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Vilsack Appointed US Ag Secretary US Poultry Industry In Contraction Phase Pilgrim’s Pride US$1 Billion Loss Change In Habits Due To Listeriosis Outbreak US Poultry Processor Posts Loss For 4th Quarter US Provides Record Level Of Support Against AI In Memoriam - Cipora Offman and Sam Kwinter Conferences, Courses and Workshops
Vilsack Appointed US Ag Secretary President-elect Obama has selected former Iowa governor Tom Vilsack as agriculture secretary. The agriculture post appointment was announced Dec. 17 at the same time as the appointment of Colorado Senator Ken Salazar as Secretary of the Interior. First elected in 1998, Vilsack served two terms as governor of Iowa, a major farm state. In 2000 he chaired the Governor's Ethanol Coalition, a group of 24 governors that sought to boost corn-based ethanol production, and he is welcomed by the US farm and bio-fuel lobby as a strong proponent of government subsidized ethanol industry at a time when the Bush administration has suggested some ethanol protections may need to be dropped. He sought the Democratic presidential nomination in 2008 but dropped out after poor showings in early primaries. Having initially endorsed Senator Hillary Rodham Clinton, Vilsack supported Obama after Clinton was defeated in the primaries.
(Dec. 15, 2008) Canadian foodservice operators are facing the most challenging business environment since 1991, when they were hit with the double whammy of the GST and a recession. CRFA’s latest forecast is for industry sales to fall by 1.4% in 2009 compared to a 5.9% decrease in 1991. Adjusted for menu inflation of 3.2%, real foodservice sales will slip by 4.6% - the largest decline since the 10.6% drop in sales in 1991. With Canada’s economy caught in the grips of a global recession, stagnant income growth and rising unemployment will lead consumers to cut back on discretionary spending. TD Economics is forecasting Canada’s economy will contract by 1.4% in 2009 following a meagre 0.7% expansion in 2008. As a result, disposable income will grow just 0.7% and the unemployment rate will jump from an annual average of 6.1% in 2008 to 8.2% by the fourth quarter of 2009. - from CRFA news release US Poultry Industry In Contraction Phase Higher feed costs, an over-supply of broiler meat as well as economic slowdowns in the domestic and foreign markets have pressured poultry prices leaving the US poultry industry struggling to maintain profitability. This was recently reported by the Livestock Marketing Information Center. The broiler industry has initiated cutbacks in the hatchery flock and beginning to mitigate recent large year-to-year gains in bird weights. These actions have been evident in the weekly eggs set and chicks placed data since late summer, as well as recent broiler slaughter numbers. Since late April, the number weekly eggs set by producers have been consistently below a year ago with the largest year-to-year declines posted in the 4th quarter. During October and November egg sets were down 8% and more than 3% lower than the 2002-2006 average. Meanwhile, the number of chicks placed is down more than 7% thus far this quarter with further below year ago numbers expected given recent declines in egg sets. US broiler production for October was below a year ago due to a smaller number of birds, as the number of slaughter days was equal to 2007. Weekly data, US broiler production for November should be 5-6% lower than 2007. That trend will continue in December and then well into 2009. www.worldpoultry.net
Pilgrim’s Pride US$1 Billion Loss Pilgrim's Pride reports that, according to its financial report, the company lost nearly US$1 billion in fiscal year 2008. The company posted its report with the Securities and Exchange Commission just 10 days after the processor filed for Chapter 11 bankruptcy. Pilgrim's Pride reported a loss of $998.6 mln in the fiscal year ending 27 September. This compares to earnings of US$47 mln for fiscal year 2007. It is reported that the company's losses were affected by the declining value of Gold Kist, as well as the rising cost of feed. www.worldpoultry.net
The US Department of Agriculture (USDA) has released a draft of its risk assessment for contracting highly pathogenic avian influenza from eating poultry products, shell eggs, and egg products, a tool that could be used to reduce human illness from the virus and help target messages to consumers. In releasing the risk-assessment draft, the USDA's Food Safety and Inspection Service (FSIS) said it was seeking public comments, which are due by January 31. The 186-page report and information on how to submit comments are available on the FSIS Web site. The draft risk assessment, which addresses highly pathogenic H5 and H7 subtypes, was developed by representatives from the FSIS, the USDA's Animal and Plant Health Inspection Service (APHIS), and the Food and Drug Administration. The document went through an external peer review, along with reviews by other government agencies, the USDA said. So far there has been no compelling evidence that links eating cooked poultry, eggs, or egg products to avian influenza infections in humans, the draft report said. Despite this lack of evidence, human exposure to contaminated poultry and eggs is a concern for food safety experts, the report said. Experts used available information on avian influenza viruses and mathematical modeling to make risk estimates for several poultry and egg scenarios, including production, processing, and consumer preparation. Cooking poultry to the FSIS-recommended temperature of 165°F inactivates the virus, lowering the public health risk to a negligible level. Cross-contamination from infected poultry to