ADM Says It’s Transferring Record Natural-Gas Costs to Consumers
(Bloomberg) -- Agri-commodities trading giant Archer-Daniels-Midland Co. is managing to pass on surging natural gas costs to its customers, helping to keep its plants running.
“In general, we’ve been able to continue to run effectively our plants in the region, and where possible transfer those costs to the end customer, because that’s a necessary readjustment that we need to make,” President for Europe, Middle East and Africa, Ismael Roig said in an interview.
ADM said it couldn’t comment on the precise financial impact that the energy crunch, which has sent prices to record-highs earlier this month, has had on the trader. However, Roig said the company has “strong risk management programs,” and that the impact on the end consumer will be minimized as much as possible.
Producers passing on soaring energy costs to consumers could be more bad news for food inflation, already running at a decade-high, as surging gas prices escalate costs of producing fertilizers and transporting goods around the world.
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