Wednesday January 8 Ag News

Nebraska Dairy Princess Candidates Sought

The Midwest Dairy–Nebraska Division is seeking candidates to participate in the State Dairy Princess contest scheduled Feb. 25, 2020, at the Ramada Inn in Columbus, Nebraska. The event is held in conjunction with the Nebraska State Dairy Convention.

The Nebraska Dairy Princess reigns for one year as the official goodwill ambassador for the state’s dairy industry, making a variety of public appearances to help consumers understand dairy products and the responsible practices used by dairy producers.

The entry deadline is February 5, 2020.

Candidates must be 17 to 24 years old, at least a high school junior this year, unmarried and have parents or guardians who are actively engaged in the production of milk for sale to a licensed plant. A candidate also qualifies if she, her parents or guardian is employed on a dairy farm or a young lady sincerely interested and passionate about the dairy community. Candidates are judged on their communication skills, personality, general knowledge of the dairy industry and enthusiasm for dairy promotion.

The 2020 Nebraska Dairy Princess will receive a $1,000 scholarship from Midwest Dairy. A $500 scholarship will be awarded to the first runner-up. For complete rules and an application form, visit midwestdairy.com or contact Jodi Pulfer, Midwest Dairy—Dairy Princess Consultant, 402-375-2285, mpm@inebraska.com.



Harmon Named Director of Agriculture and Natural Resources Extension

Jay Harmon was named the associate dean for extension and outreach programs and director of Agriculture and Natural Resources Extension in the College of Agriculture and Life Sciences at Iowa State University on Jan. 1.

Harmon has served as interim since April 2017 when John Lawrence was named the interim vice president of Iowa State University Extension and Outreach.

“Dr. Harmon is an outstanding, dedicated and thoughtful leader and an excellent person for this position,” said Daniel J. Robison, endowed dean’s chair of the College of Agriculture and Life Sciences. “He not only understands the important role Extension and Outreach plays in the state’s economic development, and how it is part of the fundamental mission of Iowa State University, but also how it is infused in the culture and work of our faculty, staff and even our students. He’s an expert and we are thrilled to have his leadership.”

Harmon will lead the comprehensive Agriculture and Natural Resources program area of Extension and Outreach for the College and for ISU Extension and Outreach. Robison said he was chosen because of his commitment and engagement to animal agriculture and engineering, but also to every aspect of agriculture and natural resources, from agronomy to economics, from sociology to molecular biology and from water quality to forestry.

“He will be the key connection for the college with other programs in extension, all across the state, and on campus,” Robison said.

Lawrence, Iowa State University vice president for extension and outreach, said Harmon has the expertise and experience for this position.

“Jay is a humble leader who will do well in this position,” Lawrence said. “He’s worked with Iowans in several roles since he came to Iowa State and his leadership has helped ISU Extension and Outreach enhance connections between faculty, staff and students and Iowa’s farmers, agribusinesses, land owners and rural communities.”

Harmon, a professor of agricultural and biosystems engineering and extension livestock housing specialist, joined ISU’s agricultural and biosystems engineering faculty in 1993.

His extension duties have focused on improving profitability and sustainability through a systems approach to livestock housing, and management of ventilation, cooling and heating systems for swine housing. He has advised more than 200 producers on making the best decisions on siting new swine facilities by running an ISU-developed odor assessment model and has conducted over 150 ventilation workshops for swine producers throughout the state since the program began in 2001. He leads the Agricultural Systems and Environmental Stewardship Extension Plan of Work team and, from 2014 to 2015, he served as interim director of ISU’s Iowa Pork Industry Center.

Harmon has taught courses on subjects that include agricultural engineering design, swine environmental management, ventilation of agricultural facilities and wood structural design. He also conducts applied research on efficient and sustainable swine production systems.

Harmon is the professor-in-charge of the Midwest Plan Service at Iowa State, which produces agricultural engineering publications and materials in collaboration with 12 Midwestern universities. In 2015, he was nationally recognized as the recipient of the G.B. Gunlogson Countryside Engineering Award for exemplary service to animal production systems from the American Society of Agricultural and Biological Engineers. He is a Fellow of ASABE and a registered professional engineer.

Harmon earned his bachelor’s degree at Purdue University, his master’s at University of Minnesota and his doctorate at Virginia Tech, all in agricultural engineering.



