Walker elected new PAACO Chair

Jennifer Walker, DVM, PhD, of Dallas, TX, has been elected chairman of the board of directors for the Professional Animal Auditor Certification Organization (PAACO). Director of Dairy Stewardship for Dean Foods, Walker was the organization’s vice chairman the past two years. She succeeds Terry Mader, PhD, of Mader Consulting.
"I am proud to serve PAACO," said Walker.  "I am excited about helping implement our new strategic plan which will ensure that PAACO remains the authority in animal welfare audit certification and auditor trainings."
Angela Baysinger, DVM, Bruning, NB, was named vice chairman. She is a health assurance veterinarian for Merck Animal Health. Rounding out the officer team are Secretary Ted Friend, PhD, animal science professor at Texas A&M University, and Treasurer Dave Sjeklocha, DVM, operations manager of animal health and welfare at Cattle Empire. The organization’s executive director is Mike Simpson.
Paul Beck, PhD, professor at University of Arkansas is a newly-appointed board member representing the American Registry of Professional Animal Scientists. He replaces Mader as one of three ARPAS appointees.

Delmarva Poultry Industry forms electric buying group

Delmarva Poultry Industry Inc. (DPI), the trade association for the peninsula's chicken industry, has formed an electric buying group that is expected save its Delmarva Power electric customers more than $1 million over the next three years.
Over the last few months, DPI recruited its business and grower members to become part of the organization's seventh electric buying group. This effort has allowed DPI to execute a three-year fixed price electric supply contract with WGL Energy (formerly known as Washington Gas Energy Services). For the more than 200 DPI members in the program, their new fixed rate will be 7.78 cents per kilowatt-hour and that should result in a substantial savings versus their expiring rate. According to DPI, his is the second lowest contract rate executed for electricity since the first DPI Electric Buying Group in 2006.
Additionally, the fixed generation supply price of 7.78 cents per kilowatt-hour also is substantially lower than Delmarva Power's equivalent default tariff supply rates that members would have paid had they not become part of the DPI buying group.
By banding together more than 200 DPI members and their nearly 500 electric accounts in the 7th Electric Buying Group, DPI was able to leverage its buying power for the benefit of the entire group through a rigorous vendor selection process. Over the three-year life of the agreement, DPI estimates its members will save more than one million dollars.
State laws allow groups like DPI to aggregate their Delmarva Power customers together to buy electricity at a lower rate. DPI is not permitted to offer such a program to its members served by the A & N Electric Cooperative, the Choptank Electric Cooperative, the Delaware Electric Cooperative, or members served by municipal electric systems.

Boehringer to take over Merial in asset swap with Sanofi

Sanofi and Boehringer Ingelheim have announced that they are in exclusive talks to swap the French pharmaceuticals company's Merial animal health business for the family-owned German group's consumer health operation.
Sanofi said Merial's enterprise value is EUR 11.4 (US$12.5) billion and Boehringer Ingelheim's CHC division has an enterprise value of EUR 6.7 (US$7.3) billion. Boehringer would also pay EUR 4.7 (US$5.1) billion in cash to Sanofi.
Combining Merial's and Boehringer Ingelheim's complementary strengths is expected to create the second largest player in the global animal health market with estimated pro forma sales of approximately EUR 3.8 (US$4.2) billion in 2015.
Olivier Brandicourt, CEO of Sanofi, said, "I am confident that Boehringer Ingelheim will enable Merial to fully express and develop its potential in the attractive but competitive animal health market.”
Dr. Andreas Barner, Boehringer’s chairman of the board, added, "Boehringer Ingelheim Animal Health is and will stay strongly committed to bringing novel, innovation driven solutions to veterinarians and animal owners. Our combined animal health business would be well positioned for growth and emergence as a leader globally.”

