Wednesday May 3 Ag News

Biotech's Evolva Selects Cargill Campus in Blair

The State of Nebraska and the Greater Omaha Chamber Economic Development Partnership are cheering another successful attraction effort, a multi-million-dollar endorsement of the region's economic amenities. International biotech company Evolva has announced plans to grow its global operation in collaboration with Cargill's campus in Blair.

The Switzerland-based company develops high-value specialty ingredients, including stevia, nootkatone and resveratrol. It is the latest to join a cluster of major producers, including Novozymes, Evonik, Corbion and NatureWorks, with a presence on the Cargill campus.

"Once again, collaboration was the key -- Gateway Development Corporation working closely with our economic development partners and the Nebraska Department of Economic Development, Cargill and the City of Blair to promote the benefits of our region and the Cargill campus. We're thrilled to welcome Evolva and look forward to seeing the company thrive in our community," said Lisa Scheve, executive director, Gateway Development Corp., a member of the Greater Omaha Chamber Economic Development Partnership.

"We are excited that Evolva has selected Nebraska to build their global production hub to manufacture their products," said Courtney Dentlinger, Director of Nebraska Department of Economic Development. "This is an outstanding example of innovative companies like Cargill and Evolva working together to create cutting edge products and high skill jobs in Nebraska."

Evolva and Cargill are developing the next-generation stevia sweetener EverSweet, which will be produced at the Cargill-operated Blair fermentation facility and launched next year. At the same time, Evolva will commence building a state-of-the-art bioprocessing facility on adjacent land leased from Cargill. This facility, operated by Evolva, will manufacture Evolva products, such as nootkatone and resveratrol, starting as early as 2019.

"Nebraska is well suited to helping us build global production for our products, not least because of the state's green energy and renewable feedstock, well-known fermentation talent, and ample room to expand," said Neil Goldsmith, president of Evolva. "We hope to bring value to the regional bio-based innovation and development network, building infrastructure that will ultimately form a fully integrated commercial-scale bioprocessing hub for the production of sustainable, high-value, next-generation specialty and functional ingredients."

"We're excited about the addition of the new fermentation capabilities at our Cargill Blair facility that will allow us to manufacture the game-changing sweetener, EverSweet," said Christy Venne, Cargill Blair facility manager. "Our Cargill Blair campus is truly a biotechnology oasis that attracts companies, like Evolva, who want to join other leading edge companies looking for a skilled workforce and other resources to grow their businesses quickly, safely and effectively.

Over the next three years, principally in 2018 and 2019, Evolva said it expects to invest an estimated $60 million in Blair.



Nebraska Farm Bureau President Believes Legislature Can Still Address Property Taxes

As the Nebraska Legislature heads toward the final days of the 2017 Legislative session, there’s still time for senators to take meaningful action to address property taxes, said Nebraska Farm Bureau President Steve Nelson, May 3.

“While time is running short, we’re still optimistic our elected leaders can rally together and address property taxes this session. We supported several bills that could serve as the vehicles for delivering meaningful property tax reform and relief. We’ll continue to work with the Legislature to get something done on property taxes this session until the final curtain drops,” said Nelson.

Nelson’s remarks come on the heels of the Legislature failing to advance a tax reform bill weighted heavily towards income tax reductions in comparison to property taxes. LB 461 would have given only one dollar in property tax cuts for every $10 in income tax reductions.

“We didn’t support the version of LB 461 advanced by the Revenue Committee for many reasons. A driving factor being it offered very little in the way of property tax relief. However, we were optimistic the bill could be improved so property taxpayers would have received the lion’s share of the tax relief benefits. Unfortunately, a compromise never materialized as we had hoped,” said Nelson.

Despite recent events, Nelson believes the door is still wide open for the Legislature to act.

“There’s still a window of opportunity for the Legislature to refocus on fixing property taxes this session. There are good people in the Legislature who know their constituents want this issue addressed. We’re focused on working with members of the body to ensure a strong finish to the session that results in a win for all Nebraska property taxpayers,” said Nelson.



Research Seeks to Enhance Beef Value and Producer Return

The University of Nebraska-Lincoln under the direction of Dr. Chris Calkins and Dr. Felipe Ribeiro is conducting research to better understand the tenderness phenomenon and to evaluate the impact of dietary fat sources on beef color stability.