Webinar Offers Overview of Iowa Nutrient Research Center

Iowa Learning Farms will host a webinar on Wednesday, Jan. 15 at 12 p.m. about the Iowa Nutrient Research Center.

Matt Helmers, director of the Iowa Nutrient Research Center, will discuss the center and some of the impacts from research projects funded by the center, as well as current activities. The funded research focuses on nutrient export from agricultural lands and the performance of conservation practices. The research increases the understanding of nutrient reduction practices’ performance and development of new methods for reducing nutrient loss.

“The center is interested in hearing from stakeholders what they think are the most pressing research questions,” said Helmers.

To watch, go to www.iowalearningfarms.org/page/webinars and click the link to join the webinar shortly before 12 p.m. on Jan. 15 to download the Zoom software and log in option. The webinar will be recorded and archived on the ILF website for watching at any time at https://www.iowalearningfarms.org/page/webinars.



CHS Reports $177.9 Million in First Quarter Net Income

CHS Inc., the nation’s leading agribusiness cooperative, today reported net income of $177.9 million for the first quarter of fiscal year 2020 that ended Nov. 30, 2019. This compares to net income of $347.5 million in the first quarter of fiscal year 2019.

The results for the first quarter of fiscal year 2020 reflect:
-    Revenues of $7.6 billion compared to revenues of $8.5 billion for the first quarter of fiscal year 2019.
-    Strong supply chain performance in our propane business that was a positive contributor resulting from efficient sourcing of propane during significantly increased fall demand – brought on by unseasonably early cold and wet weather during harvest – for crop drying and home heating.
-    Less advantageous market conditions in our refined fuels business compared to the first quarter of fiscal year 2019, during which the company experienced historically wide pricing spreads between Canadian crude oil and crude oil from the United States. CHS processes Canadian crude oil at its refineries in Laurel, Montana, and McPherson, Kansas.
-    Poor weather conditions that occurred in fiscal year 2019 and the first quarter of fiscal year 2020 continued to negatively impact our Ag segment’s operations, resulting in lower crop yields, poor grain quality in some areas and lower fall crop nutrients sales.
-    Pressure on grain volume and margins due to slow movement of grain associated with unresolved trade issues between the United States and foreign trading partners.
-    Decreased fertilizer volumes compared to the first quarter of fiscal year 2019 due to a slow harvest in the first quarter of fiscal year 2020.

“We are not immune to the challenges of our industry, and our first quarter results reflect the difficulties brought on by fall weather and ongoing trade tensions,” said Jay Debertin, president and CEO of CHS Inc. “The cooperative system, however, provides CHS and its owners stability to withstand these difficult times. Our focus remains on building efficiencies in our supply chain and on operating in this challenging agricultural environment.

“During a cold and wet harvest, we leveraged our supply chain to meet the significant increase in propane needs of our owners and customers,” Debertin continued. “Our focus on meeting the needs of our owners helped deliver the successful launch of two products – AcuvantTM and TrivarTM – that will be available for spring planting.

First Quarter Fiscal 2020 Business Segment Results
The following segment results were reported for the first quarter of fiscal year 2020 as compared to the first quarter of fiscal year 2019.

Energy
Pretax earnings of $162.2 million in the first quarter of fiscal year 2020 compared to $232.5 million for the first quarter of fiscal year 2019 reflect:
-    Significantly less advantageous market conditions, driven primarily by decreased crude oil spreads on heavy Canadian crude oil processed at our refineries and, to a lesser extent, decreased crack spreads in our refined fuels business compared to the same period during fiscal year 2019. The decreased crude oil differentials and lower crack spreads were partially offset by favorable hedging activity in refined fuels.
-    The decrease in pretax income for refined fuels was partially offset by significantly improved propane margins from a late, wet crop combined with unseasonably cold weather across much of CHS service area that led to increased fall demand for crop drying and home heating compared to the first quarter of fiscal year 2019.

Ag
Pretax loss of $13.9 million compared to pretax earnings of $80.3 million in the first quarter of fiscal year 2019 reflects:
-    Poor weather conditions in fiscal year 2019 that culminated in a late and smaller fall harvest, resulting in decreased demand for farm supplies and crop nutrient products.
-    Ongoing global trade tensions between the United States and foreign trading partners continued to negatively impact grain volumes and margins.
-    Lower margins in our processing and food ingredients business.