DuPont to merge with Dow Chemical Company

DuPont and The Dow Chemical Company have reached a definitive agreement to merge the two companies. The combined company will be named DowDuPont.
The merger transaction is expected to close in the second half of 2016, subject to customary closing conditions, including regulatory approvals, and approval by both Dow and DuPont shareholders. The parties intend to subsequently pursue a separation of DowDuPont into three independent, publicly traded companies through tax-free spin-offs. This would occur as soon as feasible, which is expected to be 18-24 months following the closing of the merger, subject to regulatory and board approval.
The companies will include a leading global pure-play agriculture company; a leading global pure-play material science company; and a leading technology and innovation-driven specialty products company. Each of the businesses will have clear focus, an appropriate capital structure, a distinct and compelling investment thesis, scale advantages, and focused investments in innovation to better deliver superior solutions and choices for customers.
“This transaction is a game-changer for our industry and reflects the culmination of a vision we have had for more than a decade to bring together these two powerful innovation and material science leaders,” said Andrew N. Liveris, Dow’s chairman and CEO. “Over the last decade our entire industry has experienced tectonic shifts as an evolving world presented complex challenges and opportunities – requiring each company to exercise foresight, agility and focus on execution. This transaction is a major accelerator in Dow’s ongoing transformation, and through this we are creating significant value and three powerful new companies. This merger of equals significantly enhances the growth profile for both companies, while driving value for all of our shareholders and our customers.”
“This is an extraordinary opportunity to deliver long-term, sustainable shareholder value through the combination of two highly complementary global leaders and the creation of three strong, focused, industry-leading businesses. Each of these businesses will be able to allocate capital more effectively, apply its powerful innovation more productively, and extend its value-added products and solutions to more customers worldwide,” said Edward D. Breen, chairman and CEO of DuPont. “For DuPont, this is a definitive leap forward on our path to higher growth and higher value. This merger of equals will create significant near-term value through substantial cost synergies and additional upside from growth synergies. Longer term, the three-way split we intend to pursue is expected to unlock even greater value for shareholders and customers and more opportunity for employees as each business will be a leader in attractive segments where global challenges are driving demand for these businesses’ distinctive offerings.”

Intended separation into three independent, publicly traded companies

It is the intention of both companies’ boards of directors that, following the merger, DowDuPont would pursue a tax-free separation into three independent, publicly traded companies with each targeting an investment grade credit rating. Each would be a strong, focused business with powerful innovation capabilities, enhanced global scale and product portfolios, focused capital allocation, and a distinct competitive position. The three businesses that the boards intend to separate are:

• Agriculture company: Leading global pure-play agriculture company that unites DuPont’s and Dow’s seed and crop protection businesses. The combined entity will have the most comprehensive and diverse portfolio and a robust pipeline with exceptional growth opportunities in the near-, mid- and long-term. The complementary offerings of the two companies will provide growers across geographies with a broad portfolio of solutions and greater choice. Combined pro forma 2014 revenue for Agriculture is approximately $19 billion.
• Material science company: A pure-play industrial leader, consisting of DuPont’s Performance Materials segment, as well as Dow’s Performance Plastics, Performance Materials and Chemicals, Infrastructure Solutions, and Consumer Solutions (excluding the Dow Electronic Materials business) operating segments. The combination of complementary capabilities will create a low-cost, innovation-driven leader that can provide customers in high-growth, high-value industry segments in packaging, transportation, and infrastructure solutions, among others with a broad and deep portfolio of cost-effective offerings. Combined pro forma 2014 revenue for Material Science is approximately $51 billion.
• Specialty products company: A technology driven innovative leader, focused on unique businesses that share similar investment characteristics and specialty market focus. The businesses will include DuPont’s Nutrition & Health, Industrial Biosciences, Safety & Protection and Electronics & Communications, as well as the Dow Electronic Materials business. Together, their complementary offerings create a new global leader in Electronics Products, and each business will benefit from more targeted investment in their productive technology development and innovation capabilities. Combined pro forma 2014 revenue for Specialty Products is approximately $13 billion.

Advisory committees will be established for each of the businesses. Breen will lead the agriculture and specialty products committees, and Liveris will lead the material science committee. These committees will oversee the respective businesses, and will work with Liveris and Breen on the intended separation of the businesses into independent, standalone entities.

Management, governance and corporate headquarters

Upon completion of the transaction, Liveris, president, chairman and CEO of Dow, will become executive chairman of the newly formed DowDuPont Board of Directors and Breen, chair and CEO of DuPont, will become CEO of DowDuPont. In these roles, both Liveris and Breen will report to the board of directors. In addition, when named, the chief financial officer will report to Breen.

Double S adds plant in Pennsylvania

Double S Liquid Feed Services has opened a new plant in Lewistown, PA, adding to its manufacturing capabilities in the eastern United States. A leading manufacturer and supplier of cane molasses, vegetable oils, beet molasses, fish oil and mineral oil products, Double S recently completed renovation of a 6,000 square-foot former machine shop, updating the rail system, adding 25 storage tanks and creating separate medicated and non-medicated mixers.
“The addition of this Pennsylvania facility allows Double S to gain stronger access to eastern markets,” says Greg Shepard, Double S Liquid Feed Services president and chief executive officer. “We made significant investments in new equipment and property, continuing to grow the company’s product and service offerings and expanding its geographic footprint.
Along with separate medicated and non-medicated feeds, Double S will also make calcium-suspended feeds at the new plant. In addition, the facility has the unique ability to run railcars inside, making unloading a more reliable and efficient process. “This site will play an important role in our future production and give us the flexibility and capacity to meet the needs of our rapidly growing product portfolio and service offerings.”

