Estate of Richard R. Simplot - Page 21




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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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