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Coast/Valley Jobless Rate Falls

Fri, 18 May 2012 10:36:16 -0700

Jobless rates fell sharply in April both in the San Joaquin Valley and in San Luis Obispo County on the Coast as seasonal farm employment surged everywhere and an improvement in the nonfarm sector provided more good news in some counties.

San Luis Obispo County

In San Luis Obispo County, the unemployment rate fell to multi-year low of 7.9% in April down from 8.9% in March and 9% a year ago. Farm jobs in SLO County were up 200 March to April but in the nonfarm sector - up by 1100 month over month in an across the board improvement in several job categories. Year over year SLO County added 1900 new nonfarm jobs.

Fresno County

In Fresno County the unemployment rate fell to 15.8 percent in April 2012, down from a revised 17.4 percent in March 2012, and below the year-ago estimate of 16.8 percent. This compares with an unadjusted unemployment rate of 10.5 percent for California and 7.7 percent
for the nation during the same period.

Between March 2012 and April 2012, total wage and salary employment increased by 9,000 jobs (up 2.8 percent) to total 328,000. The month-over gain was concentrated in farm employment, which grew by 8,200 jobs (up 23.6 percent), while nonfarm employment expanded by 800 jobs (up 0.3 percent). Between April 2011 and April 2012, total wage and salary employment increased by 4,000 jobs (up 1.2 percent). Nonfarm employment added 2,900 jobs (up 1.0 percent) and farm employment rose by 1,100 jobs (up 2.6 percent)

Kern County

The unemployment rate in the Kern County was 14.5 percent in April 2012, down from a revised 15.9 percent in March 2012, and below the year-ago estimate of 15.5 percent. There were more farm jobs in April but the county lost 600 nonfarm jobs month to month but showed a gain of 4300 year over year.

Tulare County

In Tulare County 8000 went back to work on county farms from March. Year over year the county’s farm economy added 3400 jobs but nonfarm jobs contracted by 1800 led by 500 fewer government jobs,The unemployment rate was 16.2%, down from 18.2 % in March and 16.6% a year ago.

Kings County

The unemployment rate in the Kings County was 15.6 percent in April 2012, down from a revised 17.4 percent in March 2012, and below the year-ago estimate of 16.6 percent Farm jobs were up 700 in a month but so were nonfarm jobs, up 100 in April and up 1000 year over year.

California/Dueling Surveys

Statewide, California’s unemployment rate decreases to 10.9 percent and nonfarm payroll jobs decreased by 4,200 during the month for a total gain of 385,600 jobs since the recovery began in September 2009, according to data released today by the California Employment Development Department (EDD) from two separate surveys.

The U.S. unemployment rate decreased in April to 8.1 percent.
In March, the state’s unemployment rate was 11.0 percent, and in April 2011, the unemployment rate was 11.8 percent. The unemployment rate is derived from a federal survey of 5,500 California households.

Nonfarm jobs in California totaled 14,237,000 in April, a decrease of 4,200 jobs over the month, according to a survey of businesses that is larger and less variable statistically. The survey of 42,000 California businesses measures jobs in the economy. The year-over-year change (April 2011 to April 2012) shows an increase of 175,600 jobs (up 1.2 percent).

The federal survey of households, done with a smaller sample than the survey of employers, shows an increase in the number of employed people. It estimates the number of Californians holding jobs in April was 16,476,000, an increase of 20,000 from March, and up 296,000 from the employment total in April of last year.

Kingsburg Canned Peach Plant Closure Not A Big Surprise

Thu, 17 May 2012 08:43:36 -0700

News that Del Monte would close their 90 year peach canning plant in Kingsburg should not come as much of a surprise considering how consumption of canned peaches has declined in the past few decades.

People want more fruit and veggies, but not out of can.

Del Monte says they will consolidate their peach canning operations to their more modern Modesto plant following this summers canning season.

The company said a companion zucchini processing line would be transferred to their Hanford tomato processing facility.

In a news release Del Monte said the company sources approximately 25% of its peaches from the Kingsburg area and expects to continue sourcing from its established base of growers. The raw product sourcing that California provides is a critical element to the success of the company’s peach business and operations at the Modesto plant.

