US Grain Company ADM Scales Down China Operations... "Responding to Challenging Environment"

Archer Daniels Midland (ADM), one of the world's four major grain companies, is scaling back its business in China.

Reuters Yonhap News

On the 14th (local time), according to Bloomberg News and others, ADM announced in a statement that it would gradually cease its trading operations in China through its Shanghai branch, citing a "challenging environment."

Bloomberg reported, citing sources, that as profitability deteriorates in China, the world's largest commodity consumer, ADM is facing pressure to reduce its workforce, with dozens of employees at the Shanghai branch being notified of restructuring on the same day. Earlier, ADM had announced in February that it would cut 600 to 700 jobs worldwide this year to reduce costs.

Global grain trading companies have been struggling with management difficulties due to increased uncertainty caused by climate change. Recently, Bloomberg reported that the US-China trade war has intensified, effectively halting China's imports of American agricultural products.

ADM stated that the phased closure of its trading operations in China is expected to be completed by the end of September, while other business activities in Shanghai will be maintained.