World Grain - June 2012 - 28

FEATURE

from the rubble
W
hen Seaboard Corp. and Continental Grain Co. joined as part of a consortium to acquire Les Moulins d’Haiti (LMH) in 1997, the group knew the road to revive the shuttered and neglected business would be lengthy and expensive. Indeed, in the 12 years that followed, an aggregate of about $20 million was spent to restore and expand Haiti’s largest flour mill to assure the business was able to more fully serve the impoverished Caribbean nation of about 10 million. The continuing investment in the complex in the 2000s was evidence of progress and even the success the venture enjoyed. But the many years of work and millions invested were wiped out in a matter of seconds in the January 2010 earthquake that devastated the island. Thus, the recent reopening of the mill in December 2011 represented a new, promising chapter in an endeavor that has had difficulties far exceeding even what the principals could have imagined when they stepped forward in 1997. With the rebuilding, itself a difficult process, the cumulative investment in LMH since the privatization had ballooned to about $75 million. And perhaps because this road has been such a difficult, even painful one, the owners and employees of LMH take enormous pride in what they describe as the newest and most technologically advanced flour mill in the Caribbean. The mill’s design, considerably different from the 1950s mill it replaced, is built to withstand potential future natural disasters. Equipment for the new, highly automated mill was supplied by Bühler, Inc., Minneapolis, Minnesota, U.S., and engineering was handled by T.E. Ibberson Co., Hopkins, Minnesota, U.S. The owners see the mill as emblematic of hopes placed on the country itself in the aftermath of the earthquake — that it will finally be positioned for sustained stability and even prosperity. SIGNIFICANT IMPLICATIONS FOR HAITI For the nation of Haiti and its government, the reopening of the mill was no insignificant matter. With its growth after 1997, the mill had become the nation’s second largest tax revenue source at the time of the earthquake (lagging only Digicel, the largest mobile phone company), said Christian Fucina, managing director of LMH. He said other benefits
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by L. Joshua Sosland

Reconstructed after a devastating earthquake, Les Moulins d’Haiti flour mill is a powerful symbol of optimism and commitment
have resulted in the completion of the rebuilding. “The reopening has stabilized the price and the supply of flour,” he said. “While we were down, there were supply disruptions, sporadic shortages and much higher prices. The price has declined and is now stable.” Plenty of new challenges face LMH, even after the reopening. While the physical destruction of the mill was covered by insurance, the company’s full losses from business interruption were not. With opportunistic steps taken by other Caribbean millers, the mill’s sales force must strive to reestablish customer relationships. More specifically, Fucina said a flour mill in the Dominican Republic on the other side of the island of Hispaniola has doubled its milling capacity and is exporting increasingly large volumes of flour to Haiti. This expansion has been facilitated by large export incentives funded by the Dominican government. Additionally, a new, smaller mill is under construction in Haiti itself. Still, LMH was operating three to four days a week as of early April, which Fucina described as “reasonable” only three months after the mill opened. ‘MOST MODERN MILL IN THE CARIBBEAN’ James L. Gutsch, senior vice-president of engineering at Seaboard, said there are many reasons to be hopeful about prospects for LMH. “We come back into the market with some real advantages,” Gutsch said. “This is the most modern mill in the Caribbean. It’s
June 2012 / World Grain / www.World-Grain.com