As a result of the consolidation of two California plants into one location at Modesto, approximately 70 full-time employees and approximately 1,100 seasonal employees are expected to be impacted.
There is expected to be a modest increase in employment at the Modesto plant to support the facility’s production increase. The Kingsburg warehousing facility is expected to remain open until all product has been shipped, with an expected closure date of Summer 2013.
Changing Appetites
USDA figures show that acreage of California cling peaches, used for canning, declined to 22,300 acres in 2011 compared to 31,700 acres in 2004. Tonnage of cling peaches processed in California dropped 391,000 tons in 2011 compared to a high of 559,000 tons in 2002.
A 2008 USDA report discussed the trend ,Americans are eating more fruit and vegetables but choosing fresh and frozen.

“American consumers are consuming more produce, and they prefer it non-canned. Using food availability data as a proxy for consumption, the amount of fruit available for consumption rose 13 percent between 1970 and 2005, and the amount of vegetables available for consumption increased 23 percent. Most of these increases were for fresh fruits and vegetables. Although the per capita quantity of canned vegetables increased slightly, canned vegetables’ share of total
vegetables fell from 30 percent to 25 percent. Per capita availability of canned fruit decreased by 37 percent, and canned fruits’ share of total fruit decreased from 11 percent to 6 percent.

Consumer spending for canned produce varies across economic and demographic groups. Analysis of household spending on both fresh and canned fruits and vegetables shows considerable variation in spending on canned produce and that spending was affected by social
and demographic factors. Higher income households tend to spend more per capita on canned fruits and vegetables than do lower income households. The same holds true for households
headed by older persons, compared with their younger counterparts. Households with children tend to spend relatively less on canned fruits and vegetables. Hispanic households have lower expenditures on canned fruits than other ethnic groups. Asians spend the least on canned vegetables, while African Americans spend the most.

Looking ahead, market trends suggest that the share of canned produce in total consumption will continue to decline.”

DFG Begins New Study To Increase Survival Of Out-migrating Juvenile Salmon

Thu, 17 May 2012 06:29:18 -0700

Department of Fish and Game (DFG) biologists are trying a new tactic to help California’s ocean-bound juvenile salmon, in hopes of increasing survival rates. On May 3, for the first time in state history, DFG staff used a boat to move approximately 100,000 young Chinook (called smolts) down the Sacramento River to San Francisco Bay. Upon arrival, the smolts were released in the Bay, where they will grow to adulthood before returning upriver to spawn
“We’ve been using trucks to transport smolts to points downstream for years, but we’ve never moved them by barge, and we’ve never moved them this far,” said DFG Environmental Scientist Colin Purdy, who supervised the boat transport to the Bay Area. “Truck releases are typically much further upstream, and though they do shorten the fish’s journey to the ocean, they still face all kinds of hazards in the river. It’s possible we could better the chances of survival for this species just by making a few thoughtful changes in our operating practices. The data we collect over the next few years will tell the story, but we’re hopeful that we’ll see positive results.”
Salmon return to their spawning grounds using their sense of smell. The process, called imprinting, begins before birth as waters flow over the eggs and continues as they grow and make their way to the ocean. Each segment of water on their journey has distinctive chemical cues which they can re-trace to their spawning grounds. Water is circulated through pumps from the Sacramento River into the boat’s holding tank, where the fish are kept. The hope is that this may improve their ability to find their way back as an adult and predators are unable to access the fish in the holding tank during the journey downstream.
This is the beginning of a multi-year study program aimed at increasing return rates of salmon from the sea to their native rivers. Over the next few years, scientists will use the data collected from the fish to test and evaluate the idea that overall survival rates and increased adult returns can be better achieved by barging the young salmon downstream.
To form a basis of comparison for this study, two other control groups of 100,000 smolts each were released by trucks in other locations at the same time as the barge release — one at a different location in the Bay, and one into the Sacramento River near Sacramento. All 300,000 fish in this study were implanted with coded wire tags smaller than a tiny piece of pencil lead, which will ultimately enable scientists to tell which of the three groups the returning fish came from — the barge release, or one of the two truck releases.
The study is being conducted by DFG fisheries biologists with the support of the Commercial Salmon Trollers Advisory Committee, which donated the use of the boat, fuel and crew time to help ensure a successful start to the study. They have committed to helping DFG for the next three years of data collection.
“This has been a major cooperative effort and we really appreciate DFG’s willingness to work with everybody and look at new ways of doing things,” said Zeke Grader, Executive Director of the Pacific Coast Federation of Fishermen. “DFG is committed to decreasing straying rates among the salmon migrating up the Sacramento River. Barging may be one way to achieve this goal.”
Scientists hope to confirm that — unlike the usual method of transporting the fish by truck — the boat transport will both eliminate in-river hazards such as getting lost or being eaten by predators, and give the smolts a chance to imprint on their native stream on their way to the ocean, improving their chances of successful return.

