Commodity price and basis volatility
The company holds inventories, enters fixed-price commitments, and uses futures/options, so adverse price moves can reduce margins and create liquidity needs.
- Scope
- Agribusiness and Renewables
- Materiality
- high
Andersons, Inc.
Andersons, Inc. is a U.S.-based agriculture and renewable fuels company founded in Maumee, Ohio in 1947. It operates through two reportable segments: Agribusiness and Renewables. The Agribusiness segment merchandises grains, feed ingredients, fuel products, and plant nutrients while also providing logistics and risk-management services. The Renewables segment produces, purchases, and sells ethanol and co-products through a portfolio of ethanol plants and merchandising activities. The business is built around physical commodity handling, storage, transportation, and commercialization across North American agricultural and biofuel supply chains.
6,5 %
0,9 %
−2,2 %
1.41
0.60
| % | |
|---|---|
| Agribusiness merchandising and logistics | 58% Physical merchandising, storage, handling, and transportation of grains, feed ingredients, and related commodities. |
| Agricultural nutrients and crop inputs | 18% Bulk fertilizers, specialized nutrient products, and related turf and crop input products sold to growers and end markets. |
| Renewables ethanol production | 20% Production and sale of ethanol from company-owned plants, including plant management and commercialization. |
| Renewables trading and co-products | 4% Merchandising of ethanol, ethanol co-products, and renewable feedstocks across biofuel markets. |
Andersons sells into a mix of agricultural producers, grain end users, ethanol plants, and industrial or consumer...
- Agricultural producersprimary
Buy grain marketing, origination, storage, and crop nutrient products to improve yield and manage commodity price exposure.
- Grain and feed end usersprimary
Buy corn, wheat, soybeans, feed ingredients, and logistics services for processing and feed demand.
- Ethanol and biofuel counterpartiesprimary
Buy ethanol, co-products, and renewable feedstocks for fuel blending and trading activities.
- Export and intermediary buyerssecondary
Buy bulk commodities for shipment to foreign markets through direct exports or intermediaries.
- Industrial and consumer nutrient marketssecondary
Buy specialized nutrient and turf-related products for non-grain end uses.
Andersons is primarily a North American business, with operations and customer relationships concentrated in the United...
- •U.S.-centered operations with headquarters in Maumee, Ohio
- •Ethanol plants located in Iowa, Indiana, Michigan, and Ohio
- •Agribusiness footprint spans local and regional grain origination markets
- •Export sales reach foreign countries through intermediaries and direct shipments
- •Geography affects freight, basis, weather exposure, and trade access
The company’s strategy centers on capturing margin across the agricultural value chain by combining origination,...
01
Improve agribusiness merchandising and logistics executionshort-term
Physical commodity spreads and basis management are core to profitability in a volatile grain market.
02
Maximize ethanol plant margins and commercializationmedium-term
Renewables performance depends on plant efficiency, feedstock procurement, and co-product pricing.
03
Deploy capital into growth initiativesmedium-term
Higher capex is intended to support future operating capacity and competitive positioning.
04
Strengthen control of renewables assetsshort-term
Full ownership simplifies economics and gives the company greater strategic flexibility.
The company is highly exposed to commodity price volatility because it buys, sells, stores, and hedges agricultural...
Weather and crop supply disruption
Local and global weather conditions affect grain supply, demand, and pricing across the merchandising network.
- Scope
- Grain origination and storage
- Materiality
- high
Ethanol margin compression
Renewables profitability depends on ethanol, co-product, and feedstock spreads, which can move quickly with energy and crop markets.
- Scope
- Renewables segment
- Materiality
- high
Cybersecurity and IT system failure
Operations depend on connected systems for ordering, inventory, shipping, and reporting; breaches or outages could interrupt business and create legal exposure.
- Scope
- Enterprise-wide
- Materiality
- medium
Geopolitical and trade disruption
Export sales and cross-border logistics can be affected by wars, tariffs, and regulatory restrictions.
- Scope
- Export-oriented agribusiness
- Materiality
- medium
Asset impairment risk
The company is capital intensive and goodwill/long-lived assets depend on future cash flow assumptions that can weaken in adverse markets.
- Scope
- Reporting units and plant assets
- Materiality
- medium
Readily marketable inventories
Earnings and balance sheet carrying values
Commodity derivative contracts
Quarterly earnings volatility
Seasonality in nutrient sales
Revenue and margin seasonality
Goodwill and long-lived asset impairment
Potential non-cash impairment charges
Uncertain tax positions
Income tax expense and liabilities
Green Plains Inc.
GPRE · Industrial Organic Chemicals
Alto Ingredients, Inc.
ALTO · Industrial Organic Chemicals
REX AMERICAN RESOURCES Corp
REX · Industrial Organic Chemicals
REX American Resources is a U.S.-based holding company focused on ethanol production and related by-products through majority-owned and equity-invested plants in the Midwest.
AMES NATIONAL CORP
ATLO · National Commercial Banks
Ames National Corporation is an Iowa-based bank holding company that owns six community bank subsidiaries operating primarily in central, north-central, and south-central Iowa.
Archer-Daniels-Midland Co
ADM · Fats & Oils
Archer-Daniels-Midland Company (ADM) is a global agricultural origination, processing, and nutrition business that connects crops to food, feed, fuel, and industrial end markets.
CHS INC
CHSCP · Wholesale-Farm Product Raw Materials
: 11/08/2026