UNL research has shown that feeding distillers grains to cattle increases the concentrations of polyunsaturated fatty acids in meat. These types of fatty acids are readily oxidized. As a result, the oxidation of fats within the meat cause off-flavors and the development of metmyoglobin which gives meat a brown color and reduces beef shelf life. Despite these obstacles, when distillers grains are fed to cattle, there is often an improvement in overall beef tenderness.

“The ethanol industry appears to have matured in the removal of oils from distillers grains, reducing its energy content on a dry matter basis. There is an interest in adding the oil back to cattle diets when the economics support such a move. We need to know if adding corn oil is equivalent to feeding full-fat or de-oiled distillers grains,” said Calkins.

A deeper understanding of the effects of feeding distillers grains could help improve beef shelf-life and palatability, and ultimately change the way animals are fed.

“Our laboratory is focused on improving the value and quality of beef, which directly impacts what consumers will pay and how much producers earn,” said Dr. Calkins. “The ideal outcome of our work is a happy, satisfied consumer and a strong, robust economy for beef producers.”

This research is funded by the Nebraska Beef Council and the investments of beef producers through the beef checkoff.



Temple Grandin to Speak at Cattle Stewardship Conference in Spirit Lake

National cattle behavior specialist Temple Grandin will be the keynote speaker at the Cattle Stewardship Conference June 8 at the Dickinson County Fairgrounds, Spirit Lake. The conference also features beef cattle specialists from Iowa, Nebraska and South Dakota.

beef steer"Grandin provides a unique view of stewardship," said Beth Doran conference organizer and beef specialist with Iowa State University Extension and Outreach. "Conference presenters will share best management techniques to enhance animal health, comfort and sustainability of beef operations."

Cattle Stewardship begins at 10 a.m. with a cattle handling demonstration conducted by Dean Fish. Fish is one of the national cattle handling experts recognized by the National Cattlemen’s Beef Association. In the afternoon, Grandin will present a practical approach to improving animal welfare. She is the nation’s leading expert on cattle comfort and behavior, having designed facilities for both packing plants and livestock producers.

"Consumers are asking about how the beef they eat is produced, and beef packers have developed management protocols for the feedlots that supply their cattle," Doran said. "The goal of the conference is to help cow-calf and feedlot producers fine-tune the best management practices they currently use."

Following Grandin’s presentation, six breakout topics will be offered through four sessions: techniques in managing pain, designing facilities for cattle comfort, low-stress weaning, best methods in cattle processing, managing heat stress in cattle, and successfully completing feedlot assessments.

The conference is cooperatively organized by the Iowa Beef Center, ISU Extension and Outreach, Iowa Beef Industry Council, Iowa Lakes Community College and Iowa Cattlemen’s Association with local support. Participants of the day-long program will fulfill the requirements to become Beef Quality Assurance certified.

Registration, which includes the noon meal, is $30 per person and due May 31 to ISU Extension and Outreach Dickinson County Office, 1600 15th St., Spirit Lake, IA 51360. The program brochure has the entire schedule, sponsor list and registration form.... http://www.iowabeefcenter.org/events/CattleStewardship2017.pdf. 

For more information, contact Doran at 712-737-4230 or e-mail doranb@iastate.edu.



Youth Beef Team Trainings to be held at 2017 BeefMeets

BeefMeets is an opportunity for not only cattle producers to learn and interact, but also an event for Iowa’s youth in the cattle industry. Youth are invited and encouraged to attend BeefMeets this year to participate in the Youth Beef Team training that will occur at each regional meeting. Registration and training is free!

The Iowa Cattlemen’s Foundation Youth Beef Team is open to all youth, ages 12 to 18, who are interested in promoting the beef industry. Vital issues face the beef industry today. Every student encounters information in school and from the media on food safety, animal rights, the environment and nutrition. Our goal is to equip young cattlemen and women with information they need to speak out positively for the beef industry, pointing out the advantages beef offers to our health, our environment and our economy.

After attending a training session, Youth Beef Team Members are equipped to conduct beef promotional activities in their own and surrounding communities. Activities can be done on an individual or group basis. After completing a promotional activity, the member fills out an activity report form and submits it to the Iowa Cattlemen’s Foundation’s via email or by mail to the Iowa Cattle Industry Headquarters. Each activity submitted accumulates points for a yearly award presented at the awards breakfast held at the Iowa State Fair.

