What’s Happening at ZFS?...Kevin Kroeze…4 Kevin Deneef…1 Zachary Petroelje…1 Refinery...

8
crease costs and put most small proces- sors out of business. When thinking about this, one could only conclude that we will see a great loss of jobs, as well as many food processing companies mov- ing out of the U.S. Our food producers will feel the effects of this when we have fewer markets to sell our products to. We will also have fewer customers that can afford to eat as food inflation will hit the consumer in a big way. We have had some changes in State Government, such as a new governor with new ideas and newly appointed people, the most significant being the head of the DEQ, Dan Wyant. We can expect Dan to bring another viewpoint to the DEQ. To us, the rules we cur- rently receive from the DEQ don’t do enough for the environment. ey just create paper work, put us under their control, and make sure they have plenty of work looking at all that paper. What we need are common sense and rules that give us all doable goals that don’t change constantly in the middle of the game. e Ag Industry, from the commodity producer to the food processors, have constantly come under aack by people that have no idea what it takes to supply the world with food. As an industry, we need to build relationships and commu- nicate the fine print of safe and secure food production. is country cannot afford to let people who have very lile knowledge of food production make the rules. It also cannot afford to give indi- vidual inspectors, with absolute power, the right to interpret those rules as they see fit and enforce them. We have expe- rienced two inspectors who haven’t even agreed between themselves what the right interpretation of a rule was. In the last two years we have watched Con- gress rush legislation through, and that legislation ended up vague and ill con- ceived, making things worse not beer. Our only hope is that the legislation can be fixed and that it doesn’t happen again. Please keep in touch with your Congressman both at the State and Fed- eral levels, study the issues, and voice your opinion. We need the many voices of Ag people speaking as one. Our U.S. food production is at risk! As we come into the spring season, we sure will want to leave the cabin fever behind. Spring planting will begin and travel will increase. e Ag business can be dangerous, and we have had some tragic accidents happen this winter. Our hearts go out to those families who have lost loved ones. Please be careful out there. As always, we at ZFS are also get- ting ready for spring, and we look for- ward to the opportunity that you give our family to serve your family. We will work hard to serve you every day and we Zeeland Farm Services, Inc.® Spring 2011 I am really looking forward to spring this year. I spent too much time this winter shoveling all that global warming some people keep talking about, and the cold temperatures didn’t help much either. On the bright side there was plenty of snow to go snowmobiling in - that was great. I hope everyone found time this winter to enjoy a winter sport or just be with family and friends. Without that, it surely would be a long winter. On a heavier note, there have been a lot of things happening in State and Federal politics that have greatly affected the pro- duction of food. ere has been a contin- uous bale to control all aspects of food production. Last fall’s Lame Duck Con- gress passed a new law that basically leſt complete control of our food production in the hands of a few bureaucrats. When examining this law, a fellow food process- ing manager stated it would greatly in- Grain Division. . . . . . . . . . . . . . . . .3 Ingredients Division. . . . . . . . . . . .4 Transportation Division . . . . . . . . 5 Specialty Seeds. . . . . . . . . . . . . . . . 6 Soybean Processing Plant and Refinery. . . . . . . . . . . . . . . . . . . . . . 6 Specialty Oils Division. . . . . . . . . .7 Market Sensitive Reports. . . . . . . .8 By Cliff Meeuwsen What’s Happening at ZFS?

Transcript of What’s Happening at ZFS?...Kevin Kroeze…4 Kevin Deneef…1 Zachary Petroelje…1 Refinery...

Page 1: What’s Happening at ZFS?...Kevin Kroeze…4 Kevin Deneef…1 Zachary Petroelje…1 Refinery Gregory McPherson…8 Mark Veltman…7 Elevator Timothy Storms…22 Deborah Larson…7

crease costs and put most small proces-sors out of business. When thinkingabout this, one could only conclude thatwe will see a great loss of jobs, as well asmany food processing companies mov-ing out of the U.S. Our food producerswill feel the effects of this when we havefewer markets to sell our products to.We will also have fewer customers thatcan afford to eat as food inflation will hitthe consumer in a big way.

We have had some changes in StateGovernment, such as a new governorwith new ideas and newly appointedpeople, the most significant being thehead of the DEQ, Dan Wyant. We canexpect Dan to bring another viewpointto the DEQ. To us, the rules we cur-rently receive from the DEQ don’t doenough for the environment. They justcreate paper work, put us under theircontrol, and make sure they have plentyof work looking at all that paper. Whatwe need are common sense and rulesthat give us all doable goals that don’tchange constantly in the middle of thegame.

