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23 posts categorized "Ag biz"

October 25, 2013

Roch. Feed and Seed to plant 2nd store

Rochester Feed and Seed plans to fill a need by opening a second store here.

Netta Putzier and Bob Kopplin, who co-own the popular pet food and country living store at the corner of South Broadway and U.S. 14., doubled their presence by opening another Rochester Feed and Seed at 3155 Wellner Dr. N.E. That puts them across East Circle Drive from the Paragon Chateau 14 movie theater.

Rochfeedseed"Customers have been asking when we're opening a store on the north side of town for a while, so now we are," said Putzier. "There are a lot of people in that area who own companion animals."

Painting and construction already are underway, and she hopes to open the new 2,800-square-foot store by mid-November.

"The colors are great there. We're very excited about this," she said.

She expects to add three or four more employees to handle staffing for the second store. The original store in southeast Rochester has 10 on staff.

The store will carry an array of pet foods, accessories, bird seed for feeders and more. In an effort to control quality, Rochester Feed and Seed stocks products made in the U.S., whenever possible.

"People are very protective of their pets. They are members of the family these days," she said.

While the new, smaller shop will have the same focus as its older sibling, Putzier said it won't carry the clothing lines nor will it offer pet grooming services provided at the other site.

In 2008, Rochester Feed and Seed relocated from Marion Road to the spot at the corner of South Broadway and U.S. 14. That proved to be a very good move for the store.

"The people of Rochester are great. They buy local and support stores like ours," said Putzier. "You treat them right and they keep coming back."

December 03, 2012

Railroad puts brakes on DM&E expansion plan

Here's some from a good piece by my colleague Mike Klein. It looks like the more-than-a-decade battle to keep the DM&E from running more coal through Rochester may have come to an end with a whimper rather than a bang.

Of course, now that silca sand and fraccing is hot, that might become the new coal and be a future reason to ramp up. Life on the rails is unpredictable.

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Canadian Pacific is dropping plans to extend its rail network into the Powder River Basin, abruptly ending Rochester's decades-long fight to stop the increased coal train traffic through town planned as part of that $6 billion plan.

DM&EThe railroad's announcement this morning will likely be followed by more news, as new CEO Hunter Harrison will be meeting with executives Tuesday to announce plans moving forward, spokesman Ed Greenberg said. The railroad has been reviewing its entire network, he said.

When CP acquired the Dakota Minnesota & Eastern railroad in 2007 for $1.48 billion, it also acquired the option to build a 260-mile extension of its network into coal mines in the Powder River Basin in Wyoming. Now Canadian Pacific will take a fourth quarter charge of approximately $180 million on its books, on its option to build there.

"It is CP’s intention to defer indefinitely plans to extend its rail network into the PRB coal mines based on continued deterioration in the market for domestic thermal coal, including a sharp deterioration in 2012," the company said.

The low price and increased availability of natural gas has cut into coal usage in recent years.

"We believe it is a prudent decision to defer the network into the Powder River Basin when you consider the long-term prospects of coal," said Canadian Pacific spokesman Ed Greenberg.
Train
Olmsted County Commissioner Ken Brown said the announcement is a "good deal" for Rochester, but he cautioned that Canadian Pacific is trying to sell those tracks, and a new buyer could proceed with the Powder River Basin plan.

"In the future, who knows what could happen," said Brown, who serves on the Rochester Coalition opposing the increased rail traffic. "It could be a long time before anything could happen. It looks like it's not something to worry about imminently. In the future, if they sell it, maybe it will be, but that's down the road."

Right now, Canadian Pacific moves about about two to four trains every 24 hours through the Rochester area with "mixed freight," mainly steel and grain.

Rochester’s history of conflict with DM&E dates to 1998, when the railroad announced its plans to extend its line 260 miles west to coal fields in Wyoming’s Powder River Basin. The coal-line plan alarmed Rochester-area officials because of the likelihood it would bring increased and heavier, faster traffic through the city.

