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TheMeatSite Newsletter - 19th June 2013

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Wednesday 19th June 2013.
Chris Harris - TheMeatSite Editor in Chief

Chris Harris
Editor in Chief

Tough Times for Meat Companies

Meat processors around the world are apparently finding market conditions tougher than has been either forecast or expected.

For a time it appeared that the recession, high feed prices and volatile meat prices had settled down.

But recent reports from some of the major meat processing companies indicate there could still be a bumpy ride for some.

The Food and Agriculture Organisation of the United Nations has forecast more balanced food commodity markets for 2013/14.

World food imports in 2013 are tentatively forecast by FAO at $1.09 trillion, close to last year's level, but 13 per cent below the record of 2011.

Higher bills for fish and livestock products are anticipated to offset lower expenditures on most other commodities, especially sugar.

World meat production is forecast at 308.2 million tonnes in 2013, a modest increase of 4.3 million tonnes, or 1.4 per cent on 2012. While producers in many countries continue to face high feed prices, these started falling in 2012, and could further diminish in 2013, according to the FAO.

However, this rosier picture is offset by reports from some of the leading meat processing companies.

This week, Smithfield Foods reported in its end of year accounts that while its sales had risen to more than $13.2 billion, its net income had fallen by nearly half to $183.8 million from £361.3 million in the previous year.

At the same time Hormel Foods has lowered its forecast earnings per share from $1.93 - $2.03 to $1.88 - $1.96.

"Lower than expected results in our pork operations, higher input costs and softer sales of our retail products in our Refrigerated Foods segment are the primary reason for the expected shortfall in our second half results," said Jeffrey M. Ettinger, chairman of the board, president and chief executive officer.

US food industry economic analysts do not paint a much better picture for the future with Ron Plain and Scott Brown reporting live cattle markets down and beef production expected to fall next year.

On the pig markets in the US, they have reduced their forecast for pork production for this year.

However, the tough market conditions are not only affecting businesses in the US.

In Europe, the shakeup at the troubled giant VION Foods continued with wholesale changes in the management in Germany following the divestment of UK operations earlier in the year.

And in the UK there are reports of troubles at the well-established Bernard Matthews poultry company, with top managers departing including the chairman, CEO and managing director and reports of interest in a takeover by the 2 Sisters poultry group.

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This Week's Articles and Analysis

Improving Quality of Frozen Meat
Consumer perception that thawed frozen mean is poorer quality than fresh chilled meat could be because the meat has not been aged for as long.

Enhancing Safety at Every Step in Food Supply Chain
Few would dispute that the emergence of chilled and frozen food technologies in the last century was a major advance for modern society, transforming all our lives and bringing convenience and choice. In Europe today, consumption of chilled and frozen foods is rising by more than 10 per cent a year.

Trial of Visual Inspection of Fattening Pigs from Non-controlled Housing Conditions
A visual inspection system of pig carcases from outdoor or non-controlled housing systems would face the same obstacles for implementation as a visual system for fattening pigs from controlled housing conditions.

Preventing Salmonella Colonisation of Chickens
Electrolysed oxidative (EO) water applied using electro-static spraying is an effective means of eliminating pathogenic and indicator populations of bacteria from hatching eggs, according to Dr Scott Russell of the University of Georgia's Department of Poultry Science. Studies, he reports, demonstrate that the use of EO water in combination with electrostatic spraying may provide a practical and inexpensive way for the industry to significantly lower the number of birds that arrive at the processing plant contaminated with Salmonella.

Common Source Outbreaks of Campylobacter Infection in the US
A study of the sources of Campylobacter infection in the US between 1997 and 2008 reveals that dairy products are the most common vehicle identified for outbreaks. Sporadic illnesses were primarily attributed to poultry.

Company News

MPS and KJ Join Forces
NETHERLANDS/DENMARK - MPS Meat Processing Systems and KJ Industries has acquired cutting and deboning equipment manufacturer KJ.
Stay Fresh Foods Adds Second High Pressure Processing Line
US - Hitting its volume targets more than a year ahead of schedule, high pressure processing (HPP) services provider Stay Fresh Foods is leapfrogging over its original growth plans to launch a second HPP line in September.
Market Reports

