Pine Bluff-based Planters Cotton Oil Mill Inc. and Chicago-based ADM have reached an agreement to launch a new cottonseed joint venture, according to a news release.
Planters will contribute its crush plant in Pine Bluff and additional origination and storage facilities in the region to the joint venture, while ADM will contribute its Memphis cottonseed facility. The oil refinery for the Memphis facility will operate as part of the joint venture, while crushing operations there will end, according to the release.
The companies state the venture is to better serve both suppliers and customers.
The companies reported they intend to complete the transaction and formally launch the venture in the first quarter of 2026. The new standalone company is expected to be governed by a board with equal representation from both parent companies. It would be 60% owned by ADM.
Cody Young, CEO of Planters, clarified no substantial effect to the Pine Bluff workforce is expected.
Independent reporting for Pine Bluff & Jefferson County since 1879.
“This partnership marks an exciting new chapter for Planters Cotton Oil Mill,” Young stated. “By uniting our expertise, facilities, and gin-owned heritage, we are strengthening our ability to deliver high-quality products while creating greater value for our members, customers and the broader agricultural community. This joint venture represents a thoughtful step in our industry by enhancing efficiency and sustainability for the future.”
Fred Serven, general manager of ADM’s cottonseed business, said the joint venture will help ensure the continued strength, stability and efficiency of the cottonseed supply chain.
“ADM is continuing to strengthen its portfolio, delivering on opportunities for strategic simplification and ensuring we have the right footprint to serve our stakeholders and position ourselves for continued growth going forward,” Serven said.
Planters is a gin-owned cooperative that processes cottonseed into high-quality cottonseed oil, meal and hulls for domestic and international markets. ADM is a global agricultural supply chain manager and processor, as well as a human and animal nutrition provider, according to the release.