The Mayo Clinic, the city of Rochester, Olmsted County and the Rochester Area Chamber of Commerce teamed up to form the Rochester Coalition to oppose the bypass.

October 23, 2012

S.E. Minn.'s corn harvest comes in early, piled high

Forecasts about how good the corn harvest would be in parts of southeastern Minnesota have turned out to be wrong.

It is a lot better than anyone dared to predict.

In contrast to the rest of the drought-blasted Midwest, the area's rain-favored fields are bursting with a cornucopia of corn.

10232012cornharvest"I believe this is one of the largest harvests ever, if not the largest, for this area," said Tim Clemens, Greenway Cooperative's general manager. Greenway runs grain elevators  in Byron, Kasson, Dodge Center and West Concord. That puts Greenway's elevators right in the middle of the local corn boom.

With about 95 percent of this year's unusually early harvest completed, farmers are bringing in an average of 170 bushels per acre, with prices running more than $7 a bushel.

Ryan Buck, vice president of the Minnesota Corn Growers Association, farms more than 1,000 acres on a family farm in Goodhue County. He said he has already wrapped up the corn harvest, about three weeks earlier than last year. Last year's crop was "very good," but this year's harvest far exceeds it.

"Much of southeastern Minnesota is kind of a Garden of Eden," Buck said. "The quality of the corn this year is the best I've ever seen."

Clemens said all of Greenway's 5 million bushels of storage, plus more stored in related facilities, is full of grain. That's despite recently adding 1.1 million more bushels in storage.

Greenway has about a quarter million bushels on the ground outside storage bins, he said. Storing outside costs farmers and the cooperative money by lowering the value of the corn. That's not a big deal when corn is selling for $3 a bushel, but it's significant at this season's high prices.

He said the corn harvest is running 10 percent to 15 percent better than even the most optimistic forecasts. That's following a bumper crop of soybeans, which filled more grain bins than expected.

Another twist to this historic harvest is that it is happening so early. Harvests often extend into late November, but this harvest is expected to be mostly done by the end of this month.

"Everyone was kind of caught with their pants down with this harvest," Clemens said. "It is exploding. It is coming in faster than ever before."

While local grain elevators are bursting at the seams, this is an oasis amid a desert of drought-stunted fields across the Midwest. The drought is driving up prices, and grain rationing is being discussed by U.S. agriculture officials. Some livestock and dairy producers are selling off animals because they can't afford to feed them. Some ethanol plants are halting production.

"It certainly hasn't been all roses for everyone," Buck said. "This was kind of a fluke year. That's kind of the beauty of farming. No two harvests are ever the same."

That means that area farmers are in the unheard-of position of having more grain than usual just as prices are running high. Still, that doesn't add up to winning the lottery, because farmers' costs for seed, fertilizer, fuel and most everything else are also higher this year.

Much of this year's corn probably won't be sold for the sky-high prices. Farmers often contract early in the year to sell their future grain at a certain price. That means that despite the high prices, a lot of the bounty from this area could be sold for $5 to $6 a bushel.

However, there is no question that it is much better to be bringing in a record harvest than scraping together grain from drought-blighted farms, like the majority of U.S. grain farmers are doing.

As the harvest rolls to its end, the push is shifting toward figuring out how to ship all of this high-dollar corn out to buyers.

September 07, 2012

Elgin sees massive, $6.5 million grain elevator expansion

WARNING: This is the raw 'adult' version of this article featuring language not suitable to be printed in a family newspaper. You might want to ask the children to leave the room. Heh.

Joking aside, this is a very impressive business investment for any place and it is truly towers over Elgin.

Hat tip to PB photog extraordinare Ken Klotzbach for great pics that show the massive scale of this expansion.

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ELGIN — A visitor at All American Co-op's open house to show off its new $6.5 million expansion in Elgin blurted out what many were probably thinking while standing inside a cavernous 1 million bushel storage bin Wednesday night:

Get_photo"That's one fricking huge grain bin."

