World Grain - August 2018 - 14
Nibulon to invest in grain storage, barges in Egypt
CAIRO, EGYPT - Nibulon, a Ukrainian grain trading company,
plans to invest $2 billion in new grain silos and barges in Egypt's Nile
Delta region, Reuters reported, citing the Egyptian supply ministry.
The silos would be built at two sites near the ports of Alexandria
and Damietta. Twenty barges, each with a capacity of 2,000 tonnes,
would be built to transport grain along the river.
begin in the next two years.
Canadian cooperative to expand grain handling capacity
THORNLOE, ONTARIO, CANADA - Co-opérative Régionale
de Nipissing Sudbury is investing C$1.7 million to upgrade its receiving and storage capacity at its Temiskaming Agriculture Centre
in Thornloe, Ontario, Canada, according to an article on Northern
Brandon Tuinema, agriculture manager for Co-opérative
Régionale de Nipissing Sudbury, told Northern Ontario Business
that the investment is the biggest one-time spend on agriculture for
the cooperative. As part of the investment, the cooperative plans to
build a 160-foot grain tower. The cooperative will double its receiving capacity by installing the 10,000-bushel-per-hour elevator leg.
Additionally, the improvements are expected to increase storage capacity to 170,000 bushels with four wet bins at 60,000 bushels and
one dry bin at 110,000 bushels.
"Our members had spoken," Tuinema told Northern Ontario
Business. "They wanted faster unloading capabilities and needed
more storage for grain so they could capture more market gains in
the winter, instead of selling it all at harvest when supply and demand
work against you."
In addition to Thornloe, Co-opérative Régionale de Nipissing
Sudbury has agriculture sites in Verner, east of Sudbury, in the
Algoma district at Echo Bay, east of Sault Ste. Marie.
Tri-State Crush, Redwood form strategic relationship
MISSION, KANSAS, U.S. - Tri-State Crush, LLC, an organic and
non-GMO soybean crush facility located in Nappanee, Indiana, U.S.,
and The Redwood Group, LLC, a commodity supply chain solutions
and merchandising company in Mission, Kansas, U.S., announced
on July 16 the formation of a strategic relationship that will create an
additional outlet for local producers to market their production and
will better connect the end users to the source. The Redwood Group
will be procuring organic and non-GMO soybeans for the plant as
well as marketing the meal and oil from the extrusion process.
The partnership combines an expertise in logistics, sourcing, and
quality assurance programs with a facility that can supply organic
and non-GMO products, the companies said. They noted that the
partnership delivers a transparent and sustainable supply chain that
is built to support a growing industry.
"We are excited to bring these growing markets back to our community here in Indiana," said Travis Luke, owner of Tri-State. "The
partnership with Redwood will contribute to our ability to give our
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supply of product."
Mike Kincaid, president of Redwood, added, "We are thrilled to
partner with Tri-State Crush to expand our vision of being a leader
in the organic supply chain business. Our mission is to innovate
and create additional verticals in our respective businesses, which a
strong partnership with Tri-State clearly accomplishes."
Ingredion to trim corn wet milling as part of cost savings plan
WESTCHESTER, ILLINOIS, U.S. - Ingredion, Inc. on July 12
announced a $125 million cost savings plan that includes transitioning its corn wet milling plant in Stockton, California, U.S.,
into a shipping distribution station by the end of 2018.
Ingredion said it will accelerate its Cost Smart savings program by establishing a $125 million target beginning in 2018
and running through year-end 2021 that includes reductions in
cost of sales and selling, general and administrative (SG&A) expenses. The July 12 announcement included preliminary secondquarter earnings per share and revised adjusted earnings per share
The actions to optimize Ingredion's North American network
by cessation of corn wet milling at the Stockton facility, which
mainly produces 42% and 55% high-fructose corn syrup and industrial starch, are expected to save $6 million to $9 million and
"We're taking this necessary action to balance our capacity versus sweetener demand, focus future resource investment toward
our specialty growth initiatives and continue to deliver on our
customer experience commitments," said Jim Zallie, president
Ingredion experienced lower-than-expected sweetener volumes
sold into beverages and higher-than-expected manufacturing
costs in North America, the company said.
On a July 12 call with analysts, Ingredion said May and June
sweetener volumes were light and that carbonated soft drink customers warned that volumes may be lighter for the rest of 2018,
due in part to demand elasticity on pricing actions to recover
higher aluminum and other cost increases. On the call, Ingredion
said it was closing the Stockton plant in 2018 to give enough lead
time as customers make plans for 2019 contracting, which has
begun as early as August in recent years. It is estimated that the
Stockton plant accounts for more than 2% of the U.S. front-end
industry corn grind.
After the transition, Ingredion will use the Stockton facility to
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States, primarily in California.
in Bedford Park, Illinois; Indianapolis, Indiana; Cedar Rapids,
Iowa; North Kansas City, Missouri; and Winston-Salem, North
Ingredion continues production of other ingredients at several
North American plants it acquired through the purchase of Penford
Corp. and Kerr Concentrates, Inc., in 2015 and TIC Gums, Inc., in
2016, as well as numerous plants in other parts of the world and
27 Ingredion Idea Labs innovation centers.
August 2018 / World Grain / www.World-Grain.com