TheMeatSite Newsletter - 24th July 2013

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Wednesday 24th July 2013.

Chris Harris
Editor in Chief

Processors Still Face Financial and Political Pressures

The removal of export refunds by the European Commission could have a crippling effect on the troubled French poultry processor Doux.

The company had banked on receiving around €20 million in refunds as part of its rescue package after the company had gone into receivership.

However, now that money will not be forthcoming and it could plunge the company into further difficulties.

“When our recovery plan was announced in October last year, we were working on the basis of a January 2015 deadline,” a Doux spokesman said.

With restitutions worth €108/tonne at the start of the year, the poultry group was already ahead of its target schedule for the subsidy phase-out.

“At the moment, they are worth € 20 million over a year, which leaves a big hole,” the spokesman added.

In the US, the latest casualty of financial problems facing the meat sector is Northern Beef Packers.

The company has filed for Chapter 11 Bankruptcy at the South Dakota Bankruptcy Court.

The Shuanghui-Smithfield Foods takeover has also received further opposition, on this occasion from the National Farmers Union in the US.

NFU President Roger Johnson has called for the takeover to be blocked.

Mr Johnson sent a letter to US Treasury Secretary Jack Lew, chairman of the Committee on Foreign Investment in the United States (CFIUS), opposing the proposed acquisition.

"The proposed buyout of Smithfield by a Chinese interest is extremely alarming to NFU members across the country," said Mr Johnson.

"Uncompetitive markets in the pork and beef industries have had a dampening effect on the ability of family farmers and ranchers to stay in business."

In the EU, while the Polish parliament voted not to allow ritual slaughter of animals without stunning, the agriculture council of the European Commission was considering labelling all meat products that come from animals slaughtered without stunning.

Ministers were briefed by the Netherlands on the issue of labelling of meat from animals slaughtered without stunning.

Some member states supported the request from the Netherlands which pointed out the importance of the study into informing consumers about stunning of animals announced by the Commission.

On the basis of the results of this study, legal proposals could be presented by the Commission.

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This Week's Articles and Analysis

Short Term Outlook for EU Meat Markets
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Position of Australian Slaughter Lamb Producers Weakens
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