Ben Mahy's questions to Andersons Inc (ANDE) leadership • Q3 2024
Question
Ben Mahy of BMO Capital Markets inquired about the outlook for the grain merchandising environment in 2025, including potential catalysts and demand bright spots. He sought clarification on the company's interest in acquiring more ethanol plants amid margin volatility and asked about the soy crush market's ability to absorb new capacity.
Answer
President and CEO William Krueger characterized the 2025 merchandising outlook as one of 'singles and doubles,' noting that while low volatility is a headwind, the company's diversified portfolio and asset base provide balance. He confirmed a continued interest in acquiring ethanol plants that meet specific size, location, and price criteria, highlighting the value of The Andersons' integrated model. Regarding soy crush, Krueger stated a belief that the U.S. will need to export the excess meal from new capacity, which is the strategic driver behind the Houston port investment.