Thursday April 26 Ag News

Green Plains Reports First Quarter 2012 Financial Results

Omaha-based Green Plains Renewable Energy, Inc. announced today its financial results for the first quarter ended March 31, 2012. Net loss attributable to Green Plains for the quarter was ($12.7) million, or ($0.39) per diluted share, compared to net income of $7.7 million, or $0.20 per diluted share, for the same period in 2011. The first quarter of 2012 included a one-time charge of $2.4 million, after tax, or $0.08 per share, as a result of a legal settlement.

Revenues were $775.4 million for the first quarter of 2012 compared to $812.3 million for the same period in 2011.

"During the last three years of profitable growth, we have continually positioned the company to manage through periods of compressed margins, such as we experienced in the first quarter," stated Todd Becker, President and Chief Executive Officer. "Following a period of peak margins in the fourth quarter of last year, margins compressed significantly and remained at those levels throughout the quarter. We responded by seeking to optimize our assets in every way, including reducing our ethanol production rates, holding higher ethanol inventories in order to earn a return on our storage capacity and profitably re-deploying a portion of our railcar fleet for other uses."

Green Plains' ethanol production segment produced 176 million gallons and sold 170 million gallons of ethanol during the first quarter of 2012. The Company's production capacity per quarter is approximately 185 million gallons. Non-ethanol operating income, from the corn oil production, agribusiness, and marketing and distribution segments, was $9.0 million in the first quarter of 2012 compared to $5.7 million for the same period in 2011.

"Our strong balance sheet and liquidity position provide us greater flexibility to manage through the current environment and our non-ethanol operating income helped offset weak ethanol margins. We still expect to generate approximately $50 million of non-ethanol operating income in 2012," added Becker. "While small for the first quarter, we are excited about the earnings potential of our railcar initiative to transport other products for the remainder of 2012. We believe this action will allow us to realize additional income in our marketing and distribution segment without materially affecting our ethanol operations."

"We have experienced some improvement in ethanol margins over the last 30 days, but margins are still low compared to prior year levels. We believe the second quarter will show solid improvement over the results achieved in the first quarter of the year due to better ethanol margins and a strong performance by our marketing and distribution segment," said Becker. "The forward curve for our ethanol platform shows a much better environment in late 2012 and we continue to lock margins for these periods as well."

First quarter 2012 EBITDA, which is defined as earnings before interest, income taxes, noncontrolling interests, depreciation and amortization, was $1.5 million compared to $32.0 million for the same period of 2011. Green Plains had $159.8 million total cash and equivalents and $152.4 million available under committed loan agreements at subsidiaries (subject to satisfaction of specified lending conditions and covenants) at March 31, 2012. For reconciliations of EBITDA to net income attributable to Green Plains, see "EBITDA" below.

First Quarter 2012 Business Highlights
-    On March 9, 2012, Green Plains repurchased 3.7 million shares of its common stock from an affiliate of NTR plc for $37.2 million. The Company issued a one-year promissory note for $27.2 million and paid cash for the balance of the repurchase.
-    In April 2012, the Company entered into a legal settlement of a complaint previously filed by Aventine Renewable Energy, Inc. in U.S. Bankruptcy Court in connection with Aventine's Chapter 11 bankruptcy. The settlement, which involves a cash payment and an agreement to purchase certain quantities of ethanol from Aventine over a four-month period beginning in May 2012, resolves all of Aventine's claims against the Company. An after-tax charge of $2.4 million for the settlement was reflected in operations for the ethanol production segment for the quarter ended March 31, 2012.



Iowa Soybean Association, Cargill-Iowa Region sponsor significant soy-based food packaging event at state FFA leadership conference

More than 1,200 Iowa FFA members joined Iowa Ag Secretary Bill Northey to package nearly 228,000 Meals from the Heartland (MftH) during the state FFA leadership conference April 22-23 in Ames.  The event, sponsored by the Iowa Soybean Association (ISA) with the support of Cargill – Iowa Region, was among the largest, one-time food packaging efforts ever organized by Iowa-based MftH.  The soy-based meals, packaged in less than eight hours, are being delivered to Haiti via the Convoy of Hope as part of “Special Delivery. Homes. Help. Hope. For Haiti.” 

