TUSAF’s 11th Congress 2015: Wheat and Health begins

Chairman of TUSAF, Mr Erhan Ozmen once again opened the 11th TUSAF (Turkish Flour Industry Federation) Congress this morning.

Erhan Ozmen

Erhan Ozmen

After a moving 1 minute of silence to recognise the many industry members who died in 2014, to bless them and their families, everyone then stood for the national anthem before Erhan Ozman, Chairman of the executive board took the stage for his opening speech. With a focus on Wheat and health there is Mach to cover in regards to the issues taking place regarding the increased movement not to eat white foods including breads. Mr Ozmen continued asking the conference to recognise international women’s day on the 8th March, repelling the story of 1857 on the 8th March, when in New York women campaigned for their rights and 129 lost their lives in the demonstrations. He went on to explain that it is normal to think that:
a) a man is successful until he fails.
b) a woman is a failure until she succeeds
He went on to say, that this is changing and must change faster, it is the women who care for and nurture our young with love and affection just like Mother Earth who has supplied us with wheat which we have been consuming for 1000s of years.

Mr Ozmen continued to talk about the continued momentous growth in wheat yields and the growth in exports and finished of with a reminder to continue the combat against diminishing the importance of bread. His final words were, “We hope the conference will benefit all humanity”.

Erhan Ozmen takes the floor

Erhan Ozmen’s opening speech

Entire TUSAF 2015 Congress hall

Entire TUSAF 2015 Congress hall

TUSAF 2015 - Congress front row

TUSAF 2015 – Congress front row

Flour Mills of Nigeria: Financial Charges a Threat

(Originally published on 4th March 2015 at This Day Live)

Goddy Egene writes that high financial charges as a result of huge borrowings by Flour Mills of Nigeria are big threat to the company’s profitability

Flour Mills of Nigeria (FMN) Plc is one of the leading companies listed on the Nigerian Stock Exchange (NSE) and the clear leader among the flour milling industry.  In the food products subsector where FMN is listed, it is the highest priced at N34.50 at the end of February. The closest to it is Northern Nigerian Flour Mills, which closed at N18.05.  The other two flour milling firms, Dangote Flour Mills and Honeywell Flour Mills closed at N3.53 and N2.98 respectively.

Although the three stocks are trading below their 2015 opening values, FMN has a better performance so far as it closed at the end of February with  a decline of 11.9 per cent. Dangote   Flour Mills   shed 22 per cent, while Honeywell Flour recorded a decline of 14 per cent.

Despite the  better market statistics of FMN,   the shareholders of the company  have every cause to worry given  the company’s nine months  results ended December 31, 2014. Its net profit dipped by about 44 per cent in 2014 compared to corresponding period of 2013.
Corporate Profile
Established in September 1960  as a private limited liability company, FMN commenced operations in 1962 with an installed capacity of 600 metric tons per day.  It became a public limited liability company in 1978 and got listed on NSE. Flour Mills has a mill located in Apapa, Lagos which comprises 10 integrated mills.  The company’s shares are 51.5 per cent held by Excelsior Shipping Company Limited, while the balance of 48.5 is held by other shareholders.  The board of directors of FMN is led by Mr. John G. Coumantaros as chairman and Mr. George S. Coumantaros, who is the founder as chairman emeritus. Mr. Paul Gbedebo is the group managing director/CEO.  Other directors are: Alhaji Abdullah A. Abba; Chief James O. Fagbemi; Prof. J. Gana; Alhaji Rabiu M. Gwarzo; Mr. John Katsaounis; Mr. Thanassis Mazarakis; Mr. Atedo N.A Peterside; Mr. F. O. Philips; Alhaji Y. Olalekan A. Saliu; Mr. Folarin R. A Williams Jnr.

Nine months results
FMN ended the nine months with revenue of N244 billion in 2014, up from N240 billion in 2013. Cost of sales went up from N215 billion to N222 billion, while gross profit fell from N24.3 billion to N22.3 billion. Although other operating income grew from N2.7 billion to N4.8 billion, that growth was moderated by a similarly increase in selling and distribution expenses from N3.5 billion to N4.6 billion. Consequently, operating profit fell from N14.75 billion to N14.32 billion. Investment income fell from N4 billion to N3.4 billion. However, finance income rose from N10.5 billion to N15.3 billion.

Despite reducing income tax from N2.418 billion to N401 million, FMN ended the year the period with a lower profit of N3.29 billion, down from N5.9 billion in 2013.
Analysts’ Assessment
Assessing the results of FMN, analysts at Dunn Loren Merrifield said the revenue growth is not in line with demand for flour and associated products.
According to them, the sustained demand for flour-based products, given their increasing use in staple foods –supported by the increasing consumption of the nation’s youthful population.

