Burlington Northern; Tyson Foods; Archer Daniels Midland: Biofuel Raises Food Prices
Burlington Northern Santa Fe, reported Q1 earnings jumped 30%;
as total freight revenue +17%; on more rail shipments of farm products and coal, as well as larger fuel surcharges.
The #2 US Railroad spent more than $1 billion on fuel, up 55% from a year earlier.
The company, however, was able to collect an additional $280 million in fuel surcharges from its customers.
Agricultural product revenues rose 38% to $866 million as the railroad handled more carloads of wheat, soybeans, corn and ethanol. Coal revenue rose 26%.
CEO Matthew K. Rose said, however, that the company continued to see softness in shipments of consumer products and housing supplies.
Overall volume by rail car fell 0.8%, weighed down by a big drop in volume of shipments of consumer products.
Dick Bond, CEO of the largest U.S. meat processor, Tyson Foods called for ethanol subsidies to be swept away.
This honest CEO confirmed that diversion of corn to produce ethanol is
inflating prices for animal feed, and warned that consumers faced steep rises in food prices.
Meanwhile ADM, #1 agribusiness, and one of the world's largest shippers and processors of grains, seeds and other commodities,
reported a 42% rise in its net profit for Q3. Pat Woertz, ADM CEO:
any attempts to reverse the state support for renewable fuels -- such as the corn-based ethanol produced by ADM --
would have "unintended consequences" on food and energy supplies.
Ms. Woertz, a former head of marketing and refining at Chevron, said
food prices were being driven by rising energy costs and global protein demand rather than production of biofuels. Alrighty then, I know who I believe.
as total freight revenue +17%; on more rail shipments of farm products and coal, as well as larger fuel surcharges.
The #2 US Railroad spent more than $1 billion on fuel, up 55% from a year earlier.
The company, however, was able to collect an additional $280 million in fuel surcharges from its customers.
Agricultural product revenues rose 38% to $866 million as the railroad handled more carloads of wheat, soybeans, corn and ethanol. Coal revenue rose 26%.
CEO Matthew K. Rose said, however, that the company continued to see softness in shipments of consumer products and housing supplies.
Overall volume by rail car fell 0.8%, weighed down by a big drop in volume of shipments of consumer products.
Dick Bond, CEO of the largest U.S. meat processor, Tyson Foods called for ethanol subsidies to be swept away.
This honest CEO confirmed that diversion of corn to produce ethanol is
inflating prices for animal feed, and warned that consumers faced steep rises in food prices.
Meanwhile ADM, #1 agribusiness, and one of the world's largest shippers and processors of grains, seeds and other commodities,
reported a 42% rise in its net profit for Q3. Pat Woertz, ADM CEO:
any attempts to reverse the state support for renewable fuels -- such as the corn-based ethanol produced by ADM --
would have "unintended consequences" on food and energy supplies.
Ms. Woertz, a former head of marketing and refining at Chevron, said
food prices were being driven by rising energy costs and global protein demand rather than production of biofuels. Alrighty then, I know who I believe.
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