Visalia Industrial Park Activity Picks Up

Wed, 16 May 2012 16:24:46 -0700

Driven by demand ranging from the ag sector to retail distribution,from home grown start-ups to billion dollar international companies, the 1500 acre Visalia Industrial Park appears to be on the upswing near midyear 2012.

The city has not wasted several down economy years,instead investing in major infrastructure upgrades now well underway, to its wastewater system and to the area’s major roads - each being widened as we speak.

Plaza Drive from the interchange north, including the interchange, and Riggin Ave’s widening and extension all the way to Hwy 99 are under construction - knowing good truck access to the industrial park will be key to attracting more jobs to the area.The district includes more than 100 employers with over 5,000 jobs.

“This the busiest I’ve seen in several years” says long time Visalia broker Doug Burr. Burr recently completed a 35,000 sf lease to Italian fruit packaging company Sorma Group who will establish its main US office/warehouse and printing facility in Visalia when it opens late this summer.The company will print fruit labels on bags and containers and sell packaging.The company would start with 11 employees and plans to expand from that says city development chief Ricardo Noguera. “This is their only presence in the US.” Sorma has 700 employees worldwide.

Also on the food front there is no bigger player in Visalia than California Dairies, headquartered here, who is in expansion mode filing plans with the city to add over 75,000 sf including more office space, six new storage tanks and warehouse space. The company is also adding 2 new turbines engines to increase production of powdered milk destined for the export market. A recent Wall Street Journal article profiled the Visalia plant under the title”Farmers Retool To Feed China.”

Start-up Perfection Pet Foods has recently begun manufacturing of at its new pet food line with some 35 employees and has plans to add a large warehouse and a third building to make pet biscuits, a baked product similar to a milk bone treat. The company is owned by Goshen based Western Milling, a major feed supplier to the livestock industry.

DDG
existing
Visalia
project

On the distribution front, Fresno-based Diversified Development Group has recently acquired 55 acres - two separate parcels from a lender on Visalia industrial land formerly owned by the Allen Group.One is a 22 acre plot on Riggin just west of VF Corp and a larger 33 acre parcel east of Plaza on Riggin. “We will be able to offer buildings ranging from 700,000 sf down to 30,000 sf” says VP for the firm,Marcus Pignotti. “We plan to file a site plan for review with city soon” says Pignotti. He says their current 1.5 million sf cluster of industrial buildings on Plaza has just 2 vacant spots totaling 100,00 sf. Diversified recently added Mor Furniture and MWI Veterinary Supply in Visalia. Pignotti says “Visalia is very business friendly with its central location in the state making it the perfect location to ship goods overnight.”

VWR will open its new 100 employee distribution facility soon.The huge firm,a distributor of medical equipment to labs, chose Visalia as home to its new 500,000sf west coast distribution center in late 2010 The new facility is located on Riggin east of Plaza.

VF Corp’s West Coast distribution center(North Face) is adding a new mezzanine with 45,000sf of space to support its new line of sportswear and recently permitted a $1.3 million conveyor system addition. "VF Corporation is a leader in branded lifestyle apparel including jeans wear, outdoor products, image apparel, sportswear and contemporary brands."