The Ag Industry, from the commodityproducer to the food processors, haveconstantly come under attack by peoplethat have no idea what it takes to supplythe world with food. As an industry, weneed to build relationships and commu-nicate the fine print of safe and secure

food production. This country cannotafford to let people who have very littleknowledge of food production make therules. It also cannot afford to give indi-vidual inspectors, with absolute power,the right to interpret those rules as theysee fit and enforce them. We have expe-rienced two inspectors who haven’t evenagreed between themselves what theright interpretation of a rule was. In thelast two years we have watched Con-gress rush legislation through, and thatlegislation ended up vague and ill con-ceived, making things worse not better.Our only hope is that the legislation canbe fixed and that it doesn’t happenagain. Please keep in touch with yourCongressman both at the State and Fed-eral levels, study the issues, and voiceyour opinion. We need the many voicesof Ag people speaking as one. Our U.S.food production is at risk!

As we come into the spring season, wesure will want to leave the cabin feverbehind. Spring planting will begin andtravel will increase. The Ag business canbe dangerous, and we have had sometragic accidents happen this winter. Ourhearts go out to those families who havelost loved ones. Please be careful outthere. As always, we at ZFS are also get-ting ready for spring, and we look for-ward to the opportunity that you giveour family to serve your family. We willwork hard to serve you every day and we

Zeeland Farm Services, Inc.® Spring 2011

I am really looking forward to spring thisyear. I spent too much time this wintershoveling all that global warming somepeople keep talking about, and the coldtemperatures didn’t help much either.On the bright side there was plenty ofsnow to go snowmobiling in - that wasgreat. I hope everyone found time thiswinter to enjoy a winter sport or just bewith family and friends. Without that, itsurely would be a long winter.

On a heavier note, there have been a lotof things happening in State and Federalpolitics that have greatly affected the pro-duction of food. There has been a contin-uous battle to control all aspects of foodproduction. Last fall’s Lame Duck Con-gress passed a new law that basically leftcomplete control of our food productionin the hands of a few bureaucrats. Whenexamining this law, a fellow food process-ing manager stated it would greatly in-

Grain Division. . . . . . . . . . . . . . . . .3

Ingredients Division. . . . . . . . . . . .4

Transportation Division . . . . . . . .5

Specialty Seeds. . . . . . . . . . . . . . . . 6

Soybean Processing Plant andRefinery. . . . . . . . . . . . . . . . . . . . . .6

Specialty Oils Division. . . . . . . . . .7

Market Sensitive Reports. . . . . . . .8

By Cliff Meeuwsen What’s Happening at ZFS?

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The ZFS Agrisource Page 2 Spring 2011

vers

arie

s

Eric Snover Transportation

Judy TimmerAccounting

Barb Trethewey Accounting

Nathan DevenportTransportation

ServicesEmployee Recognition

Timothy Bradley Transporation

Quality and consistency have been at the heart of how we serve you, the customer, since 1950. ZFS is proud to have served the agricultural and transporta-tion industries for over 60 years. We strive to provide you with the best customer service and to offer you quality products and services at competitive prices. for over 60 years

William WoltmanTransportation

Nancy Caren Accounting

President Clifford Meeuwsen…35

Vice PresidentArlen Meeuwsen…35

Specialty OilRobert Meeuwsen…25

AdministrationCathie Meeuwsen…25Pamalyn Meeuwsen…9

Patricia Brower…5Cheryl Heeres…5

Tonia May…2

AccountingBentley Kollen…25

Corey Eding…14Matthew Gorman…11Cathy Dutkiewicz…9

Roger Brower…3Nancy Snay…1

Soy PlantThomas Willcome…15

Dwight Herring…13David Koopman…8Bradley Boerigter…7

Kevin Kroeze…4Kevin Deneef…1

Zachary Petroelje…1

RefineryGregory McPherson…8

Mark Veltman…7

ElevatorTimothy Storms…22Deborah Larson…7Shirley Lindsley…4

Brad Jager…3

TransportationJack Buikema…20

Richard Gilman…10Christopher Marks…8

Vern Hirdes…8Garry Champion…7

Ryan Terbeek…6Ricky Little…5

Allan Christensen…5Mike Wrightsman…4Patrick Burchardt…4

Gaylan Attema…3Arturo Munoz…3Martin Perez…3Aaron South…3David Croff…3

Nathan Knapp…3Edward Koehne…3Robert Forrest…1Randy Haney…1

Paul Farris…1

GarageRobert Rander…27Roger Hopkins…15Peter Valentine…5

Adam Zwagerman…1Jacob Buikema…1

DispatchJill Barnes Caudill…10

IngredientsJanie Gonzalez …4

David Stewart (WI) …3Clinton Cherney…1

OperationsDennis Irwin…4

SafetyMary Carper…5

Bridgette Rillema…3

T h e Z F S A g r i s o u r c e i s p u b l i s h e d q u a r t e r l y b yZ F S f o r c u s t o m e r s a n d e m p l o y e e s o f Z F S .

