World Grain - April 2022 - 12

NEWS REVIEW
Scoular acquires two facilities in Florida
OMAHA, NEBRASKA, US - Scoular has purchased the assets
of Columbia Grain & Ingredients at two facilities in Lake
City and Live Oak, Florida, US, to serve grain and livestock
producers in the southeastern US.
The purchase provides Scoular, based in Omaha, Nebraska,
US, with anchor locations in the region and includes feed ingredient
and grain handling facilities, storage space and a feed
mill. Financial terms were not disclosed.
" This transaction is critical to better serving our feed and
grain customers in the region, " said Eric Perry, vice president
and general manager of Scoular's Feed Division. " This investment
expands our network, product portfolio and transportation
presence in the region, demonstrating our commitment
to providing high-quality ingredients and services to our
customers. We are excited to leverage our operational expertise
and experience in blending ingredients into this new and
expanding business. "
The facilities, located in northern Florida, will provide upright
storage space of close to 600,000 bushels and flat storage
of over 10,000 tons, which will be used primarily to handle
corn, bulk ingredients and micro ingredients. The facilities are
capable of loading and unloading trucks, as well as railcars,
with the Lake City site able to handle 135 railcars.
The facilities will enable Scoular to provide just-in-time
delivery and strengthen its existing grain and ingredient businesses
in the Southeast. The purchase, which also will enable
Scoular to add micro-ingredient blending to its services in the
region, will include Columbia's transportation fleet and team.
Rabobank: New price levels for all major crops in 10-year outlook
CHESTERFIELD, MISSOURI, US - High prices for US
corn, soybeans and wheat are not expected to be a short-term
shock, according to a new RaboResearch report, " The Grain
Drain After Ukraine. "
Corn and wheat prices have risen to their highest in a decade
with the sudden shutdown of trade in the Black Sea region.
The 10-year outlook for all major crops has shifted up to
a new price level due to transformative geo-political changes,
continued increases in demand and limited acreage availability,
according to the report.
Trade routes shipping agricultural products from the Black
Sea region to other parts of the world have effectively shut
down because of the war in Ukraine. The continuing conflict
will cut supplies of corn and wheat available to the global
market, Rabobank said.
The United States is expected to increase its exports to help fill
the gap. Additional demand for US products should also increase
the prices paid to farmers for these crops. A 200-million-bushel
increase in exports for each commodity would increase the 202223
average on-farm price for corn by 13% and wheat by 50%.
Koch Foods opens new poultry feed mill
ATTALLA, ALABAMA, US - Koch Foods has opened its
new $60 million poultry feed mill, grain storage and distribution
center in Attalla, Alabama, US, the company said.
The Attalla facility, served by rail and designed with technologically
advanced features for maximum efficiency, will
support the company's expanded processing plant in nearby
Gadsden, according to the Alabama Department of Commerce.
Koch Foods said the facility will service 100 railcars every
two weeks and produce up to 12,500 tons of finished poultry
feed a week. It will employ 32 workers and support poultry
farmers in northeast Alabama and the surrounding region. The
130-acre facility can hold more than 1 million bushels of corn.
Announced in 2019, the project continued through the pandemic,
said Mark Kaminsky, chief operating officer of Koch,
12
who commended the company's employees, project contractors
and state, city and local agencies for their efforts during
the March 18 opening ceremony.
April 2022 / World Grain / www.World-Grain.com
" We projected US farm prices to be strong this coming
year, " said lead report author, Andrick Payen, grain and oilseed
analyst with Rabo AgriFinance. " But the Ukrainian conflict
is likely to push wheat prices to reach record highs. "
For the 2022-23 crop marketing year, RaboResearch estimates
the average on-farm price, which takes local basis into
account, to be $5.77 for corn and $10.50 for wheat when their
export sales increase by 200 million bushels.
This year's report is also the first annual outlook to incorporate
the expected expansion of US soybean crush capacity into
the 10-year acre and price estimates.
With growing demand for soybean oil in the production
of renewable diesel, the crush capacity expansion is driving
long-term commodity prices to a higher level, according to
the report.
Higher prices, however, do not spell bigger profits. Costs for
farm inputs such as seed, fertilizer and land also will likely rise,
squeezing farmers' margins over the next decade. Grain companies
will have to navigate great volatility in their trading activities.
Livestock producers likely will face higher feed prices.
http://www.World-Grain.com
World Grain - April 2022

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