Beef Team members have many opportunities to attend educational events, such as the Beef Bash, the Carcass Challenge event, YBT tours at the Capitol and World Food Prize and the Beef Scholarship Extravaganza. In addition to yearly awards, Beef Team members who are seniors are eligible to compete for a $1,000 scholarship. Seniors submit an application, participate in a personal interview and give a presentation to beef industry professionals. Three scholarships will be awarded. The Iowa Cattlemen’s Foundation sponsors the Beef Team scholarships.

NEW this year for BeefMeets, Youth Beef Team leaders have the opportunity to get new information and resources that will enable them to train new youth members as they come along. At this leader training session, a training manual and resources that leaders can use to train new YBT members will be available. This session will also offer an opportunity for leaders to network with each other and discuss the various activities they offer their groups. Lastly, we will discuss any ideas or suggestions to help make the program more successful. 

This year’s BeefMeets will include educational sessions, a full tradeshow, district breakout sessions and opportunities for networking for all attendees.

BeefMeets will start on June 13 in Dubuque, June 15 in Ottumwa, June 20 in Creston and June 22 in Le Mars. Registration is $25 for Iowa Cattlemen’s Association members but FREE to students. The day-long event begins with registration at 8:30 a.m. and will end with a “beef social” at 4:00 p.m.

Visit www.iacattlemen.org or call 515-296-2266 for more information and registration options.



Pork’s Six-Year Growth Is the Fastest in Foodservice

Pork has been the fastest-growing protein in foodservice since 2011, according to Technomic, Inc.’s 2017 Volumetric Assessment of Pork in Foodservice. Over the past six years, pork use has grown on a pound basis by more than double chicken, which is the next fastest growing protein. Pork use increased by 1.145 billion pounds, while chicken use grew by 515 million pounds.

On a percentage basis, pork grew three times the rate of turkey, which is the next fastest growing protein, at 3.6 percent versus 1.2 percent. During this same time period, pork represents 61 percent of all protein growth in the foodservice industry (1.145 billion pounds of a total growth of 1.867 billion pounds).

The pork category continues to increase in foodservice, with a growth rate of 0.8 percent from 2015 to 2017. Totaling 5.9 billion pounds, the growth reflects a volume increase of 114 million pounds over the 2013 to 2015 period.

Processed pork continues to be a strong performer in foodservice, making up the majority of total volume. The five largest categories driving pork category growth are bacon, processed ham, breakfast sausage, ribs and pepperoni. Collectively, the categories represent 66 percent of the total volume. The love of bacon shows no signs of slowing and represents the largest share of volume, at 20 percent, or 1.2 billion pounds, growing 4 percent since 2015.

“We are pleased to see continued growth of pork use in foodservice,” said National Pork Board President Jan Archer, Goldsboro, North Carolina. “The volumetric study shows that pork continues to be a strong performer in the foodservice industry, underscoring pork’s popularity specifically in value-added pork products such as ham, bacon and sausage.”

As consumers demand more interesting flavor profiles and global cuisine, there has been an increase in authentic fresh pork applications. Since 2015, carnitas showed a compound annual growth rate of 5 percent and porchetta had a 15 percent increase. Notable growth in fresh pork also was seen in belly, chops and ground pork.

“Fresh pork presents a huge opportunity in foodservice by offering a range of cuts and applications to deliver a variety of authentic and innovative dishes. Also, fresh pork’s value has never been better,” Archer said. “Fresh pork allows the foodservice industry to deliver what consumers want while turning strong profits.

”Over the past two years, limited-service and full-service restaurants represented the largest user groups of pork in foodservice, accounting for 67 percent of all pork volume. The growth in limited-service restaurants has been mainly driven by the all-day breakfast additions by major chains.

In categories where both uncooked and pre-cooked forms exist, pre-cooked pork has grown at a faster rate over the past two years, respectively growing at 4.7 percent and 0.9 percent. This growth can be attributed to packer/processor innovation and an ability to deliver quality pre-cooked products that address the labor challenges many operators face.

On an overall basis, the usage of pork is evenly split among the three main dayparts, with snacking representing a small share of volume, which is consistent with the 2013 and 2015 Volumetric Study findings. However, lunch has taken one share point away from dinner overall since 2015. This can be attributed to the extension of breakfast menu items to other dayparts, with lunch being the key beneficiary of all-day breakfast. In addition, slowing traffic in the dinner daypart, especially among Full Service Restaurants, is a factor.

