World Grain -- December 2015 - (Page 17)

NEWSREVIEW GSFMO privatizes its flour mills RIYADH, SAUDI ARABIA - The Saudi Council of Ministers, chaired by King Salman, approved on Nov. 9 the establishment of four milling companies and restructuring the Grain Silos and Flour Mills Organization (GSFMO) under a new name, the General Organization for Grains (GOG). The GSFMO's nine mills will be distributed among the four new entities by the Public Abdul Investment Fund (PIF) of the Ministry of Finance. Foreign investors will be allowed to compete with the Saudi LQYHVWRUVWRRZQDQGRSHUDWHWKHVHÀRXUPLOOV 7KH ÀRXU PLOOLQJ VHFWRU KDV EHHQ IRU VHYHUDO \HDUV WDUJHWHG IRU privatization by the Saudi government. The new milling companies ZLOOVHUYHDVFOLHQWVRIWKH*2*WRSURFHVVDQGGLVWULEXWHZKHDWÀRXU for fees to government-approved customers at agreed subsidized prices. The new mills would be allowed, if they so choose, to import WKHLURZQZKHDWVKLSPHQWVIRUWKHSURFHVVLQJRIQRQVXEVLGL]HGÀRXU and the production of upscale quality bakeries and pasta. ³7KHSULYDWL]DWLRQZLOODOORZWKHVHFWRUWRFRQWULEXWHLQWKH¿HOG RIPDQXIDFWXULQJÀRXUDQGIHHGE\DWWUDFWLQJORFDODQGLQWHUQDWLRQDO LQYHVWRUVLQRUGHUWRUDLVHRSHUDWLRQDOHI¿FLHQF\DQGWKHLQWURGXFWLRQ of new technologies and increase the competitiveness and increase employment opportunities and raise the quality of the product," said Abdulrahman bin Abdul Mohsen al-Fadhli, minister of agriculture and chairman of GSFMO "It will also give the institution in the fuWXUH WKH SRVVLELOLW\ RI QHZ UROHV LQ WKH ¿HOG RI VWUDWHJLF VWRUDJH RI food security." Most of the revenue of the private mills is expected to come from WKH PLOOLQJ IHHV FKDUJHG WR WKH *2* 7KH QLQH ÀRXU PLOOV KDYH D combined daily milling capacity of 12,630 tonnes of wheat and process about 3.3 million tonnes of wheat annually. The GOG is currently building several wheat silos to increase its total storage capacity to 3.7 million tonnes of wheat by 2016. The GOG will remain the exclusive government agency to import subsidized milling wheat and will maintain ownership and operation of most of the wheat silos across the country. The GOG will manage the strategic wheat reserves and ensure food security objectives. The GOG is expected to privatize only a part of its grain storage silos to provide a VPRRWKWUDQVLWLRQIRUWKHQHZÀRXUPLOOV7KHUHVWRIWKHVWRUDJHFDSDFLW\ will be retained by the GOG for strategic reserve purposes. The GOG will also assume regulatory functions in the wheat milling sector that will include: x 6HWWLQJWKHUHJXODWLRQVFRQFHUQLQJZKHDWÀRXUTXDOLW\ x ,QVSHFWLQJ ÀRXU PLOOV WR HQVXUH FRPSOLDQFH ZLWK TXDOLW\ UHJXODWLRQVDQG x 5HJXODWLQJWKHFRPSHWLWLRQDPRQJWKHSULYDWHÀRXUPLOOLQJ operators. GrainCorp 2015 earnings down SYDNEY, AUSTRALIA - GrainCorp reported on Nov. 12 that net SUR¿WDIWHUWD[IRUWKH\HDUZDV$PLOOLRQRU„SHUVKDUHGRZQ IURP$PLOOLRQRU„SHUVKDUHD\HDUDJR5HYHQXHIRU WKH\HDUZDV$ELOOLRQGRZQIURP$ELOOLRQLQ "Solid performances from our processing operations have reduced the impact of the challenging conditions faced by our grains businesses," said Mark Palmquist, managing director and chief execuWLYH RI¿FHU ³2XU SURFHVVLQJ EXVLQHVVHV FRQWULEXWHG DSSUR[LPDWHO\ RIRXUHDUQLQJVLQD\HDUFRQVWUDLQHGE\DPXFKVPDOOHUFURS in eastern Australia - a clear demonstration of the importance of our FRPPLWPHQWWRGLYHUVL¿FDWLRQ´ $OOLHG 0LOOV HDUQHG$ PLOOLRQ GRZQ  IURP$ PLOOLRQ3HUIRUPDQFHIRUWKH¿VFDO\HDULQFOXGHGWKHFRPSOHWLRQRI Tullamarine expansion of frozen bakery products. 7KH¿VFDO\HDURXWORRNIRU$OOLHG0LOOVHDUQLQJVDUHH[SHFWed to continue to be supported by value-added product initiatives and ranges such as frozen bakery products. 6WRUDJH  /RJLVWLFV HDUQHG $ PLOOLRQ GRZQ  IURP $PLOOLRQ3HUIRUPDQFHIRUWKH¿VFDO\HDUKDGDGHFUHDVHG carry-in of 1.6 million tonnes compared to 2.3 million tonnes. Grain WKURXJKSXWZDVPLOOLRQWRQQHVVOLJKWO\ORZHUWKDQWKHWRWDORIPLOOLRQWRQQHV&RXQWU\UHFHLYDOVGHFUHDVHGVOLJKWO\WR PLOOLRQWRQQHVIURPPLOOLRQWRQQHV*UDLQH[SRUWVZHUHPLOOLRQ WRQQHVFRPSDUHGWRPLOOLRQWRQQHVLQ1RQJUDLQH[SRUWVLQFUHDVHGVOLJKWO\IURPPLOOLRQWRQQHVWRPLOOLRQWRQQHVLQ 7KH  ¿VFDO \HDU RXWORRN IRU 6WRUDJH  /RJLVWLFV LQFOXGHV lower than average forecast grain production in eastern Australia and lower carry-in of 1.6 million tonnes that will again put pressure on country grain receivals and export volumes. "As outlined earlier in the month, our grains businesses faced a tougher year off the back of last harvest's smaller crop, which resulted in lower throughput volumes for Storage & Logistics and severely / World Grain / December 2015 restricted opportunities for GrainCorp Marketing," Palmquist said. "In this light, I'm pleased with the cost control and risk management demonstrated by these businesses." 2LOVGHFUHDVHGWR$PLOOLRQIURP$PLOOLRQLQ3HUIRUPDQFHIRUWKH¿VFDO\HDUKDGDKLJKFDSDFLW\XWLOL]DWLRQIRU FUXVKLQJZLWKVDOHVRIPLOOLRQWRQQHV7KHVWDELOL]DWLRQRIUH¿QLQJ volumes with sales of 0.21 million tonnes but had volumes at lower margins. Oils continued to have high capacity and utilization for bulk liquid terminals. Complementary contributions from commodity management businesses were offset by low volumes for NZ Feeds. 7KH¿VFDO\HDURXWORRNIRU2LOVLQFOXGHVFRQWLQXHGKLJKFDpacity utilization expected for crushing facilities and bulk liquid terPLQDOV5H¿QLQJYROXPHVDUHH[SHFWHGWRUHPDLQVWDEOH7KHUHLVDQ expected earnings uplift following completion of network optimization and completion of bulk liquid terminal project. Domestic comSHWLWLRQDQGGHPDQGIRUFUXVKHGDQGUH¿QHGSURGXFWVZLOOFRQWLQXH WRLQÀXHQFHSHUIRUPDQFH "GrainCorp Oils has performed well with higher crush volumes DQGZHDUHHQFRXUDJHGE\WKHVWDELOL]DWLRQRIUH¿QLQJYROXPHVIRU GrainCorp Foods," Palmquist said. "The Liquid Terminals business continues to perform strongly and we have made good progress in the various expansion projects across GrainCorp Oils." "Conditions are likely to remain challenging next year, with a very low carry-in of 1.6 million tonnes and another smaller crop likely to limit export opportunities from eastern Australia," Palmquist said. "We do, however, expect a return to more typical grain marketing patterns in Australia due to lower year-on-year levels of export bookings relative to expected production. "We also expect continued improvements in the performance of *UDLQ&RUS2LOVWKDQNVWRWKHVWDELOL]DWLRQRIUH¿QLQJYROXPHVDQG partial contributions from Liquid Terminals projects and our consoliGDWHGRLOVHHGVFUXVKLQJDQGUH¿QLQJIRRWSULQW´KHVDLG 17