E d i t o r : B e t h W e s t e m e y e r6 1 6 . 7 4 8 . 1 8 3 8

A l l q u e s t i o n s o r s u g g e s t i o n s f o r f u t u r e a r t i c l e ss h o u l d b e d i r e c t e d t o Z F S ’ m a r k e t i n g d e p a r t m e n t .

Donald PattersonTransportation

Omar GonzalezTransportation

Gerald SharpTransportation

Roger VanDamTransportation

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The ZFS Agrisource Page 3 Spring 2011

Grain Division

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a call if you would like assistance indoing this.

Another often forgotten tool wewould like to remind you about is ourwebsite, www.zfsinc.com. Once youget to our home page, click on the“Grain Bids” tab. We have 10 minutedelayed grain futures quotes, our cur-rent grain bids, weather, up-to-date in-formation about ZFS, and a sign up toreceive daily emails with ZFS’ closinggrain bids. We also put other useful in-formation in these emails such ashours of operation, upcoming eventsat ZFS, and current premiums we areoffering for specialty/Identity Pre-served (IP) soybeans.

Thank you for giving us the opportu-nity to serve you. Feel free to call ourhotline with any merchandising ques-tions you may have at 1-866-888-1839to speak directly to one of our ZFSmerchandisers.

Contact GRAIN DIVISIONKurt BergstedtJeff JohnstonTravis Marshall

After a fairly mild and early winter, wewere hit with quite a lot of snow in lateJanuary and early February. While weare still waiting for spring to get here,the warm weather has suddenly hitand the counties are putting on theirfrost laws. This is just another hurdlewe will probably have to work arounduntil April. Remember to plan ahead.If you are not on a Class A road youwill either have to contact the CountyRoad Commission Office to get a per-mit or wait until the frost laws arelifted.

Tight U.S. and world stocks have ledus to levels and volatility we have notseen in the grain markets since 2008.When we saw these prices before,many said that we had set the bar high,and we wouldn’t see soybeans under$12, corn under $ 5, and wheat under$8 again. It wasn’t that long after thatwe saw $8.50 beans, $3 corn, and $5wheat. Why are we mentioning this?Although the entire market looks bull-ish right now, we need to be preparedfor “unknowns.” Corn and soybeanswill still have to fight for acreage, sothat should keep prices strong. Butwhat happens if Brazil’s bean crop

comes in bigger than they are expect-ing? What if exports slow, or foreigncountries cancel or push purchasesahead? Or the United States importsgrain to help with tight supplies? Willprices get high enough for livestockfeeders to stop filling their barns? Wehave seen all these situations happenin the past and are reminding every-one because we want you to practicerisk management. You are very sel-dom going to hit the highs, and aprofit always seems to pay the bills andkeep you farming year after year.

We would estimate that most of oursoybean meal users are probably 90%booked up, but for those that have toprice out a few loads a month to meettheir needs, we would watch for dipsin the market and grab it then. Thissummer’s meal basis could get inter-esting IF soybeans remain tight. Sothink about possibly locking in thatmeal now. Many of the people we talkto say they can afford to pay $370 to$380 per ton for meal but when it getsover $400 per ton, margins get reallytight. With that being said, why notlock in a number that protects a profit?We think it’s a sound decision. Give us

[email protected]

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The ZFS Agrisource Page 4 Spring 2011

Ingredients DivisionCottonseedThe old crop cottonseed market issteady. There is plenty of supply in theSouth to carry us into new crop withoutsupplies becoming too tight. The priceof old crop cottonseed has followedother ingredients higher but has not fol-lowed other products dollar for dollar.The dry harvest this past season has alsoproduced a very good quality cotton-seed, and we have not seen issues withproduct quality as some have experi-enced in past seasons. Because of thediscount in comparison to other prod-ucts, this ingredient is finding its wayback into rations around the country.The amount of cotton that is expected tobe planted in the coming season is up bynearly 15-20 percent which should allowfor ample supply. Prices can be con-tracted all the way through September2012 delivered to your farm. Please giveus a call for contract pricing to your spe-cific location.