Visalia based EdenIQ

Biofuel pioneer EdenIQ, headquartered here,recently announced $32 million in private funding from green investment groups that will help grow the company to 100 employees,many with science backgrounds, by years end says CEO Brian Thome. The firm was awarded $20 million in funding from the US Department of Energy as well.The company is working on manufacturing of cellulosic ethanol at its new pilot plant on Shirk Ave, experimenting with various non-food feedstock like switchgrass and wood chips to break them down into sugars. A ribbon cutting is planned next month.”We like to think of ourselves here in Visalia as Silicon Valley Meets The Central Valley.” Some of the funding will be used to install “bolt on” equipment at existing corn ethanol plants to make them more efficient - helping an industry that has very tight margins.

Mainland existing
locations, 10 stores
will grow to 14 by 2013

Mainland Skate & Surf company owned by local entrepreneur Fung Lee, is a fast growing local start-up that include Lee’s growing chain of surfwear stores (even though there is no surf in Visalia) expanding now from 10 to 14 locations over the next year - next store in San Jose. Each employ 20 to 25. The growing volume for the Visalia-based retailer has prompted Lee to add a new distribution warehouse in the industrial park that will double the existing warehouse space.

In addition, Lee has started a new general contracting business - Lee Construction,with 25 employees by years end. Lee Construction will occupy the current Mainland 15,0000 sf warehouse once his new 30,000 Mainland warehouse is built later this summer,he says.The construction firm does mostly commercial including many of the new Family Dollar stores, 1500 in the state expected to be built.

If he is not busy enough with all that, Fung is opening another store - Tootie Fruiti Yogurt on Mooney next to his Mainland Surf store that itself will employ 10. ”I grew up in the restaurant business so I am familiar with this type work too” says Lee whose parents own Canton Chinese Food in Downtown Visalia. Mr Lee volunteers that all his firms are now hiring.Fax resume to 559/738-8068.

Ag Beat,Coast & Valley Mad Cows,Milk,Ethanol & Wine

Wed, 16 May 2012 15:20:00 -0700

Mad Cow Update: Tulare County ag commissioner Marilyn Kinoshita says a Korean delegation paid a multi hour visit to her office recently on a mission to get the name of the dairy where mad cow disease was recently found.”I told him no way, but he did not want to take no for answer.”

”I don’t know what dairy it was but I would not tell... if I did.” she blustered in the face off. USDA has not released the name of the dairy fearing it could hinder the investigation. Two dairies in the county remain quarantined because of the find.

Kinoshita says”it must of been a very small dairy” and to have a nearly a 11 year old cow it seems it would likely to have had more than the 2 calves that they tracked over that long a period.The good news is that “ the system worked “ and no tainted meat got into the food supply, she adds.

The Korean representative told her that the “ people of Korea would like to know more about the dairy” but he finally gave up and headed home.The delegation also visited Washington and Ames, Iowa where the main USDA lab is. South Korea is one of the largest importers of US beef. US live cattle prices dropped to $112 when the mad cow news came out last month but have recovered to nearly $118 cents/lb since.

“No more ethanol” at least in Goshen, says Western Milling Co owner Kevin Kruse who says the old ethanol plant in Goshen, California, the first major plant in the state,will not be restarted after years of sitting idle. Instead, the equipment will be sold off.The 4 acre site next to his main feed mill along Hwy 99 will now be used to do a “fat blending plant” he says, to make a feed used for poultry pet foods and other uses. The new enterprise is a co-venture with JBS, the cattle company, and should be operational in a few months,Kruse says.

The Goshen ethanol plant was the subject of an extended lawsuit but the property ended up in Kruse’s hands. Kruse’s stake in a Keyes California ethanol plant is for sale.

California Dairies CEO Andrei Mikhalevsky says summer temps may do more than supply management to reduce the “flood of milk” that has been forcing Central Valley processors to scramble to handle it all. “It seems like it has hit a peak but is still 2 to 3% more than last year at this time.”

