The company wants to use the U.S. tax bill, which allows businesses to deduct the cost of depreciable assets in one year instead of amortizing them over several years, to grow its U.S.-based research and development centers. This will help it stay ahead of the food security technology curve.
It is also in the process of negotiating contracts with Egypt and Algeria that have been at a standstill. The contracts are for building grain storage facilities and have been in negotiations for a year. The income made from these contracts will be used in connection with these facilities and hiring 3,000 new positions in the United States.
“The pending contracts that have been delayed more than 12 months each with bureaucratic delays in those countries a little haggling, it’s time to fish or cut bait,” said Philip Blumberg chairman and chief executive officer of Blumberg Grain.” I think the Trump administration has been very sympathetic in which we very much appreciate. We are very encouraged that President Trump will be doing something to encourage those countries to move forward. Those are the two things we need.”
Blumberg Grain completed phase 1 of the Shouna Development Project for Egypt in April 2016, installing 93 Blumberg Grain Aggregation and Processing Centers across the country. The systems transformed existing earthen shouna into advanced food security facilities by providing the Egyptian government with the advanced technology necessary to receive, clean, grade, and safely store their grains, the company said.
The second phase of the Shouna Development Project includes the development of 300 new Blumberg Grain Aggregation and Processing Centers to complete the entire shouna network.
Blumberg Grain’s end game is to create sustainable global food security by reducing post-harvest loss. The impact of Blumberg Grain’s food security systems is an increase in agricultural production by reducing post-harvest losses, a boost in exports of agriculture products, improvement to the quality of grain and produce, and enabling efficient market timing and stabilized commodity pricing.
“Countries like Egypt and Algeria will prioritize projects or contracts as these if the U.S. government encourages it, not forces but shows support,” Blumberg said.