“Pork continues to deliver on key criteria for both foodservice and consumers,” Archer said. “And menuing pork presents a unique opportunity for the different foodservice segments to grow their businesses and be profitable.”For more information on the 2017 Volumetric Assessment of Pork in Foodservice, or to find out how pork delivers across the menu, please contact the National Pork Board at (800) 456-7675 or at foodservice@pork.org. Valuable information also can be found at porkfoodservice.org.



Fertilizer Prices Again Near Standstill

As in recent weeks, retail fertilizer prices continue to be very quiet with no significant movement in either direction, according to retailers tracked by DTN for the fourth week of April 2017.

Of the eight major fertilizers, four are slightly higher in price compared to a month earlier. Those four are MAP, potash, anhydrous and UAN32.

MAP had an average price of $466/ton, potash $338/ton, anhydrous $509/ton and UAN32 $280/ton.

The remaining four fertilizers are slightly lower in price from last month, but, again, none of them a considerable amount. DAP had an average price of $437/ton, urea $352/ton, 10-34-0 $437/ton and UAN28 $247/ton.

On a price per pound of nitrogen basis, the average urea price was at $0.38/lb.N, anhydrous $0.31/lb.N, UAN28 $0.44/lb.N and UAN32 $0.44/lb.N.

Retail fertilizers are lower compared to a year earlier. Half of the eight major fertilizers are still double-digits lower.

10-34-0 is 22% lower from a year ago, both anhydrous and UAN32 are 13% less expensive and UAN28 is 10% lower. Urea is 9% less expensive well both DAP and potash are both 8% lower and MAP is 7% less expensive compared to year earlier.



New AHCA Even Worse for Family Farmers and Rural Americans

As U.S. House of Representatives Speaker Paul Ryan attempts to secure votes in support of the American Health Care Act (AHCA), National Farmers Union (NFU) is reiterating its opposition to the bill. The legislation has worsened since being introduced in late March, now risking even less protection for family farmers and rural Americans, especially those with preexisting conditions.

“The most recent amendments to the AHCA only move the bill further away from NFU’s member-driven policy of affirming ‘the right of all Americans to have access to affordable, quality health care,’” said NFU President Roger Johnson. “We will judge any new bill on the basis of whether it is going to cover more people or fewer people. We don’t want to go backwards, and this legislation clearly moves us in the wrong direction.”

The modification to the bill is the MacArthur Amendment, which lessens protections for people with preexisting conditions. The amendment grants states the right to opt out of the law’s essential health benefits clause and to change the community rating provision, thus allowing insurers to charge higher premiums to those with preexisting conditions who let their coverage lapse.

“This would force a large number of farmers in many states into high-risk pools,” said Johnson. “Estimates show that the risk pools would be underfunded by as much as $200 billion. This would leave individuals with preexisting conditions to contend with increased premiums, higher deductibles and longer waiting periods for coverage.”

Johnson sent a letter to members of Congress today, highlighting this concern and reiterating NFU’s primary concerns with the original proposed legislation. In particular, NFU stands strongly against the bill’s inclusion of a cap on Medicaid, reforms to the healthcare marketplace, and the proposed system of basing premium subsidies on a person’s age, rather than their income.

“The expansion of Medicaid has proven beneficial to rural communities, where the rate of enrollment is higher than in urban America,” said Johnson. “The Health Insurance Marketplace under current law, while certainly in need of stabilizing measures, makes coverage more accessible for many farm families.”

Johnson pointed out that the correlation between a strong Medicaid program and the success of rural hospitals has become evident during the influx of rural hospital closures over the last six years.

“Seventy-eight rural hospitals have closed since 2010 with over 80% of those located in states that opted out of the Medicaid expansion,” noted Johnson. “With another 673 hospitals at risk of closure, the AHCA’s proposed Medicaid cap could have devastating consequences for rural communities.”

The AHCA’s proposed system of basing subsidies on age instead of income is particularly troublesome for small farms and younger farmers, noted Johnson.  In 2012, 75 percent of farms sold less than $50,000 in agricultural products and 57% had sales less than $10,000. “Young farm families that don’t receive additional income or health benefits from off-farm jobs would find it extremely difficult to purchase health insurance.”

“The proposed legislation would also hurt older farmers,” said Johnson. “Easing restrictions on what insurance companies can charge older customers will leave older farmers facing increased premiums of thousands of dollars.”

“While there is certainly room for improvement in current policy, the American Health Care Act will only hurt family farmers and rural communities across the country. NFU requests that you oppose the proposed legislation.”