Mikhalevsky says he is hopeful dairy prices will improve by the August /September time frame but suggests CDFA chief Karen Ross could help by her support for the cooperative petition that would increase the amount processors have to pay producers for whey.The petition, to be heard May 31, is backed by nearly two thirds of the milk produced statewide.”In California our prices are about 17% lower than federal price levels” out of state dairymen get. The “coalition” group says dairy operators are suffering more than $28 million in loses every month and fear more dairies like those in Kings and Tulare counties will shut down without the adjustment. An increase in the whey factor could help California dairy prices head higher even as feed costs appear to be coming down, a positive double whammy.

Processors represented by the Dairy Institute respond that California is already short processing capacity and milk is leaving the state to find a home. One cheese maker in Hanford, Marquez Bros says the change could drive milk $3 per cwt higher putting his company at a disadvantage. The Dairy Institute says there is an evident lack of new cheese processing capacity being built in the state even as as the milk supply is growing by 6%.

US Dairy exports may increase to China in the future but for now Mexico is the number one destination says USDA. Dairy exports to Mexico were up 41.2% in 2011 amounting to 24% of the total milk exported. China was up 52.5% but accounted for just 7.5% of the supply,behind Canada and Mexico.

Reports of a worker shortages on the Central Coast may be true but as of July 2011 EDD reports total ag employment there was 81,500 compared to 74,200 in July 2002.

The state’s 2011 wine grape crop was down some 10% compared to the year before but the Central Coast’s wine grape crop was way down - some 34% lower - says Allied Grape Growers president Nat Debuduo. Tonnage fell to 400,000 compared to 570,000 tons in 2010 and 508,709 in 2009. The shortage could slow the construction of new wineries in SLO that has been the fastest growing region in the state. Weather problem are to blame for the decline.More short years are predicted(see chart) Upshot: wine makers may have to bring in foreign wine to blend to meet demand.

Spring Home Buying Season Off To Strong Start

Wed, 16 May 2012 07:30:21 -0700

California home sales and median price both jumped in April, with sales shooting up to their highest level in more than two years, and the median price rising above $300,000 for the first time in 16 months, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported this week.
“A brighter economic picture, coupled with record-high housing affordability, pushed the spring home buying season off to a strong start,” said C.A.R. President LeFrancis Arnold. “With a continuing improving economy and interest rates declining to new record lows in recent weeks, we should see a steady improvement in the housing market throughout the end of the year.”
Closed escrow sales of existing, single-family detached homes in California rose to a seasonally adjusted annualized rate of 555,300 units in April, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. Sales in April were 10 percent higher than March’s pace and 11 percent higher than in April 2011. The statewide sales figure represents what would be the total number of homes sold during 2012 if sales maintained the April pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.   The statewide median price of an existing, single-family detached home climbed 5.7 percent in April to $308,050, up from March’s revised $291,330 median price and 4.7 percent from a revised $294,140 recorded in April 2011. The median price rose above the $300,000 mark for the first time since December 2010.
Local Numbers
In Central California there was a mixed picture although time on the market is less everywhere. In San Luis Obispo County the median sales price was down 5.1% in April but sales were up 5.1% year over year. In Tulare County the median price was up 5.8% and sales were up 7.2% year over year. In Fresno County the median price was up 4% but sales were down 13.9%.
Time on the market in Central California saw major improvements falling from 42.5 days to 28.3 days in Fresno County, 48.8 days to 28.3 days in Tulare County and 70.1 days to 59.7 days in San Luis Obispo County.
Inventory in SLO County has fallen dramatical y according to realtor Keith Byrd from near 1400 single family homes in April 2011 to about 850 in April 2012.
Statewide,“the median home price climbed for the second straight month with solid gains from both the previous month and year,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “A sales improvement in the higher price segments of the housing market was a contributing factor to the price increase, as non-seasonally adjusted sales of homes priced higher than $500,000 increased nearly 11 percent, while sales of homes below $500,000 edged up a modest 2.1 percent.”
“Additionally, the strong sales increase of higher-priced homes resulted in a considerable decline of inventory of homes in the higher price ranges when compared with last year. This signifies the tight supply conditions we’ve been experiencing in the lower price ranges over the past several months are now extending into the upper price ranges.”
Other key points of C.A.R.’s April 2012 resale housing report include:
• California’s housing inventory remains low, with the Unsold Inventory Index for existing, single-family detached homes remaining at 4.2 months in April, unchanged from a revised 4.2 months in March. April’s housing inventory was down from a revised 5.6 months in April 2011. The index indicates the number of months needed to sell the supply of homes on the market at the current sales rate. A 7-month supply is considered normal.  • Interest rates remained extremely low in April, with 30-year fixed-mortgage interest rates averaging 3.91 percent, down from 4.84 percent in April 2011, according to Freddie Mac. Adjustable-mortgage interest rates averaged 2.78 percent in April 2012, compared with 3.20 percent in April 2011.  • The median number of days it took to sell a single-family home fell to 49.3 days in April 2012, down from a revised 53.2 days for the same period a year ago.