The campaign, co-chaired by Lt. Gov. Kim Reynolds and Sec. Northey, was launched last December by the Iowa Food & Family Project with the support of the ISA and Laurens-based Global Compassion Network (GCN).

In addition to the soy-based food packets, the initiative seeks to raise donations to the GCN by June 1 for the purchase of 48 SafeTHomes manufactured by Sukup Manufacturing Co. of Sheffield. To date, the GCN has received contributions totaling 34 homes. An additional 15 dwellings have been pledged.

“With leadership comes responsibility and Cargill is proud to partner with Iowa’s soybean growers in providing high-quality soy protein to assist people in need,” says Jim Reiff, general manger for Cargill, Inc. “We commend the leadership, dedication and volunteer spirit of the FFA members who stood shoulder to shoulder to make a difference for so many.”



Comprehensive National Beef Quality Audit Nears Completion

A comprehensive study that evaluates the nation’s efforts to enhance beef quality is nearing completion, and results will be distributed at the cattle industry’s summer conference in July.

The 2011 National Beef Quality Audit (NBQA), conducted every five years since 1991, assesses progress the industry makes on a variety of production issues that ultimately affect consumer demand for beef. It is funded through the Beef Checkoff Program.

“The data from this multi-faceted study is extensive, and covers every segment of the beef production chain that takes our product to the consumer,” said John Paterson, executive director of producer education at the National Cattlemen’s Beef Association, a beef checkoff contractor. “We believe the results of this research will help drive change in our industry and allow our producers to take necessary steps to build on our core strengths, as well as identify areas in which we can improve.”

The research began in 2011 and includes three stages: Phase I included more than 200 face-to-face interviews with individuals from every segment of the beef production and marketing chain; Phase II included an in-plant survey involving eight harvest facilities and about 18,000 cattle observations across the United States; and Phase III was a benchmark survey of seedstock, cow/calf, stocker and feedyard segments of the industry. A three-day strategy session involving representatives of every segment of the U.S. beef chain helped provide additional analysis of, and industry direction for, collected data.

Among the issues covered in the research were beef tenderness and taste, food safety, beef quality, production practices, purchasing considerations, animal welfare, and channel communications and transparency. Those assisting in the research included Texas A&M University, Colorado State University, Oklahoma State University, Texas Tech University, Pennsylvania State University, West Texas A&M University, Cal Poly State University, USDA-Agricultural Marketing Service and USDA-Meat Animal Research Center.

For 20 years, the NBQA has supplied information to help the industry make improvements in production and marketing that aim to improve the quality of beef for consumers. For instance, injection-site lesions were identified by purveyors, restaurateurs and retailers as their second highest concern in 1991. Thanks, at least in part, to the checkoff’s beef quality efforts, it is no longer a major issue. Paterson says NBQA managers hope similar progress can be accomplished through the 2011 research.

“We have a wealth of information that will be helpful to beef producers as they determine key quality factors to focus on in their own operations,” he said. “At the same time, this information is important to our industry as we assess our progress and determine gaps in knowledge, communications and performance that keep us from being as effective and efficient as we can be.”



USDA Seeking BSE-Infected Cow's Calves

The U.S. Agriculture Department is searching for the offspring of a California dairy cow that contracted bovine spongiform encephalopathy (BSE), because those calves may also be infected with the brain-wasting disease that can be spread to humans through contaminated meat, an Agriculture Department official said Wednesday.  Department Chief Veterinarian John Clifford, in an audio recording posted on its website, said there is evidence that BSE can be passed from mother to calf.  Clifford said the agency is also searching for and looking to remove from the market any cows that were herd mates to the infected cow when it was very young.

Until now, Clifford and other officials have said the cow had an "atypical" strain of the disease and didn't contract it through contaminated feed.  Crucial to the investigation, he said, is where the cow was born. OIE protocol requires investigators to look at the feed the animal consumed.

"That's important because if that animal was affected (hypothetically) by feed it would be at the time when the animal was very, very young -- less than a year old," Clifford said.  After finding where the cow was born, he said, the U.S. will try to "remove animals" that may have consumed the same feed.

