Industry News: May 2007

Higher cereal inputs only one of pressures on plant managers, Can-Oat Milling completes Man. expansion, Total system solutions agreement by Peerless and Turkington APV, Food crop losses blamed on climate changeBuckhorn acquires strategic Schoeller assets

Higher cereal inputs only one of pressures on plant managers
Standard & Poor’s (S&P) reported that input and energy costs for commodities such as wheat, corn and barley will remain high on the list of pressures plant managers face in 2007.  With the peak in energy prices and commodity supplies constraining or depressing profitability of food manufacturers, as a result of their ability to pass on cost increases to end consumers, S&P stated such continuing pressures put the onus on food plant managers to increase the efficiencies of their operations and supply chains, and to cut any remaining fat out of their operations.  While S&P expects the input cost pressure from oil-related products and oil itself to moderate from historically high levels, it predicts increasing prices for agricultural commodities.

Can-Oat Milling completes Man. expansion
The subsidiary of the Saskatchewan Wheat Pool, Can-Oat Milling Inc., announced completion of its facility located in Portage La Prairie, Man.  The facility expects to process an additional 50,000 metric tones of oats, bringing its total milling capacity to over 380,000 metric tonnes per year.  Primary a processing capacity, flaking capacity, onsite storage and in-house workspace were added as a result of the expansion as well.  Can-Oat is the largest industrial oat processor in the world, operating three state-of-the-art oat milling facilities in Canada.

Total system solutions agreement by Peerless and Turkington APV
Industrial bakery equipment manufacturers, Turkington APV, of North Carolina, and The Peerless Group, of Ohio, have agreed to supply each other with selected products for the North American, Canadian and Mexican bakery industries.  John Lucas, CEO of Turkington APV, said, “By partnering with Peerless, we are able to offer our customers total system solutions based on best-in-class products.”

Food crop losses blamed on climate change
Researchers at the Carnegie Institution reported that warming temperatures have caused annual losses of approximately five billion dollars (US) for major food crops, since 1981 through 2002.  Production of key cereal grains – wheat, corn, and barley – are down by 40 million metric tonnes per year, linked to human-caused increases in global temperatures.  “A key moving forward is how well cropping systems can adapt to a warmer world,” said a researcher.  “Investments in this area could potentially save billions of dollars and millions of lives.”

Buckhorn acquires strategic Schoeller assets
The parent company of Buckhorn Inc. has acquired the Xytec® line of collapsible pallet containers and the Combo™ line of intermediate bulk containers, both assets of Schoeller Arca Systems Inc., North America.  “Both these fine lines will now be fully integrated with the Buckhorn brand of material handling products,” said Jim Morrison, VP and general manager of Buckhorn Canada Inc., based in Brampton, Ont.