Mac nut association's future in doubt
The Hawaii Macadamia Nut Association, which for years has represented growers and processors of mac nuts, is running low on cash and scaling back operations.
The board met Thursday to discuss the critical shortage of funding and decided to operate on a volunteer basis.
"Funding will be minimal, from those who still believe there is value in the organization," said MacFarms CEO David Rietow, the chairman of the association board. "The big loss is in the area of research and in the promotion of the Hawaiian nut as the world's finest."
Macadamia growers and manufacturers of mac nuts products do not always have the same economic interests. Growers benefit from higher prices. Processors don't. Growers want to aggressively market the Big Island mac nut brand. Processors don't, because most of them import a lot of the mac nuts they use from other places. (Rietow said, however, that foreign kernel is mixed only in products shipped to the Mainland.)
"The [association] has been struggling to find its identity for a long time," said one board member on condition his name not be used. "The funding of the organization was 99 percent from the generous donations of four or five of the larger processors and the rest from a token donation of $25 per year from the growers."
Association membership peaked years ago around 200 members. Four times as many farmers grow mac nuts. However, fewer than two dozen growers have 20 acres or more and it is these that have generally supported the association.
The board member and other sources said foreign competition sent prices lower while expenses kept climbing and growers became apathetic about supporting the association, and more recently one of the major processors decided to drop its support as well. The result has been insufficient cash to continue operating as usual.
"Hawaii macadamia growers need to take ownership of this organization or start a new one and fund it through assessments on their crops, to fund a full-time director who can assist in acquiring grants, funding important research projects and marketing 100 percent Hawaiian macadamia nuts," said Richard Schnitzler, president of Hamakua Macadamia Nut Co. and a former association board member. "Processors and manufacturers should not be allowed in the organization."
Schnitzler said this does not mean that the relationship between the processors and the growers should be adversarial.
"On the contrary," he said, "it would be important for both to share information and work together, but processors should not be left to manage or mismanage the Hawaii macadamia nut growers' future."
Members of the association include, among many others, Mac Farms Hawaii, Hawaiian Host Inc., Island Princess, ML Macadamia Orchards and Mauna Loa Macadamia Nut Co.
Tuesday, December 19, 2006
Monday, December 18, 2006
Universal to sell nonleaf units Universal to sell nonleaf units
Saturday, December 16, 2006
Richmond-based Universal Corp. said yesterday that it plans to sell its remaining nontobacco agricultural-products businesses in six to 12 months.
Universal, the world's largest tobacco leaf merchant, said selling the units will allow it to focus more management and financial resources on its core tobacco business. The company buys tobacco from farmers in the United States and other countries, processes the leaf and sells it to cigarette makers.
Universal plans to sell Red River Foods Inc. a Richmond-based trading subsidiary that imports nuts and dried fruits; Nestmink Ltd., a London-based company that sells nuts, dates and apricots; and Madera Quality Nut Inc., a California nut-processing company.
The companies employ fewer than 150 people worldwide.
In the fiscal year that ended March 31, the businesses reported combined revenue of about $325 million and a combined operating loss of about $6 million, Universal said. The company's tobacco revenue was $1.8 billion, with operating profit of about $156 million.
The company said it will use proceeds from the sales to strengthen its balance sheet. The businesses will be reported as discontinued operations for the third quarter that ends Dec. 31.
In September, Universal sold the non- tobacco businesses of a Dutch subsidiary, Deli Universal Inc., to a new company owned by Deli managers and a Netherlands-based investment group. That business included lumber and building-products distribution, and rubber, tea and sunflower seed trading. -- John Reid Blackwell
Richmond Times-Dispatch
Saturday, December 16, 2006
Richmond-based Universal Corp. said yesterday that it plans to sell its remaining nontobacco agricultural-products businesses in six to 12 months.
Universal, the world's largest tobacco leaf merchant, said selling the units will allow it to focus more management and financial resources on its core tobacco business. The company buys tobacco from farmers in the United States and other countries, processes the leaf and sells it to cigarette makers.
Universal plans to sell Red River Foods Inc. a Richmond-based trading subsidiary that imports nuts and dried fruits; Nestmink Ltd., a London-based company that sells nuts, dates and apricots; and Madera Quality Nut Inc., a California nut-processing company.
The companies employ fewer than 150 people worldwide.
In the fiscal year that ended March 31, the businesses reported combined revenue of about $325 million and a combined operating loss of about $6 million, Universal said. The company's tobacco revenue was $1.8 billion, with operating profit of about $156 million.
The company said it will use proceeds from the sales to strengthen its balance sheet. The businesses will be reported as discontinued operations for the third quarter that ends Dec. 31.
In September, Universal sold the non- tobacco businesses of a Dutch subsidiary, Deli Universal Inc., to a new company owned by Deli managers and a Netherlands-based investment group. That business included lumber and building-products distribution, and rubber, tea and sunflower seed trading. -- John Reid Blackwell
Saturday, December 16, 2006
Richmond-based Universal Corp. said yesterday that it plans to sell its remaining nontobacco agricultural-products businesses in six to 12 months.
