World Grain - May 2016 - (Page 15)

NEWSREVIEW Cargill profit rises in face of difficult market conditions MINNEAPOLIS, MINNESOTA, U.S. - Adjusted operating earnings at Cargill increased 13% in the third quarter ended Feb. 29, rising to $476 million from $421 million a year ago. On a U.S. GAAP basis, net earnings totaled $459 million, up from $425 million. 5HYHQXHVWKRXJKIHOOWRELOOLRQUHÀHFWLQJORZHUFRPmodity prices, the strength of the U.S. dollar against other currencies, and the sale of Cargill's pork business in the second quarter. For the nine-month period ended Feb. 29, adjusted operating earnings decreased 2% to $1.66 billion, while net earnings on a U.S. GAAP basis equaled $2.36 billion, up from $1.63 billion. Cargill said the variance between adjusted and net earnings in the nine-month period included gains on the second-quarter sales of the U.S. pork business and Cargill's interest in the North Star BlueScope Steel joint venture, and a charge related to a change in accounting treatment for Venezuela. "With agriculture and energy markets as tough as we've seen in a long time, we're pleased with the gain in earnings achieved this quarter," said David MacLennan, chairman and chief executive RI¿FHU DGGLQJ WKDW SULFHV DQG YRODWLOLW\ LQ DJULcultural commodities remain low, as a series of big harvests have built global stocks. "Barring weather events, we don't anticipate a near-term improvement in market conditions for agriculMacLennan ture. In these kinds of cycles, and we've been through them before, we focus on the levers under our control." MacLennan said Cargill remains focused on creating a more streamOLQHGRUJDQL]DWLRQFRPSHWLWLYHEXVLQHVVSRUWIROLRDQGJUHDWHUHI¿FLHQF\ in how it runs plants, manages supply chains and markets products and services. "The work we've undertaken this year is positioning us to better serve Cargill remains focused on creating a more streamlined organization. WKHFKDQJLQJQHHGVRIRXUFXVWRPHUVDQGIXO¿OORXUSXUSRVHWRQRXULVK the world's people," he said. Results in the company's Food Ingredients & Applications segment was the largest contributor to adjusted operating earnings in the third quarter, Cargill said, boosted by commercial and operational execution that lifted earnings broadly across edible oils, malt, starches and sweeteners and texturizers. Adjusted operating earnings in Origination & Processing increased moderately from last year. Cargill said the gain came even as the segment contended with large global stocks, weak prices and low volatility in agricultural commodity markets. Within the segment, grain handling and oilseed processing in the Americas were up on a combined basis, with an additional contribution from world trading operations. U.S. producers' sales of corn slowed due to low prices, but Argentina's re-entry into agricultural export markets under its new administration boosted corn shipments from that country, the company said. Olam secures financing for flour, food processing facilities in Nigeria, India SINGAPORE - Olam International Limited announced on April 19 WKDWLWKDVVLJQHGD¿YH\HDUPLOOLRQORDQDJUHHPHQWZLWK,)& DPHPEHURIWKH:RUOG%DQN*URXSWR¿QDQFHIRXUIRRGSURFHVVLQJ IDFLOLWLHVLQ1LJHULDDQG,QGLD7KH¿QDQFLQJZLOOVXSSRUWWKH&URZQ Flour Mill facilities in Nigeria as well as sesame hulling and Hemarus sugar mill and spice processing facilities in India. "This latest investment strengthens our partnership with IFC," VDLG 1 0XWKXNXPDU 2ODP¶V JURXS FKLHI ¿QDQFLDO RI¿FHU ³7KHVH food processing facilities, located in India and Nigeria, help generate local employment and provide a ready buyer at market prices for farmers in the communities. Olam purchased Crown Flour Mill, which is among the three largest wheat millers in Nigeria, in January 2010, and expanded the facility in 2011. The expansion included the DGGLWLRQRIDVHPROLQDPLOODQGDÀRXUPLOOLQ/DJRVEULQJLQJWRWDO capacity to 2,380 tonnes per day. Earlier this year, Olam announced plans to acquire Amber Foods Limited, which through a subsidiary owns the wheat milling and pasta manufacturing assets of the BUA Group in Nigeria, The assets to be acquired include two wheat mills and a pasta manufacturing facility in Lagos, a non-operating mill in Kano in northern Nigeria, and a wheat mill and a pasta manufacturing plant under construction in Port Harcourt in the southeastern Nigeria. General Mills to upgrade New York facility WHITE PLAINS, NEW YORK, U.S. - General Mills, Inc. has received $500,000 from the New York Power Authority (NYPA) Board of Trustees. The funds are to be used to purchase new cereal processing and packaging equipment and to upgrade ingredient unloading systems, large packaging and material handling systems, and employee skills at the company's facility in Buffalo, New York, U.S. The Buffalo plant is General Mills' oldest in the United States, acquired by the company in 1928 following its purchase from WashburnCrosby Milling Co. The funds will allow the company to shift production of Rice and Wheat Chex to the plant, which already makes Cheerios, Kix, Total, Lucky Charms and Wheaties. / World Grain / May 2016 The NYPA currently supports Minneapolis, Minnesota, U.S.-based General Mills with 5,100 kilowatts of low-cost hydropower and a 500kW ReCharge NY allocation in exchange for retaining 400 jobs. Empire State Development also is supporting General Mills with a $500,000 tax credit. The funds from both the NYPA and Empire State Development are part of a $25 million makeover that General Mills is considering for the Buffalo plant. According to Sosland Publishing's 2016 Grain and Milling Annual, WKH%XIIDORIDFLOLW\KDVZKHDWÀRXUPLOOLQJFDSDFLW\RIFZWVDQG PLOOLRQEXVKHOVRIVWRUDJH*HQHUDO0LOOVKDV¿YH86ZKHDWÀRXUPLOOV with a total capacity of 77,500 cwts. 15

Table of Contents for the Digital Edition of World Grain - May 2016

World Grain - May 2016
Table of Contents
From the Editor-in-chief - Keys to poorer nations’ prosperity
Calendar of Events
AGIC 2016 is July 25-27 in Australia
News Review - Olam breaks ground on Nigerian feed, poultry complex
Nidera appoints new CEO
Scoular searches for new CEO
CHS’ earnings down on reduced commodity prices
ADM begins expansion at Brazilian port
E.U.-28 grain production forecast to meet five-year record
NCSP’s cargo turnover increases in first three months
Gavilon seeks expansion in the U.S.
VICTAM appoints new GM
Cargill profit rises in face of difficult market conditions
Olam secures financing for flour, food processing facilities in Nigeria, India
General Mills to upgrade New York facility
Dangote making changes to flour mill business
CBH’s New Albany site close to completion
Glencore sells 40% stake in agricultural unit
Per capita U.S. flour use dips to lowest level in 18 years
Brazil’s 2016-17 corn production forecast to be a record
Grain Market Review - Coarse grains
Country Focus - Kazakhstan
TECHNICAL PROFILE - Flat bread in Kazakhstan
FEATURE - Realizing innovation’s Opportunities
FEATURE - Time for government intervention?
FEATURE - 2016 IAOM Conference & Expo
CIGI CEO says milling industry must better promote its products
FEATURE - Reforms boost Argentine grain industry
FEATURE - Mid-latitude drying in 2016-17
FEATURE - European supplier profiles
TECHNICAL PROFILE - Durum wheat debranding study

World Grain - May 2016