Milling & Baking News - September 20, 2022 - 10

MENNEL MILLING
TUES | 09 20 202 2
Strike averted as US railways,
labor union reach tentative deal
WASHINGTON - The US grain industry
breathed a collective sigh of relief on Sept.
15 as President Joe Biden announced a tentative
railway labor agreement reached
hours before a strike was scheduled to
begin.
Railroads and union representatives
had been in negotiations for 20 hours at
the US Department of Labor when the
tentative deal was reached, the Associated
Press reported. The agreement will
go to union members for a vote after a
post-ratification cooling off period of several
weeks.
" These rail workers will get better pay,
improved working conditions and peace
of mind around their health care costs: all
hard-earned, " Mr. Biden said. " The agreement
is also a victory for railway companies
who will be able to retain and recruit
more workers for an industry that will
continue to be part of the backbone of the
American economy for decades to come. "
The Association of American Railroads
(AAR) issued a report earlier this month
estimating the US economy would take a hit
of $2 billion a day if the trains stopped moving.
The AAR also noted railroads transport
1.5 million carloads of grain each year.
The National Grain and Feed Association
(NGFA) said rail moves about 25%
of all US grain. The strike would have
occurred as the country's fall corn and
soybean harvest was accelerating.
A prolonged strike would have left grain
elevators without adequate storage space
for the new crop and caused problems for
grain processors both in terms of receiving
raw materials and shipping end products.
It also would have dealt a severe blow to
an already struggling economy weighed
down by high inflation and supply chain
disruptions.
The NGFA, which had been lobbying
for Congress to pass legislation to keep
the railways operating if the two sides
couldn't reach an agreement, praised the
railways and rail union representatives
for reaching the preliminary agreement
in advance of the Sept. 16 deadline.
" The efficient operation of our rail
network is crucial to a functioning agricultural
economy, " said Mike Seyfert,
president and chief executive officer of the
NGFA. " NGFA members, which include
1,000 companies that handle US grains and
Mennel acquires Renwood mill
operations, brands and mix plant
FOSTORIA, OHIO - The Mennel Milling
Co. has completed the purchase of milling
and bakery mix plant operations from
Renwood Mills and the
business interests of Sanford
Milling Co.
Mennel acquired the
remaining 50% of Renwood
and will have complete
control and oversight of all
operations, including the
mill and bakery mix plant.
Mennel initially entered
into a joint venture agreement
with Plaza Belmont,
a private equity group in
10
MILLING & BAKING NEWS
March 2016, to jointly operate Renwood
Mills, LLC.
The new name of Renwood is Mennel
oilseeds, commend both parties for working
in good faith toward an agreement and
preventing severe economic damage. "
In expressing gratitude to the Biden
administration, Mr. Seyfert said NGFA
wanted to " especially thank " Agriculture
Secretary Tom Vilsack " for understanding
the threat to the food and ag supply
chain and making sure it was represented
in these discussions. "
The National Association of Wheat
Growers (NAWG) and US Wheat Associates
(USW) also applauded the agreement.
" NAWG commends all parties involved
in the negotiation process for reaching a
tentative agreement that averts a rail shutdown, "
said Chandler Goule, CEO of NAWG.
" The pandemic forced the rail laborers into
tough situations as essential workers, and
we appreciate their willingness to come
to an agreement. We also appreciate the
railroads understanding the severity of the
situation and taking steps to improve their
services. "
Vince Peterson, president of USW,
added, " Our country's reputation as the
world's most reliable wheat supplier
depends heavily on functioning rail
transportation and that won't change in
the future. So we welcome this tentative
agreement and hope both sides continue
to work together to serve shippers like the
US wheat industry. " MBN
Milling & Bakery Mix-Newton, North Carolina.
The location's history includes an
80-year-old flour milling and mix facility
with a daily capacity of 7,500 cwts.
The operators at the site will continue
to produce a variety of private label retail
products, custom flour and corn-based
foodservice mixes, and wholesale bulk
flour, Mennel said.
Mennel also agreed to sell the
branded portion of the Renwood
business to Homegrown Family
Foods, LLC, based in Shawnee Mission,
Kan.
In August, Mennel acquired the
Mennel Milling & Bakery Mix - Newton is the largest business in
downtown Newton, NC.
business interests of the Sanford
Milling Company, Inc. in Henderson,
NC, including Snow Flake and
Daily Bread brands, as well as the
production of all Sanford Milling
products. MBN
bakingbusiness.com
http://www.bakingbusiness.com
Milling & Baking News - September 20, 2022

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