May 13, 2002


NEWS


Petroleum Based Products Pricing Soars in the 2nd Quarter

Virtually all major manufacturers of Stretch Film have announced price increases of nearly 18% over Q1 levels. These hikes were made in two steps. The second increase became effective in the second week of May. These increases are bound to effect poly bags as well. We urge our customers to review their inventories and near term requirements. This may be the ideal time to lay in a little extra as a hedge against additional increases in these petroleum based products.

Midwestern Flooding Impacts Midco Customers

Steve Ressel, Midco's Moving and Delivery Market Manager, went on standby over the weekend to ship hundreds of moving pads to a key customer located in oft-flooded Valley Park, MO. The incessant rain in the Mississippi River Valley, which includes many sizable tributaries such as the Meramec River, may force this customer as well as several others, to take extraordinary steps to protect their businesses. Some of those steps include moving out of retail establishments in the Meramec's flood plain.
This off the Weather Channel's website, www.weather.com, 5/13:
The heavy rains also mean that flooding will become a more dangerous problem for the state's low-lying areas throughout the week. "The ground already is saturated in most areas after weeks of frequent rain, so the added rain just runs off into waterways that are already full," the National Weather Service warned.
Steve stayed in touch with his affected customers over the weekend, leaving home, pager and mobile numbers with those most likely affected. "We'll do whatever it takes, including opening for shipping on Saturday or Sunday to take care of our customers," said Dan Hogan, President of Midco Enterprises. The good news is that we made it through the weekend without having any of our customers hit.
But….."We're not out of the woods yet," said Dale Bechtold, a weather service forecaster in St. Louis. 'If you've got interests along the river, you better pay attention. We're going to have problems throughout the week."
Forecasters predict St. Louis will see flood levels expected only once every 10 years, and other areas are already experiencing flooding that has closed roads and threatened businesses and homes.

Midco's Novak Braces for Watermelon Bin Season

Rich Novak, Midco Enterprises', Produce Market Manager, has been deeply involved in the watermelon bin business over the past several years. Rich begins his sixth year in association with the Missouri-Arkansas Watermelon Association and his second year as President of the group. We are hopeful of another excellent year in crop production in the Boot Heel of Missouri, a location with ideal soil make-up for the growth of melons. Just under 6000 acres will be planted in April and May for harvest in July. Of course, like most things in farming, a good crop is dependent on weather, healthy plants, and the absence of insect infestation. Those things holding, the season is an intense 6-8 week period of juggling inventory and shipping. We look forward to the challenge this year!