uncooked foods could increase illness levels by 2.5 per cent, and public health messages should emphasize this food-handling risk. Regarding eggs and egg products, the USDA's risk assessment predicts that nearly all contaminated eggs from an infected flock could be removed from the distribution chain before they reach consumers. Once finalized, the avian flu illness assessment for poultry and eggs will give risk managers the decision-making tools they need to gauge the effectiveness of interventions that could reduce or prevent foodborne illnesses, the report said. "This risk assessment can also be used to target risk communication messages, identify and prioritize research needs, and provide a framework for coordinating efforts with stakeholders," the USDA added. - from article at www.thepoultrysite.com Change In Habits Due To Listeriosis Outbreak A majority of Canadians have changed their buying and consumption behaviour following the recall associated with listeria in ready-to-eat meats, according to a new survey by University of Guelph researchers. "Before the food recall, consumers did not consider the potential risks of ready-to-eat meats to be significant," Professor Cranfield said. Nearly everyone surveyed (96 per cent) knew about the recall and that it originated in Canada, and 92 per cent knew that listeria was the cause. Following the outbreak and recall, the proportion of consumers who said they never consume ready-to-eat meats at home jumped from six to 39 per cent. The percentage of people who said they never consume ready-to-eat meat products in fast-food outlets or restaurants increased from nine to 56 per cent. Despite the changes in behaviour, however, most consumers remain confident in the safety of Canada's food system, the survey found. About 70 per cent of respondents said their perception of the safety of meat in general, of food products, and of food as a whole has not changed. In addition, 75 per cent said they consider ready-to-eat meats safe to eat. The survey is the second to be produced as part of the Guelph Food Panel, the first large-scale panel of consumers dedicated to food research. Developed by Professors Henson, Cranfield and post-doctoral researcher Oliver Masakure, it allows researchers to track accurately changes in Canadians' eating habits and measure consumer responses to issues such as food scares. - from article at www.thepoultrysite.com
US Poultry Processor Posts Loss For 4th Quarter US poultry processor Sanderson Farms reported a loss for its 4th quarter and fiscal year ending 31 October, reportedly due to challenging market conditions and a decline in demand for chicken products. Sanderson reported a net loss of $51.9 mln for the 4th quarter of 2008. This compares with a net income of $24.1 mln for the same period in 2007. The poultry processor also reported a net loss for fiscal year 2008 of $43.1 mln, compared to a net income of $78.8 mln for 2007. Sales - Net sales for the 4th quarter rose to $460.2 mln from $426.9 mln in the 4th quarter of 2007. Net sales for fiscal 2008 were up 17% at $1.724 bln. "Sales increased over the same quarter last year reflecting the company's production growth, and our annual sales were a record high for Sanderson Farms," said chairman and CEO of the company Joe F. Sanderson, Jr. "However, like others in our industry, our business was affected by a decline in demand for chicken products from foodservice and casual dining customers." Feed costs - The chicken processor stated that it paid $235 mln more for feed grain in 2008, but expects to pay $142.5 mln less for feed in 2009. This is based on recent drops in feed prices. The poultry company said it will save 5.5 - 6 cents per chicken in costs, but added that even with those savings chicken prices need to rise. Exports - Sanderson said it exported more poultry this year, including an 8% increase in exports to Russia, a 15.2% increase to China and a 20% increase to Mexico. www.worldpoultry.net US Provides Record Level Of Support Against AI The United States will provide more than $44 million in additional funding to the United Nations’ campaign to combat the global outbreak of bird flu, the UN Food and Agriculture Organization (FAO) announced yesterday. The FAO has now received almost $113 million from the new US Agency for International Development (USAID) in support of its avian influenza control and prevention campaign reaching more than 96 countries. Although many countries have successfully managed to get avian influenza under control, the virus remains present in 10 countries and is mainly entrenched in countries like Egypt, Indonesia and Viet Nam,” said FAO Chief Veterinary Officer Joseph Domenech. “The additional United States funds will enable FAO to continue its work in support of countries that are still struggling to get the virus under control,” Mr. Domenech added. - from article at www.thepoultrysite.com
In Memoriam - Cipora Offman and Sam Kwinter Egg members were advised of the passing of Mary Offman last week. She was the mother of Phil Offman, an egg breaking member of Council. An article on Mary and her Kensington Market egg store appeared in the Toronto Star this week. We thought you might find it interesting. Our condolences to Phil and his family. We learned yesterday that Sam Kwinter passed away Dec. 17 (Toronto Star obituary). Sam was the owner of Kwinter Packers, an egg further processing member some time ago. That plant joined forces with Dominion Egg and became Global Egg. Many of you will know Sam’s sons Aaron and David Kwinter, who are currently involved in the business. Our condolences to Aaron, David and their families on their loss. Conferences, Courses and Workshops
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