NCBA Applauds Introduction of DIRECT Act

The National Cattlemen’s Beef Association (NCBA) applauded the introduction of the bipartisan legislation to create new direct-to-consumer options for beef producers, processors and small meat markets without compromising federal food safety standards or market access under existing trade agreements.

Introduced by U.S. Representatives Dusty Johnson (R - At-Large, SD) and Henry Cuellar (D - 28th Dist., TX), the Direct Interstate Retail Exemption for Certain Transactions (DIRECT) Act of 2020 would amend retail exemptions under current law to allow meat processed under state-inspected establishments to be sold across state lines through e-commerce, providing beef producers and local processors alike with...

ANALYSIS: A Mixed Month for Turkey Exports

For the past three months, total turkey export volume has consistently trended below year-ago levels and April was no exception...

April Red Meat Exports Weather Production Challenges, Economic Headwinds

April proved to be a solid month for U.S. beef and pork exports despite COVID-19 related interruptions in production and declining purchasing power of some key trading partners, according to data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Beef exports were below last April’s large totals but still topped $600 million in value. Pork exports remained well above year-ago levels but slowed from the record pace established in the first quarter.

“Considering all the challenges the U.S. red meat industry faced in April, export results were encouraging,” said USMEF President and CEO Dan Halstrom. “Exporters lost several days of slaughter and processing due to COVID-19, and shipments to Mexico and some other Latin American markets declined due to...

ANALYSIS: Turkey - Potential Production Progress Report

About a month ago we took a look at turkey egg sets which had plummeted to some of the lowest seasonal figures on record...

Prime Pork to Merge with Hylife 

Prime Pork is excited to announce that they will continue to expand their operations with the merger of their business with Hylife. Founded by Glen Taylor in 2016 to resurrect the former PM Beef facility, Prime Pork now employs more than 650 people.

“I have been really pleased with the employees at Prime Pork. With this new partner and leadership, I am confident this agreement will be great for the community, employees and area producers.” said Glen Taylor.

“This is a unique opportunity to partner with an operation that has an established network of producers, customers, and employees,” Grant Lazaruk, President and Chief Executive Officer of HyLife, commented about the addition of over...

ANALYSIS: Turkey Production: As Goes One

Between sluggish foodservice and QSR demand patterns and the increased prevalence of plant worker absenteeism, it is safe to say...

Revisiting President Trump's Execuctive Order - What Has Changed?

Last Tuesday, President Trump signed an executive order urging the nation’s meat processing plants to remain online. As we revisit this order eight days later, the revolving door of plant openings and closures continues. At the start of this week, Tyson warned that it expects more plant closures to occur this year as the industry grapples with ongoing labor absenteeism due to COVID-19. On Monday, Tyson reported that its fiscal second-quarter net income fell 15% from the year prior (several of the company’s plants remain shuttered). Other packers including JBS, Smithfield, and Cargill are similarly affected by labor shortages. Hog processing capacity is being slashed to nearly half, while cattle processing capacity is running at about two-thirds of normal operating speeds. Last week’s estimated hog kill at...

APHIS Establishing Coordination Center to Assist Producers Affected by Processing Plant Closures

American livestock and poultry producers are facing an unprecedented emergency due to COVID-19, particularly with the closing of meat processing plants in several states. USDA is leading the federal response by working in coordination with the Vice President’s Task Force, the CDC, OSHA, Department of Labor, industry, state and local governments, and others across the federal family to mitigate the impacts of COVID-19 on producers.

We will continue to seek solutions to ensure the continuity of operations and return to production as quickly, safely and as health considerations...

ANALYSIS: Chicken Processors Coping with COVID-19 Related Set Backs

In light of the recent challenges that COVID-19 has brought upon the chicken industry, this week we thought it would be a good opportunity to check in on the supply side of the equation to...

