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Wilbur-Ellis acquires Ripon Farm Service, expands ag distribution business in CA

Wilbur-Ellis Co. announced on Nov. 10 that it is purchasing the assets of Ripon Farm Service LLC, a full-service agricultural fertilizer and crop protection distributor in Ripon, Calif. Terms of the sale were not disclosed by the two privately held companies, but a statement said the transaction is expected to close by Dec. 31, 2008, and will result in Ripon’s operations relocating and integrating with Wilbur-Ellis’s Manteca and Hughson, Calif., branches.

“Ripon is a major retailer and an important provider with an excellent reputation for delivering high-level service to farming operations in the Central San Joaquin Valley,” said John Thacher, Wilbur-Ellis president and CEO “Joining our two operations in this geography will provide our customers with the best available technology while continuing our strategic goal of acquiring successful organizations and integrating them into our existing business.”

Local reports said most of Ripon’s 30 employees would make the transition to Wilbur-Ellis. “In our industry, employees are the distinguishing factor between competitors, and the employees of Ripon share our customer-focused service model, which will make us stronger in this market,” said Daniel Vradenburg, Wilbur-Ellis executive vice president and leader of the Agribusiness Division. “We are also very pleased to have all of the existing principles of Ripon join our company and continue to serve their customers.”

Ripon handles both dry and liquid fertilizers, crop protection chemicals, and seed, and has bulk storage and custom-blend capabilities for either clear fluid or suspension fertilizers. The company also offers consulting services on pest control and nutrient management for traditional crops grown in the San Joaquin Valley, as well as to the ornamental horticulture, turf, and landscape industries. The company’s primary service area extends in a 60-mile radius from its headquarters in Ripon.

“Wilbur-Ellis is a well respected national market participant and its considerable resources will enhance our customer offering while at the same time allowing us to continue the high level of customer service that has been a hallmark of our business,” said Ripon Managing Partner Bud Den Ouden. “Consolidation is part of the natural evolution of our industry and we are excited about becoming part of Wilbur-Ellis.”

PotashCorp workers approve deal

Saskatoon-PotashCorp said Nov. 14 that employees represented by United Steelworkers’ (USW) Local 7689 at Allan, USW Local 7458 at Cory, and USW Local 189 at Patience Lake voted to ratify collective agreements tentatively agreed upon on Nov. 7. The three-year agreements are retroactive to May 1, 2008. PotashCorp said the cost of the settlements does not differ materially from the final offer put forward by the company in July, protecting PotashCorp’s long-term cost structure at its operations. Specifically, the collective agreements do not contain “commodity-based bonuses” or bonuses based on PotashCorp net income.

Bulgarian plants cut production

Sofia-Bulgaria’s Agropolichim and Neochim, both major fertilizer exporters, are shutting down production, citing weak demand and the global financial crisis, according to reports out of the country this week. Agropolichim started shutting down production Nov. 14. Neochim will not come back up after a maintenance shutdown. “We are probably the last factory in the Balkans which is still working,” Agropolichim’s CEO Devnya Rombaut told the local press. He expects phosphate production to resume in three weeks to meet export demand; however, nitrate production will be down indefinitely. Agropolichim production is put at approximately 800,000 mt/y, and the combined chemical and fertilizer production at Neochim is reported as 1.6 million mt/y.

Yara cuts production at Le Havre and Sluiskil

Oslo-Yara International ASA said Nov. 14 it will temporarily stop production of ammonia and urea at its site in Le Havre, France, by early next week. Ammonia and urea production at Yara’s site in Sluiskil, Netherlands, will also be reduced temporarily. The timing of restarts will depend on the development in ammonia, urea, and natural gas markets. The Le Havre plant has an annual production capacity of 400,000 mt of ammonia and 350,000 mt of urea. The plant in Sluiskil is reducing production equivalent to 900,000 mt of ammonia and 200,000 mt of urea on an annual basis. The decision to stop production temporarily is related to the current situation in international ammonia and urea markets. The Le Havre plant will be conserved and on standby for start-up when market conditions improve. Lay-offs are not anticipated, as employees will attend to plant safety and other tasks. Yara will continue to fulfill customer contracts from built-up stock and alternative product sourcing. Yara will import cheaper ammonia to Sluiskil as raw material for nitrate production. The curtailments in Le Havre and Sluiskil, combined with the previously announced stop in Ferrara, reduce Yara’s global production by 1.9 million mt of ammonia and 1.1 million mt of urea on an annual basis. In energy terms these curtailments represent an annualized reduction in natural gas consumption of approximately 65 million mmBtus.