The expansion project was built on a gigantic scale, doubling the Elgin grain elevator's storage capacity to 2 million bushels and quadrupling the speed in which a load of grain can be handled.

"It's been a long time coming," says Todd Stockdale, All American's operations manager. "I have no doubt we'll fill this. We already have enough coming to fill this."

The fertile fields around Elgin and Millville produce plenty of corn, as well as winter wheat and soybeans to keep All American's crew busy.

"Most years, we'd need to ship out a million-and-half bushels right away. Now, that might get down to half-a-million bushels," he says.

The massive 1 million bushel storage bin is only one piece of what All American has been building since first breaking ground in February. Here are some of the highlights:

• A new 140,000 bushel bin to hold wet corn before being dried.

• A new drying facility that can dry 7,000 bushels in one hour.

• An expanded receiving station that's wide enough for tractors with dual tires.

Get_photo-1• Two new receiving "legs" that can accept 20,000 bushels of corn in an hour.

• A new truck/wagon scale and an upgraded office system to speed up processing of incoming loads.

This is just the first phase of a long-term expansion plan spanning the next 10 to 15 years. This first round of work is a significant start, because it laid the necessary foundation of infrastructure.

"This was built for the future," said All American general Manager Glenn Lutteke. "This is a very good farming area around Elgin, Millville and Potsdam. It is worth this big investment."

This is a particularly good time to wrap up this first phase. Local farmers are expected to reap high yields even as corn prices soar.

This summer's drought is expected to drive down the nation's harvest numbers to the lowest levels in a decade. That forecast is driving corn prices to about twice what they were last year.

While it is expected to be a tough year for many farmers, southeastern Minnesota seems to be an oasis, with higher-than-average yields.

State agriculture officials are forecasting a yield averaging 194 bushels per acre in the southeastern region, compared to a three-year average of 186 per acre. By comparison, the state average is predicted to run about as low 156 bushels an acre. That is in line with what much of the country is expecting to see.

Gesturing around at Elgin and beyond, Stockdale grinned as he said, "This is the bread basket of America right now."

August 23, 2012

Tire centers change ownership

To give his tire business more traction in this region, Jerry Bauer of Bauer Built Inc. bought two Hanson Tire Service centers this week.

On Monday, the Durand, Wis.-based Bauer Built took over Hanson Tire's original headquarters in LeRoy along with a location in Preston. While the center will eventually change names, they will remain under the Hanson Tire name for now.

03bauer1"Our normal trend is to transition places we acquire over to the Bauer Built name sooner than later, but we're keeping these as Hanson Tire for a while," Bauer says. "They've been a very successful business, since 1953."

Almost all of Hanson's 20 employees are staying on under the new owner. Former owners Randy Eastvold and Greg Rollins, along with Ron Eastvold, are helping with the transition.

Bauer declined to discuss the financial terms of the acquisition.

These additions bring the tally of Bauer Built tire centers to 31, including ones in Rochester, Red Wing and Albert Lea. They also have seven Michelin retread plants, three wheel refinishing facilities and a bulk petroleum operation.

A second generation, family-owned business, Bauer Built was  founded by Sam Bauer in 1944.

Why add the LeRoy and Preston centers to the company's extension portfolio of facilities?

"We are always looking for going concerns that are profitable. They have many comparable products and they are very strong in agriculture," he says. "They will help us grow in that area."

Another reason is obvious from a quick look at the map. Bauer has locations surrounding the new additions.

"Geographically, they will fit in well and fill in some voids for us," he says.

This deal does not have any links to Hanson Tire of Austin, which has a different owner. The same is true of the Hanson Tire in Albert Lea, which has another owner.

Hanson Tire, started by Don and Donna Hanson in 1958, grew to 11 stores at one point. It was then recognized as the largest tractor and truck dealer in the nation.