JBS USA Announces Limited Reopening of Worthington Pork Facility to Assist Producers

JBS USA announced a limited reopening of the Worthington, Minn., pork production facility to provide producers with a humane euthanasia option for market hogs during the coronavirus pandemic. Recent U.S. pork plant closures and reduced production levels at pork processing facilities across the country have left American producers with few options for market-ready hogs. Humane depopulation and proper disposal is the unfortunate last resort for some producers.

“While our focus is on getting the Worthington facility back to work on behalf of our team members producing food for the nation, we believe we have a responsibility to step up when...

Tyson Fresh Meats Temporarily Pausing Production at Dakota City, Nebraska, Beef Plant

Tyson Fresh Meats, Inc., the beef and pork subsidiary of Tyson Foods, Inc., is currently winding down production and will temporarily pause operations Friday, May 1 through Monday, May 4 at its Dakota City, Neb., beef facility to complete a deep cleaning of the entire plant. The company has been working closely with the local health department and is also in the process of screening plant team members for COVID-19 this week, with assistance from the Nebraska National Guard.

The facility, one of the largest beef processing plant in the country, employs a workforce of 4,300 and normally produces enough beef in one day to feed 18 million people, however...

What President Trump's Executive Order Might Mean for Meat Processing Plants

Labor shortages due to the coronavirus are sharply reducing chain speeds at processing facilities across the nation. On Sunday, Tyson Foods published a full-page ad in several major newspapers (which is also available on their website) saying “the food supply chain is breaking,” while warning that “millions of pounds of meat will disappear from the supply chain." Shortly after the foreboding ad was released, President Trump took a drastic measure to combat a potential meat shortage that some industry leaders warn of.

On Tuesday, the President signed an executive order that urges meat-processing plants to remain open. Using the Defense Production Act, the order mandates the Secretary of Agriculture to... 

Industry Reacts to President Trump’s Executive Order to Keep Meat Plants Operating 

President Trump intends to sign an executive order to ensure meat processing plants remain open during the coronavirus pandemic. The executive order will call on the Defense Production Act recognizing the facilities as a part of the United States’ critical infrastructure. This comes as concerns rise that the food supply chain will be disrupted as the virus spreads.

Julie Anna Potts, President and CEO of the North American Meat Institute, said, “By keeping meat and poultry producers operating, the President's Executive Order will help avert hardship for agricultural producers and...

JBS USA Announces Temporary Closure of Green Bay Beef Facility

JBS USA announced the temporary closure of its Green Bay, Wis., beef production facility. The facility employs more than 1,200 people and feeds nearly 3.2 million Americans every day. In partnership and consultation with the Wisconsin Department of Health Services and the Brown County Health and Human Services Department - Public Health Division, the company will advise its Green Bay team members to follow Wisconsin Governor Tony Evers’ ‘Safer at Home Order’ while the plant is closed.

Society collectively faces a global coronavirus pandemic that has spread throughout the world and every state in the United States. In Wisconsin, the virus has spread to 66 of 72 counties, including Brown County, home of the JBS Green Bay facility. JBS USA is striving to provide the safest working environment possible for...

National Chicken Council Requests Relief for Chicken Farmers Affected by COVID-19

The National Chicken Council sent a letter to U.S. Secretary of Agriculture Sonny Perdue requesting relief for family farmers due to potential supply chain effects related to the COVID-19 outbreak.

“As a result of reduced workforce at processing plants, foodservice demand vanishing virtually overnight, historically high cold storage supply levels and a potential loss of international trade market access due to the recent detection of highly pathogenic avian influenza (HPAI), some chicken processors have begun to reduce eggs set to reflect decreased demand and to avoid any potential animal welfare concerns,” the letter read. “One implication of trying to...

Chicken Processors Redoubling Efforts to Keep Essential Workers Safe and Healthy

“These are certainly trying and unprecedented times, and chicken processors are doing everything they can to 1) keep their employees safe and 2) work to keep chicken on the shelves – in that order,” said National Chicken Council President Mike Brown. “Our members are following all of the CDC and local health department guidelines, and many have consulted with infectious disease physicians to develop site plans.”

Brown noted that companies have enacted many additional measures to keep workers safe, including...