Coast Beat

Fri, 11 May 2012 14:04:48 -0700

Allegiant Air To Fly To Hawaii From Santa Maria
Allegiant Airlines will announce next Tuesday the launching of weekly flights to Hawaii from the Santa Maria airport. A news conference has been set for Tuesday May 15. The flights are expected to begin this summer. Some weeks ago the company announced flights to Hawaii from Fresno and Las Vegas.
Using Food Stamps At Farmers Market
Agriculture Deputy Secretary Kathleen Merrigan this week announced awards to help States expand availability of wireless technology in farmers' markets not currently participating in the Supplemental Nutrition Assistance Program (SNAP). The $4 million in funding provides SNAP participants greater access to fresh and healthy food, while supporting American farmers and local economies.
"Our country's 7,100 operating farmers markets offer opportunities to our children and their families to access healthy food across the country," said Deputy Secretary Merrigan. "SNAP participation at farmers' markets helps provide fresh fruit and vegetables to families and expands the customer base for local farmers - a win-win for agriculture and local communities."
In the past, farmers' markets, which usually do not have access to phone lines or electricity, have had difficulty redeeming SNAP benefits through the Electronic Benefit Transfer (EBT) system. As a result of funding provided by the Consolidated and Further Continuing Appropriations Act, 2012, States may provide wireless equipment to currently non-participating farmers' markets, opening the door for their participation in the Program.
"This funding will help SNAP customers increase their opportunities to access healthy, local foods," added Deputy Secretary Merrigan. "And evidence suggests they will take advantage of that access. When we couple this approach with strategies like the education, cooking demonstrations, and community support often found at farmers markets, consumption of healthy foods should rise even more."
There are currently over 1,500 farmers markets using EBT technology. Since 2008, SNAP expenditures at farmers markets have risen by 400 percent.
In addition to the these federal funds being provided now to state agencies, USDA's Food and Nutrition Service (FNS) will soon post a Federal Register notice that will solicit public input on how best to use such funds in the future. As of the end of the last fiscal quarter, there were 1,548 farmers' markets participating in SNAP. USDA is looking to expand the number of participating farmers' markets and increase annual SNAP redemptions at these locations.

Tulare County Focus Retail,Corn,Nitrates

Fri, 11 May 2012 08:40:57 -0700

Local dairymen have been suffering a double whammy in recent months with milk prices dropping $3 per hundredweight since late January and input costs - particularly corn - moving well above average price levels. In March 2012, USDA says farmers received an average of $6.48 per bushel of corn compared to a 2011 average of $5.18 and the 2010 average of $3.55.

The high feed costs have hurt all the livestock industry as well as ethanol fuel makers who had to pay high cost for the same feedstock as well. Look at Pacific Ethanol this week who reported a $5.3 million loss in the Q1 due to poor margins.

Now a new USDA report says farmers have planted the biggest corn crop in history,11% higher than the previous record and that should drive prices down this fall to the $4.70 to $4.20 per bushel range,bad news for corn farmers but good news for corn users.