There was once a Hanson Tire location in Rochester, but no longer.

June 19, 2012

Roch. auction house handles liquidation of vodka co.

Instead of buying a just bottle of vodka to make cocktails, how about buying a whole vodka company — tanks, patented distillation process, bottle design, trademarked brand plus everything else?

001That's exactly what is on the block this week as Shakers Vodka, the "ultra-premium" vodka made in Minnesota from wheat grown here, is being auctioned off.

And a Rochester firm, Maas Cos., is the steady hand running the online auction to sell everything related to Shakers Vodka.

It is a true "liquidation" sale.

The story starts back in 2003, when Shakers launched and soon became kind of a rock star that had the bar crowd buzzing. Its smooth taste and frosted Martini shaker-shaped bottles really shook things up.

It was a creation from the same the guys who brewed up Pete's Wicked Ale, the popular brown ale from the early days of the craft beer revolution. They sold that off in 1998 and moved on to Minnesota vodka.

This time the bar stool fairy tale didn't have a happy ending. (Technically, Pete's Wicked Ale didn't end well either, since its owner stopped making it last year due to low sales.)

002In January, Blaine-based Infinite Spirits Inc. filed for Chapter 7 bankruptcy. That where Rochester's Maas Cos. comes into the tale.

Maas is known as an auction house that can handle out-of-the-ordinary industrial liquidation and real estate sales. The company has sold the assets of manufacturers, university campuses, ethanol plants and more.

The sky's the limit of what the company will auction off. The Rochester auction house even sold off a squadron of vintage biplanes that Minnesota's Schwan Food Corp. owned and flew in air shows to promote its Red Baron Pizza.

The word is that it was Maas' experience with selling ethanol plants, which aren't that much different from alcohol distilleries, that may have helped clinch the bid for this gig.

This auction is up and accepting bids for individual items — like a 16,000-gallon stainless steel tank — at www.shakersvodkaauction.com.

The game will change on Thursday, when the high-rollers are expected to belly up to the bar and lay down their bids to buy the whole kit and ka-bottle.

Bidding is scheduled to end at noon on June 26. That's when Maas will run the numbers to see which method brought the best price — the one-price-for-it-all bids or the sum of all of the bids for the individual items.

If the tally of all of the individual bids tops the biggest "for everything" bid, the big bidder will get a chance to match it. They will need to be $10,000 more than the collective bidders to win and put Shakers on their shelf.

May 15, 2012

Firing up a new bread business

If you have been a reader of this blog for very long, you will probably recognize the name Jennebach. Stephan Jennebach has long been a regular commented on this site.

And now he is a subject with the new bread baking business he has cooked up.

Stephan Jennebach is keeping it "real" as he fires up his hand-built oven in his Zumbrota backyard.

 Originally trained as a baker in Germany, Jennebach has done a variety of things, including a stint at Daube's Bakery in Rochester, since he moved to southeastern Minnesota in 1995.

Most recently a stay-at-home dad, he started baking whole wheat flaxseed bread for his son, Tanner, and his wife, Shelia.

That first loaf proved a spark that ignited an idea, which smoldered and eventually fueled a new business called Firebrick Bread.

He'll start selling his selection of fresh-baked loaves of cranberry-walnut sourdough, French bread, whole wheat sourdough and whole wheat flaxseed on May 21 at the launch of the Zumbrota Farmer's Market.

"My focus is on real ingredients, a real baker and a real oven," he says.
101207jennebachonaball
The foundation of his new venture is a brick, outdoor, wood-fired oven that Jennebach built himself in October.


"The majority of ingredients I use are grown locally and are organic," he says to explain that part of his trio of "Reals." In addition, Jennebach also mills his own whole wheat flour.

While people will be able to buy his breads during the weekly Zumbrota Farmer's Market, he is also accepting pre-orders for loaves through his website and via email.

October 07, 2011

Dancing With The Stars + Minnesota apples?

