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Indiana ag firms stand by to help victims in Japan

By ANN ALLEN
Indiana Correspondent

AKRON, Ind. — Hoosier agribusinesses are keeping a sharp eye on northern Japan, where a devastating earthquake and tsunami that swept thousands of people to their deaths were followed by a damaged nuclear reactor.

With sawmills in Akron, Carbon and Milan, Pike Lumber Co. has an active market for hardwood lumber in Japan. “The first thing we did was to make certain our customers were not affected by the disasters,” said Rich Solano, marketing manager. “So far, they are in good shape and shipments to them are continuing on schedule.”

Mark Klein, a spokesman for Minneapolis-based Cargill, which has plants throughout Indiana – including a large facility at Mentone, near Akron – said, “We are currently assessing how our customers have been impacted by these events and how Cargill may be able to assist and work with them to minimize the impact on their businesses.

“Obviously, logistics inside the country are a problem. Japan does have a diversity of ports to import from, but it is too early to comment on the overall impact on the trade and movement of agricultural products, and if there will be consumption changes.”

Cargill opened its first sales office engaged in importing grain commodity products into Japan in 1956 and has since grown to include a network of four offices and one operating facility.

The company employs more than 350 employees in Tokyo, Okayama, Kobe, Fukuoka, Chiba and Kashima. By March 16, the company knew all the employees were safe.

“Our hearts go out to the people of Japan as they face the shocking aftermath of this disaster,” Klein said. “We are working with partners, including the Red Cross and other humanitarian organizations, as well as with our Cargill colleagues in Japan to determine how we can best support both short- and long-term needs.”

A spokesperson for the Claypool office of French-based Louis Dreyfus Commodities said Japan is a big importer but with the market so unsettled, the company is waiting until the panic is over and the situation is more stabilized to determine how to offer assistance.

That wait-and-see attitude is reflected by the Japan-America Society of Indiana. Executive Director Theresa Kulczak said while the impact of the earthquake and tsunami on Indiana’s manufacturing sector could prove to be “fairly large and significant,” many major companies are frantically busy assessing the situation.

She said there is a groundswell of people wanting to send blankets and other items to the victims. However, in a Studio(i) interview that can be viewed on the “Inside INdiana Business” website, she discussed a newly created relief fund, saying several banks are partnering with it.

In addition to the Indiana firms having trade relations with Japan, more than 200 Japanese companies are based in Indiana.

The damaged nuclear reactor triggered a crisis that Japanese Prime Minister Naoto Kan described as “very grave” last Thursday when forecasts indicated changing winds could start moving radiation closer to Tokyo by the weekend. On Sunday, however, officials reported progress in their battle to gain control over the leaking nuclear complex.

Still, they said the crisis was far from over, with the discovery of more radiation-tainted vegetables and tap water adding to public fears about contaminated food and drink.

Of the situation, one Japanese woman was reportedly heard to say she was happy her grandmother was dead: “I would not want her to live through another nuclear holocaust.”

3/23/2011