Connection Fall 2013 | Page 11

C t RECAPS GRAIN onstruction ontinues By Joe Kelley he 2013 harvest for United Ag’s Port of Victoria location turned out to be strong given the circumstances that the area had to endure. We were much better off in terms of harvest production than our neighbors to the south in the Corpus, Robstown and the Lower Rio Grande Valley areas. The summer of 2013 also enabled United Ag to use some of the new improvements at the Port of Victoria: our new grain dry and wet tanks. Fortunately, we didn’t have that much grain that needed drying at the port this year. However, the high moisture grain that did come through was able to be dried down to levels accepted by the commercial export houses. This ability to dry grain at the Port of Victoria translated into faster harvest for area farmers since they did not have to truck grain to Hillje and wait in line. So, the farmers saved on trucking, time waiting in line and gained efficiencies in working with a minimal amount of trucks. As for the POV installing liquid fertilizer terminal actual improvements, United Ag was most impressed with the ease of operation and efficiency of the grain dryer at the port. In terms of quality, the grain sorghum averaged a strong 60.1 lbs per bushel — definitely a strong #2 to #1 grain sorghum on average. The yellow corn came in better than expected as well, with most of the yellow corn less than 20 ppb on aflatoxin. We did see some higher levels come through the elevator, but they were few and far between. United Ag was host to grain trade missions from Japan and Colombia at the beginning of harvest. The Colombians were impressed enough to buy a small quantity of grain sorghum to use in feed trials in Colombia. The feed trials are still underway; however, the grades on the grain sorghum suggest that they should see the same beneficial results that sorghum customers in Mexico have enjoyed for a number of years. This year has been unique in terms of marketing and grain movements. We have seen our grain go to various nontraditional markets, such as California, Arizona and Colombia. As the marketing year is still young, we do expect to see rail movements of corn and grain sorghum move south to Mexico. The circumstances of this year have made rail movements more competitive than what they have been in years past. The other major improvement at the port is on the fertilizer side of the house, with United Ag constructing a liquid fertilizer terminal consisting of two storage tanks: one 5,000 short ton tank (approximately 1,000,000 gallons) and a 10,000 short ton tank (approximately 2,000,000 gallons of storage). With this asset in place, United Ag can have more control over its fertilizer purchases and buy larger quantities, which will have a beneficial effect on freight pricing. The LFT (liquid fertilizer terminal) will go “online” this September. United Ag will be expecting its first fertilizer tow at the port a few weeks later. 11