Nitrogen Production
Pretax earnings of $16.5 million compared to pretax earnings of $23.7 million in the first quarter of fiscal year 2019 reflect:
-    Lower equity income from our investment in CF Nitrogen, of which CHS has partial ownership, attributable to decreased market pricing of urea and urea ammonium nitrate, which are produced and sold by CF Nitrogen.

Corporate and Other
Pretax earnings of $20.7 million compared to pretax earnings of $30.8 million in the first quarter of fiscal year 2019 reflect:
-    Results primarily from lower equity income from our investments in Ardent Mills and Ventura Foods and decreased income in our financing and hedging businesses due to market-driven interest rate reductions and lower trading activity, respectively.

“We know the remainder of fiscal year 2020 will continue to present challenges, and we are confident in our ability to find opportunities in those challenges, to help our owners grow their businesses and to continue to strengthen our company,” Debertin said. “No one feels those challenges more than our owners. We remain committed to supporting communities and experts as they address the stress felt across rural America.”



November Pork Exports Shatter Previous Records; Beef Exports Trail 2018

U.S. pork exports posted the best month on record in November, easily reaching new highs in both volume and value, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). November exports of U.S. beef were below the previous year's large totals.

Pork exports surged to 259,812 metric tons (mt) in November, up 26% year-over-year and 11% above the previous high set in July 2019. Export value was $712.7 million, up 32% from a year ago and breaking the previous record (also from July 2019) by 14%. These results pushed January-November exports 7% above the previous year's pace in volume (2.39 million mt) and 6% higher in value ($6.19 billion). Pork exports are now on pace to exceed previous records for both volume (2.45 million mt in 2017) and value ($6.65 billion in 2014).

Pork export value per head slaughtered was $62.90 in November, up 29% from a year ago and the highest in five years. Through the first 11 months of 2019, per-head value averaged $52.24, up 2% year-over-year. November exports accounted for 29.7% of total pork production and 26.8% for muscle cuts only, up substantially from a year ago (24.5% and 22%, respectively). For January through November, exports accounted for 26.4% of total pork production and 23% for muscle cuts, up from 22.4% and 25.7%, respectively, a year ago.

November beef exports totaled 108,662 mt, down 4% from a year ago, valued at $658.1 million (down 7%). For January through November, beef exports trailed 2018's record pace by 3% in both volume (1.21 million mt) and value ($7.4 billion). However, 2019 is already the second-highest year for beef export value, trailing only the 2018 record of $8.33 billion.

Beef export value per head of fed slaughter was $307.55 in November, down 15% from a year ago. Through November, per-head export value averaged $308.74, down 4%. November exports accounted for 13.7% of total beef production and 11% for muscle cuts only, down from 14.1% and 11.8%, respectively, a year ago. For January through November, exports accounted for 14.1% of total beef production and 11.4% for muscle cuts, down from 14.5% and 12%, respectively, a year ago.

Pork surge to China/Hong Kong continues; export value to Mexico rebounds
Demand from China/Hong Kong continued to drive U.S. pork export growth in November, with volume climbing to 86,213 mt— up 284% from a year ago — valued at $204.9 million (up 240%). For January through November, exports to the region were up 71% to 554,789 mt, valued at $1.18 billion (up 49%).

Although November pork export volume to Mexico was lower than a year ago at 57,537 mt (down 6%), export value surged 28% to $124.3 million, the highest since July. For January through November, exports to Mexico were down 11% from a year ago in volume (641,952 mt) and 6% lower in value $1.14 billion. Competition from Canadian pork was especially strong in the Mexican market while Canada was suspended from China (late June to early November). From January through November, Canada's exports to Mexico increased 8% from a year ago to 128,100 mt, valued at $185 million (up 14%).

