Perdue reassures Virginia farmers

By BRUCE HOTCHKISS

A high ranking official of a division of Perdue Farms is assuring Virginia grain producers that the poultry company’s proposed purchase of Cargill Inc.’s facility at the Port of Norfolk will vastly increase their marketing opportunities.
Addressing an under-a-tent program that ended a wheat and small grains field day May 24 at the Eastern Virginia Ag Research and Extension Center at Warsaw, John Cassidy, Perdue’s director of grain marketing, sought to allay industry-wide concerns that the acquisition would seal off a major outlet for Virginia wheat and barley.
Quite the contrary, Cassidy said, telling the producers, in effect, “you ain’t seen nothin’ yet.” And the sigh of relief that arose from the some 200 assembled farmers was almost audible.
Here’s the situation. Perdue seeks to buy Cargill’s grain elevators and soybean crushing plant at Norfolk. Assuming that goes through, it will lease an edible soy oil refinery from Townsends in Millsboro, Del.
Both facilities will be pushed to full capacity.
The Millsboro plant will provide Perdue with the increased refining capacity needed to process the additional oil that will be produced at the Norfolk crushing plant.
At the same time, Perdue will expand its operations for wheat and barley producers, keying on the Norfolk facility in efforts to expand export opportunities.
“Our intention,” Cassidy said, “is to push small grains very aggressively through Norfolk ... there are signs the world market is turning around ... we think there will be opportunities ... there is an export market for barley and there will be an export market for wheat ... you bring us your grain; our job is to find the market ... we intend to make Norfolk a viable venture through volume.”
Cassidy explained that Perdue views the Norfolk acquisition as “an asset upon which we can secure our longevity” in the Mid-Atlantic area.
“We need the farm base to survive,” said Cassidy, and through Norfolk, the poultry company can offer new and expanded markets to its growers.
The Norfolk acquisition, however, is not a done deal. As of last week’s gathering in Warsaw, it was still under study — Cassidy called it “scrutiny” — of the Department of Justice.
However, Perdue officials remain optimistic and, joined by Cargill managers and staffers, are taking steps to be ready for the upcoming grain harvest season if and when Justice gives its approval.
“We are moving soybeans to Salisbury (ultimately to barge to Norfolk) and we are positioning railcars and barges to move grain to Norfolk,” Cassidy said.
The Norfolk acquisition has been under government review for nearly 100 days and “we are fearful we may have missed some opportunities,” Cassidy said.