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Joint Venture Formed to Process Sugarcane for Ethanol Production in Brazil

November 10, 2008

DECATUR, IL --- Illinois-based Archer Daniels Midland Co. and Brazil-based Grupo Cabrera are forming a joint venture to produce ethanol from sugarcane.

The partnership will bring together ADM's expertise in ethanol production, logistics and marketing with Cabrera's knowledge of sugarcane agriculture and production.

"As the world's need for food and energy grows, agriculture -- and ADM --will provide renewable, responsible solutions," said John Rice, ADM executive vice president of commercial and production. "This joint venture will leverage the expertise of both participants to meet growing Brazilian demand for ethanol. Importantly, this partnership also advances ADM's goals of diversifying our feedstocks and growing our global bioenergy business."

The joint venture will construct two processing complexes, each consisting of a sugarcane plantation, a sugar mill, an ethanol distillery and a biomass-powered cogeneration facility to provide power and steam. The complexes will be located in Limeira Do Oeste in the state of Minas Gerais, and Jatai in Goias. Upon completion, each mill will have crush capacity of 3 million metric tons annually.

"Brazil has the ingredients required for sustainable agriculture: abundant arable land, ideal climate, and advanced agricultural technology," said Grupo Cabrera owner and former minister of agriculture Antonio Cabrera. "Our partnership with ADM reinforces our commitment to the responsible production of renewable energy."

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