Universal, the world's largest tobacco leaf merchant, said selling the units will allow it to focus more management and financial resources on its core tobacco business. The company buys tobacco from farmers in the United States and other countries, processes the leaf and sells it to cigarette makers.
Universal plans to sell Red River Foods Inc. a Richmond-based trading subsidiary that imports nuts and dried fruits; Nestmink Ltd., a London-based company that sells nuts, dates and apricots; and Madera Quality Nut Inc., a California nut-processing company.
The companies employ fewer than 150 people worldwide.
In the fiscal year that ended March 31, the businesses reported combined revenue of about $325 million and a combined operating loss of about $6 million, Universal said. The company's tobacco revenue was $1.8 billion, with operating profit of about $156 million.
The company said it will use proceeds from the sales to strengthen its balance sheet. The businesses will be reported as discontinued operations for the third quarter that ends Dec. 31.
In September, Universal sold the non- tobacco businesses of a Dutch subsidiary, Deli Universal Inc., to a new company owned by Deli managers and a Netherlands-based investment group. That business included lumber and building-products distribution, and rubber, tea and sunflower seed trading. -- John Reid Blackwell
Richmond Times-Dispatch
Saturday, December 16, 2006
Richmond-based Universal Corp. said yesterday that it plans to sell its remaining nontobacco agricultural-products businesses in six to 12 months.
Universal, the world's largest tobacco leaf merchant, said selling the units will allow it to focus more management and financial resources on its core tobacco business. The company buys tobacco from farmers in the United States and other countries, processes the leaf and sells it to cigarette makers.
Universal plans to sell Red River Foods Inc. a Richmond-based trading subsidiary that imports nuts and dried fruits; Nestmink Ltd., a London-based company that sells nuts, dates and apricots; and Madera Quality Nut Inc., a California nut-processing company.
The companies employ fewer than 150 people worldwide.
In the fiscal year that ended March 31, the businesses reported combined revenue of about $325 million and a combined operating loss of about $6 million, Universal said. The company's tobacco revenue was $1.8 billion, with operating profit of about $156 million.
The company said it will use proceeds from the sales to strengthen its balance sheet. The businesses will be reported as discontinued operations for the third quarter that ends Dec. 31.
In September, Universal sold the non- tobacco businesses of a Dutch subsidiary, Deli Universal Inc., to a new company owned by Deli managers and a Netherlands-based investment group. That business included lumber and building-products distribution, and rubber, tea and sunflower seed trading. -- John Reid Blackwell
Sunday, December 17, 2006
December 15, 2006
WALNUT MARKET/CROP REPORT
CROP:
The Walnut Marketing Board announced the November shipments at 47,004 inshell equivalent tons, 5,054 tons less than last year. Inshell shipments were 16.7 million pounds, 0.4 million pounds less that last October. Shelled shipments were 33.2 million pounds, 2.3 million pounds less than last year. Total inshell equivalent year to date shipments were 166,551 tons; 21,964 tons less than last year.
Please be aware that last year’s shipment numbers have been adjusted to reflect the lower shellout rates (40.7%) than the original 44.5% forecasted shellout rate. As an example, last years November shipments originally indicated we shipped 47,916 tons (inshell equivalent) about the same as this November, however, because of the lower yields; the November 2005 shipments were later adjusted to 52,058 tons.
This year (2006/07) the Walnut Marketing Board is forecasting a 42.9 shellout rate, the average for the last five years. This is 2.2% more than last years final 40.7% yield, however, most of the industry is reporting lower yields from the 2006 crop than last year. If this becomes the case, the shellout rates will once again be adjusted downward.
The final crop tonnage will be out in late January and the majority of the growers/packers believe it will be under the 350,000 ton estimate. This makes the shellout rate situation even more critical as it will also have an impact on the final crop tonnage.
The overall quality of the crop was above average. The expected heavy sunburn damage never happened and the crop yielded above average “lighter“kernel’s and lower than average “darker” kernels. This has been reflected in the market as most packers have withdrawn on both Combo and Baker type material. In addition, it appears that medium and small piece material will also be in short supply.
MARKET:
The Inshell market remains firm with Jumbo trading on both sides of $1.06. I do not see much change in the forward market. The Shelled market is also firm with Chandler LHP trading around the $2.70 levels and medium and smaller pieces five to ten cents higher.
Most packers have withdrawn from the market on Combo and Baker material and the few that still have inventories are asking $2.50 for Combo Halves and Pieces and $2.30 for Baker type products.
I still believe the crop will come up short of the forecast and firmly believe the market will continue to strengthen as we go forward.
WALNUT MARKET/CROP REPORT
CROP:
The Walnut Marketing Board announced the November shipments at 47,004 inshell equivalent tons, 5,054 tons less than last year. Inshell shipments were 16.7 million pounds, 0.4 million pounds less that last October. Shelled shipments were 33.2 million pounds, 2.3 million pounds less than last year. Total inshell equivalent year to date shipments were 166,551 tons; 21,964 tons less than last year.