For dairymen, looking on the other side of the balance sheet,the USDA revised downward the estimate for milk prices this year, now predicting that the all-milk price will average $16.90 to $17.40 per hundredweight this year, compared to last month’s forecast of $17.25 to $17.75. In January USDA was predicting the average would fall between $18.30 and $19.10 for the year.
USDA points to higher milk production leading to lower prices. So all eyes will be on monthly production figures going forward.
The dairy magazine Dairy Herd Network cites the plight of dairymen in Tulare County.
“The situation is already getting dire in California.
The Visalia (Calif.) Times-Delta reported on Wednesday that the Land O’Lakes cooperative shuttered 17 dairies in a buyout program to reduce its milk supply by at least 6 percent.”

Oregon-based Les Schwab Tire Center is opening new stores in Fresno,Clovis,Dinuba and now likely Visalia. The independent tire store is negotiating for a site on Mooney, just north of Packwood Creek on the west side of the street.The company,in business since 1952, sports a TV commercial that features employees running out to meet customers and uses the slogan "If we can't guarantee it, we won't sell it.” The tire centers are 10,000 sf and employ up to 20.

First there was Family Dollar coming into the San Joaquin Valley on a fast track to build dozens of 9,000 sf retail stores in the Central Valley including a dozen in Tulare County, three in the city of Tulare.

Now comes rival Dollar General building mostly larger format stores, sometimes with groceries. The publicly-traded company announced in January they would lease a 439,000 sf distribution center at the base of the Grapevine employing 250 that would supply the entire state.

Dollar General plans a network of 50 stores by end of the year with half to be in the Valley.

So far, at least 3 stores have showed up on the radar screen including one each in Porterville, Clovis and Fresno. But more are coming to a town near you. In Porterville the company has a building permit for a leased store space at 1316 West Olive,the former Dollar City location.

County Complains About UC Davis Study
A UC Davis report on groundwater contamination in the Tulare Lake Basin largely blames agriculture for all those nitrates found in drinking water. Nitrates have contaminated wells in many small as well as large communities around Tulare County. Now the county Board of Supervisors has prepared a pointed letter to the state Water Resource Control Board who will take up the report later this month and could recommend more regulation.
The county’s letter says that “the report concludes that nitrates present in groundwater will remain at concentrations that threaten public health for many decades,well into the future,even if current human impacts ceased,but it still isolates fertilizer as the major culprit and targets the agricultural industry to fund solutions.”
“The study relied on data that spanned 20 years and does not accurately reflect current trends and impacts” the letter concludes.
The UC Davis report had its first Valley presentation at the UC field station in Parlier last week delivered to a skeptical but polite crowd or farmers and irrigation managers.Moderated by UC farm advisor from Tulare County - Jim Sullins, Jim says he does not question the data but the assumptions, admitting “they may be our father’s or even grandfather’s nitrates but they are still there” referring to past irrigation practices that over applied nutrients.
”One thing agriculture must face up to - those days are over” says Sullins, pointing to modern techniques like leaf analysis to insure the proper amount of fertilizer is applied.

California Gas Prices In Tug O’War

Wed, 9 May 2012 13:22:36 -0700

World oil prices have taken the big plunge in the past week but strangely California gasoline prices have ticked up over the same time frame. WTI crude today is trading at $96.5 per barrel compared to $105 a week ago.

According to the U.S. Department of Energy, crude oil reserves have increased to the highest level over nearly 21 years as the US is using less oil and burning less gasoline(see chart).

Gasoline future prices have dropped as well nationwide but in California there are cross currents - a tug o’ war on prices at the pump.

Los Angeles wholesale gasoline prices on the spot market have dropped almost 40 cents since early March as the average price of gas today in California is around $4.19 with some stations selling as low as $3.80.

The price of oil is said to account for two thirds of the price of gasoline but refinery problems on the West Coast appear to be a constant factor as well.

Chevron on Tuesday reported an unplanned flaring at its 265,000-barrels-per-day El Segundo, California refinery.Reuters says Chevron's El Segundo plant is one of four along the U.S. West Coast undergoing planned maintenance.

While Chevron may have refinery snafus, the big oil company continues to sell oil on the market at lower prices this week posting the price for Midway-Sunset crude from Kern County at $1.05 per barrel compared to $1.14 on May 1.