Table of Contents for the Digital Edition of World Grain -- December 2015

World Grain -- December 2015
Table of Contents
From the Editor-in-chief - Milling differs from Warren Buffett
Calendar of Events
Second Oilseed Congress scheduled for Feb. 9-10
News Review - Tiger pulls financial support from Dangote Flour Mills
European Parliament rejects national GMO bans
Olam 3Q operational earnings up
Wilmar’s oilseed, grain segment earnings surge
Ardent Mills stake to stay with ConAgra Brands
Noble Agri reports loss in quarter
The Andersons reports loss on Grain Group decline
IGP Institute names interim associate director
Cargill’s new South Korean feed mill is its largest in the world
ADM opens two plants in China
GSFMO privatizes its flour mills
GrainCorp 2015 earnings down
Tiger Brands year-end earnings offset by international operations
Cargill makes executive leadership changes
Glencore agricultural production up
Grain Market Review - Oilseeds
Country Focus - Spain
Feature - Going from margin to mainstream
Feature - Record Turnout in Dubai
Feature - IAOM takes show to Indonesia
Feature - Indonesia's milling giant may expand
Indonesia in numbers
Feature - An end to the bear market?
Feature - Big turnout expected for IPPE 2016
Feature - Shaping the global feed industry
Feed Operations - Bucket elevator selection and installation tips
Supplier News
Product Showcase
World Grain Archive
Ad Index/Reader Information Form International Faxback Program

World Grain -- December 2015