The primary way cattle around the world contract BSE is by eating contaminated, leftover bovine material that's been added to feed to increase protein levels, but in rarer instances the disease is simply "sporadic," according to the Centers for Disease Control and Prevention.  The practice of feeding bovine material to cattle is prohibited in the U.S.

The USDA destroyed 450 calves that were either the progeny or herd mates of the first BSE discovered in the U.S. in December 2003. That cow turned out to have been a dairy cow that had been imported from Canada, but USDA officials say they still don't know the origin of the latest BSE case found in California.



USDA:  Meat Animals Production, Disposition, and Income 2011 Summary

Total 2011 production of cattle and calves and hogs and pigs for the United States totaled 72.6 billion pounds, up 1 percent from 2010. Production increased 2 percent for hogs and pigs and increased slightly for cattle and calves.

Total 2011 cash receipts from marketings of meat animals increased 22 percent to $84.6 billion. Cattle and calves accounted for over 74 percent of this total and hogs and pigs accounted for nearly 26 percent.

The 2011 gross income from cattle and calves and hogs and pigs for the United States totaled $85.2 billion, up 22 percent from 2010. Gross income for cattle and calves increased 22 percent and hogs and pigs increased 21 percent over previous year's gross income.

Cattle and Calves: Cash receipts from marketings of cattle and calves increased 22 percent from $51.5 billion in 2010 to $62.9 billion in 2011. All cattle and calf marketings totaled 56.1 billion pounds in 2011, up 1 percent from 2010.

Hogs and Pigs: Cash receipts from hogs and pigs totaled $21.7 billion during 2011, up 21 percent from 2010. Marketings totaled 31.8 billion pounds in 2011, up 1 percent from 2010.

Cattle MarketingsState     -     Inv. 1/1/2011  -   Calf Crop   -  In shipments  - Cattle Mkting -  Calf Mkting - Inv. 1/1/2012  -  Gross Income $
Iowa .......:    3,900,000       -   1,050,000    -   1,512,000        -   2,283,000        -   102,000        -  3,900,000       -   2,924,736,000
Nebraska.:    6,200,000      -   1,690,000     -   4,505,000       -    5,646,000       -    86,000         -   6,450,000      -    7,206,539,000

Hog MarketingsState        -   Inv. 12-1-2010  -    Pig Crop    -  In shipments  -  Marketings  -  Inv. 12-1-2011  -  Gross Income $ 
Iowa ........:     19,100.0          -   19,739,000   -    22,500,000     -  38,719,000    -    20,000,000      -  5,372,286,000
Nebraska .:      3,150.0          -     7,436,000   -      340,00          -   7,480,000     -     3,150,000       -   825,003,000



United States and Canadian Hog Inventory Up 2 Percent

United States and Canadian inventory of all hogs and pigs for March 2012 was 76.9 million head. This was up 2 percent from March 2011, and up 2 percent from March 2010. The breeding inventory, at 7.13 million head, was up slightly from last year and up slightly from last quarter. Market hog inventory, at 69.8 million head, was up 2 percent from last year but down 2 percent from last quarter. The pig crop, at 35.9 million head, was up 3 percent from 2011 and up 3 percent from 2010. Sows farrowed during this period totaled 3.59 million head, up 1 percent from last year but down slightly from 2010.

United States inventory of all hogs and pigs on March 1, 2012 was 64.9 million head. This was up 2 percent from March 1, 2011, but down 2 percent from December 1, 2011. The breeding inventory, at 5.82 million head, was up 1 percent from last year and up slightly from last quarter. Market hog inventory, at 59.1 million head, was up 2 percent from last year, but down 2 percent from last quarter. The pig crop, at 28.7 million head, was up 3 percent from 2011 and up 4 percent from 2010. Sows farrowed during this period totaled 2.88 million head, up 1 percent from 2011 and up slightly from 2010.

Canadian inventory of all hogs and pigs on April 1, 2012 was 12.0 million head. This was up 2 percent from  April 1, 2011 and up 3 percent from April 1, 2010. The breeding inventory, at 1.31 million head, was unchanged from last year but down slightly from last quarter. Market hog inventory, at 10.7 million head, was up 2 percent from last year and up slightly from last quarter. The pig crop, at 7.3 million head, was up 1 percent from 2011 and up slightly from 2010. Sows farrowed during this period totaled 709,000 head, up slightly from 2011 but down 2 percent from 2010.