Hendrix Genetics partners with Dutch turkey distributor

Hendrix Genetics, the global leader in turkey breeding, has reached an agreement in principle to acquire a controlling stake in turkey distributor Coolen, who owns the largest turkey hatchery in the Netherlands. The transaction is expected to close before year end, following customary due diligence and other approvals.
Through this partnership, customers will benefit from a better flow of knowledge and quality turkey poults from Hendrix Genetics as primary turkey breeder. For Hendrix Genetics, the Netherlands can play a strategic role as supplier to Germany and as export base for markets outside of Europe. Both companies also see, next to commercial turkeys, great opportunities in developing the market of traditional and bronze turkeys.
Henk Coolen, shareholder and managing director of Coolen Hatchery, said, “I am happy to come to this agreement with Hendrix Genetics. The fact that I will continue to work in the company allows me to contribute and help grow the company even further. ”
Dave Libertini, managing director of Hendrix Genetics Turkeys Business Unit, said, “We welcome Henk and all the employees of Coolen onto our team. We expect this acquisition will provide customers throughout Europe with a secure, integrated supply of turkey poults as part of an aligned distribution network.”
Antoon van den Berg, CEO of Hendrix Genetics, added, “The fact that the hatchery of Coolen is located so close to our home base makes this a natural fit for Hendrix Genetics as a whole. The Netherlands could act as a natural base for the expansion of our traditional and bronze turkey market.”

6 ways the global economy will affect agriculture markets

Erik Norland, executive director and senior economist at the CME Group, presented his “Global Economy and Oilseeds Outlook 2015-20” during the Oilseed and Grain Trade Summit in Minneapolis on Wednesday. Key takeaways from his presentation include:

1. There have been 11 El Ninos and 8 La Ninas since 1959. On average, El Ninos, like the one we are experiencing this year, have boosted prices for agriculture commodities while La Ninas have depressed them.
2. Africa’s population is projected to increase 70 percent, which could represent the biggest opportunity for food producers worldwide. India and Bangladesh also will see large increases; Brazil and the U.S. will continue to grow, but below the world average; and China’s population will stagnate and decline.
3. The potential increases in consumption are the greatest where people consume the least calories and where population growth is the highest, such as India and Africa.
4. Africa has the greatest potential for population growth. The continent has a very small population of older residents, while it has a very large population of very young residents.
5. Africa has been encouraged to grow in the past decade because of high commodity prices.
6. Behind Africa, India is expected to see large population growth.

New funding opportunity announced

Indiana Department of Energy Development has announced that Indiana food and beverage processors can begin applying for OED's 2015 Indiana Solar Thermal Water Heating (ISTWH) grant program.
OED’s grant is intended to help food and beverage processors purchase solar hot water heaters so they can lower their energy bills and diversify their energy resources. Wineries, breweries, dairies and egg producers are examples of industries that may use a significant amount of energy to heat water for their processing operations. By diversifying energy sources, Indiana processors may reduce their exposure to energy price shocks, improve their access to affordable, reliable energy and reduce the need to build new energy capacity that affects all utility ratepayers.
Applications are due Oct. 27, 2015. Applicants must provide 50 percent cost share for the total project costs and special consideration will be given to applicants that leverage greater than 50 percent cost share. Maximum grant award will be $50,000.
Applicants can participate in both the ISTWH grant and the USDA REAP grant. This can help reduce project costs and create a desirable return on investment.

Agribusiness leaders in diversity recognized with award

The Women in Agribusiness Demeter Award of Excellence recognizes people and companies in the agribusiness sector that help to increase diversity in the workplace.
Presented by HighQuest Group, the Women in Agribusiness Demeter Award of Excellence acknowledges the outstanding achievements of those who have taken identifiable actions to create positive results in retaining, recruiting and promoting women in the ag sector. The awards will be presented at the annual Women in Agribusiness Summit in Minneapolis, Minnesota, September 28-30 at the Hyatt Regency.
The recipients are:

• Leader of the Year: Kim Walker of Faegre Baker Daniels
• Innovator of the Year: Megan Delvis of Dow AgroSciences
• Company of the Year: Beck Ag Inc.

