Milling News
COMPANY UPDATES Keeping the faith as the US Trumps Brexit by Chris Jackson, Export Manager UK TAG This month’s column follows some very unpredictable electoral results in the free world. First the UK decided to turn its back on Europe and voted to leave the EU Brexit, which British politicians did not expect after 50 years within, and as I recall ,a struggle to get Europe to allow us in. I’m sure we all remember President De Gaulle absolutely opposed to UK entry in to what was then the European Economic Community; a far cry from “political union” although that was written in the small print but never clearly explained to the British public. Way back then we had a referendum to take us in, now we have had another referendum the result of which was leave. Something our professional politicians are finding hard to perceive along with those who voted to remain however if you believe in democracy a majority, no matter how small, has to be accepted. Then we saw the American people voting in Donald Trump against all the odds. From my perspective, our professional media driven political elites have not yet woken up to the fact that maybe the people are tired of our politicians who see politics as a career to enhance their own incomes and egos, and not a calling to serve the population. But where does that leave my country now? Unelected bureaucrats, who have been making more and more rules for us to follow, whilst telling us that we must be austere as they increase their own salaries, will no longer govern us. This leaves people under the age of 50 with an inbuilt problem in that they have not known a world not thus ruled. I think that our new status in the world now needs to be addressed and the challenges accepted. Although it is not acceptable that the values of the British pound plummeted, driven by the international money gamblers. Now is the time for all politicians to talk about all of the positives that the UK has to offer. With a low pound inward investment and exports both very attractive as things stand. The UK needs to work actively on 32 | December 2016 - Milling and Grain
these positives. Fortunately for us Brits, the country remains well respected throughout the world as a stable honest and reliable partner. The EU will be the poorer for us leaving, as their institutional governing bodies were unable to adapt to a changing world. How is this relevant to our industry? In a world of global trade, education and industrial development are key. Our departure from the EU means that we can better trade with the world, because in reality the UK is a major net importer from the EU so I doubt that their companies are in suicide mode they will want to stay exporting to the UK which by default means that we can continue to supply them. However, on a very positive note, we will be able to trade outside of the EU more easily where counties that rely heavily on their agricultural industries are very keen to embrace the UK, recognising the high quality of our scientific research and development. This in turn will benefit from encouraging entrepreneurs and scientists to base in the UK and further enhance the work currently being undertake. Life is full of exciting challenges and I feel sure that our industry will be able to accept this and in the long-term benefit from it. As it looks now with a new American President who seems to be looking at US protectionism again there will be another void that away from Europe the UK should look to fill. In these initial stages of departing after 50 years, there will be uncertainty but we need to have faith in the UK’s ability and go on to develop fresh new markets. Let our industry set an example as innovative thinkers and developers We have many opportunities and can help companies promote themselves in Kiev In February and Bangkok in March at trade fairs where we will also see the best that our competitors offer and the challenges that we have to meet. I do hope that we can meet our readers at these two events before we move on into the next financial year. Finally, I would like to take this opportunity to wish all of you a very Happy Christmas and a very healthy and profitable 2017. @AgrictecExports
Bloomberg have reported that Olam International Ltd, the Singapore commodity trader controlled by the city’s state investment company, reported a 30 percent drop in third-quarter profit after a one-time gain in the same period a year ago wasn’t replicated sales of food staples declined. Net income was S$31 million ($22 million) compared with S$44.3 million a year earlier, Olam said Friday in a statement. The year earlier result was boosted by one-time gain of S$12.1 million. Operational profit after tax and minority interest rose 6.2 percent to S$34.2 million. Sales in all of the company’s units increased in the quarter excluding the staple and packaged food unit, which dropped 31 percent on lower prices and volumes of grains, sugar and rice. The Uruguayan dairy unit also continued to underperform, with Olam flagging a likely one-time charge on the unit this quarter.
Archer Daniels Midland Company announced today that it has entered into an underwriting agreement to sell its 19.9 percent ownership stake in GrainCorp Limited for a total value of about A$387 million. “As part of our ongoing portfolio management, we carefully considered our equity investment position in GrainCorp and determined that we could better meet our long-term returns objectives by reallocating that capital,” said ADM Chairman and CEO Juan Luciano. “This transaction will allow us to further reduce our invested capital, and it will provide cash that we can redeploy to higher-return investments as we continue to execute our balanced capital-allocation framework. The transaction has been executed by way of an underwritten sale to an underwriter.