Tag Archives: chat
VIASPACE and Maricopa Bio Crops Announce Giant King Grass Animal Feed Project in Arizona
By VIASPACE Inc. Published: Tuesday, Sep. 24, 2013 – 4:12 am WALNUT, Calif., Sept. 24, 2013 –/PRNewswire/ — VIASPACE Inc. (OTCQB: VSPC) today announced that the company has entered into a contract with Maricopa Bio Crops, LLC of Scottsdale, Arizona for a planned initial 4,500 acre Giant King Grass plantation to produce Giant King Grass hay for cattle feed in Arizona. Maricopa Bio Crops will grow and market the Giant King Grass under VIASPACE direction, and both companies will share the profits. The contract was signed on September 16, 2013 and VIASPACE received an initial payment from Maricopa. Mr. Patrick Sweeney, Founder and CEO of Maricopa Bio Crops and Syn Tawa Energy, LLC stated, “We are thrilled to be working with VIASPACE on this project. We have been carefully investigating bio crops in Arizona for both animal feed, and as dedicated energy crops for multiple biofuel projects that we are developing. Our Team has grown sorghum in Arizona as a baseline energy crop; however, Giant King Grass has a much higher yield and is a perennial crop that does not have to be replanted each year making it more financially efficient and profitable. We have access to irrigated plantation land in Arizona to grow bio crops and the climate is suitable to grow Giant King Grass.” Mr. Sweeney continued, “We met with VIASPACE CEO, Dr. Carl Kukkonen, in May and visited the Giant King Grass nursery in California. When Dr. Kukkonen showed us the high protein animal feed data and results, we became very excited. However, we wanted to independently test Giant King Grass in our laboratory. I personally cut the sample that we sent to our lab and it had 15.63% crude protein– even better than previous results. Our livestock nutritionist confirmed that Giant King Grass can be an important part of the diet of cattle and dairy cows. We concluded that Giant King Grass hay can provide a reliable and consistent source of quality forage feed for our customers at an attractive price. Arizona has 900,000 cattle and 130,000 dairy cows and this represents a very large market for us. We are in the process of formalizing an initial agreement with one of the largest beef cattle rancher’s in Arizona. Our phase one plan is to start with 4,500 acres to meet our obligations for our first customer of Giant King Grass and our goal is to triple that amount by expanding into two additional phases. We are currently in early discussions with multiple local Native American Tribes that could benefit tremendously by expanding their agricultural base with Giant King Grass. Moreover, our contract with VIASPACE also covers the potential future use of Giant King Grass for bio-refinery feedstock applications, as a backup feedstock source to our existing supplier” “VIASPACE is truly excited to kick off our animal feed business with Maricopa Bio Crops,” states CEO, Dr. Carl Kukkonen. “They have been careful and thorough in their due diligence and we have come up with a business contract that is a win-win for both of us. This is an important step forward for our company and we will work closely with Maricopa to make phase one of the project successful and to then expand into phases two and three.” Dr. Kevin Schewe, VIASPACE Chairman, commented, “I have been closely following our negotiations with Maricopa Bio Crops and am very pleased that we have formalized this partnership. Animal feed is another great application for Giant King Grass and for VIASPACE. On August 20, 2013, we released results of independent testing that showed when Giant King Grass is cut frequently at 4-5 foot tall, it is an excellent, high protein animal feed. The results have shown that Giant King Grass is much better than wheat straw, sorghum silage, corn straw, Bermuda grass or Sudan grass. It is very similar in nutritional value to oat hay. The largest applications are to use Giant King Grass to feed cattle and dairy cows which is exactly the plan in Arizona.” Dr. Schewe continued, “Historically, we have not disclosed projected revenue numbers for our anaerobic digestion and direct combustion power plant projects because of the financial complexity of these projects, competition reasons, and because of non-disclosure agreements. However, once we completed our own research and testing of Giant King Grass for animal feed, we knew that the enormous domestic and global animal feed market represented a major and immediate business opportunity for VIASPACE and its shareholders. With Maricopa, we have a developed an animal feed business model that estimates profit sharing revenues to VIASPACE of $1.3 million per year for the initial phase one project and we are planning two additional phases. More importantly, animal feed projects (and the associated revenues/profits) can be executed and implemented