This publication is a result of a joint effort by Statistics Canada and NASS to release the total hogs, breeding, market hogs, sows farrowed, and pig crop for both countries within one publication. This information was requested by the United States hog industry to provide producers additional information about potential hog supplies. United States inventory numbers were previously released on March 30, 2012.



USDA:  Value of Poultry Production and Sales Up 3 Percent

The combined value of production from broilers, eggs, turkeys, and the value of sales from chickens in 2011 was $35.6 billion, up 3 percent from $34.7 billion in 2010. Of the combined total, 65 percent was from broilers, 21 percent from eggs, 14 percent from turkeys, and less than 1 percent from chickens.

The value of broilers produced during 2011 was $23.2 billion, down 2 percent from 2010. The total number of broilers produced in 2011 was 8.61 billion, down slightly from 2010. The total amount of live weight broilers produced in 2011 was 49.7 billion pounds, up 1 percent from 2010.

The value of turkeys produced during 2011 was $4.99 billion, up 14 percent from the $4.37 billion the previous year. Turkey production in 2011 totaled 7.32 billion pounds, up 3 percent from the 7.11 billion pounds produced in 2010.

The value of sales from chickens (excluding broilers) in 2011 was $81.3 million, up 11 percent from $73.1 million a year ago. The number of chickens sold in 2011 totaled 181 million, up 4 percent from the total sold during the previous year.

Value of all egg production in 2011 was $7.37 billion, up 13 percent from $6.53 billion in 2010. Egg production totaled 91.9 billion eggs, up slightly percent from 91.5 billion eggs produced in 2010.



Argentina Trims Soy Output Forecast

With Argentina's soybean harvest over half done, final yields are coming in lower than initially expected and production prospects have dimmed somewhat, the Buenos Aires Cereals Exchange said in its weekly crop report Thursday.

The exchange trimmed its forecast to 43 million metric tons, down from 44 million tons last week. Drought earlier in the season damaged many fields, reducing potential yields, the exchange said.

The fields have also been hit by a series of frosts over the past week, but the affected crops "don't represent a relevant amount of the area" planted with soy, the exchange said.

Yields from Argentina's soybean crop are disappointing in many areas due to drought in December and January that affected early fields and led many farmers to put off soybean planting until late January. As a result, the short growing season for much of the crop trimmed potential output.

Early in the season, many analysts predicted 2011-12 soybean output would top the 49 million metric tons grown last season.

So far, 41.3% of the corn crop has been harvested, according to the exchange.



NBB Urges Congress to Reinstate Tax Incentive
The National Biodiesel Board (NBB) on Thursday called on Congress to reinstate the biodiesel tax incentive to avoid further disruption to an emerging American industry that is creating jobs across the country while diversifying U.S. energy supplies.

In written testimony submitted to the House Ways and Means Committee's Subcommittee on Select Revenue Measures for a hearing on expiring tax provisions, NBB Vice President Anne Steckel emphasized that the biodiesel industry achieved record production of nearly 1.1 billion gallons last year before the $1-per-gallon tax incentive expired on Dec. 31. She urged lawmakers to pass an extension as quickly as possible to prevent a drop in production and potential layoffs.

"This is a bipartisan tax provision that is a proven job-creator and has strong support in Congress," Steckel said. "With petroleum prices where they are now, we shouldn't need any reminders about how important it is to continue developing new American energy sources."

"We hear a lot in Washington about all-of-the-above energy policies, but the reality is that new energy industries need support in the early stages," Steckel added. "Every energy sector up to now has had that support and we have to continue those investments if we want to diversify our energy supplies and gain all of the resulting benefits in terms of jobs, energy security and the environment."



Bioheat® brings new energy to annual energy event

One of the largest energy events in the Northeast has a fresh face this year, thanks to Bioheat®. The Atlantic Region Energy Expo has added Bioheat to its name in 2012, reflecting a unique partnership with the National Biodiesel Board.

“The Atlantic Region Energy Expo and Bioheat” will host the AREE 2012 event in Atlantic City, New Jersey, May 1 – 3.  The conference, billed as the best energy, petroleum and HVAC (heating, ventilation, and air conditioning) industry tradeshow in the Northeast, will explore the evolving world of home and building comfort, efficiency and environmental responsibility.