Scotts, partners discuss private label business

Marysville, Ohio-Scotts Miracle-Gro Co. said Nov. 11 that it is in discussions with several of its largest retail partners in the U.S. to provide private label lawn fertilizer and growing media products for fiscal 2009 and possibly beyond. The discussions stem from the recent announcement by Spectrum Brands that it intends to exit those segments of the category. “We believe we are uniquely positioned to leverage our supply chain and sales force to help our retailers meet all of their needs,” said Jim Hagedorn, Scotts chairman and CEO. “The discussions we have been having with a variety of retail partners have been productive and, we believe, could be mutually beneficial to both them and Scotts Miracle-Gro.” The company reiterated its previous outlook for fiscal 2009 of adjusted net income of $2.00 per share on nominal sales growth. It does not anticipate updating that guidance during the current fiscal quarter.

Fire halts production at biosolids plant

Quincy, Mass.-A stubborn fire in the ventilation system Oct. 28 has shut down, possibly until late January, biosolids production at the Massachusetts Water Resources Authority’s plant here, MWRA officials confirmed last week. In the meantime, they reported that hundreds of tons are being trucked to landfills in the area, a situation that is causing concern in the community about increased truck traffic. “We’re not sure how long the repairs will take,” MWRA spokeswoman Ria Convery told Green Markets. “The best case situation would be mid-December; the worst case late January.” Convery reported that the plant is still able to dewater and dry but can’t do the palletizing, which leaves a lot of what is called “sludge cake” to dispose of. She said that the MWRA and its contractor, New England Fertilizer Co., are completing a damage assessment and hope to have a better estimate of how long repairs will take. She said a contingency plan has been in place for some time to deal with such an incident by trucking the sludge to predetermined landfills in the New England area and “we’ll be working closely with the community to make sure there’s not a problem. If need be, we’ll explore (transporting by) rail.” Press reports indicated earlier that rail cars were being rounded up to ship to another landfill in central Utah, but the word at New England Fertilizer was that this wasn’t the case. Convery said the fire was caused by “an accumulation of stuff” inside the vent pipe, which is about three feet in diameter and runs horizontally across the ceiling of the plant. That made it difficult for firefighters to extinguish, because it was almost impossible to get into the pipe. “So we got permission from the firefighters to use a sewer cleaning machine to suck out the burning material. But it still smoldered for a couple of days,” she said. One plant worker who was having difficulty breathing because of the smoke was taken to a hospital for observation. New England Fertilizer Co. is responsible for managing and operating the 164 dry st/d solids processing facility at Quincy. The company has contracts with local farmers and also ships biosolids to Florida and other parts of the country.

Bunge, Corn Products call off merger

White Plains, N.Y.-Bunge Ltd. said Nov. 10 that its board of directors has voted to terminate the June 21, 2008, merger agreement between Bunge and Corn Products International Inc. Bunge cited the decision of the Corn Products board to withdraw its recommendation of support for the merger agreement. “We remain disappointed with the decision of the Corn Products board to withdraw its recommendation of the merger. While we continue to believe in the long-term strategic benefits of a merger between Bunge and Corn Products, after careful consideration we have determined that it would not be in the best interests of our company or shareholders to pursue the transaction at this time,” said Alberto Weisser, Bunge chairman and CEO. “Moving forward, Bunge will continue to pursue its strategy of investing for growth in its core businesses and in complementary value chains.” Under the terms of the merger agreement, Corn Products is obligated to reimburse Bunge for up to $10 million of its costs and expenses incurred in connection with the transaction.

Anhydrous release sends 11 to hospital

Moorhead, Minn.-At least 11 motorists driving along a county road in three or four separate cars suffered shortness of breath, watering and burning eyes, and burning feelings in their chests the evening of Oct. 2 when they drove through an anhydrous ammonia cloud drifting from a nearby farm field. The Clay County sheriff’s office said the victims either drove themselves or were taken by ambulance to MeritCare Hospital in Fargo, N.D., where a spokeswoman said none of the injuries were serious. Lt. Bryan Green told Green Markets the mishap occurred around 8 p.m., when the tank became unhitched from a cultivator the farmer was using as a tow vehicle. Green didn’t know how much anhydrous was in the tank to begin with or how much had leaked, but he said the cloud, which spread across the road, was not a gigantic one. He said the safety apparently failed to function, so the farmer took it on himself to move up wind and close the valve on the tank. He said similar problems have occurred with older tanks.

LOL 3Q earnings up ten-fold

Arden Hills, Minn.-Land O’ Lakes Inc. reported a ten-fold increase in third-quarter earnings, to $59.9 million on sales of $2.9 billion, up from the year-ago $5.2 million and $2.1 billion, respectively. Nine-month net earnings were $224 million on sales of $9.4 billion, up from $137.4 million and $6.3 billion. Third-quarter agronomy earnings totaled $142.2 million, versus the year-ago pretax $6.8 million. Nine-month results were pretax $168.4 million, versus the year-ago $18 million. LOL notes that it took over the Agriliance LLC crop protection business in September 2007, thereby significantly impacting these results. Even so, it said agronomy is having a strong year, with sales and earnings ahead of expectations. Crop protection sales through September were reported at $2.2 billion.