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Agrimarketing : February 2009
Trevor Thorley joins American Vanguard Corp. as COO/Exec VP of its princi- pal operating subsidiary, AMVAC Chemical Corp. He was Pres/COO of Valent USA Corp. AGRIMARKETING’S TOP FIVE EVENTS IN 2008 Here is our list of the top five events that occurred in 2008 and will shape the agri-marketing environment in the coming years: 1. Extremely volatile commodity market prices and their impact on agribusiness. Corn prices, for example, started the year at $4/bu. By July 30 they had doubled, only to fall back to the $4 range by the end of 2008. Thorley Kuhn North America, Inc., announces the acquisition by the KUHN Group of the crop packaging division of Kverneland Group with its factory located in Geldrop, Netherlands. The company also announces an expansion to its manufacturing plant in Brodhead,WI, as well as the opening of a new, large machine assembly facility inMonswiller, France. Major impact on the agribusiness sector: • Some commodity purchase buyers, most notably Pilgrim’s Pride—the nation’s largest poultry producer—and VeraSun—it’s second largest ethanol producer—got caught in the wrong side of the price moves and are both now in Chapter 11 protection. • In reality,very few producers sold at the high prices as they waited for the next market move up, or their buyers would not provide future price guarantees. • Caught up in the optimism, crop input suppliers raised their prices sig- nificantly as they also sought relief from sky rocketing fuel prices. 2. Record Net Farm Income. Even though USDA lowered its recent 2008 forecast, ag producers are still expected to earn a record $86.8 billion. 3.Wild stock market ride.Wall Street bid agribusiness stocks to record highs in July, only to come crashing down with the rest of the market. For the year, the AgriMarketing portfolio of ag-oriented stocks was down 43% which compares to the S&P 500, down 38%. 4.MassiveMidwest Flooding. Record rainfall during the planting season delayed planting by over two months. 5. The livestock sector not only faced losses for the year due to the high feed prices, but it also was stung by meat recalls and charges of animal cruelty.Voters in California passed Proposition No. 2 which virtually phases out raising livestock in confinement in the state. AM Jones Kyle Jones, a 22-year custom appli- cator with Heartland Coop in Slater, IA, is named the 2008 Ag-Chem Operator of the Year during this year’s Agricultural Retailers Association (ARA) annual conven- tion held in Austin, TX. He is shown on the new Harley- Davidson motorcycle which was the program’s grand prize. The other finalists were Donald Suflow, Cargill Inc.,Maynard,MN; Randy Archer, Bollmeyer Inc., Hinton, IA; andMichael Grube, Valley Agronomics, Ashton, ID. The Context Network (TCN),W. DesMoines, IA, launches a new Seed Services Group, which will provide a new set of business man- agement resources directed specifi- cally to seed companies as they address critical issues. TCN also adds six consultants: Kishore Rao, who with his asso- ciates in India have done pioneering work in strategic seed/biotech/ ag-chem consulting space over the last two decades. Dr. John Killmer, a former sen- ior executive withMonsanto Co. and Arysta LifeScience. Nathan Ramsey, who returns to TCN after having worked as Dir/ Business Development for ArborGen LLC. DaveWestphal, who most recently served as the COO of Holden’s Foundation Seeds and Corn States Business Services. Jim Billings, a former TCN con- sultant, who most recently held leadership consultative roles in international strategic planning and seed genetics projects, and Kathleen Erickson who brings 25 years expe- rience in agricultural business mar- keting and communications. Advanta U.S. names John Oppelt as Bus DevelopmentMgr. He most recently worked for its sister company,United Phosphorus, Inc., and has been with American Cyanamid and Pioneer Hi-Bred. MERIAL Ltd., Duluth, GA, is named the exclusive distributor and technical service provider of the in ovo injection systems of AviTech, LLC. As a result,Merial can now offer world-wide poultry customers its portfolio of avian vaccines together with the latest in ovo technology. Max Crittenden joins Golden Acres Genetics, Ltd. as the new Dir/Sales, managing its entire 13-state market area in the southern U.S. He was a Reg’l SeedMgr for Wilbur-Ellis. AM January/February 2009 s Agri Marketing 7
Marketing Services Guide