My brother-in-law is a wheat farmer and reads websites daily about wheat prices, grain news and agri-business in general. He read a story last week, that he since can’t find and I can’t find when I googled it, which makes me wonder if the story was scrubbed, about George Soros purchasing grain elevators in Nebraska. These particular elevators are apparently the last stop before the wheat is shipped out of the county.
Please read on. I did find some interesting stories about Soros and his acquistion of other grain and grain elevators. The name of his company is Gavilon and according to several agri-business sites, it’s the 3rd largest business, now just behind ADM (Archer Daniels Midland) and Cargill. Last fall he also purchased a huge amount of the grain business in Australia. This from Agrimoney.com in December:
AWB [Austrailan wheat] was in talks to sell a stake in its domestic grains handling business to US-based Gavilon before the Australian group became a takeover target.
Gavilon, which is backed by George Soros’s Soros Fund Management has since unveiled its own expansion plans in Australia, the southern hemisphere’s top wheat-exporting target.
Soros is not just a tumor in America, he’s a global cancer.
This from Reuters on March 24th, which makes no mention of Soros:
Gavilon acquisition allows it to support PNW export mkt
* Elevator purchase equates to 8.4 million bushel capacity
(Reuters) – U.S. grain firm Gavilon Grain said on Thursday it will buy Union Elevator and Warehouse’s 16 grain elevators in the Pacific Northwest, the company’s second big purchase of U.S. grain facilities in the last six months.
Privately held Union Elevator, where employees own a significant share of the company, approved the transaction on Wednesday, with sale expected to be completed during the second quarter of 2011.
The purchase of 16 elevators at 12 locations in eastern Washington will expand Gavilon’s grain capacity by 8.4 million bushels.
“The addition of Union Elevator’s grain facilities and origination capabilities position us well to support the growing Pacific Northwest export wheat market and serve the Columbian Basin feed grain market,” Greg Konsor, vice president and general manager of Gavilon Grain, said in a statement.
The Pacific Northwest is the No. 1 wheat export terminal in the United States.
Omaha, Nebraska-based Gavilon — a commodity trading firm formed in 2008 when ConAgra Foods (CAG.N) sold it to investors — purchased grain handler DeBruce Companies last year, making it the third-largest U.S. grain storage network behind Archer Daniels Midland (ADM.N) and Cargill Inc [CARG.UL].
In October (also from Reuters), a deal was made with Soros backed Gavilon to purchase the privately owned and Kansas City based, DeBruce Grain.
The purchase includes DeBruce’s grain handling facilities, fertilizer distribution network, feed mills and a soybean crushing plant.
DeBruce Grain Inc has grain elevators in Kansas, Iowa, Nebraska, Texas, Kentucky, Oklahoma, Mississippi, Alabama, Indiana, Wisconsin and Mexico, with combined licensed storage capacity in excess of 140 million bushels.
The DeBruce purchase will raise Gavilon’s grain storage capacity to nearly 300 million bushels, making it the No. 3 U.S. grain handler after ADM Grain Co., a unit of Archer Daniels Midland Co (ADM.N), and privately held Cargill Inc., according to data from Milling & Baking News, an industry publication.
According to the Wall Street Journal, DeBruce also owns feed-livestock mills – feed for beef and pork. How soon before Soros starts buying up the feed lots, I wonder?
You can find more interesting information on this topic, Obama and other current events at Barnhardt Capital Management. I highly recommend reading her blog.
Big Thank You to my brother-in-law, Mark for bringing this to our attention.