February 6, 2019
Trade war, freight costs make JM Grain rethink new plant plans
By JILL DENNING GACKLE
Plans for a state-of-the-art legume processing plant in Garrison officially hit the skids.
“It’s all on hold for now,” according to Justin Flaten, one of the owners of JM Grain.
Eighteen months ago JM Grain was full steam ahead on a processing plant along the railroad line southeast of Garrison, behind highway businesses like North Country Marine and Dairy Queen.
When the company went through rezoning of the land, the owners said the current facility was outdated.
But even the best laid plans couldn’t foresee tariffs that would stall international exports and also higher rail costs for transportation of their products.
“It’s been a disappointing year and a half,” Flaten said.
Flaten said, “Our sales historically have been 75-85 percent exported and now we’ve had to reinvent ourselves as a company with the export side of things changing.”
While India was once a large customer, they “put up a closed sign,” he said. He said India is trying to increase their own legume production and the country wants to curb imports.
“It’s all on hold for now,” according to Justin Flaten, one of the owners of JM Grain.
Eighteen months ago JM Grain was full steam ahead on a processing plant along the railroad line southeast of Garrison, behind highway businesses like North Country Marine and Dairy Queen.
When the company went through rezoning of the land, the owners said the current facility was outdated.
But even the best laid plans couldn’t foresee tariffs that would stall international exports and also higher rail costs for transportation of their products.
“It’s been a disappointing year and a half,” Flaten said.
Flaten said, “Our sales historically have been 75-85 percent exported and now we’ve had to reinvent ourselves as a company with the export side of things changing.”
While India was once a large customer, they “put up a closed sign,” he said. He said India is trying to increase their own legume production and the country wants to curb imports.
