IARW-WFLO's Weekly E-Newsletter                                                                              02 July 2008
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In This Issue

Report Shows Growth in Global Cold Storage Capacity

WFLO Education Express: Materials Handling Short Course

Frigolanda Expands Activities in Poland

Insurance and Warehouse Law Forum

Take a Quick Survey About Opportunities in the Middle East

Cold Storage Industry News

Food Industry News

Government News

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Every two years, IARW publishes the Global Cold Storage Capacity Report, the only resource for worldwide public refrigerated warehouse capacity statistics. This year, IARW has collected capacity data from more than 40 countries. In the 25 countries where capacity data was collected in 2006, total capacity for 2008 is 179.82 million cubic meters (6,350.32 million cubic feet), which represents a 15 percent increase from 2006. This growth suggests a worldwide trend towards increasing capacity. Overall global capacity in 2008, including the 25 original countries surveyed, is approximately 247.77 million cubic meters (8,749.97 million cubic feet).

 

In addition, IARW has compiled profiles of national PRW markets in 18 countries, including several emerging and developing markets. This is also the first year that the report has shown a full decade of industry growth. The full set of data going back to 1998 and the complete report is complimentary benefit for IARW Members and other members of the Global Cold Chain Alliance. More information.

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Want to earn your Materials Handling “MBA?" Come experience our WFLO Education Express: Materials Handling Short Course, taking place from August 27-29 at Renaissance St. Louis Hotel Airport, St. Louis, Missouri, USA. Designed after the “MBA Case Study Model," this intensive course combines expert presentations and team-based project learning into a single accelerated platform. Led by the industry’s finest Material Handling experts, including Chuck Toogood, Vice-President of Engineering of United States Cold Storage, students will gain the expertise necessary to enhance their operation’s materials handling processes and strategy. Through this one-and-a-half-day strategy, students will learn: What are the pros and cons of different racking systems? What are the advantages/drawbacks of different lift truck types/models? What are some “real-world” case studies of material handling systems? How can we apply the lessons from these case studies to the improvement of our own facilities? Warehouse managers, facility managers, supervisors, shift leaders, engineers, and all other warehouse professionals committed to enhancing their materials handling systems are encouraged to attend. If you have any questions about the training, please contact our WFLO Director of Education Bobby Tucker at btucker@iarw.org or +1 703 373 4300. Register online today!

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IARW member company Frigolanda Cold Logistics has opened a refrigerated warehouse in the Polish city of Radom last week. This new facility, located 100 kilometers south of the capital Warsaw, has a capacity of 41,000 cubic meters or 9,800 pallet positions for the storage of deep frozen products. Besides storage, it offers a wide range of services like container handling, order picking, transshipment, (re)packaging, labeling, and distribution. Frigolanda now operates nine facilities in four countries, with a total capacity of approximately 500,000 cubic meters. The other warehouses are located in the Netherlands (3), Belgium (1), and Germany (4).

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If you have registered to attend the Insurance & Warehouse Law Forum at the Assembly of Committees in DC this July, this message is for you. If you have a specific "hot topic" that you would like to see addressed during this meeting that applies to either insurance or warehouse law, please email me at cphipps@lockton.com. We look forward to this being a very exciting and energetic meeting with headline topics. Contact Connie Phipps, cphipps@lockton.com, +1 816 960 9946.

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Quick Survey: Opportunities in the Middle East

Interested in expanding your business into the Middle East? IARW is here to help. Respond to this 2 second survey about opportunities in the Middle East.

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John Galiher with Preferred Freezer Services, Inc. has received the Ernst & Young Entrepreneur of the Year Award in New Jersey, USA in the Distribution & Transportation Services category. See full release.

 

McCormick & Co. has selected Hanson Logistics in St. Joseph, Michigan, USA to provide logistics management services out of Hanson’s Benton Harbor, Michigan Logistics Center. Hanson will handle McCormick’s leading industrial restaurant chain clients. See full release.

Merchants Terminal Corporation will soon be operating a new facility next to the Port of Baltimore’s Seagirt Marine Terminal for Hoffberger Holdings, Inc.. The facility will be one of the most environmentally friendly perishable foods distribution centers in the United States. See full release.

To match its growing capital investment in the Southeast, national public refrigerated warehousing and logistics provider United States Cold Storage, Voorhees, New Jersey, USA., said it has hired 16-year supply chain veteran Marty Steinmetz as Vice President-National Sales, Southern Region. See full release.

Position Available: Warehouse Manager in Worthington, Minnesota, USA. See full classified ad.