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World Grain - June 2012

Table of Contents for the Digital Edition of World Grain - June 2012

World Grain - June 2012
Table of Contents
From the Editor-in-chief - Global food parallels oil refining
Calendar of Events
News Review - Marubeni to acquire Gavilon for $3.6 billion
News Review - CHS buys portion of Brazilian grain export terminal
News Review - Tiger Brands eyes stake in Nigerian mill
News Review - E.U. 2012 wheat output projected at five-year low
News Review - GrainCorp to invest in its logistics systems
News Review - U.S. rice mills shipments up 8% over 2009-10
News Review - Indofood profits up nearly 11% in first-quarter
News Review - MGPI reports increase in first-quarter income
News Review - GrainCorp earnings up 39% on grain results
News Review - Baltic Trading’s net loss increases in first-quarter
News Review - The Andersons reaches first-quarter record on grain results
News Review - Noble’s ag income drops 63% in first-quarter
News Review - Olam profits down 19% in third quarter
News Review - FEFAC, Laurent Bellec partner on feed mill photo project
News Review - Gevo, Land O’Lakes to pursue advanced animal feed
News Review - CHS, Zen-Noh form grain marketing joint venture
News Review - Horizon Milling planning major modernization of Texas mill
Grain Market Review - Wheat
Country Focus - Focus on the United Kingdom
Feature - Rising up from the rubble
Feature - Gone in a matter of seconds
Feature - 2012 IAOM Conference & Expo
Feature - IAOM plans trio of conferences
Milling Operations - Keeping sifters in good working order
Feature - European supplier profiles
Supplier News
Advertiser Index/Faxback Program
World Grain - June 2012 - World Grain - June 2012
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World Grain - June 2012 - Table of Contents
World Grain - June 2012 - From the Editor-in-chief - Global food parallels oil refining
World Grain - June 2012 - 7
World Grain - June 2012 - Calendar of Events
World Grain - June 2012 - 9
World Grain - June 2012 - News Review - Tiger Brands eyes stake in Nigerian mill
World Grain - June 2012 - 11
World Grain - June 2012 - News Review - E.U. 2012 wheat output projected at five-year low
World Grain - June 2012 - News Review - U.S. rice mills shipments up 8% over 2009-10
World Grain - June 2012 - News Review - MGPI reports increase in first-quarter income
World Grain - June 2012 - News Review - Baltic Trading’s net loss increases in first-quarter
World Grain - June 2012 - News Review - Noble’s ag income drops 63% in first-quarter
World Grain - June 2012 - News Review - FEFAC, Laurent Bellec partner on feed mill photo project
World Grain - June 2012 - News Review - CHS, Zen-Noh form grain marketing joint venture
World Grain - June 2012 - News Review - Horizon Milling planning major modernization of Texas mill
World Grain - June 2012 - Grain Market Review - Wheat
World Grain - June 2012 - 21
World Grain - June 2012 - Country Focus - Focus on the United Kingdom
World Grain - June 2012 - 23
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World Grain - June 2012 - Feature - Rising up from the rubble
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World Grain - June 2012 - Feature - Gone in a matter of seconds
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World Grain - June 2012 - Feature - 2012 IAOM Conference & Expo
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World Grain - June 2012 - Feature - IAOM plans trio of conferences
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World Grain - June 2012 - Milling Operations - Keeping sifters in good working order
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World Grain - June 2012 - Feature - European supplier profiles
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World Grain - June 2012 - Supplier News
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World Grain - June 2012 - Advertiser Index/Faxback Program
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http://digital.world-grain.com/sosland/wg/2005_07_01
http://digital.world-grain.com/sosland/wg/2005_06_01
http://digital.world-grain.com/sosland/wg/2005_05_01
http://digital.world-grain.com/sosland/wg/2005_04_01
http://digital.world-grain.com/sosland/wg/2005_03_01
http://digital.world-grain.com/sosland/wg/2005_02_01
http://digital.world-grain.com/sosland/wg/2005_01_01
http://digital.world-grain.com/sosland/wg/2004_12_01
http://digital.world-grain.com/sosland/wg/2004_11_01
http://digital.world-grain.com/sosland/wg/2004_10_02
http://digital.world-grain.com/sosland/wg/2004_10_02
http://digital.world-grain.com/sosland/wg/2004_10_01
http://digital.world-grain.com/sosland/wg/2004_09_01
http://digital.world-grain.com/sosland/wg/2004_08_01
https://www.nxtbookmedia.com