ADM Reports First Quarter Earnings of $0.59 per Share, $0.60 per Share on an Adjusted Basis

Archer Daniels Midland Company (NYSE: ADM) today reported financial results for the quarter ended March 31, 2017.

“Our year-over-year results improved as a company and in all four of our business segments during the first quarter, and we continue to be on course for a stronger 2017,” said ADM Chairman and CEO Juan Luciano. “Ag Services was up for the quarter, with higher results in U.S. grain and transportation operations. The Corn business delivered a good quarter, with improved performances across their portfolio. Oilseeds earnings were up, including solid results in global softseeds and from our equity investment in Wilmar. WFSI results were higher, led by WILD Flavors.

“We are continuing to execute the long-term strategic plan that we launched in 2012, and we are seeing the results. We have strengthened our core, improving our cost positions and implementing measures to improve results where necessary. Our operational excellence initiatives have delivered significant savings and efficiencies. And we continue to grow strategically by expanding into new geographies and increasing our capabilities in food, beverage and feed. Those actions contributed to the improved results we saw in the first quarter despite muted margin environments in some businesses. The continued momentum in the execution of our plan gives us confidence that we will deliver sustainable value creation.”

Results of Operations
Ag Services delivered improved results over the year-ago quarter. In Merchandising and Handling, North America grain showed better results, with improving grain carries and good execution volumes amid strong global demand for U.S. commodities. International merchandising was down from the year-ago quarter due to lack of merchandising opportunities and some unfavorable mark-to-market effects.

Transportation had a significantly improved quarter, led by our North America barge and stevedoring operations, which capitalized on high volumes versus the prior-year quarter.

Milling and Other had a solid quarter, but with lower volumes and margins.

Corn Processing results were significantly better than the year-ago quarter. Sweeteners and starches delivered a strong performance on improved domestic demand and higher volumes and margins from the European business. Bioproducts was up over the previous year, with very strong exports and improved margins driving solid results in ethanol. Animal nutrition was up, with improved margins in lysine offset partially by overall lower sales volumes caused by a mild winter.

Oilseeds Processing results were up over the first quarter of 2016. Crushing and origination was comparable to the year-ago period: Softseeds results were significantly higher than the previous year, as we took advantage of our softseed processing footprint and flex capacity to capitalize on margin opportunities both in North America and Europe. A competitive global protein meal market continued to pressure soybean crush margins. South America crush and origination was down, as the pace of farmer selling has not kept pace with export demand.

Refining, packaging, biodiesel and other results declined. Solid EU food oils results were offset by timing effects; North American biodiesel volumes and margins were down, while South American packaged oils and biodiesel improved.



Perdue and Vaughn Announce Major EU Trade Breakthrough for U.S. Citrus Producers

U.S. Secretary of Agriculture Sonny Perdue and Acting U.S. Trade Representative Stephen Vaughn today announced that the European Union (EU) has amended its requirements for imports of U.S. citrus.  Specifically, the EU has dropped its requirement that U.S. groves be surveyed for citrus canker, which eases entry of U.S. citrus into the EU market and saves growers millions of dollars in production costs.

The U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) and the Office of the U.S. Trade Representative (USTR) have worked continuously with EU officials over the last 10 years to ensure that the EU’s plant health requirements for citrus are based on scientifically-established risks.  The new EU directive requires countries where citrus canker has been detected to have a disease management program and to ensure that exported fruit have no symptoms.  The EU’s change means they are satisfied with APHIS’s disease management program.  As a result, grove surveys are no longer required, saving U.S. producers an estimated $5.6 million dollars per year.

“At USDA, everything we do is grounded in sound science, so it is good to see that the EU has seen that our disease management program protects our citrus products,” Secretary Perdue said.  “When we rely on science, it levels the playing field for everyone.  And when the playing field is level, American agriculture will win.”

“The EU maintains a number of unwarranted sanitary and phytosanitary (SPS) barriers on U.S. agricultural exports, and we have long called on the EU to base its SPS measures on science,” said Acting USTR Stephen Vaughn.  “Today’s action removes a longstanding and unfair barrier and will help return U.S. citrus exports to the EU to the levels we had a decade ago.”

Florida producers grow 25,000 acres of grapefruit, of which 70 percent is intended for shipment to the EU market, according to industry estimates.  Industry estimates that citrus exports are expected to increase by 25 percent, or about $15 million, during the first year.

Implementation of the new directive is expected in time for Florida’s grapefruit export season in mid-November.