“In addition, the fact is that there was no major price increases to induce a slowdown in demand for its products during the period. Given this, in our view, FMN was unable to take advantage of the demand as the firm’s market share appeared to gradually wane given the growing competition in the market – on the back of increased flour supply in Nigeria’s flour market. This may have limited FMN’s ability to drive volumes and influence prices that would have impacted revenue growth,” they said.

The analysts, however, said they maintained  a positive outlook on the company as  they  are optimistic that recent investments in core food and agro-allied business would  propel FMN to deliver optimal returns in the medium-to-long term.

“An indication of this is the company’s diversification into food drink production with the introduction of Kool2GO instant powdered drink which is now available for commercial sales. The Kool2GO instant powdered drink comes in sachet size….. This is in addition to the FMN’s snacks and other range of products, like Marios Cheese Balls, Noodies Sweet Snacks and Golden Bites chinchin. In addition, the firm also planned investments in the production and processing of locally grown rice through the participation of local farmers and other stakeholders in the supply chain. The success of these products and investments will boost the overall revenues of the firm and impact on the bottom line in the medium-to-long increase in operating expense depressed operating profit of the company,” they said.

The analysts added that operating expenses of the company depressed operating profit.

“FMN’s operating expenses (selling, distribution and administrative expenses) increased by 4.34 per cent to N12.83billion from N12.30billion in the corresponding period of the preceding year. As a result, core operating profit declined by 21.41 per cent to  N9.49billion, as against N12.1 billion  the previous period.  The growth in operating expense also impacted the firm’s EBIT which declined by 3.00 per cent N14.32billion  in spite of a 80 per cent increase in other income to  N4.83billion.. We note that the growth in operating expenses was largely due to investments on selling and distribution during the period as the firm attempt to enhance marketing and distribution efforts so as to drive higher sales volume. Consequently, operating margin fell to 3.90 per cent from 5.03 per cent in the same period of previous financial year. The increase in operating expenses coupled with a corresponding increase in COS, resulted in total cost/revenue ratio of 96.12 per cent, which is higher than 94.97 per cent recorded in the previous financial year. This implies that, in generating unit of sales revenue in the review period, FMN incurred additional expenses,” they said.

Increased Financial Charges Depressed Profits
FMN finance charges accelerated by 45.10 per cent N15.34billion, as the firm’s gross debt increased by 26.34 per cent to N192.00billion,  from N152 billion.
“We note, however, that the firm’s investments in agro-allied and core food businesses led to increase in borrowings and consequently to high interest expense. In response to the acceleration in finance charges, profit before and after tax fell below expectations.

Specifically, FMN’s profit before tax fell 55.73 per cent to N3.70billion, from N8.35 billion, with a corresponding decline in pre-tax margin to 1.51 per cent compared with 3.45 per cent in the same period of previous financial year. In addition, in spite of an 83.40 per cent decrease in income tax provision, post-tax profit contracted by 44.46 per cent to N3.30billion from N5.93billion in the prior year. Consequently, post-tax profit margin fell to 1.35 per cent from 2.47 per cent recorded in the prior year,” the analysts said.

Borrowings Increase Leverage Position

The increase in debt has led to an increase in debt-to-equity ratio from 1.82x  to 2.40x indicating growing balance sheet leverage. In addition, debt-to-assets ratio increased marginally to 0.59x from 0.51x in 2014.

“This implies that the company financed 59 per cent of its assets with debt. The debt-to-assets ratio is high but still within acceptable levels. In addition, assets-to-liabilities ratio, another measure of solvency, came in at 1.33x from 1.39x in 2014. The ratio remains at a moderate level in our view and suggests that the firm’s assets can sufficiently cover its total liabilities in the medium-to-long term if effectively utilized. The moderate debt/assets ratio led us to the conclusion that the firm has a moderate risk profile but can repay its long term loans, interests and meet other financial obligations,” they said.

 

(Originally published on 4th March 2015 at This Day Live)

Flour Mills of Nigeria plc

Flour Mills of Nigeria plc

FAMSUN’s latest achievments and The 2nd Manufacturing Skills Competition

Manufacturing is vital for Muyang’s Flawless Project Delivery (FPD) in providing quality machines and equipment. The manufacture team of FAMSUN Feedmill Solution since moving into the new, state-of-the-art facility in May 2013 has continuously updated their knowledge, skill and standards in machine manufacturing and new tools using, and has made great achievements in the past one and a half years.