“We’re proud that AREE is the first industry trade show and convention officially combining traditional fuels with the renewable biodiesel found in Bioheat,” said Eric DeGesero, executive vice president, Fuel Merchants Association of New Jersey.  The association was the catalyst for the founding of AREE 19 years ago.  “But this represents more than a conference name change.  It’s a sign of changing times for oilheat dealers, who recognize that Bioheat is their best option to adapt their businesses in the 21st century.”

The need for change is a powerful theme at this year’s conference as the oilheat industry works to remain competitive.  That’s why the Bioheat team, led by Paul Nazzaro, the National Biodiesel Board’s liaison to the petroleum industry, is bringing in a keynote speaker to talk about change at the event.  Michael Rogers, a renowned technology author and futurist, most recently served as futurist-in-residence for The New York Times. He focuses on how companies can think about the future in useful ways.

“As their market share contracts, doing nothing is not an option for oilheat dealers,” Nazzaro said.  “Bioheat is the first real opportunity for them to make a progressive shift in decades.  Bioheat is a more desirable product to their customers, offering enhanced energy security, benefits to health and the environment, and American jobs.”

The event will include an educational track of five Bioheat sessions, which do not require a registration fee, thanks to funding from the South Dakota Soybean Research and Promotion Council.

Bioheat is a combination of oilheat with biodiesel, an advanced biofuel made from sustainable resources such as soybean oil and other oils and fats.  To be called Bioheat, the fuel must contain at least 2 percent biodiesel.  Bioheat is cost-competitive with oilheat, and does not require modifications to the oilheat system.



25x'25 Steering Committee Member Meets with Obama

Mike Bowman, a member of the National 25x'25 Alliance's Steering Committee, met with President Obama today and outlined the Alliance’s recommendations and priorities to affirm the role of bioenergy in the nation's renewable energy future. Bowman joined 11 other White House "Champions of Change" alumni who met with the president to discuss renewable energy development and policy and celebrate the program’s one-year anniversary.

The Champions of Change program was created as a part of the president's "Winning the Future" initiative. Each week, a different sector is highlighted and groups of "champions," ranging from educators to entrepreneurs to community leaders, have been recognized for the work they are doing to serve and strengthen their communities.

Bowman is a Wray, CO, wheat, corn and alfalfa producer and a member of a fifth-generation Colorado farm family. He is a founding member of the 25x'25 Alliance since 2004, and is also a member of the Colorado Renewable Energy Forum, and Rural Chair of the Colorado Ag Energy Task Force.

In a letter presented to the president on behalf of 25x'25, Bowman commends Obama for his "leadership in encouraging bipartisan support for an 'all of the above' energy policy platform that includes accelerating the development and deployment of clean energy solutions from our nation’s farms, ranches and forests."

Bowman also points out that as a senator from Illinois, Obama was one of first endorsers of the 25x'25 renewable energy goal. And while great progress has been made towards the goal, "pushback from our opponents is intensifying as Congress moves to cut spending and reduce the national deficit. Now, more than ever, we need you to continue to affirm the economic, environmental and national security benefits of renewable energy – especially bioenergy."

The letter urges the president to continue to oppose any effort to reopen and modify the federal Renewable Fuel Standard, a critical driver of biofuel markets.

Bowman also asks the president to allow U.S. agriculture to help the auto industry meet new Corporate Average Fuel Economy (CAFE) standards through the use of cleaner, higher octane biofuels, including E30, rather than high-octane aromatics, which contain include highly carcinogenic petroleum-based compounds such as benzene, toluene and xylene. By approving the use of intermediate level ethanol blends, such as E30, to meet the automakers' need for clean, higher octane fuel in the pending CAFE rulemaking, "thousands of lives and billions of dollars in public health expenditures" would result annually through reductions in fine particle air pollution, Bowman's letter says.

The letter also asks the president to not only support direct federal outlays to incentivize the establishment of energy crops or the construction of biorefineries, but to also try new approaches, such as providing accelerated depreciation to biorefiners who help farmers and foresters produce bioenergy feedstocks, like perennial grasses, crop and forest residues, or short rotation woody biomass crops.

