 employees

 globally by 2025 and cut costs by as much as $750 million over the next three to five years to improve operational efficiency

 and financial performance.

Impact and opportunities of ADM's business restructuring on China's agricultural industry chain

As ADM gradually withdraws from China's domestic trading market, its market share in core areas such as oilseed processing 

and feed ingredients will become vacant. This change brings new development opportunities for local enterprises and is expected 

to drive domestic agribusinesses to fill the market gap by expanding production capacity and accelerating technological upgrades.

Domestic agribusinesses (e.g. COFCO, NDH, etc.) are likely to fill the market gap after ADM's withdrawal, especially in oilseed

 processing and trading, which is favourable to the share prices of relevant listed companies.

Headline players in the industry, such as COFCO and Yihai Jiali, may take advantage of this market restructuring to further 

consolidate their dominant position in the market through mergers and acquisitions or expansion. Meanwhile, small and

 medium-sized enterprises (SMEs) may need to enhance their competitiveness by optimising resource allocation or finding 

partners.

It is worth noting that despite the termination of ADM's domestic trading business, the retention of its import business 

means that the intermediate distribution of some agricultural products will face reshuffling. Enterprises that previously 

relied on ADM's domestic trading network may need to look for other multinational grain traders or domestic enterprises to 

fill the gap. In terms of market trends, some companies may look to emerging markets such as Southeast Asia and Africa 

to avoid the risks posed by the US-China trade friction by expanding new supply chain channels.

In recent years, China has been actively promoting the ‘stable supply chain’ strategy in the agricultural industry chain, 

aiming to ensure the stability and security of food supply, and ADM's partial withdrawal may accelerate the vertical integration process of the domestic agricultural industry chain, prompting state-owned enterprises and private enterprises to strengthen

 cooperation and jointly enhance the self-sufficiency rate of food. 

In this context, domestic enterprises can take this opportunity 

to further strengthen the market layout in countries and regions along the ‘Belt and Road’, reduce dependence on the 

European and American markets, so as to enhance their presence in the global market.