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Business news and notes Tuesday, August 25, 2009
Hormel's profits increase as costs decline
AUSTIN, Minn. -- Hormel Foods Corp., maker of Spam, Dinty Moore stews and Chi-Chi's Mexican products, said that its third-quarter profit rose 49 percent to beat estimates as costs fell.
But sales and volume fell for the Austin, Minn.-based company as consumers limited their spending on more expensive products like microwavable meals. Sales of canned items and brands like Spam and Hormel chili, however, remained strong.
The company earned $77.2 million, or 57 cents per share, in the three months ending July 26. That's up from earnings of $51.9 million, or 38 cents per share, a year earlier.
Hormel said its net interest and investment income was "significantly improved." It also said operating profit was better in grocery products, refrigerated foods and its Jennie-O Turkey Store brand. It reported lower costs for feed as it reduced turkey production.
Revenue and sales volume both fell in the quarter. CEO Jeffrey Ettinger said in a news release the 4 percent volume drop was due to reductions in turkey production and the weak economy affecting sales.
Revenue fell 6 percent to $1.57 billion from $1.68 billion. Analysts had expected $1.7 billion.
Land O'Lakes sales drop, earnings stable
ARDEN HILLS, Minn. -- Land O'Lakes is reporting net sales of $5.8 billion and net earnings of $164.1 million for the first half of the year.
Net sales were down from $6.6 billion a year ago, net earnings matched year-ago performance.
Land O'Lakes CEO Chris Policinski said the company's first-half performance indicated that "while Land O'Lakes is not immune to the stresses and challenges of a difficult economy, we are solidly positioned to deal with the challenges ahead.''
Company officials indicated business unit results were mixed, with Dairy Foods and Layers/Eggs particularly impacted by economic conditions impacted by consumer purchasing decisions.
Cargill profit falls with food, fertilizer demand
MINNEAPOLIS -- Agribusiness conglomerate Cargill Inc. said last week its fourth-quarter earnings fell 69 percent to $327 million as the global recession dampened demand for food and fertilizer.
Earnings for the fiscal year that ended May 31 were $3.33 billion, down 16 percent from the record $3.95 billion in fiscal year 2008. Cargill is a privately held company with arms in virtually every aspect of agriculture, from commodities trading to crop exporting and fertilizer production.
Cargill and other agribusiness firms were caught by a whipsaw year in the global food market. Crop prices were trading at historic highs just last summer, but prices fell last fall when demand collapsed during the global economic meltdown.
Revenues for the full year fell 3 percent to $116.6 billion. Cash flow from operations declined 6 percent to $6.7 billion.
Stine Seed earns No. 1 spot in Scoreboard
ADEL, Iowa -- Stine Seed Company has earned the No. 1 spot on the Patent Board Scoreboard.
On Aug. 11, the Patent Board released a ranking of the 31 top food, beverage and tobacco companies according to their relative strength of their patent portfolios as measured by Technology Stength.
The scoreboard provides an assessment of a company's recent intellectual property quality and quantity.
The Patent Board reports that "Stine Seeds holds a stable patent portfollio size and continues to wield the most influence in the industry, with an industry impact score over five times the industry average.''
NPPC wants USDA to help pork producers
WASHINGTON -- The National Pork Producers Council is urging USDA to lend assistance to U.S. pork producers to help them survive a nearly two-year-old economic crisis.
NPPC sent a letter to ag secretary Tom Vilsack requesting $250 million in financial assistance and other actions to help producers.
The letter includes a request that USDA buy an additional $50 million of pork for various federal food programs and urges Congress to lift a spending cap on the Section 32 program. NPPC also asked that USDA use $100 million of the $1 billion appropriate for addressing the H1N1 virus for the swine industry.
NPPC also wants the agency to study the economic impact on the livestock industry of an expansion of corn-based ethanol production.
Soybean board partners with Oranni Consulting
ST. LOUIS -- The United Soybean Board is parnering with Oranni Consulting and Transition Management Consulting to complete an external market analysis to identify effective models for international marketing programs.
The two organizations will also be responsible for working with farmer-lenders to transition from the current model to tbe board's new international model.
Changes in Farm Facility Loan Program implemented
WASHINGTON --Changes to the Farm Storage Facility Loan program have been implemented in accordance with the 2008 farm bill.
The program allows producers of eligible commodities to obtain low-interest financing to build or upgrade farm storage and handling facilities.
The maximum principal amount of a loan through FSFL is $500,000. Participants are required to provide a down payment of 15 percent, with CCC providing a loan for the remaining 85 percent of the net cost of the eligible storage facility and permanent drying and handling equipment. Loan terms of seven, 10 or 12 years are available depending on the amount of the loan.
Applications for FSFL must be submitted to the Farm Service Agency county office that maintains the farm's records.
Angus-Gelbvieh crossbred steers top market
WINNEMUCCA, Nev. -- A set of Angus-Gelbvieh crossbred feeder steers topped the market at the Superior Livestock Video Royale XVII Sale held last month in the Winnemucca Convention Center.
The video auction had producers from 27 states consign more than 238,000 head of calves, feeder cattle and breeding stock.
Powles Gelbvieh Ranch of Bingham, Neb., consigned a set of 100 weaned steer calves at a base weight of 490 pounds that sold for $124, topping the sale. A second set of 184 Powles Gelbvieh-Angus steers weighing 530 pounds sold for $115.
Cranberry production projected to fall
BOSTON -- The nation's cranberry production is projected to drop by 10 percent from last year's record-breaking crop, even as worldwide demand for the berry rises.
The U.S. Department of Agriculture's annual report on cranberries, released last week, estimated a crop of 7.09 million barrels in 2009, compared to 7.87 million in 2008.
In Wisconsin, the country's largest cranberry producer, an 11 percent drop to four million barrels was projected. The report said bogs were recovering from record production in 2008.
Boyer is president of American Goat Federation
FRANKFURT, Ky. -- Tom Boyer is the new president of the American Goat Federation.
Boyer is a third-generation rancher from Coalville, Utah. Other officers elected include vice president Robin Saum of Lancaster, Ohio, and secretary/treasurer Marge Kilkelly. |
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