Leader of the Year

Kim Walker leads Faegre Baker Daniels’ international food and agriculture industry team. Over his 35-year career, he has been a leader in promoting women professionals, helping implement creative and effective strategies to support their professional development. He also has served on Faegre Baker Daniels’ national Diversity and Inclusion Advisory Group.
Within the community, Walker has been a member of the Twin Cities Diversity in Practice marketing committee, and last year received Executive Women International’s (Des Moines Chapter) Executive of the Year Award.
“It is truly an honor to receive the Leader of the Year award from Women in Agribusiness,” Walker told WATT Global Media. “Throughout my 35-year career, I have strived to support the advancement of women within my practice, the firm as a whole, and food and agriculture industry. I believe that a key component to achieving success as a leader is to create an environment that encourages inclusiveness, engagement and equal opportunities for achievement.”

Innovator of the Year

At Dow AgroSciences, Megan Delvis is U.S. commercial excellence leader and co-chairwoman of their Women’s Innovation Network (WIN). During her tenure, the WIN team has extended its reach to all North American offices, and has partnered with other diversity and inclusion networks to elevate the awareness around minority issues and generate recruitment of underrepresented groups.

Company of the Year

Beck Ag Inc. has worked with leading companies in the ag industry on marketing and sales strategies that leverage advocacy and result in accelerating behavior change. With balance as part of its guiding principles, Beck Ag has been able to attract and retain professionals with deep ag industry experience who have a desire to deliver excellence.
Sixty-seven percent of Beck Ag’s ranks are women, as are five of nine Beck Ag shareholders; the company is deeply committed to providing a culture where each individual can contribute, grow and succeed.

BlueWave Marine Ingredients sells majority stake of shares

BlueWave Marine Ingredients, maker of ultra-low molecular weight fish peptides for human and animal nutrition, has sold a majority stake of its shares to 3D Corporate Solutions L.L.C., a U.S.-headquartered nutrition business. Scott Walker, CEO of 3D, notes “BlueWave is a key acquisition for us as we move forward. It jump starts our marine platform, allows us geographic presence outside North America, and BlueWave’s Peruvian facility links well to our growing Human/Functional Nutrition business.” Walker went on to detail that BlueWave represents strong synergies with some other 3D strategic initiatives, including 3D strategic partner JT Naturals (Joplin, Missouri) in the marketing of BlueWave Oils and Refined Peptides into the booming nutraceutical space. Michael Mussell, CEO of BlueWave, enthusiastically supports 3D’s new ownership. “During the last 4-5 years, we expanded our platform with strategic partners and four new factories utilizing a proprietary/patented process technology. It is an ideal time for a strong marketing partner and 3D is a perfect fit.” 3D Corporate Solutions, headquartered in Monett, Missouri, is employee-owned (ESOP) and is a four consecutive-time honoree on the Inc. 5000 list of the fastest-growing, privately held companies in America. 3D produces and sources ingredients in the nutrition industries for pets, feed, and food. 3D also provides warehousing and logistics services. The company participates in numerous industry associations and local community events. BlueWave Marine Ingredients operates four factories (Peru, Ecuador, Spain, Morocco), utilizing sustainable marine sources to produce low molecular weight peptides noted for their exceptional digestibility, purity, and bioavailability.

Quality Liquid Feeds, ADM form joint venture

Quality Liquid Feeds Inc. and Archer Daniels Midland Company have entered into a 50-50 joint venture for the production and sale of liquid feed supplements for livestock.
The joint venture consists of four liquid feed production facilities formerly owned by ADM — in Twin Falls, Idaho; Billings, Montana; Fremont, Nebraska; and Johnstown, Colorado — as well as the Loomix brand. The new venture, which will be called Alliance Liquid Feeds, will serve portions of the Western United States.
Quality Liquid Feeds continues to be owned by the Berg family and will continue to market QLF-branded liquid feed supplements out of their 12 facilities in the Midwest, East and Southwest United States.
“One of the ways we are increasing earnings power at ADM is by partnering with other great companies,” said Brent Fenton, president, ADM Animal Nutrition. “In this case, we’re joining with a strong partner in QLF, which allows us to expand our capabilities while simultaneously reducing the capital we have invested in the liquid feed business.
Customers will benefit from the combined expertise, resources and efficiency of the joint venture, and our shareholders will benefit from the improved returns we expect from the business. And by combining resources, we expect to see significant advancements in operational efficiencies, from capital reduction to supply chain enhancements to sales/margin improvements.”
QLF CEO Cory Berg said: “This joint venture allows us to expand into markets that we had our sights on for a number of years. The new company will benefit from QLF’s expertise and 38 years of experience producing and supplying liquid feed 24 hours a day, seven days a week, 365 days a year. At the same time, it provides us a strong partner in ADM, with its overwhelming supply of ingredients, experience and knowledge in supply chain management, research, and industry connections.”
Existing Loomix customers will see a seamless transition as the new business continues to offer high-quality products, strong customer service and, eventually, new products.

