Sept 23 (Reuters) - Archer-Daniels-Midland ( ADM ) will

put its 11 U.S. feed mills into a joint venture in which it

holds a minority stake, the company said on Tuesday, as it seeks

to reduce costs and simplify its portfolio.

ADM has been eliminating jobs and downsizing certain

operations since announcing in February that it planned to cut

costs by $500 million to $700 million over three to five years.

One of the world's biggest grain merchants, the company has

grappled with U.S. trade upheaval and uncertainty around biofuel

policies this year.

In the new agreement, ADM said it would form an animal-feed

joint venture with agricultural products developer Alltech. ADM

will contribute its U.S. feed mills while Alltech will

contribute businesses that include 17 feed mills in the U.S and

15 in Canada.

Alltech will be the majority owner, and the joint venture

will be governed by a board with equal representation from both

companies, according to a statement.

"ADM has historically grown its animal feed business through

acquisition, but the returns have not worked out so far,"

Morningstar analyst Seth Goldstein said. "It makes sense for ADM

to look for these kind of partnerships that could add value to

its business."

The joint venture is part of ADM's strategy to diversify its

animal nutrition business into higher-margin specialty

ingredients, the company said in a filing with the Securities

and Exchange Commission. Its animal nutrition division is part

of the ADM nutrition segment.

Last year, an internal investigation found sales between

ADM's nutrition business and other core units were not recorded

properly. The nutrition segment had struggled to meet lofty

revenue targets.

ADM has feed mills in Mexico and other regions that are not

part of the joint venture, and the company said it will keep its

U.S. premix and additive businesses.

The companies expect to complete the transaction and launch

the partnership in the first quarter of 2026.