Two New COVID-19 Cases Reported at West Liberty Foods Facility 

West Liberty, Iowa-based West Liberty Foods reported today that two additional team members at its West Liberty, Iowa facility have tested positive for COVID-19, bringing the total number of positive cases at the facility to three. To the company’s knowledge, no team members working at any other West Liberty Foods location have tested positive for COVID-19.

“Our first priority is the health and well-being of our team, and we will continue to take precautionary measures to mitigate the spread of illness,” said Ed Garrett, CEO.

“Upon learning of the positive cases, we immediately activated our COVID-19 response protocols to identify other team members who may have been...

Tyson Foods Suspends Operations at Columbus Junction Facility 

Tyson Foods is taking extra precautions to prevent the spread of the coronavirus and provided an update on its business operations.

“We’re working hard to protect our team members during this ever-changing situation, while also ensuring we continue fulfilling our critical role of helping feed people across the country," said CEO Noel White.

At all locations, Tyson has been taking temperatures of every employee entering for their shift. Additionally, Tyson has stepped up cleaning and...

Sanderson Farms Confirms Employee has Tested Positive for Novel Coronavirus

Sanderson Farms, Inc. confirmed that an employee at the Company’s McComb, Mississippi, processing plant has tested positive for novel coronavirus. This individual’s work area was contained to one small processing table. “Upon learning of this case, we took a number of immediate steps to protect the health and safety of our employees,” said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. “Following CDC and local health department guidelines, and procedures developed in consultation with an infectious disease physician, we identified six individuals in the work area who could be at risk, and those employees, along with...

Tyson Foods Reports First Quarter 2020 Results

Tyson Foods, Inc., one of the world’s largest food companies and a recognized leader in protein with leading brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair, today reported the following results:

First Quarter Highlights

• GAAP EPS of $1.52, up 1% from prior year; Adjusted EPS of $1.66, up 5% from prior year
• GAAP operating income of $826 million, up 2% from prior year
• Adjusted operating income of $894 million, up 6% from prior year...

China Xiangtai Food Co. Reports 300% Supermarket Sales Growth Amidst the Novel Coronavirus Outbreak

China Xiangtai Food Co. Ltd., an emerging growth company primarily engaged in pork processing in China, today announced that its supermarket sales growth of 300% during Chinese New Year 2020 compared to the same period of last year despite of the ongoing 2019 Novel Coronavirus.

To meet the public demand for food and to stabilize the pork price in the market, the Company has increased its efforts to ease the negative impact of the 2019 Novel Coronavirus on food supplies by continuing operating its business with transparency and integrity, keeping its pork price fair and stable, and...

Statement by Smithfield Foods Regarding North Carolina Lawsuit Appeal

A panel of the United States Court of Appeals for the Fourth Circuit, comprised of Judge G. Steven Agee, Judge Stephanie D. Thacker and Judge J. Harvie Wilkinson III, heard oral argument in the company’s appeal of the first of a series of trials in the North Carolina hog farm nuisance litigation. These lawsuits threaten animal agriculture, rural North Carolina’s economy and the thousands of hard-working farmers who own and operate family farms in full compliance with federal, state and local regulations.

“This suit is the tip of a spear aimed at North Carolina’s agricultural economy,” the company’s appeal brief says. “…A great deal depends on the outcome of these...

Tyson Foods Initiates Coalition to Advance the Future of Sustainable Protein

Tyson Foods, Inc. today announced the creation of the Coalition for Global Protein, a multi-stakeholder initiative to advance the future of sustainable protein.

To mark the launch of the Coalition, Tyson Foods is convening leaders from the global protein industry, which includes all forms of protein, as well as academia, non-governmental organizations and financial institutions this week at Davos, Switzerland, alongside the 50th World Economic Forum Annual Meeting. The goal is to unite stakeholders across the food and agriculture sector to identify and implement new and creative solutions to sustainably feed the world’s growing population. The conversation will be moderated by Dr. Lawrence Haddad, executive director of Global Alliance for Improved Nutrition.