Nathan's Famous provides school with $1,000 of free groceries to GIANT

Thanks to Nathan's Famous, world famous hot dog company, representatives from Bear Creek Community Charter School in Bear Creek, PA, were celebrated for being leaders in the community and making active play possible. They were also honored by NASCAR driver Aric Almirola on Sunday before a recent race at Pocono Raceway.
As part of its Ready. Set. PLAY. initiative with national non-profit KaBOOM!, Almirola surprised Bear Creek Community Charter School guests with a $1,000 GIANT gift card towards the purchase of free groceries, courtesy of Nathan's Famous.
Guests from Bear Creek Community Charter School were greeted at the race track by the Richard Petty Motorsports team and escorted to the garage area to meet the NASCAR Sprint Cup Series race winner. Almirola then surprised the group with the $1,000 gift card. Those in attendance stayed at the famed race track to watch Almirola race in yesterday's Axalta "We Paint Winners" 400.
The Ready. Set. PLAY. initiative is a partnership created in 2014 by Nathan's Famous with KaBOOM! It celebrates play and the local leaders who are making active play possible in communities across the nation.
"Nathan's Famous is all about fun, family and community," said Mike Paribello, Sr. Director of Marketing, Nathan's Famous. "We are really proud of our Ready. Set. PLAY. and are thrilled to champion active play by donating $1,000 of free groceries to Bear Creek Community Charter School."
"I'm proud to work with Nathan's Famous to encourage children to be active and thank the leaders in the community who ensure kids have a place to do just that," said Almirola. "I have two children of my own and I know how important it is to keep them active while providing a well-balanced diet. This is a great way for Nathan's to have an immediate impact on organizations like Bear Creek Community Charter School."
KaBOOM! worked with the Bear Creek Community Charter School for a playground build in 2007.
Nathan's Famous is a licensed brand of Smithfield Foods.

Diamond V sponsors premiere of feature film, The Ivy League Farmer

A new feature film, The Ivy League Farmer, tells the story of a father and son in conflict over the use of modern technology and the future of the family dairy farm. It’s also a love story that explores a small town’s concern about local kids not getting enough to eat.
“Food safety, sustainability, and affordability are critical issues,” says Jeff Cannon, president and CEO of Diamond V, an Iowa-based company focused on cost-effective production and optimal food safety. “Food security is a growing concern, too. Even though the U.S. has one of the safest and most affordable food supplies in the world, 15 percent of Americans suffer from food insecurity.
“Even in Iowa, one of the top agricultural states, there are communities where one in four school-age children get their only meal of the day at school.” At the same time, Cannon says, everyone gets a great deal of confusing, often contradictory information about modern food production.
“Less than 2 percent of Americans live on working farms,” he points out, “so it’s not surprising that there are a lot of misconceptions about modern agriculture and the vital role it plays in meeting the challenges of food security at home and abroad.”
Cannon said it’s a challenge to help consumers better understand the real choices ahead as farmers work to produce safe, sustainable, affordable food. To help address the “farm to food knowledge gap,” Diamond V became a founding member of Farming to Fight Hunger, a non-profit organization to increase public awareness of food security issues and improve knowledge of modern agriculture. The Ivy League Farmer is the group’s first project. Diamond V is using The Ivy League Farmer in a non-profit initiative to raise funds to help feed local kids in need. The company is sponsoring the film’s premiere showings, June 5-7, at Theatre Cedar Rapids in Cedar Rapids, IA.
Diamond V recognizes food security as a growing concern worldwide. The company is an international leader in nutritional health products for animals and people. “Every 3.6 seconds someone dies of hunger,” Cannon says. “Seven million children starve to death every year. Another 870 million people suffer from malnutrition. In many countries, rapid population growth, fragile ecosystems, and limited natural resources impact people’s food supply. In other countries, increasing per capita income means growing demand for food.”
Unfortunately, most of the world’s land suitable for farming is already in production. What this means, Cannon says, is that an estimated 70 percent of future increases in food production capacity must come from new and improved agricultural technologies. He believes that family entertainment like The Ivy League Farmer can raise public awareness about hunger, modern technology, and the farmers who devote their lives to meeting the growing need for food.
The Ivy League Farmer, tells the story of Joel Gilbert, who has just graduated from Harvard, and has a hifalutin job waiting for him on Wall Street. But when he returns home for the summer, he discovers his family’s dairy farm is in trouble. Joel’s Ivy League business skills can help, but his dad is too stubborn to risk investing in the high-tech future of family farming. Joel’s problems multiply when he realizes he’s falling in love with his childhood sweetheart. However, Holly Kramer’s mission in life may or may not include Joel. Many school-age kids in their rural hometown are not getting enough to eat. Besides teaching school, Holly is leading the local fight against food insecurity. Watch the movie trailer at http://www.diamondv.com/media/farming-to-fight-hunger/.

