Alltech has announced that it has signed a joint-venture agreement with Archer-Daniels-Midland (ADM) to launch a new North American animal feed business.

Under the agreement, Alltech will contribute 18 feed mills in the US and 15 in Canada while ADM will contribute its 11 US feed mills. The joint-venture will be majority-owned by Alltech and governed by a board with equal representation from both parent companies.

The companies said in a joint statement that they have a long-standing relationship dating back to ADM being Alltech’s first customer. They said the deal would allow the alignment of their strengths in the North American market.

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The companies expect to complete the transaction and formally launch the joint venture in the first three months of 2026.

Alltech, founded by Dr Pearse Lyons in 1980, is headquartered in Lexington, Kentucky, US, has 75 manufacturing facilities around the world and serves customers in more than 140 countries.

ADM is one of the world’s largest grain merchants. It said in a filing to the US Securities and Exchange Commission that the joint venture with Alltech is part of its strategy “to diversify into higher growth and higher margin specialty animal nutrition ingredients” adding that the transaction is part of ADM’s “broader focus on optimising and simplifying its portfolio.”

ADM cited trade and biofuel policy uncertainty when it reported a 50% reduction in profit in its financial report for the first six months of 2025. The company announced in March that it would cut up to 700 jobs and target cost reductions of between $500m and $700m (€425m-€595m) over the following three to five years.