Grain and Oilseed Milling NAICS 3112

Aug 21, 2025 - Railroad Merger Concerns

• According to the National Grain and Feed Association, about 3.2 million rail cars of grains, oilseeds, and other agricultural products move by rail on an annual basis, representing more than 10% of all rail shipments and 26% of grain has at least one rail movement. As such, grain and oilseed millers have a stake in the outcome of the proposed merger between the Union Pacific Railroad and Norfolk Southern announced in July. The $85-billion merger would create the nation’s first coast-to-coast rail network, spanning some 50,000 miles across 43 states. The companies say their merger would deliver freight faster by eliminating the need to switch railroads and opening new routes. However, the combination would put around two-fifths of rail freight in the hands of a single company, raising fears that it would reduce competition in a crucial industry, according to The New York Times.
• A new study suggests ready-to-eat breakfast cereals marketed to children have changed in nutritional value over the last 15 years – but not for the better, EatingWell reports. The study – Nutritional content of ready-to-eat breakfast cereals marketed to children, published in JAMA Open Network – finds that RTE cereals now have more fat, sugar, and sodium, but less protein and fiber. Researchers examined all newly launched RTE cereals marketed to kids in the US between 2010 and 2023. (The study declined launch to include new packaging, new formulas, and completely new products, totaling 1,200 cereals.) The study found on average a 34% increase in total fat, 32% increase in sodium, and an 11% increase in sugar. Meanwhile, protein content declined from 2 grams to 1.7 grams, while dietary fiber fell from almost 4 grams to less than 3 grams. The study did not look at artificial ingredients in kids’ cereals.

• President Trump’s trade policy could present an opportunity to oilseed millers as import tariffs on vegetable oils spur the US crush industry to build new plants and expand capacity, AgWeek reports. Plans for domestic expansion have been hindered because the US market has been awash in cheaper global supplies of feedstocks like used cooking oil from China, tallow from Brazil, and canola oil from Canada. However, the USDA projects that global rapeseed oil supplies will shrink by 13% over the coming year with sunflower seed oil stocks down 24%. As US imports of vegetable oils decline, domestic producers will see increased demand and purchase more corn, soybeans, and other oilseeds from US farmers, who could see their export markets dry up if foreign nations, notably China, retaliate with tariffs of their own.
• Producer prices for grain and oilseed milling firms declined 1.6% in July compared to a year ago, after falling 5.6% in the previous July-versus-July annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices have been trending downward since peaking in mid-2022 when Russia’s war in Ukraine disrupted the agricultural supply chain. Employment by the industry grew 1.5% year over year in June, while average wages at food manufacturers rose 2% YoY in July to $24.04 per hour, down slightly from their peak in January, BLS data show. Payroll growth amid declining sales and prices for producers puts stress on grain and oilseed millers margins.