News briefs: Hurricane Gustav, Latvian bakeries
US grain recovers from Gustav
Hurricane Gustav has reaped temporary havoc on the US grain trade but services are returning to normal as the Mississippi Gulf recovers from the category two hurricane that struck southern US states early last week.
Gustav forced the closure of 11 major grain terminals as electricity was cut in New Orleans and other ports in the Gulf but oilseed and corn processor, Bunge reopened its terminal in Destrehan, Louisiana on Thursday, according to Reuters.
Archer Daniel Midland (ADM) said it had reopened its terminal on Friday after earlier in the week moving much of its export to its base at Galveston, Texas.
Most Mississippi terminals including three belonging to Cargill and a CHS facility were expected to have re-opened by today. No major damage has been reported to any facility including four belonging to ADM.
"We finished loading vessels late last week and secured facilities and equipment, preparing us for the worst and allowing our employees to go home and take care of what was needed," Cargill spokesperson, Mark Klein, told Reuters last week.
"Fortunately, Gustav was not as strong as had been expected. We hope to get a closer look at our properties today.”
Bunge can store 6.2 million bushels (157,500 tonnes) at its plant with the potential to load 80,000 bushels (2,000 tonnes) daily, according to a 2003 report by the Grain Inspection, Packers and Stockyards Administration.
Both the Mississippi River, the most heavily used US waterway, and the Port of New Orleans reopened late Wednesday.
More corn, soy and wheat pass through the Mississippi Gulf than other US location, with 56 million tonnes moved in 2007. The US is the world’s biggest exporter of these grains.
Latvian bakers struggle as costs rise
Latvian bakeries may close because they can’t pass on rising costs to cash-strapped consumers, according to the Association of Latvian Bakeries.
But ALB chairman, Valdis Circenis, said bakeries had worsened the problem by setting prices too low.
Two bakeries - Valmieras Maiznieks and JLM Grupa – were facing financial troubles and per capita Latvian bread consumption has dropped to 50kg from 55kg three years ago.
