date:Nov 19, 2013
was mainly attributable to the weakening demand in the corn industry with an oversupply of corn after a good harvest in 2012. Gross margin for the Grain Division was 13.7% for Q3 2013, which decreased by 1270 basis points from 26.4% for Q3 2012, which was primarily due to the increasing cost of raw materials in addition to the strategic shift from grain retail sales to wholesales with lower gross margins but with fewer distribution expenses.
Selling expenses increased by $2.4 million, or 63.5%