World Grain - November 2011 - 14

newsreview
U.S. ag groups, industry pleased with FTAs
WASHINGTON, D.C., U.S. — U.S. President Barack Obama on Oct. 21 signed legislation passing free trade agreements (FTAs) with South Korea, Colombia and Panama. The leaders of U.S. agriculture associations and companies expressed their approval. The agreements represent nearly $3 billion of additional agriculture exports to these trading partners. “We have waited for the day these agreements would be taken up for many years now. Based on our work within the wheat industry, we know these agreements and others like them will help us rebuild and expand markets, grow our economy here at home and remain the most reliable supplier of wheat in the world,” said Wayne Hurst, National Association of Wheat Growers (NAWG) president and a wheat farmer from Burley, Idaho, U.S., and Randy Suess, U.S. Wheat Associations (USW) chairman and a wheat farmer from Colfax, Washington, U.S. Increased exports of U.S. soy and soy-fed meat and poultry will beneﬁt soybean farmers and rural economies, said American Soybean Association (ASA) President Alan Kemper, who is a soybean producer from Lafayette, Indiana, U.S. “After nearly ﬁve years of delays and loss of U.S. market share, soybean farmers look forward to realizing the opportunities these FTAs provide for America’s economic growth,” he said. Cargill said it believes the FTAs will pay economic dividends as well as help improve living standards across the globe. “These FTAs represent sound policy that is good for farmers, workers, manufacturers and business and will beneﬁt the U.S. economy,” said Greg Page, Cargill chairman and chief executive ofﬁcer. “With these agreements in place, we now look forward to additional regional and multilateral agreements to help further beneﬁt our global marketplace.” ADM said the agreements will lead to enhanced U.S. competiveness and increased U.S. exports to dynamic and growing markets in Asia and Latin America. They will further the Obama Administration’s National Export Initiative goal of doubling U.S. exports by 2014 — bolstering economic growth and creating jobs. The agreements will be particularly signiﬁcant for the agricultural sector, where they represent an estimated $2.5 billion in new exports and support for up to 22,500 jobs. “Passage of the free trade agreements with Colombia, South Korea and Panama is a signiﬁcant step forward in reaching the National Export Initiative’s goal of doubling exports by 2014,” said Patricia A. Woertz, ADM chairman and chief executive ofﬁcer and a member of the President’s Export Council. The National Corn Growers Association (NCGA) said the three FTAs could create 250,000 American jobs and add an additional $13 billion annually in exports. The U.S. continues to be the largest producer and exporter of corn in the world, exporting 50.4 million tonnes last year. “The three free trade agreements with Korea, Colombia and Panama provide great opportunities for America’s farmers,” NCGA President Garry Niemeyer, a corn farmer from Auburn, Illinois, U.S., said. “Passage by Congress ensures our industry continues to lead the nation in economic growth and international competitiveness. In addition, this action shows members of Congress understand the importance of the FTAs to rural America.” Since the E.U.-Korea trade agreement went into effect July 1, European exports to Korea have increased 36% from a year earlier. U.S. farmers have already lost more than $1 billion in sales to Colombia in the two years since that country implemented a trade deal with Argentina and Brazil. The Colombia-Canada Free Trade Agreement that took effect Aug.15 has also put U.S. workers and farmers at a disadvantage.

Corn Products reports strong third-quarter earnings
WESTCHESTER, ILLINOIS, U.S. — Corn Products International, Inc. on Oct. 27 reported signiﬁcant increases in both reported and adjusted earnings per share. The company reported a proﬁt of $87.7 million or $1.12 a share, up from $36.9 million or 48¢ per share a year ago. Third quarter diluted earnings per share (EPS) rose 133% to $1.12 compared to 48¢ last year. The third quarter of 2011 included 5¢ of business integration costs and 3¢ of restructuring charges. The third quarter of 2010 included 31¢ of acquisition costs and 2¢ of restructuring charges. Excluding these items, adjusted EPS rose 48% from 81¢ to $1.20 in the quarter. Net sales jumped 58% to $1.71 billion, or $1.63 billion after shipping and handling costs. Analysts polled by Thomson Reuters expected earnings of $1.09 a share on $1.57 billion in revenue.

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World Grain - November 2011

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