Cutting-board Two things I never expected to come appear together in a business item - Minnesota apples and the "Dancing With The Stars" TV show.

And yet they will come together on Oct. 16, when dancer Chelsie Hightower will make an appearance at the expo booth of an orchard that grows Minnesota's up and coming apple variety, SweeTango.

Get it? She's a dancer, right? And the tango is a dance, though in this case… uh… it really is an apple.

Chelsie_Hightower The SweeTango name for the University of Minnesota created apple variety came from Dennis Courtier, the president of Pepin Heights Orchards in Lake City.

Courtier also spearheaded the creation of the Next Big Thing cooperative of SweeTango growers that govern the growing and marketing of the apples, which are a cross between Honeycrisp and Zestar.

Now playing off that name, Hightower is slated to appear at the Produce Marketing Association’s Fresh Summit in Atlanta later this month.

She'll be at the booth of Fowler Farms Of New York. Fowler is one of the 45 members of the Next Big Thing co-op.

I think there needs to be some sort of reality show competition to choose the best apple variety. It could be called "America's Next Top Apple."

Uh… or maybe not. Heh.

September 21, 2011

Start-up's Elk Run BioPark plans have farm feel

Here's some from an article by Jeff Hansel about the first business pledging to open in Pine Island's planned Elk Run biobusiness park.

This is an interesting project. Of course, the company still needs about $3.5 million to make this happen, but it is more of a commitment than we've heard before.

Hansel first wrote about this in the weekend paper and this is a follow-up from a state biotech conference Tuesday. The whole article is in the print edition.

For the record, I did not write this lead. However, I wish I had. Heh.

A Minnesota researcher wants to make dairy cattle less horny.

Scott Fahrenkrug, CEO of biotech startup Recombinetics, told more than 200 of the state's biotech leaders that his company recently signed a mutli-year contract to develop hornless dairy cattle so they're safer to work with.

Get_photo --------

Recombinetics is also the first company to publicly announce it's in talks to base its business at Pine Island's planned Elk Run biobusiness park.

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However, Fahrenkrug emphasizes that the letter of intent means simply that there's an "intent to explore the design and financing of the facility." That means no money has thus far changed hands, and neither Elk Run nor Recombinetics is contractually obligated to build the facility.

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Recombinetics scientists plan to add the naturally occurring beef cattle gene to dairy cows to elimnate the horns.

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Recombinetics also plans to house 50 to 100 pigs at Elk Run.

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Elk Run is perfect for a swine "nucleus herd," Fahrenkrug said, because it's five miles from any other swine production. The Pine Island laboratory will work on the development of pigs that are genetically susceptible to some of the major chronic human diseases, such as heart disease and diabetes. 

Once a line of pigs gets developed, Recombinetics will seek farmers able to raise them for sale to research labs nationwide — the same way farmers raise hybrid pigs.

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The company needs to raise $3.5 million to jumpstart its Elk Run plans, and it's looking for investors.

"We're ready to get serious here in Minnesota," Fahrenkrug said. But he was blunt about the need for Minnesota funding, and its availability elsewhere.

"If we can't get what we need here, we'll go someplace else," he said, noting other states are courting the company.

September 07, 2011

Hormel CEO: Middling pork profits in 2011, 2012

HormelpenetrationHere's a snippet of a piece by Marshall Eckblad of Dow Jones about Hormel Foods appearance at Barclay Capital's Back to School Consumer Conference in Boston today.
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"Our expectation for remainder of this year and next year is middle-of-the-road for those margins," said Jeffrey Ettinger, Hormel's president and chief executive. He made the comments during an investor conference in Boston.


Investors have been watching the profit margins at pork processors for signs of weakness as supplies have grown sharply in recent weeks after pork prices hit records in July and August. Higher supplies of pork products along with enduringly high feed costs for hogs could squeeze pork processors much the way chicken processors are currently suffering under a supply glut.