"While the surge in pork shipments to China will capture most of the headlines this month, it is equally encouraging to see export value to Mexico make such a strong recovery," said Dan Halstrom, USMEF president and CEO. "Getting exports to Mexico back to the record levels of 2017 and early 2018 is a top priority for the U.S. pork industry, because demand from Mexico is such an important driver of profitability for everyone in the supply chain. The same is true in Japan, so it's very important to reclaim lost share in these longtime mainstay markets. "

November exports to Japan trailed the previous year by 3% at 32,594 mt, while value was down 1% to $136.5 million. Through the first 11 months of the year, exports to Japan were down 6% from a year ago in volume (340,568 mt) and 7% lower in value ($1.4 billion). Japanese import data show imports of U.S. pork decreased by $121 million with much of the decline being in ground seasoned pork, which fell by $73 million due to the wide tariff rate discrepancy. Beginning Jan. 1, Japan's tariff rates on U.S. pork and pork products were lowered to match those imposed on European, Canadian and Mexican pork, eliminating a significant price disadvantage that slowed U.S. exports in 2019. The rate for U.S. ground seasoned pork fell from 20 to 13.3%.

January-November highlights for U.S. pork exports include:
    Exports to Colombia rebounded in November to pull 9% ahead of the previous year's pace in volume (92,280 mt) and 7% higher in value ($203.6 million). Also bolstered by strong growth in Chile and Peru, exports to South America already surpassed previous full-year records in both volume (141,657 mt, up 18% year-over-year) and value ($356.2 million, up 22%).
    Led by strong growth in Panama, Guatemala, Honduras and Costa Rica, exports to Central America also set new annual records for volume (86,794 mt, up 16%) and value ($211.8 million, up 20%).
    Surging demand in Australia and New Zealand pushed exports to Oceania to new heights. Exports to the region jumped 36% from a year ago in both volume (105,399 mt) and value ($304.5 million).
    Exports to Canada increased 6% from a year ago in both volume (197,847 mt) and value ($738.2 million).

Beef exports to Korea, Taiwan headed for new records
Although November beef exports to South Korea were lower than a year ago in volume (19,116 mt, down 5%) and value ($139 million, down 11%), the market remained on pace to break the 2018 records. Through November, exports to Korea were up 6% in both volume (234,310 mt) and value ($1.69 billion). U.S. share of Korea's chilled beef imports reached 62%, up from 58% in 2018. U.S. beef accounted for 51% of Korea's total beef and beef variety meat imports and more than one-third of Korea's total beef consumption.

Beef exports to Taiwan will be record-large for the fourth consecutive year in 2019. November exports were 4,869 mt (up 8% from a year ago) valued at $43 million (up 7%). This pushed January-November results 8% ahead of the previous year's pace at 57,837 mt, valued at $513.3 million (up 4%).

The gains in Korea and Taiwan have been offset by a decline in Japan, which is still the largest destination for U.S. beef exports but one in which the U.S. industry has faced a steep tariff rate disadvantage compared to imports from Australia, New Zealand, Canada and Mexico. Through November, exports to Japan were down 6% from a year ago in volume (287,090 mt) and dropped 7% in value ($1.8 billion). But on Jan. 1, U.S. beef gained tariff relief in Japan that brings rates in line with key competitors, so the outlook is very positive for 2020.

"The Japanese market performed extremely well for U.S. beef in 2018, even though we were already facing a tariff rate disadvantage versus Australia," Halstrom explained. "More competitors saw tariff rate cuts in 2019 under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which further tilted the playing field against U.S. beef. For example, Canada's beef exports to Japan increased 57% last year. So the rate cuts Japan recently implemented for U.S. beef are long overdue, and USMEF is working aggressively with U.S. exporters and the Japanese trade to capitalize."

January-November highlights for U.S. beef exports include:
    In Mexico, the third-largest market for U.S. beef behind Japan and Korea, exports increased 4% from a year ago in value to just over $1 billion despite a 2% decline in volume (214,963 mt). This was largely due to a strong value increase for tripe, one of the top U.S. beef variety meat export items to Mexico. Variety meat exports were up 2% year-over-year in volume (89,667 mt) but jumped an impressive 18% in value to $244.5 million. This included $88 million in tripe exports, up 28%.
    Led by strong demand in Indonesia and steady growth in the Philippines, beef exports to the ASEAN region increased 23% from a year ago in volume (55,583 mt) and were 7% higher in value ($270.6 million).
    Exports to the Dominican Republic already surpassed the 2018 record, increasing 24% in volume to 7,523 mt valued at $61.4 million (up 19%).
    In Central America, strong demand in Guatemala and Panama helped push exports 4% higher than a year ago in volume (14,044 mt) and 9% higher in value ($79.9 million). Export value to Guatemala and Panama jumped 9% and 25%, respectively.
    Mexico and Japan have led a very strong year for global exports of U.S. beef variety meat, which were up 4% from a year ago in volume (295,527 mt) and 9% higher in value ($885.9 million). Exports to Japan, which largely consist of tongues and skirts, were up 20% from a year ago to 58,278 mt, valued at $355.5 million (up 13%). Egypt, the largest destination for U.S. beef livers, saw a 4% increase in volume (59,203 mt) while export value climbed 17% to $69 million. Led by strong demand in Indonesia, variety meat exports to the ASEAN increased 39% in volume (16,595 mt) and 43% in value ($37.3 million). Strong growth in the Dominican Republic and Trinidad and Tobago pushed variety meat exports to the Caribbean 17% higher in volume (6,814 mt) while value surged 61% to $14.2 million.