FAMSUN

FAMSUN

By cooperating with leading manufacturing tool companies, FAMSUN introduces advanced production technologies such as CNC machining centers, welding robots, chain assembly systems, lean manufacturing management, etc. in its workshops, to produce extra precision and high quality for every piece of FAMSUN product from material processing to machining, painting and assembly. The manufacturing unit also owns the first grinder assembly line in the industry. It has now been able to produce all machines, spare parts, and pre-fabricated parts for various kinds of feed mills’ production demands. Since moving to the new industrial park, FAMSUN manufacturing team has been endeavoring to improve the efficiency of the production lines and the quality of the products. The on-time delivery of machine exceeded 99% in 2014 and products accepted by Quality Control (QC) Department are at nearly 100%.

The manufacturing team carried out innovations in technological process, general arrangement and logistics so as to deliver the products in time and increase efficiency. At the clearing up of system data, the number of expired orders has dropped dramatically and manual ordering is weeded out. As a result, the accuracy of the data has been increased. In 2014, FAMSUN Feedmill Solution manufacturing team carried out an environmental responsibility plan to eliminating noise and controlling fire risk. By organizing Continuous Improvement Process (CIP), the team has solved 66 product polishing and welding problems and put forward 101 quality
improving suggestions. In carrying out this plan, the team has successfully applied a national patent — Automatic Assembly Device. Through these measures, the product quality has been improved and customer’s satisfaction has been raised.
The 2nd Manufacturing Skills Competition

The second manufacturing skills competition was hosted on November 6th 2014 in FAMSUN’s workshops. This year’s competition is not only participated by Muyang’s FAMSUN Feedmill Solution stuff but also suppliers. Overall, the competition attracted 217 participants, including 87 suppliers. The skill competition includes argon arc welding, gas metal shielded arc welding, lathe machining, painting quality troubleshooting, SAP operation, material identification, forklift truck driving, etc. After fierce competition, one of the local supplier won the Best Group Award, and 57 participants won the first, second and third prizes. The good quality of every Muyang product depends on not only cutting-edge manufacturing tools, but also dedicated workmanship of operators and their knowledge and experience as well as outsourcing parts with same quality standards. The skill improvement, knowledge sharing and training of its stuff
and suppliers’ stuff ensures Muyang to keep growing with a good team by creating quality products and satisfied customers.

The MPE Chain-Vey® for Pet Food

CHICAGO, IL — Modern Process Equipment Corporation (MPE) features its Chain-Vey® tubular drag conveyor exclusively designed for the superior transport of pet food products. From raw ingredients to finished, ready-to-package goods, the MPE Chain-Vey® offers the most gentle and energy efficient transportation for all phases of your production process. Its flexible design and compact footprint is sure to fit virtually any facility configuration. With a dust-tight enclosed design, you can be certain your pet food is protected from the surrounding environment. The MPE Chain-Vey® also features clean-in-place capabilities with automated wash cycles for sanitary conveying needs. Better pet food requires a better conveying solution. Better pet food requires the MPE Chain-Vey®.

For more information, please visit www.chainvey.com or contact MPE directly at solution@mpechicago.com.

About MPE

Modern Process Equipment Corp. (MPE) is the world’s leading manufacturer of precision particle reduction equipment. MPE has been supplying its customers with superior particle size reduction solutions for over fifty years, earning the reputation as the place to go to improve product yields and reduce the generation of unwanted fines. MPE aspires to design and manufacture the most modern, innovative and highest quality equipment with the most responsive, practical and timely service possible. For more information about MPE’s complete line of equipment, contact Modern Process Equipment, Inc. 3125 South Kolin Avenue, Chicago, IL 60623; call +1 773-254-3929; visit www.mpechicago.com.

MPE Chain-Vey®

MPE Chain-Vey®

 

GEAPS Exchange 2015

The International Milling Directory is proud to be a media partner and exhibitor again at GEAPS Exchange 2015. Taking place in St. Louis, it is sure to be a great event in the heart of the mid-western region. International Milling Directory members such as Bühler Inc, MFS, 4B, Tapco, The Mathews Company, Seedburo, Brock, Chief Agri Industries and many more.

The February issue of Milling and Grain will include a GEAPS preview, with exclusive exhibitor products and more to help you at the event. Pass by our stand to find Mark, Martha, Darren and Tom at the event.