Please be aware that last year’s shipment numbers have been adjusted to reflect the lower shellout rates (40.7%) than the original 44.5% forecasted shellout rate. As an example, last years November shipments originally indicated we shipped 47,916 tons (inshell equivalent) about the same as this November, however, because of the lower yields; the November 2005 shipments were later adjusted to 52,058 tons.
This year (2006/07) the Walnut Marketing Board is forecasting a 42.9 shellout rate, the average for the last five years. This is 2.2% more than last years final 40.7% yield, however, most of the industry is reporting lower yields from the 2006 crop than last year. If this becomes the case, the shellout rates will once again be adjusted downward.
The final crop tonnage will be out in late January and the majority of the growers/packers believe it will be under the 350,000 ton estimate. This makes the shellout rate situation even more critical as it will also have an impact on the final crop tonnage.
The overall quality of the crop was above average. The expected heavy sunburn damage never happened and the crop yielded above average “lighter“kernel’s and lower than average “darker” kernels. This has been reflected in the market as most packers have withdrawn on both Combo and Baker type material. In addition, it appears that medium and small piece material will also be in short supply.
MARKET:
The Inshell market remains firm with Jumbo trading on both sides of $1.06. I do not see much change in the forward market. The Shelled market is also firm with Chandler LHP trading around the $2.70 levels and medium and smaller pieces five to ten cents higher.
Most packers have withdrawn from the market on Combo and Baker material and the few that still have inventories are asking $2.50 for Combo Halves and Pieces and $2.30 for Baker type products.
I still believe the crop will come up short of the forecast and firmly believe the market will continue to strengthen as we go forward.
Pecan production drops 33 percent in 2006
TULSA, Okla. The government is predicting a 33 percent drop in pecan production in Oklahoma this year, but some experts believe the crop could be even smaller.Oklahoma ranks fifth nationally in pecan production and recorded a record crop of 63 million pounds in 1999. Pecan growers harvested about 20 million pounds last year.
But the U-S Department of Agriculture says Oklahoma will produce 14 million pounds of pecans this year. The harvest could be as low as only 8 million to 10 million pounds.
Drought, bugs, animals and high fuel prices plagued producers, which means higher prices for shoppers.
The U-S-D-A says pecan production nationally will be 190 million pounds, down 5 percent from October's outlook and 32 percent below last year.
TULSA, Okla. The government is predicting a 33 percent drop in pecan production in Oklahoma this year, but some experts believe the crop could be even smaller.Oklahoma ranks fifth nationally in pecan production and recorded a record crop of 63 million pounds in 1999. Pecan growers harvested about 20 million pounds last year.
But the U-S Department of Agriculture says Oklahoma will produce 14 million pounds of pecans this year. The harvest could be as low as only 8 million to 10 million pounds.
Drought, bugs, animals and high fuel prices plagued producers, which means higher prices for shoppers.
The U-S-D-A says pecan production nationally will be 190 million pounds, down 5 percent from October's outlook and 32 percent below last year.
Monday, December 04, 2006
MACADAMIA FACTS
• The macadamia was discovered in Australia in 1858 and introduced to Hawaii in 1881.
• It is grown on a large scale only in Hawaii and Australia but also is produced in South Africa and Central America.
• There are approximately 40 described varieties, most of them in Australia.
• The trees grow in warm, subtropical conditions. Mature trees can withstand temperatures as low as 25-26 degrees Fahrenheit.
• They often are sold as salted nuts packed in glass jars. Their largest use is in confections.
• Hawaii produced 30,000 tons of macadamia nuts, with a farm value of $44.4 million, in 2005-06.
• In 2005-06, U.S. imports totaled 8.9 million tons; exports amounted to 784 tons.
• The edible kernel is enclosed in a thick, hard shell that is encased in a husk.
• The kernel is 72 percent to 78 percent oil.
SOURCES: University of Florida, U.S. Department of Commerce, U.S. Department of Agriculture
• The macadamia was discovered in Australia in 1858 and introduced to Hawaii in 1881.
• It is grown on a large scale only in Hawaii and Australia but also is produced in South Africa and Central America.
• There are approximately 40 described varieties, most of them in Australia.
• The trees grow in warm, subtropical conditions. Mature trees can withstand temperatures as low as 25-26 degrees Fahrenheit.
• They often are sold as salted nuts packed in glass jars. Their largest use is in confections.
• Hawaii produced 30,000 tons of macadamia nuts, with a farm value of $44.4 million, in 2005-06.
• In 2005-06, U.S. imports totaled 8.9 million tons; exports amounted to 784 tons.
• The edible kernel is enclosed in a thick, hard shell that is encased in a husk.
• The kernel is 72 percent to 78 percent oil.
SOURCES: University of Florida, U.S. Department of Commerce, U.S. Department of Agriculture
Subscribe to:
Posts (Atom)
