LACY BECOMES NCPA PRESIDENT; CONKLING ELECTED VICE PRESIDENT

AMENDMENT MAY CUT AG EXPORT FUNDING

WHAT'S NEW @ COTTONSEED.COM

NCPA DIRECTORS AND OFFICERS APPOINTED FOR 2005-06

RESIGNATIONS & RETIREMENTS

NCPA MEMBERS VOTE ON RULES AT ANNUAL MEETING

FEED INDUSTRY "SUMMIT" HELD

OPEC IN EDIBLE OILS

MOVING?

LACY BECOMES NCPA PRESIDENT; CONKLING ELECTED VICE PRESIDENT - Robert Lacy of Lubbock, Texas, became the 109th President of the NCPA at the closing session of the Annual Convention in San Diego, California, and Gary Conkling of Oklahoma City, Oklahoma, was elected Vice President.  Robert Lacy is currently Senior Vice President of Marketing at PYCO Industries.  PYCO Industries is the largest cottonseed cooperative serving the Southern United States with 120 member gins and operates two cottonseed oil mills in Lubbock and one in Greenwood, Mississippi.  Lacy began his industry work in 1984 as a transportation and sales associate with Paymaster Oil Mill in Lubbock. In 1990, he moved to PYCO (formerly known as Plains Cooperative Oil Mill), where he worked in industrial sales and transportation. He was promoted to Vice President of Marketing in 1996 and to his current position in 2002. Lacy was a member of the Cotton Leadership Class of 1996-97, Past President of the American Cotton Linter Association, and Sigma Alpha Epsilon.  He has served as a Crusher delegate to the National Cotton Council, and now serves as a Director.  He is also a Board member of Texas Agricultural Coop Council.  In addition, he currently chairs the Export Committee of the National Cottonseed Products Association. Lacy received a BBA in 1982 from Eastern New Mexico University in Portales, New Mexico, and currently lives in Lubbock with his wife, Karyn, and two children, Ryan and Krysta.  They are members of Lakeridge United Methodist Church.  Gary Conkling is currently President and Chief Executive Officer of Producers Cooperative Oil Mill in Oklahoma City, Oklahoma.  In addition to the cottonseed oil mill in Oklahoma City, Producers Co-op also serves Arkansas, Missouri and Tennessee with locations in Osceola and Wilson, AR, Kennett, MO, and Covington, TN.  He began his industry work in 1989 in the sales department of Producers Co-op, and was promoted to Vice President of Sales in 1999.  He became President & CEO in March 2003. Conkling is a Past President of the American Cotton Linter Association. He serves as a Cottonseed delegate and member of the Board of Directors of the National Cotton Council.  He is also a Board member of the National Cottonseed Products Association.

AMENDMENT MAY CUT AG EXPORT FUNDING - An amendment that would eliminate funding for the Market Access Program (MAP) is expected to be offered by Rep. Steve Chabot (R-OH) to the FY 06 Agriculture Appropriations Bill (H.R. 2744).  The House is considering the legislation this week.  The amendment appears to be identical to the one offered last year.  Eliminating the MAP program would be a severe blow to U.S. agriculture. MAP helps boost U.S. agricultural exports through promotion efforts by small businesses, farmer cooperatives, and trade organizations. Agricultural exports are projected to reach $59 billion in FY 05 which, if realized, would make the current year the 3rd highest export sales year ever.  Since the program originated in 1985, U.S. agricultural exports have more than doubled. Although agriculture’s trade surplus has been declining and is projected to be about $1 billion in FY 05, it is still one of the few sectors of the American economy to enjoy a surplus, and without it the overall U.S. trade deficit would be even worse.  MAP is currently funded in H.R. 2744 at $200 million, as authorized under the 2002 Farm Bill.  NCPA receives funding through a similar program, the Foreign Market Development Program, to promote cottonseed meal use in Mexico and other products worldwide.