 

Exchange 2015

Exchange 2015

Invitation from Muyang Group China at Rice Milling Expo 2015

Perendale is an official agent of the Rice Milling Expo 2015. The complete solution provider for rice milling machinery, Muyang, extend their invitation to welcome you to their stand next month at the Expo. More details below.

Muyang Group China cordially invites you to visit its stall no. 125 at Rice Milling Expo – India’s Largest Technology Oriented International Expo & Conference on Rice Milling Industry scheduled from 6th to 8th February 2015 at New Grain Market, Karnal, Haryana, India.

 

See more at www.ricemillingexpo.com.

Oilseed Congress debut brings exclusive content on oilseed complex in Europe/MENA to Barcelona

DANVERS, Mass., USA– HighQuest Group will expand its oilseed conference offerings with the debut of the new Oilseed Congress Europe/MENA in Barcelona, Spain, on 9-10 February 2015 at the Hotel Arts. The event will provide exclusive content on the current state and outlook for the oilseed complex in Europe and the Middle East/North Africa and how global trends are likely to affect the sector.

This one-and-a-half day event is fashioned after the company’s successful U.S.-based Oilseed & Grain Trade Summit, which is now in its tenth year and is highly regarded for providing timely content and outstanding networking opportunities for participants operating across the oilseed and feed grains supply chain.

As with the U.S. event, the content for the Oilseed Congress has been tailored to address the needs of its audience, focusing on issues that have a direct impact on importers and exporters, merchandisers and traders, service providers, and primary processors and downstream consumption markets in feed, food, biodiesel and industrial applications. Unique challenges and opportunities facing those active in this sector in Europe and the MENA region will be addressed, including:

  • What factors will drive the trade of oilseeds and derivative products over in the next 12 months, primarily in Europe, but also in North and South America and Asia?
  • What trends are apparent in the quality level of oilseeds and their derivatives in the major origins?
  • What is the expected future competitiveness between different vegetable oils used in a range of applications (food, biodiesel and industrial) and how will this affect trade flows for vegetable oils?

The topics for day two of the conference include risk management strategies, freight market and trends, developments in trading rules and arbitration, and trade financing, including what kinds of innovative trade financing facilities are available in the European/MENA market today.

For more details, visit www.oilseedcongress.com.

Register for the event with a 10% discount using promo code: #3PR-OCE15. Also check out the agenda for the co-located Women in Agribusiness Summit Europe, which will provide insightful industry content, professional development skills and strategies for success for women across the agribusiness value chain.

 

Connect with us: on Twitter @oilseedandgrain, Facebook and LinkedIn.
________________________________________________________________________

HighQuest Group, headquartered in Danvers, Mass., USA is a globally recognized strategic advisory and industry conference company serving the food, agriculture and biofuels markets. www.highquestgroup.com.

 

CONTACTS:

In the U.S.

Michelle Pelletier Marshall
mmarshall@highquestpartners.com
+1.978.887.8800, x117
In Barcelona:

Claudia Vesquez Alarcon
claudia@origenalstory.com
Land line: +34 938 335 071 | Skype: Claudia_biz

In Cape Town? Millers can claim a free space at the FFI conference!

See the weblink below for more about the one day conference! Free places for millers still available. Wednesday 3 December, 9am – 4pm, Radisson Blue Waterfront Hotel, Cape Town, South Africa. The conference is perfect for attendees of the IAOM MEA conference and expo taking place from Wednesday night to Saturday night and who are already in Cape Town.

FFI link to attend HERE

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Seventh generation of Mosse family continues tradition of milling in Kilkenny

Small business: FutureProof – Kells Wholemeal supplies the bakery and retail trade with flour and bread mixes, by Alison Healy

Seventh generation of Mosse family continues tradition of milling in Kilkenny

Flour is definitely in the DNA of the Mosse family. They have been milling on the banks of the River Nore in Bennetsbridge, Co. Kilkenny for seven generations and managing director Robert Mosse believes the business can survive for as long more if it continues to adapt to change.

The family business started as WH Mosse, but today it’s known as Kells Wholemeal. It is the only stoneground mill using traditional methods to produce on a commercial scale for the bakery and retail trade.

It employs 27 people to make its stoneground wholemeal flours and mixes which are sold here and in Britain and France.

The milling industry has gone through many changes, but Robert’s grandfather Patrick met the challenge of flour quotas head-on in the 1960s. While the quotas restricted the production of flour, they didn’t affect the production of bread mixes so this is what he started to do. The family soon became famous for Mosse’s brown bread mix.

Read more: Seventh generation of Mosse family continues tradition of milling in Kilkenny, at the Irish Times