World Grain - July 2015 - 14

NEWSREVIEW

Cargill to acquire majority stake in Turkish feed company
ISTANBUL, TURKEY - Cargill's animal nutrition business has
agreed terms to acquire a majority stake in Ekol Gida, a company
operating in premix and feed additives markets in Turkey, Cargill
said on May 27. The deal, which is subject to regulatory approvals,
is expected to close in summer 2015.
"Customers will gain access to Cargill's extended product portfolio and technical expertise for an enhanced experience," said
Mark Poeschl, vice-president and group director of Cargill's animal
nutrition business. "The commercial focus will be on Turkey and
selected export markets."
The transaction is aligned with Cargill's animal nutrition business' growth strategy, the company said. In addition to retaining

Ekol Gida's products and services, and customer base, Cargill
will strengthen its commitment to Turkey as a primary growth
market by building technical applications centers for poultry and
dairy. This will allow for global research and development competence to boost local market capabilities and enhance innovation, Cargill said.
After a transitional period, the business will operate under the
global Provimi brand in the market.
Ekol Gida, established in 1998, is one of the leading companies
in premixes and feed additives markets. Ekol Gida, with headquarWHUV LQ ,VWDQEXO DOVR KDV VDOHV WHDPV ORFDWHG LQ øVWDQEXO$QNDUD
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Global warming seen causing wheat yield declines
WASHINGTON, D.C., U.S. - A new study exploring global warming's effect on hard red winter wheat production in Kansas has
concluded that rising temperatures may hurt wheat yields at a time
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demand for the grain.
Published in the Proceedings of the National Academy of Sciences, "Effect of Warming Temperatures on U.S. Wheat Yields," was
written by agricultural economists Jesse Tack of Mississippi State
University, Andrew Barkley of Kansas State University, and Lawton
Lanier Nalley of the University of Arkansas. Their focus on wheat,
WKHPRVWZLGHO\SODQWHGFURSLQWKHZRUOGUHÀHFWHGLWVRQJRLQJLPportance as a staple crop in many societies as well as its special vulnerability to effects from long-term global warming.
"With the exception of potatoes, wheat is the food crop most affected by climate change, and as such, greater knowledge and understanding of the agronomic relationship between weather outcomes
and wheat yields is crucial to our ability to forecast, understand, and
respond to potential future increases in temperature," the study said.
The study pointed to a measurable decrease in yields in a warmer
climate and evidence newer hard red winter wheat varieties are less
heat-resistant than older varieties. Higher levels of spring rainfall
may partially offset warming effects, the study said, and irrigation
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in Kansas to prove the presence of global warming. Instead, the study
reported effects on winter wheat yields at different air temperatures beginning with fall planting, winter dormancy and spring crop development. A total of 268 observed seed varieties were included in the study.

The research especially focused on what happens to winter wheat
yields if temperatures turn excessively warm during the spring growing season. The amount of spring rainfall is a crucial variable, with
warming's impact measured as 11 percentage points higher when
seasonal precipitation is low rather than high.
For their research, the study's authors selected 11 trial locations in
Kansas, the top U.S. producer of hard red winter wheat. Researchers
reported collecting "a unique data set that combines Kansas wheat
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using regression analysis."
The study found major weather-related predictors of yield loss in
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"degree day" - an interpolated measurement used in the study -
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yield reduction, largely because of negative effects of high temperaWXUHVDWFUXFLDOVWDJHVRIFURSGHYHORSPHQWVXFKDVÀRZHULQJZKHQ
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pushes wheat toward dormancy, shutting down tiller formation and
reducing yield. But study results indicated reduced exposure to
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impact of very warm spring temperatures.
"The net effect of warming on yields is negative," the study said.

North Dakota Mill adding storage as part of expansion
BISMARCK, NORTH DAKOTA, U.S. - The North Dakota InGXVWULDO &RPPLVVLRQ KDV DSSURYHG D PLOOLRQ H[SDQVLRQ DW
the North Dakota Mill in Grand Forks, North Dakota, U.S. The
expansion will include nine new bulk storage bins.
"The new storage will reduce bulk loading crew labor costs, reduce mill downtime and reduce bulk rail car leasing cost," said
Vance Taylor, president and general manager of North Dakota Mill.
Taylor estimated cost savings as a result of the project at
$656,000 annually. The project is slated to be completed in the
spring of 2016.
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to increase milling capacity by 11,500 cwts per day, and last spring an
approval was made for an expansion project of $7,985,000 to construct
14

a building on the mill's property in Grand Forks.
With all the expansion over the past year, the North Dakota
Mill has grown to become the sixth largest U.S. milling company,
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largest mill, ahead of Kraft Foods' Toledo, Ohio, mill, which has
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In addition to the expansion plans, North Dakota Mill also reSRUWHGWKLUGTXDUWHUUHVXOWV)RUWKHTXDUWHUHQGHG0DUFKWKH
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third quarter last year. Sales for the third quarter totaled $75.6
million, up from $69.6 million the previous year. Shipments of
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cwts over the same period last year.
July 2015 / World Grain / www.World-Grain.com

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World Grain - July 2015

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