“Efforts to make the production of high-protein foods more sustainable must continue,” said Dr. Haddad. “These foods, many from animal sources, are vital for the healthy growth of young children, especially those...

Empirical Foods to Open New Ground Beef Facility in Kansas

South Dakota-based Empirical Foods announced plans to construct a new ground beef facility in Garden City, Kansas, adding that the investment is the largest in the company's 40-year history.

It said in a statement that the new plant, which Empirical will begin constructing in the first quarter of 2020, will supplement its existing production facility in South Sioux City, Nebraska and more than double the company’s current ground beef capacity.

“Demand for Empirical’s lean ground beef requires us to significantly increase our processing capacity to...

JBS USA Intends to Purchase Pipestone Facility from J&B Group

JBS USA today announced an agreement with J&B Group, Inc., to lease J&B’s value-added meat processing facility in Pipestone, Minn., with the intent to acquire this facility in the upcoming months for an undisclosed amount. The facility was destined for imminent closure.

The pending acquisition means the facility will join JBS USA, a leading U.S.-based food company with proven expertise and a strong track record of success, protecting more than 130 jobs and ensuring the facility remains a significant economic contributor to the Pipestone community for years to come.

“We are excited to welcome the Pipestone team members to JBS USA,” said Bob Krebs, COO, JBS USA Pork. “We have worked with the J&B team under the common goals of preserving jobs and creating a sustainable future for the facility. We believe...

Bachoco will Invest in Processed Swine Business in Mexico

Bachoco announced that an agreement has been reached on investing in the company Sonora Agropecuaria S.A. de C.V. "SASA", a swine processing and distributor company with operations in the states of Sonora and Jalisco.

SASA is one of the ten principle processors in Mexico. They have a production capacity of about 15,000 swine per week, having participation in the national and export markets.

Rodolfo Ramos, Bachoco's Chief Executive Officer, stated...

Verde's Growth Continues with Opening of Processing Facility

Verde Farms announces today the opening of its own processing facility in Mullica Hill, NJ. Marking a major milestone for the company, the opening signals Verde's enhanced capability to process its premium products in-house, while also offering advanced processing services to a select number of specialty meat customers. Following ongoing market growth and expansion of robust customer support services, the new facility underscores Verde Farms' position in grass-fed beef.

In its USDA Organic and level 2 SQF-certified facility, Verde will now process both frozen and fresh material into a variety of vacuum-packed products using the latest state-of-the art, highly-automated process and packaging equipment.

"Opening our own processing facility emphasizes our foundational commitment to offer the highest-quality products, while...

Pilgrim's Pride Reports Third Quarter Results

Pilgrim’s Pride Corporation reports third quarter 2019 financial results.

Third Quarter Highlights

• Net Sales of $2.78 billion.
• Net Income of $109.8 million.
• Operating Income margins of 6.5% in U.S., 11.5% in Mexico and 4.9% in Europe operations, respectively.
• Adjusted EBITDA of $258.4 million (or a 9.3% margin), and Adjusted EPS of $0.45.
• U.S portfolio generated an improved performance due to our differentiated strategy. Demand in less commoditized segment remained strong while pure commodity was significantly better year on year but...

Storms Halt Production at Two Tyson Foods Poultry Plants 

Reports of storm damage impacting Tyson poultry plants located in Georgia and Arkansas have halted operations.

On Saturday, October 19, a storm hit the administration area of the Vienna, Georgia location. The plant was not operating at the time, and resumed normal operations today.

Due to overnight storms in the area, the plant near downtown Rogers, Arkansas, lost power yesterday and did not operate first shift. However, normal operations resumed Monday afternoon, and there was...

Tyson to Help Meet Growing Demand for U.S. Pork by Prohibiting Ractopamine Use

In an effort to meet growing global demand for U.S. pork, Tyson Fresh Meats , the beef and pork subsidiary of Tyson Foods, Inc., today announced plans to prohibit the use of ractopamine in the market hogs it buys from farmers beginning in February 2020 .