Corn Gluten FeedCorn gluten feed continues to be a bar-gain when compared to corn. Prices areholding steady .The relative price to cashcorn has edged back up to the 70 percentlevel, but remains below the 5-year aver-age of 80 percent. The demand side ofthe corn gluten feed market has beenstrong, and this trend will likely continueinto May.

Soyhull PelletsSoyhull pellets have remained steadyand look to continue holding as cornprices inch up throughout summer.They are a great source of fiber. Call usfor quote delivered.

Citrus Pulp PelletsPrices continue to rise as last month’sfreeze in Florida has stressed crop condi-tions and lowered overall citrus yield.Product still remains available in Toledoif you are interested.

Canola MealCanola meal is now shipping across theborder into Michigan. Canola basis con-tinues to get weaker versus the soymealfutures. Call for a price delivered to you.

HominyHominy continues to follow corn futuresup. Product remains available in limitedquantities, but the spread is favorable toground corn by at least $15.

Hi-Pro Meal - ValeroValero’s ethanol facility in Jefferson hasbeen producing limited amounts of feed.Many domestic dairy users have beencontinuing to use Valero’s Hi-Pro Mealproduct in rations as it is a bargain com-pared to soybean meal or corn. Hi-ProMeal contains greater than 35% crudeprotein but less fat and fiber than con-ventional distillers dried grains with sol-

ubles (DDGS). Dairy users appreciatethe product and the value it brings totheir cattle. This product can also workin layer rations.

Come see us at the following shows:• PDPW Business Conference

Madison, WIMarch 15 - 16

• Georgia Beef ExpoPerry, GAMarch 31 - April 2

• Tri-State Dairy Nutrition ConferenceFort Wayne, INApril 19 -20

Contact INGREDIENTS [email protected][email protected][email protected]

International TradingDarwin Rader. . . . . . . . . 616.748.1819

Annette Brown. . . . . . . . . 616.748.1858

Michigan Office . . . . . . . . . . . . . . . . . 866.888.7082Clint Cherney • Dan Meeuwsen

Michelle Robinson

Wisconsin Office. . . . . . . . . . . . . . . . .800.523.6760James Coomer • Kevin Larson

Jeff O’Leary • Breja Fink

Georgia Office . . . . . . . . . . . . . . . . . . .888.281.1003Ray Williams • Noel Kenney

All Billing Inquiries. . . . . . . . . 866.888.7082Bentley Kollen • Janie Gonzalez

Michele Hall • Sandy Tryon

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Contact TRANSPORTATION [email protected]

Greg VanderWal Grain Hauling 866.748.1820Mike Keeler and Jill Barnes-Caudill Bulk and Commercial Commodities 800.968.4507Jamie Andrews Tanks and Containers 800.968.4507Chris Laarman and Travis Overway Maintenance Garage and Wash Bay 800.748.0595Dave Stewart Wisconsin Transportation 800.523.6760Jeff Griffith Florida Transportation 888.826.6809

Transportation DivisionWhy is it that in the fall 50 degrees feelscold, but by the time we get to Febru-ary anything over 30 degrees feelswarm? It’s amazing what we can getused to. What some truck drivers haveto get used to in the winter might beenough to make some people cry. Anunusual amount of snow aroundNorthwest Indiana and Chicago madethis winter especially tough for ourdrivers. Since a good portion of themtravel through that area on a daily basisthey were directly affected. Having toleave two hours early so that they canget home one hour later than normal isnot uncommon. We appreciate theextra time and effort that our drivershave to spend to get the job done. Ifnothing else, this winter will make usall appreciate the warm weather whenit arrives.

All of the freight areas enjoyed a con-sistent workload this winter. Every-thing from grain, feed, and soybean oilto general freight and industrial prod-ucts seem to be moving at near full ca-pacity. Trucks and trailers, along withalmost all other costs involved withowning them, are increasing. We con-tinue to look for ways to improve effi-ciency so that we can continue to offercompetitive rates.

Fuel prices have slowly crept up toaround $3.50 per gallon. Truckingcompanies are continually looking fordifferent ways to burn less fuel. Slow-ing down and reducing idle time arestill the most effective.

Our drivers play the most importantrole in providing the best customerservice. ZFS is always looking for parttime drivers. Full time positions arelimited, but we continue interviewingfor when positions become available.Applications are available online or ateither office.

We continue to upgrade the fleet andhave a couple used trucks and trailersfor sale. All of our equipment is wellmaintained from start to finish. Pleasecall Kurt (616-748-1850) if you are in-terested, or have questions about usedequipment.

Our maintenance shop is open 24hours Sunday night through Fridaynight. In addition to maintaining ourown fleet, we offer competitive ratesand quality service on medium toheavy duty equipment.

