Deere Profit Estimates Worsen November 21, 2006
Posted by Tim Raines in: business, agriculture, construction, manufacturing, finance, forestry , add a commentProfit at Deere & Co., the world’s largest farm equipment manufacturer, will fall below analysts’ estimates in 2007, according to the company.
Total net income of $150 million to $175 million for the first quarter was the company’s prediction, resulting in 65 cents to 76 cents per share. Analysts on average were expecting 97 cents per share.
Chief Executive Officer Robert Lane is limiting production to prevent excess inventory due to higher fuel and fertilizer costs which the company expects will hurt farm budgets.
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Orange Juice Prices on the Rise November 9, 2006
Posted by Tim Raines in: wholesale, business, agriculture, retail , add a commentOn the heels of the grim orange harvest we told you about last month, Pepsico announced it will raise prices on its Tropicana and Dole brands of orange juice four to eight percent beginning in 2007.
The company also plans to trim discounts and other incentives offered to consumers. The changes will amount to a total 20 percent increase on prices for orange juice that were already up an average of 11 percent over last year.
From the Associated Press:
“Given the world citrus supply is severely challenged and cost pressures have dramatically increased, we are once again forced to raise our prices to customers,” Eric Miller, Tropicana’s vice president of sales, said in a written statement. “However, we believe these pricing strategy changes are in the best long-term interest of the category, our customers and consumers.”
Coca-Cola already announced a price increase of 9 to 11 percent for its Minute Maid and Simply Orange brands, the company’s fourth price increase on orange juice this year, after no increases over the previous five years.
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Foam Approved for Agricultural Euthanasia November 7, 2006
Posted by Tim Raines in: business, agriculture, government , add a commentFoam similar to that used by firefighters for putting out vehicle and other chemical-type fires has been approved by the U.S. Agriculture Department for euthanizing commercial poultry in the event of an outbreak of deadly bird flu.
From the Associated Press:
Gassing involves more workers and exposes them to potentially infected birds, and it can be difficult to maintain a high enough concentration of gas to kill the bird, according to the department’s Animal and Plant Health Inspection Service.
Foam can be used to suffocate floor-reared flocks — chickens and turkeys raised primarily for meat — to contain deadly bird flu, APHIS spokeswoman Karen Eggert said. Foam can also be used in outbreaks of rapidly spreading disease, such as Exotic Newcastle, when state or federal officials deem it necessary.
And it can be used when birds are in structurally unsound buildings, such as a building damaged by a hurricane or other natural disaster, she said.
The use of gas is considered unsafe for people, more labor intensive and less humane.
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A World Without Seafood? November 3, 2006
Posted by Tim Raines in: wholesale, business, agriculture, fishing, government, retail , add a commentAccording to a report in today’s issue of the journal Science, if trends of overfishing and pollution continue, just about all the world’s seafood populations will be gone by 2048.
From the Associated Press:
While the study focused on the oceans, concerns have been expressed by ecologists about threats to fish in the Great Lakes and other lakes, rivers and freshwaters, too.
[Lead author Boris Worm of Dalhousie University in Halifax, Nova Scotia]…and an international team spent four years analyzing 32 controlled experiments, other studies from 48 marine protected areas and global catch data from the U.N. Food and Agriculture Organization’s database of all fish and invertebrates worldwide from 1950 to 2003.
The scientists also looked at a 1,000-year time series for 12 coastal regions, drawing on data from archives, fishery records, sediment cores and archaeological data.
The solutions suggested by the researches include better management to prevent overfishing, tighter controls on pollution and new marine reserves.
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ADM Doubles Profit on Ethanol & Soybean Processing November 1, 2006
Posted by Tim Raines in: wholesale, business, agriculture, manufacturing, finance , add a commentArchter Daniels Midland reported first quarter (the three months ending September 30th) profit more than doubled due to higher prices for corn-based ethanol and better earnings from soybean processing. The company said a recent decline in the price of ethanol, however, would likely lower earnings.
From this Bloomberg article:
Archer Daniels “benefited from the April to September value of our ethanol contracts,'’ Schmalz said on a conference call with investors. The recent decline in ethanol pricing will be reflected in the current quarter, he said, with some of the impact being staggered throughout the year as customers renegotiate contracts.
Ethanol prices have plunged 51 percent from a record high of $4.23 a gallon in June as U.S. gasoline inventories increased. Ethanol is blended with gasoline to stretch supplies and make the fuel burn more cleanly.
Profit on soybean processing (crushing soybeans into animal feed, cooking oil and meal) rose 27 percent during ADM’s first quarter as prices for the oilseed fell.
Archer Daniels Midland employs 26,800 people and operates nearly 240 processing plants worldwide.
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South Korea Accepts U.S. Beef Shipment October 30, 2006
Posted by Tim Raines in: wholesale, business, agriculture, government , add a commentSeoul, South Korea accepted its first shipment of U.S. beef in nearly three years today, after fears of mad cow disease began a nearly three-year ban.
Some nine tons were shipped from a Kansas slaughterhouse and arrived on a flight this morning. It will undergo quarantine inspections and will be available for sale in a little over two weeks.
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California Fire Continues to Rage October 27, 2006
Posted by Tim Raines in: business, agriculture, government, insurance, real estate, forestry , add a commentFirefighters continue to struggle against a wildfire that has already claimed the lives of four of their brethren as it races across Southern California.
The fire, which authorities claim was arson, has already claimed 38 square miles and was only 5 percent contained early Friday. Over 1,000 firefighters are battling the blaze to protect homes and build fire lines.
According to the Associated Press:
Forecasters were calling for strong Santa Ana winds that could reach up to 60 mph. A “red flag warning” was in effect through Saturday night because of a mix of strong winds, low humidity and warm temperatures.
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Orange Harvest Looks Grim October 13, 2006
Posted by Tim Raines in: wholesale, business, agriculture, retail, forestry , add a commentThe U.S. Department of Agriculture (USDA) predicted Florida’s orange harvest this year—the worst since 1990—will show a drop of 25% compared with two years ago (last year wasn’t exactly a banner year, either).
Blaming last year’s Hurricane Wilma and a period of cold weather this past February, the department predicted just 135 million boxes (a little over 12 billion pounds) of oranges will be picked in the 2006-07 season.
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USDA Changes Wheat Forecast
Posted by Tim Raines in: business, agriculture, government, retail , add a commentAs a result of a severe drought in Australia, the USDA has changed its wheat forecast drastically to include exporting of an additional 25 million bushels.
Chairman of USDA’s World Agricultural Outlook Board Gerald Bange predicts higher US and world wheat prices with the latest US price forecast at $4.35 a bushel, up nearly $1.00 from last year.
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More Troubles for California’s Farmers October 9, 2006
Posted by Tim Raines in: business, agriculture, retail , add a commentLess than a week after broccoli grown in California’s Salinas Valley was given the all clear from E. coli contamination, a popular brand of lettuce is now causing concerns and prompting a recall. From AP:
“We’re just reacting to a water test only. We know there’s generic E. coli on it, but we’re not sure what that means,” he said. “We’re being extra careful. This is precautionary.”
The recall covers green leaf lettuce under the Foxy brand that was purchased in grocery stores Oct. 3-6 in Arizona, California, Nevada, Washington, Oregon, Idaho and Montana. It was also sold to distributors in those states who may have sold it to restaurants or institutions.
So far, E. coli has been found only in the irrigation systems and not in the lettuce itself.
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