Archer Daniels Midland VP of Finance on “The Nature of What’s to Come™”….Internationally.

What does it mean to work in international finance and for the world’s leading agricultural processing company? How is the market for commodities such as soybeans evolving? And how might Fletcher students play a role in some of the strategic international topics facing the world of agribusiness? These were some of the issues that Margaret (Margo) Loebl, Group Vice President - Finance, Archer Daniels Midland Company (NYSE: ADM), addressed in a presentation to the Fletcher community, sponsored by the International Business Relations Program.

A leader in agricultural processing and services, ADM is one of the world's largest processors of soybeans, corn, wheat and cocoa. The company is headquartered in Decatur, Illinois, and has over 26,000 employees, more than 270 processing plants and net sales for the fiscal year ended June 30, 2003 of $30.7 billion.

Although Loebl’s tenure at ADM has been brief (she joined the Company in 2002), she has already witnessed dramatic changes in the agribusiness industry. As the leading processor of oilseed, wheat and corn, ADM runs a low-margin and asset-intensive business. “Our focus is to ensure the timely delivery of our products in excellent condition. We are involved in every stage of getting food from the farm to the table.” Loebl remarked. Small wonder, then, that ADM has processing plants across the globe, and a transportation network that includes over 15,000 railroad cars.

In her presentation, Loebl primarily focused on the soybean market and ADM’s role in meeting the changing dynamics of the soybean production and processing industry. She remarked that the traditional dominance of the United States in soybean production has been eroded by the emergence of Brazil and Argentina, given the cheaper costs of production and processing in those countries. Also, given that China is now the world’s largest importer of soybeans (the soil in China is not arable for soybean cultivation), the onus is on ADM to ensure optimal soybean transportation and processing capabilities in China. Since 1996, ADM’s oilseed processing capabilities in China have risen from 0% to 25%, through a series of joint ventures.

Loebl pointed out that agribusiness is an industry that requires a great deal of strategic insight, and that Fletcher students can play a critical role in researching and analyzing different policy issues currently facing ADM. Some of the topics she mentioned in this regard were Agribusiness Supply and Demand in China, Competitive Global Strategy in Agribusiness and Joint Venture Partnerships in Emerging Markets.

A 15-year veteran in finance, most notably at General Motors, Loebl likened her career to that of “world events”, given her proximity to the political events that have shaped modern history. From handling GM’s exposure to China after the Tiananmen Square incident in 1989 to negotiating the need for hard currency in Germany during the collapse of the Berlin Wall, Loebl experienced firsthand the direct impact of political upheavals on the business and financial fortunes of a Fortune 500 Company. Add to that, as she mentioned, the direct impact of the (first) Gulf War, two currency devaluations (in Mexico and Brazil), a workers’ strike in Canada, the Asian financial crisis, on her business lines, and you get the sense that she’s made a habit of making a career in times of crisis. And where better to put her international political, economic, social and business experience to use than at ADM where the global markets beckon for this Fletcheresque capability.