Ractopamine is a feed ingredient that helps increase the amount of lean meat in hogs. While it is FDA-approved and considered safe for use, some countries such as China prohibit the import of pork from hogs that have been given the product.

Tyson Fresh Meats has been offering a limited amount of ractopamine-free pork to export customers by working with farmers who raise hogs without it, and...

Kepak Secures USDA Approval to Distribute Irish Beef Burgers in the United States

Kepak Group has become the first ever European meat processor to be awarded United States Department of Agriculture (USDA) approval for the supply, marketing and distribution of Irish beef in a value-added format of beef burgers into the US market.

The approval announced at Anuga, the world’s largest trade fair for food and beverages in Cologne, Germany, secures access for Kepak to the US beef burger market which is currently valued at over $122bn.

The development follows the successful launch in 2017 of the first Irish beef retail brand in the United States, Kepak’s Celtic Beef Company, and means...

Tyson Foods Experiencing Short-Term Challenges in Fiscal Fourth Quarter

Tyson Foods, Inc. today said it is experiencing short-term challenges that are negatively affecting fourth quarter earnings. These challenges include margin compression related to a reversal of a gain on mark to market grain derivatives recognized in our third quarter, commodity market volatility, implementation of enhanced food safety initiatives, a beef processing plant fire, and slower than expected operational improvements in the Chicken segment. As a result, the company is revising its fiscal 2019 adjusted earnings guidance to a range of $5.30 to $5.70 per share and we continue to monitor potentially adverse mark-to-market movements and other volatilities.

“The discrete challenges we’ve encountered this quarter now lead us to believe we will fall short of our previously stated guidance,” said Noel White, Tyson Foods’ president and CEO, “but our outlook for fiscal 2020 remains...

Secretary Perdue Statement on Beef Processing Facility in Holcomb, Kansas

U.S. Secretary of Agriculture Sonny Perdue issued the following statement regarding the beef processing facility in Holcomb, Kan.:

“As part of our continued efforts to monitor the impact of the fire at the beef processing facility in Holcomb, Kan., I have directed USDA’s Packers and Stockyards Division to launch an investigation into recent beef pricing margins to determine if there is any evidence of price manipulation, collusion, restrictions of competition or other unfair practices. If any unfair practices are detected...

Pilgrim’s to Acquire Tulip Limited, Creating Integrated Prepared Foods Leader in Europe

Pilgrim’s Pride Corporation today announced that it has signed a contract to acquire Tulip Limited, a leading, integrated prepared foods supplier with 12 fresh and value-added operations in the United Kingdom, from Danish Crown. The transaction solidifies Pilgrim’s as a leading European food company, creating one of the largest integrated prepared foods businesses in the UK with a portfolio of brands and retail private label solutions.

The transaction, unanimously approved by Pilgrim’s Board of Directors and funded with cash on hand, values Tulip Limited at £290 million (or approximately $354 million based on a 1.22 exchange rate as of August 27, 2019). The purchase amount represents 5.4x implied expected EBITDA.

“We are pleased to strengthen our European foods platform with the acquisition of Tulip Limited, which positions Pilgrim’s as a leading global prepared foods player,” said Jayson Penn, Pilgrim’s global chief executive officer. “The transaction represents...

Mrs. Ressler's Food Products Acquires Emils Organics 

House of Raeford Farms Recognized for Outstanding Safety Performance

The Joint Industry Safety and Health Council has awarded six House of Raeford Farms locations with safety awards for outstanding performance through the implementation of innovative and effective employee safety and health programs.

Two House of Raeford processing plants—Arcadia, LA and Rose Hill, NC – were each recognized for their commitment to safety with Awards of Distinction during the 2019 National Safety Conference for the Poultry Industry in Destin, FL.

Awards of Distinction are the highest level of recognition a company can receive from the Joint Industry Safety and Health Council. Injury statistics over three years and...

