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Business Briefs - Dec. 17, 2008

ACH Food closing 2 Illinois plants

CHAMPAIGN, Ill. (AP) — ACH Food Companies is closing two Illinois facilities next year, which means the loss of more than 450 jobs in central Illinois.

The Memphis, Tenn.-based company told employees Dec. 11 that it would close plants in Jacksonville and Champaign in the next six to nine months. Company officials say employees will be given at least 60 days’ notice.

In a letter to employees, company officials say more details will come in the following months. Messages left for company officials Thursday were not immediately returned.

More than 200 workers are employed in Jacksonville and the Champaign plant has about 250. Teamsters Local 26 President Pat Gleason said he’s shocked by the closures and job cuts because the union and company were in contract negotiations.

Deere profits are down
MOLINE, Ill.(AP) — Deere & Co. has seen its profit fall amid the economic downturn. The Moline, Ill.-based company reported Nov. 26 that its fourth-quarter earnings fell 18 percent and it forecast that profit will drop by 7 percent in 2009.

Deere expected equipment sales to be about flat next year, and up about 7 percent in the first quarter, depending on uncertain global economic conditions. Deere stated it earned $345 million, or 81 cents per share, for the three months ended Oct. 31, compared with $422.1 million, or 94 cents per share, during the same period last year. That included pretax expenses in the latest quarter of about $50 million, or 8 cents per share, to close a facility in Welland, Canada.

Sales and revenue jumped 21 percent to $7.40 billion from $6.14 billion in the fourth quarter of 2007. Analysts surveyed by Thomson Reuters, on average, predicted earnings per share of 99 cents on revenue of $6.84 billion. Those estimates typically exclude one-time items.

For the full year, Deere said net income shot to a record $2.05 billion, or $4.70 per share, compared with $1.82 billion, or $4 per share, last year.

Sara Lee sells coffee to Farmer

DOWNERS GROVE, Ill. (AP) — Sara Lee Corp. said Dec. 3 it is selling its U.S. Direct Store Delivery Foodservice coffee business to Farmer Bros. Co. for $45 million.

Sara Lee, known for brands such as Jimmy Dean and Hillshire Farm, said the deal is expected to close in the first quarter of 2009. Farmer Bros., a maker and distributor of coffee, tea and spices to the institutional foodservice segment in the U.S., will get several brands including Superior Coffee, Cain’s, Ireland, Prebica and Royal Kona. It will license the brands back to Sara Lee for a transition period.

Torrance, Calif.-based Farmer Bros. will acquire more than 20,000 additional customers, the operation’s sales and distribution staff and infrastructure, including more than 60 branch facilities and a fleet of vehicles. The deal also includes a major coffee manufacturing plant in Houston and a distribution and spice facility in Oklahoma City.

Figure grain transport $$ online

INDIANAPOLIS, Ind. — The Soy Transportation Coalition (STC) has an online calculator available to assist producers in making the most profitable decision when delivering their soybeans or other commodities. The calculator can be accessed from the Indiana Soybean Alliance’s (ISA) website at www.indianasoybean.com by clicking on the calculator icon at the top of the homepage.

The calculator takes into consideration a number of factors that remain constant no matter where the crop is sold, including the total capacity of the semi or other means or transportation, fuel cost per mile and maintenance cost per mile. It also factors in cost of labor or value to time.

 The calculator accounts for the differences between the two market locations, including mileage for the round trip, round trip time including wait time and the spot price at the two locations. It will determine the farmer’s most profitable option, calculating the profit per full load for each market destination and the additional dollars one market may offer over the other.

NCGA seeks board nominees

CHESTERFIELD, Mo. — The National Corn Growers Assoc. (NCGA) Nominating Committee invites growers who are NCGA members to become an integral part of the organization’s leadership by applying for positions on the NCGA Corn Board.

The NCGA Corn Board supervises and directs the day-to-day business and policy matters of the association and represents NCGA on all matters. Among member duties are to represent the federation of state organizations, act as a responsible spokesperson to enhance the organization’s public standing on all organizational and policy issues, supervise the affairs and activities of NCGA in partnership with the CEO and to implement NCGA policy established by the Corn Congress.

Applications are due Jan. 9. Nominated candidates will be introduced at the February 2009 Corn Congress meeting, held in conjunction with the Commodity Classic in Grapevine, Texas.
Corn Board members will be elected at the July 2009 Corn Congress in Washington, D.C., and the new terms begin Oct. 1.
For more information, contact Kathy Baker at NCGA’s St. Louis office, 636-733-9004, or visit http://ncga.com/files/pdf/CornBoardApp2009-2010.pdf for the application packet.

eXtension wins national award

LEXINGTON, Ky. — The eXtension Initiative, on behalf of the Cooperative Extension System, was presented with a Secretary’s Honor Award from the USDA. The Secretary’s Honor Awards are the highest and most prestigious awards offered by the agency.

The University of Kentucky (UK) College of Agriculture and Cooperative Extension Service are partners in eXtension, a web-based arm of the Cooperative Extension System that draws on an extensive knowledge base from the nation’s land-grant universities.

Information-seeking consumers can connect with experts through various online Communities of Practice that include, among others, equine, entrepreneurship, livestock, horticulture and parenting information.

The 61st annual USDA Honor Awards ceremony honored 26 groups and six individual winners from across the country for exemplary service and achievements. Cooperative Extension was honored in the category of Supporting the President’s Management Agenda and Civil Rights.

The award went to a team of 25 people. UK team members on hand to receive it were Craig Wood, associate director of eXtension, Carla Craycraft, former associate director of eXtension and now on a post-retirement contract with the initiative, and family of the late Larry Turner, who was associate dean for extension in the College of Agriculture and director of the Kentucky Cooperative Extension Service.

Those in the college who have contributed to the success of eXtension include Amy Aldenderfer, Donna Amaral-Phillips, Les Anderson, Paul Bachi, Ty Back, Lynn Blankenship, Nick Broady, Fernanda Camargo-Stutzman, Jeanne Davis, Ivelin Denev, Winston Dunwell, Rick Durham, Ashley Griffin, Candace Harker, Martha Jackson, Mike Klahr, Chad Lee, Lisa Lewis, Jack McAllister, Henrietta Ritchie-Holbrook and Kenny Seebold.

12/17/2008