November lamb exports trend lower
November exports of U.S. lamb were 1,253 mt, down 10% from a year ago, while value also dipped 10% to $2.19 million. Through the first 11 months of 2019, lamb exports remained well ahead of the previous year's pace in volume (14,507 mt, up 23%) and value ($23.7 million, up 11%). Led by strong demand in Mexico, lamb export volume is the largest since 2011 and export value is set to exceed $25 million for the first time since 2014. In addition to Mexico, growth markets in 2019 included Trinidad and Tobago, Panama, Guatemala and the Philippines.



Fertilizer Prices Mostly Lower at Start of 2020

Average retail prices for most fertilizers continued their lower trend during the week including the last two days of 2019 and first few days of 2020, according to retailers surveyed by DTN.  Seven of the eight major fertilizers were lower in price compared to a month earlier. This broke a streak of five weeks in which all eight were lower.

Only one fertilizer was down a significant amount. Urea was down 5% compared to last month and had an average price of $363 per ton.  Six fertilizers had slight price declines from the previous month. DAP had an average price of $438/ton, MAP $446/ton, potash $376/ton, anhydrous $487/ton, UAN28 $238/ton and UAN32 $273/ton.

The remaining fertilizer, 10-34-0, had a minor price increase from a month ago. The starter fertilizer had an average price of $470 per ton.

On a price per pound of nitrogen basis, the average urea price was at $0.39/lb.N, anhydrous $0.30/lb.N, UAN28 $0.42/lb.N and UAN32 $0.43/lb.N.

Retail fertilizers are mixed in price from a year ago. MAP is 16% lower, anhydrous is 15% less expensive, DAP is 14% lower, urea and UAN28 are both 11% less expensive, UAN32 is 10% lower and potash is 1% less expensive from last year at this time. In addition, 10-34-0 is 2% higher compared to last year.



Weekly Ethanol Production for 1/3/2020

According to EIA data analyzed by the Renewable Fuels Association for the week ending Jan. 3, ethanol production tapered by 4,000 barrels per day (b/d), or 0.4%, to 1.062 million b/d—equivalent to 44.60 million gallons daily. The four-week average ethanol production rate capped off an eleven-week rise with a 0.2% decrease to 1.069 million b/d, equivalent to an annualized rate of 16.39 billion gallons.

Ethanol stocks rose 6.8% to 22.5 million barrels, the highest reserves since Sept. 2019. However, inventories were 3.4% lower than the same week last year. Stocks increased in all PADDs except the Rocky Mountain region (PADD 4).

There were zero imports of ethanol recorded for the fourth consecutive week. (Weekly export data for ethanol is not reported simultaneously; the latest export data is as of November 2019.)

The volume of gasoline supplied to the U.S. market during the holiday week dropped 9.2% to 8.133 million b/d (341.59 million gallons per day, or 124.68 bg annualized)—the weakest level in nearly three years. Refiner/blender net inputs of ethanol followed, decreasing 9.4% to 801,000 b/d—equivalent to 12.28 bg annualized and the lowest weekly demand in two years.

Expressed as a percentage of daily gasoline demand, daily ethanol production increased to 13.06%.



As Iran Crisis Drives Oil Prices Higher, Ethanol Delivers Relief at the Pump

Tensions in the Middle East have inflamed global oil markets, sending Brent crude oil futures over $70 per barrel and pushing U.S. gasoline futures to a nine-month high. Analysts expect these gas price increases to reach the pump in the days ahead, hitting consumer pocketbooks and again underscoring the importance of enhancing domestic energy security through increased production and use of low-cost renewable fuels like ethanol.