Sannam S4 in India has joined the Larive Group

Larive International (HQ in Zeist, the Netherlands) and Sannam S4 (HQ in Delhi, India), both emerging market entry specialists, have agreed to establish a strategic partnership in India where Sannam S4 will become the sole member of the Larive Group, a network of 30 (Larive) offices in Asia, Central & Eastern Europe, Turkey and East Africa. The combination will provide business solutions for companies entering or further developing their activities in India. 
Larive’s mission is guiding customers in developing and implementing their market entry, expansion, or strategy into high-growth emerging markets. Larive is known for its very strong network with deeply rooted local presence (the Larive group partners), boutique-style personalized approach (loyalty, dedication, flexibility, responsiveness) and creativity in tackling clients' challenges. Larive International has the ability to make a non-transparent environment more transparent based on 30+ years of experience and accrued knowledge. We shorten the time and/or costs associated with entering into, or growing, in emerging markets. 
Through the collaboration with Sannam S4 in India, Larive can service clients throughout India and provide professional services such as market research, market entry strategy, growth strategy, partner searches, management recruitment, finance, tax, accounting & compliance and M&A related services. Sannam S4 has a local team of 105 employees and offices in Delhi, Bangalore, Mumbai and Chennai. Sannam S4 combines sector expertise and technical resources with practical local advice to deliver low risk and cost effective solutions, enabling companies to reach their full potential in a challenging country such as India. 
Frank Zuure, Director of Larive International said: “Both companies have a high reputation anchored in brand name, key persons and project and process management skills. We are convinced that this partnership will allow us to assist our relations in this fast growing market even better.”
“Having already worked with Larive on several projects in India, we are delighted to formalise our alliance.” says Adrian Mutton, Founder & CEO of Sannam S4. “We are excited about working with the Larive International network to provide Sannam S4’s clients with access to high quality market entry support across numerous key emerging markets.”

InVivo, CHS launch grain export joint venture

French cooperative InVivo and U.S. cooperative and grains and energy trader CHS Inc. have launched ICGrain, a joint venture to originate grain from Hungarian producers for export to global food and feed companies. 
Assets included in the agreement are the CHS inland silo at Oroshaza, Hungary, and the InVivo river terminal at Baja on the Danube River. ICGrain, which will be equally owned by CHS and InVivo Group, will manage its own hedging, logistics, quality assurance, and barge loading. ICGrain headquarters will be at Budapest, Hungary.
"Our new partnership with InVivo adds tremendous value to our member-owners and customers because it extends CHS grain origination, creates access to additional inland river ports and improves barge delivery to the CHS Silotrans facility at Constanta, Romania, and to other Northern European markets," said Roger Baker, CHS Europe, vice president and general manager, at Geneva, Switzerland.
"InVivo has done business with CHS for several years, and during that time we learned that we share many of the same business objectives, in addition to the fact that CHS and InVivo are both leading cooperative groups within their respective countries," said Jerome Duchalais, deputy managing director of InVivo Group, responsible for grain activity. "The creation of ICGrain is in line with the ambitious growth and international expansion strategy adopted by InVivo Group."

Syngenta’s first quarter sales down 14 percent

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  freeimages.com

  Syngenta’s sales for the first quarter were $4 billion, down 14 percent from last year.

  From WATTAgNet:
  Syngenta’s first quarter sales were lower than expected, after the Swiss crop chemical manufacturer took a hit from low commodity prices, a strong dollar and a prolonged U.S. winter.
  Syngenta’s sales for the first quarter were $4 billion, down 14 percent from last year, and lower than the $4.3 billion forecast.
  Integrated sales of $3.8 billion rose 1 percent at constant exchange rates. Volumes were 7 percent lower, and prices were 8 percent higher.
  In Europe, Africa and the Middle East, sales were up 15 percent. In North America, sales were 16 percent lower. Excluding glyphosate, where a deliberate reduction is under way, sales were 13 percent lower. Sales in Latin America were 11 percent lower.
  Corn prices fell 15 percent in 2014, and nearly 40 percent in 2013, causing farmers to scrutinize their spending and putting pressure on companies like Syngenta. However, Syngenta maintained its full-year targets and its longer-term target for 2018.
  Syngenta faces legal issues in the United States, where Cargill, Archer Daniels Midland and hundreds of farmers sued it for damages stemming from China’s rejection of genetically modified U.S. corn. The case is expected to last several years, but Syngenta executives say their defense in the case is strong. 