A $9 drop in crude oil price should yield a 29 cent cut in gasoline at the pump some weeks later using an industry metric offered by Gas Calc.

Meanwhile the US Department of Energy weighed in this week suggesting those scares of $5 gas this summer should be history and that regular gasoline retail prices nationwide will average around $3.79 a gallon for the April-through-September summer driving season in 2012 - down 16 cents from a previous forecast.
In Bakersfield the shuttered Alon refinery may soon re-open says its owner in a conference call with investors a few days ago. Dallas-based owner Alon USA Energy Inc.has idled their Rosedale Highway plant since the first of the year laying off 100 workers. Until now the company has refused to comment.The company also owns a plant in Paramount in LA that they have restarted after a prolonged shutdown as well.

Alon also said in their conference call that they are looking forward to processing light oil from the Monterey Shale formation that has been rumored to be a the next big oil bonanza in California.

Some predict we can get much more oil from the state’s historic oil patches using new extraction technologies.
The Monterey Shale Formation in California is estimated to have a whopping 64 % of the recoverable shale oil reserves in the lower 48 states. Watch out Texas!

Visalia-Based EdeniQ Secures $30 Million In Private Funding

Wed, 9 May 2012 07:07:07 -0700

Visalia-based EdeniQ, a biomaterials and sustainable fuels company, today announced it has raised over $30 million in additional capital. EdeniQ is a fast-growing biomaterials innovator, developing processes and products that unlock sugars from renewable natural resources that will ultimately provide the raw material needed for sustainable chemical and fuel production.
The financing came in the form of both an equity investment and a debt facility. The equity investment was led by both existing investors, including Kleiner Perkins Caufield & Byers, Draper Fisher Jurvetson, Cyrus Capital, The Westly Group, Angeleno Group, I2BF Global Ventures and Element Partners as well as a new investor, Flint Hills Resources Renewables LLC, a subsidiary of privately held Koch Industries, Inc. Flint Hills Resources Renewables LLC is among the largest ethanol producers in the United States with four ethanol plants in Iowa. Comerica and ATEL Ventures provided the debt facility.
“EdeniQ has demonstrated significant promise in its effort to create a scalable, cost-competitive and high-quality supply of sugars,” said John Denniston, Investment Partner, Kleiner Perkins Caufield & Byers. “EdeniQ’s approach – integrating specialized enzymes with its proprietary mechanical equipment for plant material milling – has the potential to deliver consistently improved costs in cellulosic sugar production.”
Through its proprietary, easy-to-integrate products, EdeniQ increases yield and output at existing ethanol plants and provides a pathway to transition to cellulosic feedstock. EdeniQ’s Cellunator™ mills a wide variety of biomass, including non-food plant materials, into small, uniform pieces of feedstock that can be easily converted, at very low cost, to sugars. The company’s Pathway™ enzymes, in turn, break down the cellulosic materials that are already part of the ethanol production process. The EdeniQ systems can be added as bolt-on technologies to existing ethanol facilities or integrated into new cellulosic ethanol processing plants.
“EdeniQ’s proprietary technologies provide significant value for the dry-mill ethanol producer in today’s marketplace, “ said Jeremy Bezdek, managing director of innovation for Flint Hills Resources and newly appointed member of the EdeniQ board of directors. “Our investment in EdeniQ is another step in our vision to enhance the competitive advantage of our ethanol production facilities.”
EdeniQ is poised to grow within a rapidly evolving market by leveraging an executive team that has decades of biomaterials expertise and a proven track record of successful business formation. The executive team includes Brian Thome, President and CEO; Dr. Thomas Griffin, CTO; Peter Kilner, Vice President of Business Development; and Scott Janssen, CFO.
“The market is eager for innovation that can scale from today’s ethanol technology to tomorrow’s resource requirements by creating the lowest-cost route to cellulosic sugars and subsequent high-value products,” said Brian Thome, President and CEO, EdeniQ. “The investments by these prestigious organizations allow EdeniQ to continue our strategy of taking advantage of the existing infrastructure in place across the country and providing a proven pathway to increased sugar yield.“