At the fuel terminals where gasoline is blended, ethanol is currently selling for 40-50 cents per gallon less than gasoline.

Earlier this week, London’s Financial Times pointed out that America’s “shale revolution alone cannot deliver true energy independence,” adding: “America remains far from energy independent. While net exports show a decreasing reliance on imports, the country continues to buy oil from other nations in part to meet the needs of its refiners.”

The U.S. imported nearly 600 million barrels of crude oil and petroleum products at a cost of more than $36 billion from the Persian Gulf in 2018, with almost one-third coming from Iraq.

As U.S. consumers brace for higher prices, a recent study shows that our nation’s growing supply of ethanol significantly helps dampen gasoline price shocks that result from sudden oil market disruptions. In fact, if renewable fuels were removed from the fuel supply, gas prices would be more than $1 per gallon higher, the study found.

“The current crisis in the Middle East again highlights the critical need for greater domestic energy security and diversity,” said RFA President and CEO Geoff Cooper. “Given the global nature of crude oil markets, we cannot simply frack our way to energy independence. The fastest and most effective way to insulate our nation’s consumers from geopolitically induced price shocks at the pump is to increase our use of domestically produced ethanol. To help mitigate impending pump price increases, EPA should immediately act on the President’s commitment to remove regulatory barriers to E15 expansion and fully enforce the Renewable Fuel Standard.”

The September gas price study, by independent economist and energy expert Dr. Philip K. Verleger, Jr., looked at oil market disruptions over nearly 50 years and provided an example in which the availability of ethanol avoids a significant impact to U.S. gasoline prices from a supply disruption.

“Retail prices would today be above $4 per gallon were renewable supplies removed from the supply mix,” Verleger writes. “The lower gasoline prices, in turn, allowed consumers to spend more on the things they wanted rather than motor fuels. … The economic benefit of lower gasoline prices that is directly attributable to the availability of renewable fuels adds one to two percentage points to the U.S. GDP every year.”

Dr. Verleger cataloged various crises and their impacts on the oil supply, from the 1973 Arab Oil Embargo to ongoing political and economic challenges in Venezuela. When it comes to crises such as these, Verleger asserts that even “a modest amount of renewable fuels can significantly moderate the price impact of market disruptions.”

The study incorporated and built upon a May report by Dr. Verleger that found the RFS lowered gas prices by an average of 22 cents per gallon from 2015-2018, saving the typical American household $250 annually.



Cargill reports fiscal 2020 second-quarter results

Cargill Tuesday reported results for the fiscal 2020 second quarter ended Nov. 30, 2019. Key measures include:
    Adjusted operating earnings were $1.02 billion, up 19% from $853 million last year. For the first half of the year, this brought adjusted earnings to $1.93 billion.
    Net earnings on a U.S. GAAP basis for the quarter were $1.19 billion, up 61% from a year ago. The increase included gains from divesting Cargill’s malt business and financial subsidiary, CarVal Investors. Net earnings for the first half climbed 20% to $2.11 billion.
    Second-quarter revenues rose 4% to $29.2 billion. Six-month revenues totaled $58.2 billion, a 3% rise.

“We saw very good execution from our global teams throughout the quarter, as they focused on delivering what matters for our customers,” said Dave MacLennan, Cargill’s chairman and chief executive officer. “Our ongoing transformation, as well as recent acquisitions and expanded capabilities, are all helping us continue to raise our performance.”

Performance highlights
Adjusted operating earnings increased in two of Cargill’s four business segments: Animal Nutrition & Protein, and Industrial & Financial Services. They declined in Origination & Processing and Food Ingredients & Applications. Notable results include:
    Cargill’s protein businesses around the world were well prepared to meet opportunities from country-by-country changes in demand, shifts in global protein flows due to African swine fever and other market forces.
    Transformation efforts, recent acquisitions and capital investments all had positive impacts in businesses like animal nutrition and global poultry. Likewise, the ocean transportation business benefited from its readiness for the upcoming industry shift to low-sulphur fuels that began on Jan. 1, 2020.
    The company’s agricultural trading business stayed well-positioned across commodities, while some of the regional origination and processing businesses continued to feel the negative impact of trade uncertainty and weather disruptions, particularly in North America.
    Several global product lines of food ingredients saw softer results, including starches and sweeteners in Europe and Brazil, and edible oils in South America. Strong product deliveries kept cocoa and chocolate results near even with last year.
    The beneficial impact of wintry weather combined with production efficiency gave a boost to road safety salt results.