more quickly than power plant projects and can also be complementary to the overall plans for bioenergy and biofuel projects.” Dr. Schewe concluded, “I believe that VIASPACE has reached its tipping point and our project with Maricopa starts now. We will strive every day to be an excellent partner in this endeavor with Maricopa Bio Crops, and our doors have opened to the new line of animal feed business both here in the U.S. and abroad. We are working hard to move forward on all fronts to build endearing value for our shareholders.” About Syn Tawa Energy, LLC and Maricopa Bio Crops, LLC Syn Tawa Energy, LLC develops second generation Renewable Energy Refinery plants that combine a new, patented state-of-the-art, commercial scale, low emission cellulosic biomass gasifier with a highly efficient patented gas-to-diesel conversion system that generates premium sulfur free ASTM D-975 diesel fuel at a cost that is below first generation biodiesel and petroleum based diesel fuels. For more information go to www.syntawaenergy.com or contact Patrick Sweeney at 949-887-6111. Maricopa Bio Crops, LLC grows renewable bio crops for animal feed and as a feedstock for biomass to liquid fuels production. About VIASPACE Inc. VIASPACE grows renewable Giant King TM Grass as a low-carbon fuel for clean electricity generation; for environmentally friendly energy pellets; and as a feedstock for bio-methane production and for green cellulosic biofuels, biochemicals and biomaterials. Giant King Grass is a proprietary, high yield, dedicated biomass clean energy crop. Giant King Grass when it is cut frequently at 4 to 5 feet tall is also excellent animal feed. For more information, please go to www.VIASPACE.com or contact Dr. Jan Vandersande, Director of Communications, at 800-517-8050 or IR@VIASPACE.com. Safe Harbor Statement Information in this news release includes forward-looking statements. These forward-looking statements relate to future events or future performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. Such factors include, without limitation, risks outlined in our periodic filings with the U.S. Securities and Exchange Commission, including Annual Report on Form 10-K for the year ended December 31, 2012, and other factors over which VIASPACE has little or no control. SOURCE VIASPACE Inc. Read more here: http://www.sacbee.co…l#storylink=cpy Continue reading
China Just Bought 5% Of Ukraine
By Lily Kuo @ lilkuo September 23, 2013 China likes the look of this red star. Reuters/Alessandro Bianchi China has inked a deal to farm three million hectares (paywall), or about 11, 583 square miles of Ukrainian land over the span of half a century—which means the eastern European country will give up about 5% of its total land, or 9% of its arable farmland to feed China’s burgeoning population. Under the deal between China’s Xinjiang Production and Construction Corps, or XPCC, and KSG Agro, an Ukrainian agricultural company, crops and pigs raised in the eastern region of Dnipropetrovsk will be sold at preferential rates to two Chinese state-owned grain firms. The project will launch with 100,000 hectares and eventually expand to three million. Here’s some context on what that looks like: The deal comes after Ukraine lifted a law barring foreigners from buying Ukrainian land last year. As part of the deal, China’s Export-Import bank has given Ukraine a $3 billion loan for agricultural development. In exchange for its produce, Ukraine will receive seeds, equipment, a fertilizer plant (Ukraine imports about $1 billion worth of fertilizer every year), and a plant to produce a crop protection agent. XPCC also says it will help build a highway in Ukraine’s Autonomous Republic of Crimea as well as bridge across the Strait of Kerch, a transport and industrial center for the country. Critics say the move exemplifies a slew of global land deals that smack of colonialism and resource extraction by richer countries in poorer ones. Today, such deals are increasingly motivated by governments seeking food security for their citizens, rather than profit-mongering by private companies. Saudi Arabia, South Korea, the United Arab Emirates, Britain, the US and other countries have been buying up foreign farmland, especially after the global food price spike of 2007 to 2008 that spurred global riots. According to a report last year by the nonprofit Grain, the main target of these purchases has been Africa but also Eastern Europe, Latin America and Asia. Between 0.7% and 1.75% of the world’s farmland is being transferred from locals to foreign investors, another study in January found. Given its dwindling available farmland and expanding population, China has been among the most aggressive. The country eats about one-fifth of the world’s food supplies, but is home to just 9% of the world’s farmland, thanks to rapid industrialization and urbanization of the formerly agrarian nation. Its deal with Ukraine is its biggest farmland investment yet. Since 2007, China has bought farmland (pdf) in South America, Southeast Asia and Africa. Some analysts fear the Ukraine-China pair up paves the way for an eventual Chinese takeover of all of Ukraine’s farmable land. Similar fears about local food security led the government of the Philippines to block a China investment deal; Mozambique has resisted the arrival of Chinese farmers who would have displaced locals. Others argue the project gives Ukraine the opportunity to boost food exports. Since the breakup of the Soviet Union, the country has been slow to fully privatize and develop its agricultural industry. Continue reading