Dedicated cold storage warehouse property for sale or immediate sublease in Missouri, USA. Contact Joe Petersen at +1 630 539 1319 during normal business hours Monday thru Friday CDT. See full classified ad.

Land to build for sale in Middletown, New York, USA for US 2 million. 4.5 acre plot with option to build to suit 100,000 square foot facility. See full classified ad.

Kangxin (KX) Logistics announced the opening of one of the largest refrigerated food warehouses in the People’s Republic of China. The new Beijing warehouse, which is 12,000 square meters (40,000 square feet), joins three other KX Logistics refrigerated warehouses in Tianjin, Suzhou, and Guangzhou. See full story from Refrigerated Transporter.

 

Two years before Beech-Nut Nutrition Corp. moves to a new $124-million headquarters in upstate New York, USA, the baby food maker is preparing to outsource the last of its warehousing operations to Distribution Unlimited Inc., one of the Northeast’s largest public warehousing companies. See full story from The Daily Gazette.

 

Asosiasi Rantai Pendingin Indonesia (ARPI), the Indonesian cold chain association and a Global Cold Chain Alliance Affiliate Partner, will hold Indo FoodTec, the first Indonesian Food Technology Exhibtion, August 6-9, 2008. See event brochure. See agenda. See expo brochure.

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Business

 

Smithfield Foods, Inc. is engaged in merger discussions with Campofrio Alimentacion, S.A., the largest processed meats company in Spain. See full release.

 

Meanwhile, Smithfield Foods, Inc. announced that it has entered into an agreement with COFCO Limited, China's largest national agricultural trading and processing company, for the sale of 7,000,000 shares, or 4.95 percent of Smithfield's common stock. See full release.

 

Aldi, the discount store chain, has vowed to open a new store every week in Britain as it cashes in on the credit crisis. See full story from The Telegraph.

Tyson Foods Inc. said it is selling its meat business in Canada, the latest sign that meat companies are struggling with rising feed and energy costs. Tyson said it had entered into a preliminary agreement to sell Lakeside Farm Industries Ltd. to XL Foods Inc., a Canadian beef-processing company, for 107 million Canadian dollars (US$106 million). See full story from The Wall Street Journal (subscription required).

Meanwhile, Tyson Foods Inc. says it has acquired majority ownership in a major poultry producer in India. See full story from The Boston Globe.

ConAgra Foods Inc. said it completed the sale of its commodities trading group to an investor group for $2.75 billion, some $650 million more than originally planned. See full story from Forbes.

Zhongpin Inc., a leading meat and food processing company in the People's Republic of China, announced that it has completed the equipment installation phase at its new plant in Luoyang City, Henan Province and will start production immediately. See full release.

Del Monte Foods announced that it has opened up discussions to sell its StarKist seafood division to Dongwon Group, a South Korean food company. The talks are part of Del Monte's exploration of "strategic alternatives" for the seafood business. See full story from Reuters.

Sanderson Farms Inc. indefinitely delayed construction of a new chicken-processing plant, underscoring the repercussions of skyrocketing corn and soybean costs on the chicken and meat industries. See full story from The Wall Street Journal (subscription required).

Brigham's Ice Cream Inc. agreed to sell its product lines to a subsidiary of HP Hood LLC in a deal that joins two of New England's most well-known ice cream brands. See full story from Yahoo!Finance.

Trends

Soaring commodity and fuel prices are driving up costs for manufacturers; faced with a choice between raising prices (which consumers would surely notice) or quietly putting fewer ounces in the bag, carton or cup (which they generally don't) manufacturers are choosing the latter. See full story from Time.

 

Emerging economies will become a bigger slice of Procter & Gamble’s business in the next decade as it looks to ameliorate the effects of the US slowdown by tapping into the fast-growing markets of Brazil, Russia, India and China. See full story from Financial Times.

Chinese appetite for on-the-go burgers, fried chicken, pizza, and noodles is expected to make fast food a $66 billion industry in China by 2009, up from $51.7 billion last year, according to research firm Euromonitor. See full story from China Daily.

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At least 29 countries have sharply curbed food exports in recent months, to ensure that their own people have enough to eat, at affordable prices. See full story from The New York Times.

Food prices could rise even more unless the mysterious decline in honey bees is solved, farmers and businessmen told U.S. lawmakers last week. See full story from USA Today.

Mexican tomatoes from most of the country's producing states have been given the green light to enter the U.S., but a key state producing 80 percent of the tomatoes that Mexico exports have been left off the safe origin list. See full story from The Wall Street Journal.

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