CJ CheilJedang and ADM Form Joint Venture for Feed-Grade Amino Acid Business in the Americas
South Korea's CJ CheilJedang Corp has signed an agreement with U.S. grain giant Archer Daniels Midland (ADM) to establish a joint venture targeting the feed-grade amino acid market in the Americas. CJ BioAmerica will hold a 63% stake and ADM 37%, with both companies contributing production facilities and business assets. The deal aims to combine CJ CheilJedang's fermentation technology with ADM's grain supply chain and logistics, pending regulatory approval.
South Korea's CJ CheilJedang Corp has signed an agreement with U.S.-based Archer Daniels Midland (ADM) to create a joint venture (JV) for the feed-grade amino acid business in the Americas, the company announced on 2 October 2026.
Under the terms of the agreement, CJ BioAmerica, a subsidiary of CJ CheilJedang Corp, will hold a 63% stake in the new venture, while ADM will hold the remaining 37%.
CJ CheilJedang Corp plans to contribute its production facilities in Fort Dodge, Iowa, and Piracicaba, Brazil, as well as sales offices in the U.S., Mexico, and Brazil, as in-kind contributions to the JV. The contribution will be channelled through CJ BioAmerica and will include all feed-grade amino acid business operations held by CJ America, a 99.99% stake in CJ CheilJedang Corp's Mexican subsidiary, and a 100% stake in the Brazilian subsidiary held by the Indonesian subsidiary.
ADM will contribute its amino acid production facilities and equipment at its Decatur, Illinois, plant as an in-kind contribution. Other related business assets held by the two companies will not be included in the joint venture, according to the source.
CJ CheilJedang Corp produces and sells feed-grade amino acids — including lysine and tryptophan — used as additives in livestock feed. The company describes feed-grade amino acids as a key product line of its bio business, which is based on microbial fermentation technology.
The stated rationale for the deal is to combine CJ CheilJedang Corp's amino acid production technology with ADM's grain raw material value chain and local production and logistics infrastructure, with a particular focus on securing stable raw material supplies and strengthening production and supply competitiveness in the Americas.
A CJ CheilJedang Corp official was quoted as saying the joint venture is expected to serve as a stepping stone for the future evolution of the feed-grade amino acid business by establishing a stable supplier position in the Americas market, following the completion of regulatory procedures.
The joint venture cannot be formally established until merger approval procedures with the relevant authorities are completed. The source notes that the specific establishment schedule and details are subject to change depending on the outcome of those procedures.
Prepared with AI assistance by Endata and reviewed by the editorial team.