Innovation for growth
Cargill and joint venture partner Royal DSM began commercial-scale production of EverSweet® stevia sweetener in November at Cargill’s $50 million fermentation facility in Blair, Nebraska  – the first of its kind in the U.S.  This zero-calorie sweetener uses fermentation to create the two best-tasting molecules in the stevia leaf. In addition to providing scale, fermentation is much more sustainable than traditional leaf-based production, since these molecules make up less than 1% of the stevia leaf in nature.

The innovation has significant growth potential because it’s well-suited for many kinds of food and beverage applications such as soft drinks, flavored waters and teas, smoothies, yogurt, confections and ice creams. More than 300 customer trials and product development projects are currently in progress.

Far-reaching climate solutions
With a major presence in food and agriculture supply chains around the globe, Cargill is committed to protecting the planet’s vital natural resources. To that end, Cargill announced at the start of December that the company has adopted a Scope 3 target of reducing greenhouse gas emissions in its global supply chains by 30% per ton of product by 2030. The goal aligns with many of Cargill’s customers and has been approved by the Science Based Targets initiative (SBTi). It complements the company’s previously announced goal to reduce emissions from operations by 10% on an absolute basis by 2025. Along with the target, the company reinforced its commitment to the Paris Climate Accord through the We Are Still In coalition and pledged to the CEO climate statement.

To achieve the Scope 3 target, Cargill is focused on supply chain partnerships and solutions that benefit farmers, customers and the broader food system. This includes accelerating progress through the BeefUp Sustainability initiative, efforts to help farmers sequester carbon by maintaining healthier soils, reductions in carbon for sustainable shipping, and more.

“Without bold and decisive action by all involved in the production of food, climate change will destabilize the food system,” MacLennan said. “As with all areas of our business, we are innovating alongside our partners in the supply chain to make sure we can nourish a growing world for years to come.”



NEW HOLLAND ANNOUNCES PARTNERSHIP WITH THE NATIONAL HEMP ASSOCIATION

Leading global equipment manufacturer New Holland has partnered with the National Hemp Association (NHA), the nation’s leading non-partisan hemp advocacy group. The partnership, announced today at the Pennsylvania Farm Show, plans to accelerate the return of hemp commodity crops on farms across North America, under the banner “Pushing Progress Together.”

The National Hemp Association will participate alongside New Holland at 16 national farm shows throughout North America, delivering educational sessions and panel discussions, as well as exhibiting the variety of products produced from hemp.

The alliance will also work toward solving the industry’s biggest challenge: the absence of commercial scale harvesting and decortication equipment needed to meet demand. In order to begin laying the foundation of an integrated North American hemp supply chain, the alliance will call on other industry partners to join a “Hemp Pledge” and commit to purchasing hemp grown and processed in the U.S. by U.S. farmers.

“We see this exclusive partnership as a way to bring the nation’s leading hemp advocates and educators to events where they can respond to the issues of most concern to farmers, manufacturers, processors and the general public”, says Brett Davis, vice president, New Holland, North America. “It will also provide New Holland with the opportunity to hear from our dealer network, our customers and the more than 115,000 farmers who are looking to New Holland to bring forward supply chain solutions.”

The National Hemp Association has also committed to creating and funding a new “Hemp Farmer Educational Fund” to assist farmers with agricultural, regulatory and production issues related to converting to hemp production.

“We know that the biggest challenge facing this crop and restricting its return is commercial scale harvesting and decortication equipment,” says NHA chair and PAHIC president Geoff Whaling. “Without that solution, all of the promise for hemp – for the food, feed, construction, automotive, energy and textile industry – will not be realized.  Our partnership with New Holland Agriculture will be the beginning steps towards that end.”

“This Pennsylvania-rooted partnership is very big step to building the national supply chain,” says U.S. Sen. Judy Schwank of Pennsylvania, the leading proponent of industrial hemp legislation in the Pennsylvania Senate. “Together we need to provide any legislative fixes that are necessary as well as ensure the resources and tools are available to assist and help the industry move forward.”

For more information on New Holland hemp initiatives and solutions, visit www.betterhempharvest.com.