H.J. Heinz Company, Kraft Foods to merge

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  Freeimages.com/mikecco

  H.J. Heinz Company and Kraft Foods have reached an agreement to merge the two food companies.

  From WATTAgNet:
  H.J. Heinz Company and Kraft Foods Group have entered into a definitive merger agreement to create The Kraft Heinz Company, forming the third largest food and beverage company in North America.
  The combination of these food companies joins together two portfolios of brands. Together, the new company will have eight $1+ billion brands and five brands between $500 million and $1 billion. Among those are Kraft Foods’ Oscar Mayer, Louis Rich and Lunchables brand meat and poultry products. Kraft Foods is also the seventh largest turkey processor in the United States, processing 280 million pounds in 2014, according to the WATT Global Media Top Companies Database.
  Under the terms of the agreement, which has been unanimously approved by both Heinz and Kraft’s Boards of Directors, Kraft shareholders will own a 49 percent stake in the combined company, and current Heinz shareholders will own 51 percent on a fully diluted basis. Kraft shareholders will receive stock in the combined company and a special cash dividend of $16.50 per share. The aggregate special dividend payment of approximately $10 billion is being fully funded by an equity contribution by Berkshire Hathaway and 3G Capital.
  The proposed merger creates substantial value for Kraft shareholders, the companies stated in a press release. The special cash dividend payment represents 27 percent of Kraft’s closing price as of March 24, 2015. Also, by continuing to own shares of the new combined company, Kraft shareholders will have the opportunity to participate in the new company’s long-term value creation potential.
  Alex Behring, chairman of Heinz and the managing partner at 3G Capital, said: “By bringing together these two iconic companies through this transaction, we are creating a strong platform for both U.S. and international growth. Our combined brands and businesses mean increased scale and relevance both in the U.S. and internationally. We have the utmost respect for the Kraft business and its employees, and greatly look forward to working together as we integrate the two companies.”
   “Together we will have some of the most respected, recognized and storied brands in the global food industry, and together we will create an even brighter future,” said John Cahill, Kraft chairman and CEO. “This combination offers significant cash value to our shareholders and the opportunity to be investors in a company very well positioned for growth, especially outside the United States, as we bring Kraft’s iconic brands to international markets. We look forward to uniting with Heinz in what will be an exciting new chapter ahead.”
  “We are thrilled about the unique opportunities this merger will create for our consumers worldwide, as well as our employees and business partners. Together, Heinz and Kraft will be able to achieve rapid expansion while delivering the quality, brands and products that our consumers love,” said Bernardo Hees, Heinz CEO. “Over the past two years, we have transformed Heinz into one of the most efficient and profitable food companies in the world while reinvesting behind our key brands and continuing our relentless commitment to quality and innovation.”
  Management and governance of The Kraft Heinz Company
  When the transaction closes, Behring will become the chairman of The Kraft Heinz Company. Cahill will become vice chairman and chair of a newly formed operations and strategy committee of the board of directors.
  Hees will be appointed CEO of The Kraft Heinz Company. The new executive team for the combined global company will be announced during the transition period, but no later than transaction closing.
  The board of directors of the combined company will consist of five members appointed by the current Kraft board, as well as the current Heinz board, including three members from Berkshire Hathaway and three members from 3G Capital.
  The Kraft Heinz Company will be co-headquartered in Pittsburgh and the Chicago area.

San Miguel Pure Foods sees net income fall, revenues up

San Miguel Pure Foods reported a 7.3 percent drop in its 2014 net income, despite higher revenues.
The company’s net income was PHP3.8 billion (US$849,037), lower than the PHP4.08 reported in 2013. However, revenues rose 3 percent to PHP103 billion, from PHP99.8 billion the previous year.
Operating income rose 17 percent to PHP6.5 billion “due to higher revenues, better efficiencies, and lower wheat costs.”
“Higher volumes and better selling prices across most of its businesses contributed to strong results,” a statement from the company said.
Combined revenues of the agro-industrial and flour milling businesses grew 6 percent, also due to higher volumes and favorable selling prices.
Revenues for the branded, value-added business rose 2% “despite logistical constraints resulting from congestion in Manila’s main ports, which significantly affected volumes.”
The company said its growth was helped by expansion of franchise outlets such as Magnolia Chicken Stations, Monterey Meat Shops and Kambal Pendesal and Food Service.
Pure Foods said it is actively looking for opportunities to grow its portfolio though acquisitions.
“We are actually looking at Vietnam and Indonesia where we already have businesses. We’re looking at processed meats because that is our core competency. Its at the very early stage, we’re doing discussions,” said Pure Foods President Francisco Alejo.
Alejo said Pure Foods “continues to look for large-scale acquisitions although we consider location – if it is too far. If we can do it within the ASEAN, that is better, because of the ASEAN integration.”