Illinois Land Climb Seen Leveling Off
Jeff Caldwell 08/29/2013 There’s been a lot of chatter lately about the leveling-off of farmland values in the coming months. New information released this week shows how far farm managers and other specialists think land prices might slip, whether or not it will unfold into a 1980s-style value meltdown, and some of the factors behind the market’s current standing. A survey conducted by University of Illinois Extension ag economist Gary Schnitkey and members of the Illinois Society of Professional Farm Managers shows the first half of 2013 saw an overall year-over-year increase of 2.5% to 3% for good-to-excellent land in that state, a definite slowdown from the last few years. “These prices are not at the level of increases we’ve seen in recent years, but they are still upward,” says Dale Aupperle, a farm manager with Heartland Ag Group in Forsyth, Illinois, and chairman of the Illinois Land Values and Lease Trends project. Sales volume dips Overall, land values ranged from $8,300 to $13,200 per acre for fair to excellent land across Illinois. The survey showed a definite shift lower in the amount of land sold compared to the first half of 2012, with late-year land sales accounting for some of that difference; 70% of those taking part in the survey said sales volume has been lower so far this year, and 77% said they expect that pace to remain or slow further. “There was a tremendous push on land sales at the end of 2012 because of uncertainties concerning income tax treatment in 2013 and beyond,” Aupperle says. “This led to a great deal of farmland being sold last year that might have otherwise been available to the market in 2013. As a result, there is still a demand for farmland but not much available for sale.” Buyers & change The vast majority (73%) of Illinois land sold in the last 7 months has been to farmers; local investors made up 12% of the buyers, while absentee investors took 8%. Among the state’s farm managers responding to Schnitkey’s survey, the majority who see lower land prices in the next few months believe the slide will be slight. “Respondents were divided in what was expected to be the price change over the next 12 months. Twenty percent expect farmland price to increase, 41% expect farmland price to remain the same, and 39% expect farmland price decreases,” according to a report from the Illinois Society of Professional Farm Managers. “Of the 39% expecting decreases, 77% expect a price decrease from 0% to 5%.” Factors in play Corn prices, the farm bill, ethanol and macroeconomic factors like inflation are all big variables comprising the direction of farmland values in the coming months, Schnitkey’s survey reveals. “Most likely factors of occurring are ‘corn prices fall to $4.50,’ ‘subsidies on crop insurance are reduced,’ ‘Farm Bill does not pass,’ and ‘interest rates increased by 2%.’ Factors least likely of happening are ‘inflation increases by 10% and ‘interest rates increase 5%,'” according to the Society’s report. “If they happen, the factors indicated of having the most positive impact on farmland prices are ‘U.S. economy grows 5%’ and ‘inflation increases to 10%.’ The factors estimated to have the most negative impact on farmland prices are ‘Corn prices fall to $3.50,’ ‘interest rates increase 5%’ and ‘Ethanol mandates are removed.'” Rent effects Though most expect land values to remain slightly higher in the coming months, Schnitkey’s survey reveals the same’s not true for land rents. Average rents are expected to slide by a few percentage points for the 2014 crop year; excellent quality land rented for $388/acre this year, but will likely go for $374 in 2014. Good land rented for $332/acre but will rent for $318 next year. Cash rent agreements remain the largest share of overall rental structures (35%) though shared rents make up 25% and 14% of rented land is done so via a variable cash arrangement. “Respondents indicated that share rent and modified share rent lease leases declined in use,” according to the Illinois report. “Variable cash rent leases were the lease types with the largest increase, followed by cash rent.” Continue reading