WHAT'S NEW @ COTTONSEED.COM - CCI/NCPA Consultant Ricardo Silva reports that a major dairy cooperative in Mexico is expected to significantly increase its consumption of cottonseed meal and save nearly $7/metric ton in feed costs.  His complete report is available in the Members Only section of the Association’s web site under the Mexico Consultant Reports link…..Weekly cottonseed crushings have declined vs their five year average during the past two weeks.  The Statistics section of  www.cottonseed.com contains this report as well as monthly numbers for member oil mills…..Check the Cottonseed calendar for the latest industry meetings.

NCPA DIRECTORS AND OFFICERS APPOINTED FOR 2005-06 - Also at the annual meeting, the following were appointed to NCPA’s Board of Directors for 2005-06: Ed Lawton, III, Darlington, SC; Sammy Wright, Tifton, GA; Brent Fenton, Decatur, IL; Scott Middleton, Jonestown, MS; Danny Brown, Pine Bluff, AR; Gary Conkling, Oklahoma City, OK; E. O. Lundgren, Jr., Elgin, TX; Hollis Sullivan, Harlingen, TX; Robert Lacy, Lubbock, TX; and David Johnson, Corcoran, CA.  Officers for 2005-06 are Robert Lacy, President, Gary Conkling, Vice President, Ben Morgan, Executive Vice President and Secretary, and Sandi Stine, Treasurer.  Alex Wellford, Jr. was appointed General Counsel.

RESIGNATIONS & RETIREMENTS - The following has resigned their membership in the NCPA: Martin Kern, Buckeye Technologies GmbH, Gluckstadt, Germany.  In addition, Mr. Richard Kuelpman, Kuelpman Co., Little Rock, AR, advised he is “finally” retiring from the business.   We wish him the best.

NCPA MEMBERS VOTE ON RULES AT ANNUAL MEETING - Following the recommendation of the NCPA Rules Committee, voting members of the Association who were present at the annual meeting unanimously approved a number of changes to the NCPA Trading Rules.  The entirety of each changed Rule follows, with new or altered language underlined, language that was deleted struck through, and if a word or phrase has been dropped with no replacement, that fact is indicated by…..

CHAPTER I. GENERAL RULES

Rule 52: Purchases Or Sales For Account Of Whom It May Concern.

Whenever a buyer or seller, whose right to do so has accrued, all rights of the opposite party having been forfeited, elects to buy or sell a commodity for the account of whom it may concern, he must immediately notify the opposite party by telegram of his intention.  Such purchase or sale must be made in not less than 24 nor more than 72 hours after such notice and shall be for a period of shipping conforming as nearly as possible to that of the original contract.  The purchase or sale may be made through a broker member of the Association in good standing or by soliciting written confirmed bids (offers) from at least three dealers, mills and/or other parties.  In the event that a broker member of the Association is used, as soon as the broker/dealer receives such an order, he must immediately notify the interested party by telegram.

In addition to the names of buyer and seller in the transaction, the broker must note on his confirmation contract the name of the interested party and the fact that the purchase or sale was made for the account of whom it may concern.  He shall send a copy of such confirmation contract to each of the three parties named therein.

In the event that three bids (offers) are solicited, the commodity shall be sold (bought) at the highest (lowest) price.  In addition to the names of the buyer and the seller in the transaction, the contract must note the name of the interested party and the fact that the purchase or sale was made for the account of whom it may concern.  A copy of the contract shall be sent to each of the three parties named therein.

Furthermore, the party for whom it may concern is not an eligible bidder (seller) regardless of if they are the highest (lowest) bid (offer), unless approved by the party claiming the breach of contract.

CHAPTER XIII. FEED GRADE COTTONSEED

Rule F-3: A Car Conveyance

Except in cases where the railroad tariff specifies a higher minimum weight, a box car of Feed Grade Cottonseed shall be 60 tons. If gondola cars are used, a gondola of Feed Grade Cottonseed shall be 85 tons unless otherwise stated. 

  Barges: A standard barge shall be 1,100 tons unless otherwise stated.

  Trucks: A truck shall be 23 tons unless otherwise stated.

  Settlements for overweights and underweights shall be made in accordance to Rule F-7.

