Diamond Foods Settles Claim With S.E.C.
The U.S. Securities and Exchange Commission on Jan. 9 charged Diamond Foods, Inc. and former executives Steven Neil and Michael Mendes for their roles in an accounting scheme to falsify walnut costs. Diamond Foods, without admitting or denying the allegations, agreed to pay $5 million to resolve the investigation, according to the company’s Jan. 9 filing with the S.E.C. The settlement terms are consistent with the $5 million expense recorded in the fiscal year’s first quarter ended Oct. 31, 2013.
The S.E.C. alleged Mr. Neil, then chief financial officer for the San Francisco-based snack foods company, directed an effort to fraudulently underreport money paid to walnut growers by delaying the recording of payments into later fiscal periods. Because of the manipulated walnut costs, Diamond Foods reported higher net income and inflated earnings to exceed analysts’ estimates for fiscal quarters in 2010 and 2011. The S.E.C.’s litigation continues against Mr. Neil.
Citrus Growers Have New Threat: Sweet Orange Scab
Sweet orange scab (SOS) is a disease caused by the fungus Elsinöe australis. This disease is aptly named as it results in scab-like lesions that develop primarily on the fruit rind and infrequently, on leaves and twigs. Although there is little affect on internal fruit quality, fruit are severely blemished rendering them unsellable in the fresh produce market. Further, the disease can cause premature fruit drop and stunt young nursery trees and new field plantings. The first detection in the United States occurred on July 23, 2010 in Spring, Texas, near Houston in residential lemon and tangerine trees. A widespread survey was launched immediately. SOS has now been confirmed in Louisiana, Florida, and most recently, Arizona.Now it has been discovered in southern e California.CDFA reports finds in two additional locations since the initial find in Imperial County in October. The new finds were on grapefruit collected in a residential area of Los Angeles County and from a commercial grapefruit grove in Riverside County on Nov. 1.
Federal Order For California Dairy Operators?
Western United Dairymen President Tom Barcellos has made arrangements to hold an informational meeting with Deputy USDA Administrator Dana Coale and her team in Tulare next Thursday, Jan. 16, at 1 pm. Coale and her team will be available to answer questions about Federal Milk Marketing Orders that might be considered for the State of California following passage of a Farm Bill. The meeting will be open to the public and held at the Tulare County Ag Commissioner’s Auditorium located at 4437 S. Laspina Street in Tulare.
Pacific Ethanol On A Roll?
California-grown Pacific Ethanol Inc.’s stock reached the $6 level today up from just $2.50 as recently as mid-November. Pacific Ethanol Inc.’s stock is trading above its 50-day and 200-day moving averages of $3.85 and $3.98, respectively.So what’s going on? The biofuel company may finally be making a profit on low corn prices used to make ethanol. The company recently made an upbeat investor presentation in December.
CEO Neil Koehler said at that time “There has been quite a washout of probably ethanol companies, but we are definitely survivors. I would like to say we have done a very good job of protecting the art of survival and we are ready to take it to the next level.”
He noted that “ethanol (is)the lowest cost transportation fuel in the planet (and in )increasing demand globally and we are exporting that, which has not been (done) in the United States.”In addition, the company says they are moving toward cellulosic ethanol production that offers a better margin with installation of technology by a Visalia company – EdenIQ – at their several PE plants.
Now there is the indication the company may re-open the idled Madera ethanol plant this year. The 40 million gallon plant was shuttered in January 2009 after operating for less than 3 years.
Clean up activity by a large work crew seen at the Madera facility this week had fueled the speculation of a restart. Spokesman Paul Koehler was quoted here last fall that “we’re getting closer to reopening the ethanol plant. ” Asked about the activity Koehler says there is no news about the plant reopening and that the crews were simply performing maintenance activity.