Another suggested course recommended to the president is to modernize the Securities and Exchange Commission's hydrocarbon reserves disclosure system to include a “renewable reserves” category so those involved in the production of fuel can be valued on the basis of both their "brown" and "green" barrel equivalent reserves. Further, the White House is urged to appoint "a task force to surface and evaluate fresh ideas such as these for producing bioenergy feedstocks and constructing commercial scale biorefineries."

Finally, because biofuels and biomass energy systems enjoy distinct benefits over fossil energy, including low, and in some cases, no carbon emissions, Bowman and the 25x'25 Alliance urge the president to ensure that EPA’s policies, such as the Greenhouse Gas Tailoring Rule, promote rather than discourage biomass as a carbon beneficial energy solution and thereby remove uncertainty in the marketplace.

"We created the Champions of Change program to honor ordinary Americans who are doing extraordinary things," President Obama said. "By making their communities better places to live, our champions are helping to ensure that our country’s best days lie ahead."

In addition to his work with 25x'25, Bowman is also a founding board member of the Sustainable Biodiesel Alliance and Shadowcliff, a Colorado-based environmental non-profit education facility in Grand County, CO. Over the past seven years, he has spoken nationally and internationally on issues related to rural development, sustainability and energy.



Global Biofuel Production Needs to Double: IEA

According to the Global Renewable Fuels Alliance, today’s release in London of the International Energy Agency’s Tracking Clean Energy Progress report has confirmed that government institutions are not doing enough to further the development of clean energy alternatives.

According to the IEA, biofuels for transport are not on track to meet their share of CO2 reduction that is needed to achieve the IEA’s goal of an average 2 degree Celsius rise in global temperature by 2020. To do so the IEA has stated that total biofuel production needs to double, with advanced biofuel production to expand four-fold over currently announced capacity.

“The GRFA applauds the IEA for putting the world on notice that it is falling behind with biofuels production,” said Bliss Baker, spokesperson for the Global Renewable Fuels Alliance. “With the threat of climate change growing, it is imperative that we reduce our CO2 emissions with alternatives to crude oil such as biofuels,” added Baker.

Along with today’s warning about the need for more biofuels production, the IEA also cited a key policy priority that will achieve their 2 degree Celsius rise scenario objective. The IEA has recommended that governments develop policies to support the development of the advanced biofuels industry.

According to the IEA’s 2 degree Celsius rise scenario, biofuel use will increase to approximately 240 billion litres in 2020, which, when produced sustainably, will lead to a reduction of approximately 0.1 Gt of CO2 emissions in the transport sector.

“Today’s report reaffirmed the GRFA's longstanding push to develop biofuels policies that can reduce our reliance on crude oil,” said GRFA spokesperson, Bliss Baker. “The IEA confirmed once again today that biofuels must be part of our clean energy future,” added Baker.



Bunge 1Q Profit Drops 60% On Fertilizer, Ethanol Weakness

Bunge Ltd.'s first-quarter earnings fell by a greater-than-expected 60% as weaker fertilizer prices and unfavorable ethanol margins cut into the agribusiness giant's bottom line.

The latest results come after Bunge outperformed peers among the big global grain traders in previous quarters, buoyed by an expanding sugar business and the contribution of a recently acquired shipping facility in Ukraine.

Chairman and Chief Executive Alberto Weisser said lower margins for ethanol depressed results in the company's sugar and bioenergy business in the latest quarter. Bunge has been investing more in the bioenergy business, stepping up efforts to plant more sugarcane to feed two new mills in Brazil.

Falling international fertilizer prices also weighed on margins, though Bunge's agribusiness and food and ingredients units performed better.

Bunge reported a profit of $92 million, or 57 cents a share, down from $232 million or $1.49 a share, a year earlier. Excluding provisions for a legacy environmental claim and other adjustments, per-share earnings reached 69 cents in the latest quarter as revenue grew 10% to $13.45 billion.



