Calavo Growers (CVGW) has been added to the Hawaii Agriculture Blog “Hawaii Agriculture and Related Stocks Annual Charts” page to show the contrast of their lack of success in marketing fresh pineapple in California with the success of their stock performance.
Calavo Chairman, President and CEO Lee E. Cole on the favorable implications of the sales marketing and distribution agreement of Maui Gold Pineapple for Calavo
“First, we anticipate that sales of Maui Gold fresh pineapples will contribute $25-30 million in revenues to Calavo’s top line in fiscal 2008, as well as become immediately accretive to earnings.”
As opposed to Maui Land and Pineapple Company’s Inc (MLP) filed Quarterly Report (10-Q) for the period ended 2009-06-30.
Revenues for the Agriculture segment decreased by 14%, or $749,000, from $5.3 million for the second quarter of 2008 to $4.5 million for the second quarter of 2009, primarily due to a reduction in pineapple juice sales volume and lower average prices for fresh pineapple. Pineapple juice sales represented approximately 5% of the Agriculture segment revenues in the second quarter of 2009 compared to approximately 13% of Agriculture segment revenues in the second quarter of 2008. The Agriculture segment reported an operating loss of $5.0 million for the second quarter of 2009 compared to an operating loss of $4.6 million for the second quarter of 2008. The operating loss for the second quarter of 2009 includes a charge of $1.9 million representing an adjustment to the fair value less selling costs of our property in Kahului that includes our fresh fruit processing plant. The Kahului property is currently held for sale.
By Brian Orelli
Sometimes you need a little help from a friend — even if that friend is also a competitor.
Monsanto (NYSE: MON) and Dow Chemical (NYSE: DOW) certainly couldn’t have developed a seed with such blockbuster potential so quickly without each others’ help. The two announced yesterday that the Environmental Protection Agency (EPA) and Canadian Food Inspection Agency (CFIA) had completed the authorization process for their SmartStax seed, which combines eight different traits into one corn seed.
The eight combined traits will increase yields by 2% to 4% compared to the triple-stacked standard, but the biggest advantage to farmers will come from changes by the government.
Farmers are required to plant a certain percent of their acreage with seeds that don’t have insect resistance — it’s called a refuge, but "sacrificial lamb" might be more appropriate. The point of the refuge is to avoid selecting for insects that are resistant to the trait. Since SmartStax contains multiple disease-resistant traits, it’s less likely that insects will become resistant, so farmers will be able to decrease the required refuge from 20% to 5% in the corn belt and from 50% to 20% in the cotton belt. Increasing the acreage planted with higher-yielding disease-resistant corn should boost the farm’s yield by an additional 3% to 6%, for a total potential increase of 5% to 10%.
Monsanto and Dow will market the seed under their own brand names and pay royalties to each other for the shared traits. The friendly competition should make for an interesting rivalry, but in any case the new seed, which should launch next year, should compete well against rivals Syngenta (NYSE: SYT) and DuPont (NYSE: DD). In fact, the companies are planning to make it the largest biotech corn seed launch ever.
Who knows — maybe they’ll send the first ears to Joe Cocker.
Monsanto and Dow Create Super Corn (DOW, MON)