CHAPTER XIII. FEED GRADE COTTONSEED

Rule F-11 Shipping Instructions

Sec.2. Equipment Requirements and Complete Instructions. Where shipments are to be made on a scattered or specified basis, the buyer shall furnish the seller with equipment requirements at least five (5) seven (7) days prior to scheduled shipments. If, at any time of loading, shipping instructions have not been furnished in accordance with the terms of the contract, the shipper may load a box car (or a hopper in the case of delinted cottonseed).  At least one day prior to scheduled shipment, buyer must furnish complete shipping instructions which shall permit the seller to ship in an orderly manner and to complete shipment according to schedule and within the contract period.

     If buyer requires seller to provide railroad owned equipment, so long as proof is available that the seller ordered the railroad owned equipment in a timely manner, the seller shall not be responsible if equipment fails to arrive as ordered by schedule, thus the seller shall not be held responsible for failure of providing loaded cars to the buyer.

In other business, a subcommittee appointed by Chairman David Johnson will consider possible settlement procedures and a discount schedule for rejected feed grade cottonseed.

FEED INDUSTRY "SUMMIT" HELD - The Association of American Feed Control Officials (AAFCO), a 96-year-old nonprofit group comprised of state and federal feed regulators, solicited input on its new 2005-09 strategic plan from six national trade organizations representing the commercial feed, feed ingredient and pet food sectors during a day-and-a-half “summit” conducted in Chicago recently.    “This was an ideal time to build on the solid foundation AAFCO has with its existing industry stakeholders, and to ask for their thoughts on our strategic plan and priorities for implementation,” said AAFCO President Phil Petry, assistant director of the Regulatory and Environmental Affairs Division at the West Virginia Department of Agriculture, Moorefield, W. Va.  Invited by AAFCO to participate in the summit, the first such event in recent times, were industry and executive staff representatives of stakeholder groups that work closely with AAFCO and provide advisers to its committees.  Those organizations were the American Feed Industry Association (AFIA), American Pet Products Manufacturers Association (APPMA), National Grain and Feed Association (NGFA), National Oilseed Processors Association (NOPA), National Renderers Association (NRA) and Pet Food Institute (PFI).  Attending on behalf of AAFCO were its officers and Board of Directors, its Food and Drug Administration adviser, and other senior AAFCO officials who had been involved in the development of its previous strategic plans. AAFCO’s 2005-09 strategic plan, which was adopted by its Board of Directors in 2004, contains objectives for both internal organization, outreach to stakeholders and program development.  Emphasis areas include feed safety; ensuring working partnerships with stakeholders; promoting and enhancing member participation; enhancing communications; promoting organizational growth; and promoting internationally the North American system of feed safety, labeling and ingredient approval. 

OPEC IN EDIBLE OILS - The Organization of Petroleum Exporting Countries (OPEC) will help Myanmar (formerly Burma) build two edible oil plants worth $5 million as part of its aid to the country, according to the local 7-Day News journal. The projects, which also involve the UN Food and Agricultural Organization (FAO), will be implemented in the capital city of Yangon and the second largest city of Mandalay, the FAO resident representative was quoted as saying. Meanwhile, OPEC is at present implementing a $10 million project to help Myanmar upgrade its oil crops production for self-sufficiency. The five-year project, which is the biggest of its kind since 1988, would assist farmers in 36 main oil seed growing areas and deal mainly with the development of oil palm and four oil seed crops, including sesame, groundnut, sunflower and soybean. Myanmar obtained OPEC's international development fund in May 2003, which was provided at an annual interest rate of 1% payable in 25 years. OPEC had previously provided Myanmar with loans for agriculture, telecommunications, energy, transport and water supply improvement networks. According to official statistics, Myanmar produces some 250,000 tons of edible oil annually and imports the same amount of it to meet its local demand. Companies from Malaysia and Thailand are also making a feasibility study for investment in oil palm cultivation in Myanmar.

MOVING? - Please send all change of address information to: National Cottonseed Products Association, 104 Timber Creek Drive, Suite 200, Cordova, TN  38018, or email to info@cottonseed.com.

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© National Cottonseed Products Association, Inc.

June 8, 2005