USDA International Egg and Poultry: US Leg Quarter
USDA Livestock, Dairy and Poultry Outlook - June 2013
Portland Fish Exchange Prices - 17 June 2013
Irish CSO Reports: Agricultural Price Indices - April 2013
BPEX Export Bulletin – Week 24
Portland Fish Exchange Prices - 16 June 2013
Sri Lanka Fish Prices - 17 June 2013
Portland Fish Exchange Prices - 13 June 2013
Sri Lanka Fish Prices - 14 June 2013
Dairy Australia - Fortnightly Update 14 June 2013
UK April Agricultural Price Index - 14 June 2013
China Wholesale Prices - 13 June 2013
AHDB Pig Market Weekly - 13 June 2013
Portland Fish Exchange Prices - 12 June 2013
USDA National Dairy Products Sales Report - 13 June 2013
Sri Lanka Fish Prices - 13 June 2013

Global Meat Industry News

   United States

Missouri Inspectors Shut Down Meat Plants
National Beef Recalls Ground Beef
Hormel Lowers Outlook
Lower Recommended Pork Cooking Temperatures Well Accepted
CME: Cattle Market Continues to Struggle; Pork Values Likely to Stay Strong
Consumer Sentiment Improves
CME: Futures Close Week Lower, Friday
Cattle Outlook: June Cattle Lose $1.12 On Week and Beef Forecasts Drop
Alabama's Poultry Industry under Fire
Smithfield Sales Rise, Profits Down
Imported Beef Cheaper to US
Hog Outlook: USDA Lowers Forecast of 2013 Pork Production
USDA Urged to Implement Poultry Processing Inspection Changes
Hotdog Maker Income Rises
NFU Applauds Speaker Boehner’s Farm Bill Support
Clean Animal-Drug Review Bill Approved
CME: Four-year Hog Production Not Evident in Hog Production
NFU and JA Zenchu Statement on TPP Negotiations
Judge Orders BPI Case Back to State Court
Veterinary Body Amends Policies on Castration, Transport
Weekly Roberts Market Report


New Technology to Keep Food Safe
China's Farm Produce Prices Slightly Up
Agri-food Prices Rise Marginally
Yum Forecasts China Sales Recovery in Fourth Quarter
China to Tighten Punishment for Work Safety Crimes
China: Hog Markets

   New Zealand

Fonterra Announces $30 Million For Dry Milk Centre Expansion
Hopeful Reprieve for Pork Industry
NZ Sushi Company Switches to Free Range Chicken
Ministry for Primary Industries Ordered to Stop Biosecurity Clearance


Blaze Destroys Romanian Meat Plant

   South Africa

Poultry War to Hit Consumers
Argentinian Ambassador Complains About Poultry Tariff Hike
Itac Investigates Increase in Tariffs on Imported Chicken Meat

   Dominican Republic

Dominican Republic, Haiti Discuss Poultry Ban


Study To Bring Bring Better Knowledge of Cheese and Nutrition


Controlling Campylobacter in the Chicken Meat Chain

   United Kingdom

2 Sisters Linked to Bernard Matthews Deal
LMC: Supplies Stay High as Prices Fall Slightly
Scottish Red Meat Sector Worth £2.1 billion
Shout Price Hits 170p at Last
Demand for Provenance and Traceability Boosts UK, Irish Prime Cattle Prices
Moy Park Receives UK Big Tick Award
Scottish Farming Leaders in Talks with Minister Ahead of CAP Crunch Time
Use of Antibiotic Discussed Ahead of G8


Central and Eastern Europe Opportunities Food Manufacturers


Investor Wants Smithfield Sliced Up
M-COOL Continues to Create Uncertainty for Producers
FAO Forecasts More Balanced Food Markets Ahead
All Change for Leading Global Processors


Canada Counts on US Interests to Press for Resolution of COOL Issue
Canada’s Meat Processing Industry Backs Government over COOL Stance

   European Union

EU Pig Prices: German Slaughter Industry Prevents Price Increase
Europe Mops Up After Floods
EU Meat Market Study


Lean Chicken Price Up at 200/kg in Bangalore


Producer Organisations Take Hold of Fifth of Milk Output


Beef Cuts Prices Slump Through Early June
Brazilian Cattle Prices Move Higher
Chicken Meat Exports Up Between April and May
Pork Exports Increase and Help with Price Recovery


Australian Beef Exports to South Asia Hit Record Levels
Teys in Union Talks as Workers Call for End to Dispute


Peruvian Agricultural Ministry Promotes Pork


Five Day Shelf Life for Boiled/Chilled Crab Clusters
First Audit Against the ASC Salmon Standard


Decline in Chile's Agriculture Sector


Global Poultry Trends 2011


Meyn - Poultry Processing Solutions




From 5M Publishing From 5M Publishing

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