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Foods sold out to H.J. Heinz.) Moreover, the opening up of the
Canadian market through the North American Free Trade Act brought
Canadian companies into competition with J.R. Simplot Co. Through
acquisitions, mergers, and growth, J.R. Simplot Co.'s competitors
were becoming larger and better financed.
As of June 1993, the processed and frozen vegetable industries
appeared to be rebounding from a 3-year recession. Record crops
and the resulting high inventory levels were showing signs of
abatement, and frozen vegetables were expected to recover some of
the sales lost to fresh vegetables because of the decrease in fresh
vegetable prices.
Total U.S. nutrient consumption in 1993 was projected at 20
million short tons, down 4 percent from 1992. Nitrogen was
projected at approximately 11 million tons, down more than 4
percent from 1992; phosphates at 4 million tons, down more than 2
percent; and potash 5 million tons, down 4 percent.
In June 1993, the chemicals and fertilizer industry was
operating at full capacity. It was expected that the industry
would continue to operate at full capacity with slow to moderate
growth over the next several years.
As of June 1993, J.R. Simplot's near-term prospects were good.
The Company's operating and capital budget for fiscal year 1994
projected that the anticipated shareholders' equity of the Company
would increase by 7.22 percent between August 31, 1993 and 1994.
In 1993, the Company projected 1994 fiscal year net revenues to be
$1,965,022,000 and net income to be $36,104,000. J.R. Simplot
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