THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, August 17, 1996 TAG: 9608170222
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY LINDA MCNATT, STAFF WRITER
DATELINE: SUFFOLK LENGTH: 54 lines
Birdsong Peanuts has purchased neighboring Parker Peanut Co., which closed last year after 65 years in business.
Birdsong paid $445,000 for the Parker land, plant, a peanut warehouse, shelling equipment and cold-storage facilities, all on Factory Street.
George Y. Birdsong, executive vice president of the purchaser, said Friday that the Parker offices and shelling plant will remain unused during the upcoming harvest season. The company leased the facilities from Parker for last year's crop.
He said, ``This spring, I think, the company concluded they did not intend to get back into the peanut business.''
The purchase brings the number of peanut-shelling operations in Suffolk from a high of 10 or 12 about 30 years ago to two - Birdsong and Marven Partners, a conglomerate based in Edenton, N.C., that includes Charlottesville billionaire John W. Kluge.
For the past several years, Marven has been buying peanut operations throughout the South and now owns 23 such operations in 10 states. It purchased Suffolk's Pond Bros. Peanut Co. last year.
Birdsong said his company's purchase had nothing to do with any fear that Marven would move on it if Birdsong did not.
``The main purpose of this was to get adjacent farmers' stock storage and cold storage,'' he said. ``We will handle peanuts from most of the buying points handled in previous years by Parker Peanuts.''
In addition to its Suffolk location, Birdsong has peanut operations in Georgia, Florida, Alabama, Texas and Oklahoma. The company processes about 99 percent domestic stock and does not import peanuts except at the request of customers.
Birdsong's biggest customer is Planters Co., one of Suffolk's largest employers. Birdsong supplies both Planters' Suffolk plant and its Fort Smith, Ark., plant.
Parker had been in business in Suffolk about 65 years. Many of the company's employees - the number increases at harvest time - will continue to work for Birdsong.
Birdsong declined to say Friday how many employees were involved. Gordon Parker, president of Parker Peanut, was not available to comment.
``There is a trend toward consolidation in the peanut industry at all levels - consolidation of growers, consolidation of shellers, a consolidation of manufacturing - over the last 10 years,'' Birdsong said. ``Consolidation is continuing as the industry gets more and more competitive and as the foreign origins play a bigger part in it all.'' ILLUSTRATION: Color photo by Michael Kestner
The Company
Birdsong's processing plant on Factory Street in downtown Suffolk is
one of the company's 23 operations in 10 states. by CNB