Riceland Foods to buy New Madrid County plant

Business Today

MARSTON -- Riceland Foods plans to buy a rice storage and milling facility in New Madrid County. The purchase should alleviate strain on the company's marketing facilities in the region, the cooperative said in a news release.

Louis Dreyfus Corp. of Wilton, Conn., owns the Missouri facility, which is on the Mississippi River.

Riceland president Richard Bell said he expects Missouri rice production to increase.

''I expect Missouri in time will be the third-largest rice growing state in the South,'' Bell said.

Production at the plant has grown over the past three years, Louis Dreyfus officials reported earlier this year, crediting the growth to the plant's 110 salaried and hourly employees. The New Madrid County-based plant provides rice for several Fortune 500 companies.

Riceland, based in Stuttgart, Ark., wouldn't say how much it planned to pay for the mill or how much storage capacity the purchase will add. The cooperative plans to close the transaction in time for the Missouri rice harvest. The announcement was made July 23.

Carl McGoldrick, general manager with Louis-Dreyfus' Marston facility, said he didn't forsee any significant changes in the operation of the plant with the takeover by Riceland. "They are coming in with the intent of utilizing the current operation," he said.

Timmie Lynn Hunter, director of the New Madrid County Port, where the mill is located, said she has met with officials from the company and looks forward to working with Riceland.

"We are looking at this as a positive move," said Hunter. "At Riceland, farmers are involved with the working of the company so they are familiar with the farmers' needs."

She said she was told the operation will continue with no major changes.

"They want to get in before harvest, have everything ready for a smooth transition."

According to Hunter, Riceland officials have indicated plans to meet with area producers and are discussing some upgrade of local facilities.

The Missouri mill is near Marston at the New Madrid County Port on the Mississipi River. It was built in 1988 and has updated milling equipment, solely dedicating its operation to rice in 1996. Union Pacific Railroad serves the site and has river barge loading capacity.

Of Riceland's 9,000 members, 700 farm in Southeast Missouri.

Riceland has been marketing Missouri rice since it was first grown in the state.

The cooperative initially received Missouri rice at Corning, Ark., seven miles south of the Missouri state line. Facilities for drying and storing rice were built at Dudley and Poplar Bluff in the mid-1960s. These facilities have been expanded and upgraded over the years.