Land O’Lakes reports net earnings of $266 million for 2014

Land O’Lakes Inc. reported 2014 net earnings of $266 million on record sales of $15 billion and a record $184 million in cash returned to members. These results were driven by continued growth in key areas of the company’s core business units: Crop Inputs, Dairy Foods and Feed.
“Our 2014 results reflect record annual revenues, continuing nearly a decade of consistent growth and increasing returns for our member-owners,” said Chris Policinski, president and CEO of Land O’Lakes.


Year-end details
Land O’Lakes’ net earnings for 2014 were $266 million, down from $306 million the previous year. These results reflect $18 million in pretax restructure and impairment charges related to a facility closure in Denmark, Wisconsin, and other organizational restructuring. Pretax earnings on continuing operations before unrealized hedging and rebate adjustments, which are used to determine member patronage, were up 11.6 percent to a record $308 million compared to the previous year.
Cash returned to members of $184 million represents a 25 percent increase compared with the previous year. This is the sixth consecutive year cash returned to members has exceeded $100 million, bringing the nine-year total to more than $1 billion.


Fourth quarter results
For the quarter ended Dec. 31, 2014, Land O’Lakes delivered net earnings of $38.3 million on quarterly revenues of $3.5 billion, a slight increase in year-over-year revenues. Fourth quarter earnings reflected the downward pressure exerted on the global dairy markets. 


Business segments
Crop Inputs reported sales of $4.9 billion, up from the previous year. Pretax earnings totaled $220 million, up $2 million compared to the previous year. These results continue a multi-year trend of growth, driven by the market strength of the WinField brand and successful pursuit of new opportunities in rapidly growing agribusiness segments that focus on productivity, sustainability and new technologies in precision agriculture. Corn volumes were down 3 percent as planted acres decreased due to declines in corn prices. Soybean volumes increased 24 percent in 2014 compared to the previous year. Alfalfa volumes increased 1 percent year over year.
Feed reported sales of $4.7 billion, down slightly from $4.8 billion in 2013. Pretax earnings of $27.8 million increased 58 percent compared to the previous year. These results were driven by increased demand for products in the core livestock and lifestyle segments and the successful marketing of the Purina Animal Nutrition Center, located in Gray Summit, Missouri. Livestock feed sales increased 6 percent and Lifestyle product sales increased 2 percent year-over-year. In its first full year of operation, the new Purina Animal Nutrition Center generated $5 million of incremental gross margin, more than triple the gross margin generated in 2012, the last full year prior to the remodeling investment.
During 2014, Land O'Lakes continued to implement previously announced plans to divest of its commodity egg business, operated through Moark L.L.C. During the year, the company sold substantially all of the Western and Midwestern assets of this business for $166 million, a profit of $6 million. Land O’Lakes continues to evaluate options with respect to the remaining commodity egg assets in the Eastern United States.
Total Land O'Lakes debt as of Dec. 31, 2014 was $1.14 billion, down $57 million from 2013. The decrease was primarily due to Moark asset sales and debt repayment. The company also ended the year with $592 million in cash and marketable securities.

Land O’Lakes to acquire consulting firm FLM+

Land O'Lakes Inc. is acquiring the assets of FLM+, a marketing communications and strategic consulting company with expertise in the agribusiness and rural community sector. The acquisition aligns the growth strategies of both companies in serving the agricultural industry.
"Land O'Lakes, together with its member cooperatives, is working to build the talent and provide the necessary resources to fully participate in this great growth industry of food and agriculture," said Chris Policinski, president and CEO of Land O'Lakes. "This partnership with FLM+ will provide valuable resources within our federated co-op system to drive the growth of our member-owners."
FLM+ will become a wholly owned subsidiary of Land O'Lakes. The company will retain its employee base after closing, which is scheduled for the second quarter of the year.
FLM+ combines the best practices of consulting firms, communications agencies and learning services companies to help clients realize their growth goals. The marketing communications and consulting services FLM+ delivers to their extensive roster of commercial and producer-funded clients also will be available to Land O'Lakes member co-ops to help them better meet their own growth goals and respond to emerging market opportunities.
"Five years ago, Phillip Farmer, John Lumpe and I set out to create a new kind of marketing and communications company focused on meeting the needs of agribusiness and rural communities," said Rob McClelland, FLM+ president and CEO.  "This new partnership will only accelerate our commitment to positively impact our valued clients. We're honored and excited to become part of the Land O'Lakes family."