Pilgrim’s Releases 2018 Sustainability Report

Pilgrim’s Pride Corporation (Nasdaq: PPC) today announced the release of its 2018 Sustainability Report. The interactive digital report provides a comprehensive overview of the company’s recent achievements and progress toward 2020 sustainability goals.

“Our 2018 Pilgrim’s Sustainability Report shares the ways our 55,000 team members and more than 5,400 family farm partners are contributing to environmental, social and economic progress in the U.S., Puerto Rico, Mexico and Europe,” said Pilgrim’s Global President and CEO Jayson Penn. “We are committed to improving the lives of families around the world through high-quality, sustainable food solutions and are focused on long-term success for our business and our stakeholders.”

The 2018 report transparently details Pilgrim’s achievements related to team members, customers and...

Tyson Foods to Rebuild Kansas Beef Plant and Pay Workers Following Fire

A fire partly destroyed the Tyson Foods beef plant in Holcomb, Kansas on Friday, August 9. The plant will be down indefinitely, however; the company plans to rebuild the plant at the same location. Officials are still assessing the damage, so it’s too early to establish a timeline, but work to clear damage has already begun.

“This is a difficult time for our team members and their families, and we want to ensure they’re taken care of,” said Steve Stouffer, group president of Tyson Fresh Meats. “Today, we will notify our full-time, active team members that they’ll be paid weekly until production resumes.”

Stouffer said the team members may be called on to work during this time to help with clean-up and other projects, but regardless of the hours worked, all full-time active employees are...

New Facility to Boost Tyson Foods’ Automation and Robotics Efforts

Tyson Foods, Inc. (NYSE: TSN) has created a new, state-of-the-art facility designed to help the company develop more automation and robotics for its food production plants.

The Tyson Manufacturing Automation Center (TMAC) officially opened in downtown Springdale today. The center provides space for the development of new manufacturing solutions and collaboration with the company’s information technology team and equipment suppliers. It also serves as a location for team member training on new technology.

The investment is part of Tyson Foods’ focus on continuous improvement. The development of new technology and processes will help improve...

Wayne Farms Introduces All Natural Ladybird Premium Chicken Brand 

After a successful market entry and a round of market tests Wayne Farms LLC is launching its new brand LADYBIRD Premium Chicken in select Northeast locations and planning wider distribution by the end of the year.

LADYBIRD Premium Chicken was developed for foodservice and cash and carry customers looking to capitalize on trending preferences in the consumer marketplace while sourcing a more tender chicken product. Humanely raised on family farms, the all natural line of fresh products are made from smaller, all-female chickens providing more consistent sizing and portion control. LADYBIRD chicken is aged on the bone before processing, optimizing...

Pilgrim's Pride Reports Second Quarter Results

Pilgrim’s Pride Corporation (NASDAQ: PPC) reports second quarter 2019 financial results.

Second Quarter Highlights

• Net Sales of $2.84 billion.
• Net Income of $170.1 million.
• Operating Income margins of 9.8% in U.S., 17.5% in Mexico and 4.5% in Europe operations, respectively.
• Adjusted EBITDA of $349.3 million (or a 12.3% margin), and Adjusted EPS of $0.69.
• U.S. portfolio continues to deliver strong results in our differentiated segments, while more market features and promotional activity of chicken supported better demand in the commodity segment. We continue to evolve our well-balanced portfolio to further...

Market House Meats Adds Custom Meat Processing

A year and a half after announcing the addition of its new land-based protein division, Market House Meats will open an additional facility offering custom meat processing to local restaurant and foodservice operators. The new USDA-inspected facility will accommodate specialty orders such as dry-aged cuts tailored to customer focused specifications.

“Market House Meats has far exceeded expectations,” said Mike Higgins, The Fish Guys, Inc. Owner and CEO. “With this addition, we’ve hit a goal to see this company become a true full-service, center-of-the-plate protein purveyor.”

According to Tim McKee, The Fish Guys SVP of Business Development and James Beard award-winning, “Adding a cutting facility opens up a lot of doors. We have customers that have been asking for this service since...