Oil changes, computer diagnostics, alltypes of welding, brakes, air condi-tioning, and hydraulics are a few of theavailable services. Please call Chris foran estimate.

The wash bay is open 7 a.m. to 10 p.m.Monday through Friday and untilnoon on Saturday. Stop in and checkit out or call Travis to schedule a wash.

The ZFS Agrisource Page 5 Spring 2011

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Soybean PlantThe Soy Plant has been running at capacity all winterlong and we eagerly await the arrival of spring. We con-tinue to make step-by-step improvements to the plantto further increase our crush capacity. By the time youread this we should have our additional Flaker installedwhich should help increase oil removal efficiency, aswell as facilitate easier preventive maintenance to ourflaking system.

With the increased crushing capacity of the plant, aswell as the expansion of our specialty bean program, wehave reached the point where there is a need for addi-tional soybean storage. We will be addressing this needby building an additional 700,000 bushel storage bin be-ginning this spring. This will be one of the more visible

projects happening here at ZFS, but we will also beworking to improve the efficiencies/capacities of thecrushing plant which, will be a little less noticeable fromthe outside.

RefineryWe have no new big projects to focus on in the foresee-able future at the refinery, and for the time being all thingshave remained in one piece. We are still running specialtyoil on a regular basis, and that has been going very well.As the years progress, hopefully we can keep growing ourspecialty products to help benefit our suppliers, our cus-tomers, and even the food chain as a whole. From a pro-duction standpoint, commodity beans are still runningvery well. It would be a beautiful thing if every summercould produce soybeans with oil quality like this past year.

Soybean Processing Plant and Refinery

The ZFS Agrisource Page 6 Spring 2011

The less nitrogen you add to your fields,the less risk it will leach into groundwa-ter.

Increase Profits – The combination ofhigher yields and reduced fertilizer ex-penses could make inoculants one of thebest investments you can put into yourcrops.

Root nodules deliver “free”nitrogen. Ap-proximately 79% of the air we breathe isatmospheric nitrogen. “Free” nitrogenthat will help feed your crops with thehelp of active nodules.

New ZFSelect® Specialty Seed InternZFSelect® is pleased to announce thatNathan Nies will be joining the BeanTeam as our new Specialty Seed Intern.Nathan is a junior at Purdue Universityand is studying agri-business manage-ment. He will be joining the team fulltime in May and will return back toschool in the fall. Welcome Nate!

Inoculation Improves YieldInoculants are a scientifically proven wayto make more nitrogen available to yourcrops, improving yields. Farmers havebeen using inoculants for many years withmeasurable success, most notably in ad-verse growing conditions. Not only areyields maximized. There are several otherbenefits to using inoculants:

Save on Fertilizer – The active Rhizobiumin legume inoculants can produce up to120lbs of additional nitrogen per acre.

Save on Next Year’s Fertilizer – Crops ro-tated into fields previously planted withinoculated legumes often benefit from ni-trogen credits.

Replenish Native Rhizobium – Newstrains of Rhizobium are productivewhere older strains may become ineffec-tive.

Counteract Poor Growing Conditions –A good inoculant can reduce the effects ofcool soils, previously waterlogged soils,eroded soils and other adverse conditions.

Reduce Groundwater Contamination –

Contact THE BEAN TEAM

Dan Bailey, CCA. . . . . . . . . . . . . . . 616.437.3961Ed Ralston. . . . . . . . . . . . . . . . . . . . . 616.879.1712

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Contact SPECIALTY OILS

Robb Meeuwsen800.748.0595

[email protected]

The ZFS Agrisource Page 7 Spring 2011

Specialty Oils Division

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Zeeland Farm Services, Inc.®P.O. Box 290 • 2525 - 84th Avenue

Zeeland, MI 49464

800.748.0595 • F: 616.772.7075

The data in this newsletter is provided for informational purposes only. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possiblewhere projections of future conditions are attempted. In no event should the content of this newsletter be construed as an expressed or implied promise, guarantee, or implication by or from Zeeland Farm Services,

Inc. that you will profit or that losses can or will be limited in any manner whatsoever. No such promises, guarantees, or implications are given.

PRSRT STD

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ZEELAND MI

PERMIT NO 57

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Market Sensitive Reports

March 10USDA Crop Production

April 8USDA Crop Production

April 22CBOT closed

May 11USDA Crop Production

May 30CBOT closed

Thank you for giving the Zeeland Farm Services, Inc. family the opportunity to serve you!

If you have any questions, comments, or suggestionsas to how we could better serve you, never hesitate

to call or e-mail us.