Japanese Milling Executives to Tour U.S. Wheat Industry

Japan was one of the first overseas markets cultivated by U.S. wheat growers and over the years has remained a top customer. While Japan still imports a majority of its wheat from the United States, Canadian and Australian competition remains strong. That is why U.S. Wheat Associates (USW) is bringing five Japanese milling executives to the United States April 29 to May 5, 2012, as part of an annual educational tour. In visits to Washington, DC, California and Oregon, these executives will learn how the U.S. wheat production, milling and baking industries are managing risk and finding innovation in a challenging economic environment. They will also gain first-hand knowledge of new crop wheat conditions and discuss issues affecting overall wheat supply and demand.

“Team visits like this give these executives more access to key contacts and a better understanding of what is happening in the U.S. industry,” said USW Japan Country Director Wataru “Charlie” Utsunomiya who will lead the team. “Seeing how wheat quality is controlled from the field to storage to market is very helpful when their managers bring up issues about our wheat.”

Building relationships and awareness will be even more important in the future, Utsunomiya said, because Japan is moving steadily toward a wheat importing system that will facilitate direct purchases between the Japanese grain trade and flour millers with less involvement by the government’s Ministry of Agriculture, Forestry and Fisheries.

USW organized this year’s trip in collaboration with the California Wheat Commission, Oregon Wheat Commission, North American Millers’ Association, the North American Export Grain Association and other industry organizations.

U.S. wheat farmers have maintained a close connection with Japan since 1949, when the Oregon Wheat Growers League (OWGL) organized a trade delegation to Japan. Following that trip, a variety of marketing and educational activities were started in Japan to promote U.S. wheat, including a school lunch program and a “Kitchen on Wheels” that travelled through rural Japan from 1956 to 1960.

Since that time, Japan has purchased significantly more U.S. wheat than any other country, importing more than 133 million bushels per year on average for the last five years. Total U.S. wheat purchases now conservatively reach $700 million per year, more than 10 percent of total U.S. wheat exports. Japan imports significant amounts of hard red spring, hard red winter, soft white and Western White wheat to produce bread, noodles, confectionery items and other commercial products.

USW is the industry’s market development organization working in more than 100 countries. USW activities are made possible through producer checkoff dollars managed by 19 state wheat commissions and cost-share funding provided by USDA’s Foreign Agricultural Service.



FFA Develops Online TV Channel

Following the successful live broadcast of its 2011 National FFA Convention, the National FFA Organization has decided to take up permanent residence on the iHigh.com platform with its own channel.

The FFA Channel, which will be powered by Alltech and iHigh, will capitalize on the latest in Web technology to bring greater unity to their membership base, which is more than a half-million students strong throughout the U.S., Puerto Rico and the Virgin Islands. The ability of a Web channel to provide such a platform was exemplified in the October live broadcast of 2011 National FFA Convention, which was attended by more than 53,000 attendees and joined live on the Internet by an additional 550,000 viewers who would have otherwise missed the experience.

“We are very excited about the opportunity that this channel will afford our members,” said Dwight Armstrong, chief executive officer of the National FFA Organization. “Having an FFA iHigh channel will create another vehicle for us to share the FFA message of premier leadership, personal growth and career success.”

In a nod to social Web trends, FFA has entered into a licensing agreement with Alltech, which will allow an element of personalization for state and local chapters. Each state chapter will have their own site, which may be used to highlight awards banquets and other special events. Likewise, each local chapter will be integrated into their high school’s site, creating a platform for the promotion of agriculture with a distinct community-focused tone.  Because of the unique business model, all sites have the ability to generate revenue for their organization.

“Once again FFA has taken a leadership position in the field of agriculture,” said Billy Frey, Senior Vice President of the Alltech/iHigh Joint Venture. “FFA chapters around the country can bridge the urban - rural divide by giving anyone with a computer an inside view to the world of agriculture.  Many states such as New Hampshire and Minnesota already are spreading FFA’s message by broadcasting their state conventions live and on-demand.”

Considered the Global Youth Network, iHigh.com is designed to provide free feature-rich Web services to schools, students and youth organizations, and enables live broadcast of events, mobile broadcasting, unlimited photo uploads and more. Using iHigh.com’s unique feature-rich Web and broadcast platform, high schools and organizations such as the FFA, the National High School Rodeo Association, USA Swimming, iHoops and many others are able to share their events in real time with a global audience that can access the streaming video on any computer or mobile device. Currently, iHigh receives 1.6 million unique visitors per month with a year over year growth of 200 percent.