Farmland Closing out Tradigrain

KANSAS CITY - Mar 5/02 - STAT -- Farmland Industries Inc. will exit its international grain trading business by selling or closing various Tradigrain operations.

"While our preference would be to sell all of Tradigrain as a going concern, that does not seem likely in today's environment," said Farmland Chief Financial Officer John Berardi, who formerly headed up Farmland's grain businesses. Recent discussions concerning Tradigrain with the Australian Wheat Board concluded without an agreement.

"Over the next few months, we will complete the sale of some Tradigrain assets and will be winding up the remaining operations in an orderly manner. We have been proud of our association with Tradigrain and its many talented employees," said Berardi.

In 1993, Farmland acquired the Tradigrain organization, a group of companies operating in 11 countries, which trades and markets grains and sugar throughout the world. Following its acquisition, Tradigrain operated as a successful complement to Farmland's domestic grain operations by allowing Farmland to increase the value of its members' grain.

However, in May 2001, Farmland placed its domestic grain operations into ADM-Farmland Inc., a domestic grain joint venture with Archer Daniels Midland Company, Inc. ADM-Farmland Inc. does not coordinate operations with Tradigrain as did Farmland's Grain Division, and Tradigrain no longer supports any of Farmland's core businesses.

"Our strategic direction is focused on supporting our local cooperative owners through our various marketing joint ventures in farm supplies and grain, and on developing our meat businesses. This decision will allow us to sharpen our focus on our core businesses," said Bob Honse, Farmland president and chief executive officer.

The subscriber version of the article is available by Clicking here