Sanderson Farms Inc., the fourth- largest U.S. chicken processor, said it may return to a profit in six months after the company today posted a wider-than- expected loss in the fiscal third quarter.

“Chicken prices will rise as a result of reduced production in our industry,” helping the company’s profitability, Chief Executive Officer Joe Sanderson Jr. said today in a telephone interview.
The Laurel, Mississippi-based company plans to cut production by 4 percent starting at the end of this year and into 2012, he said on a conference call with analysts earlier today.

The net loss was $55.7 million, or $2.51 a share, in the three months through July compared with net income of $36.1 million, or $1.55, a year earlier, Sanderson said in a statement.
The loss excluding a 65-cent inventory-adjustment charge was $1.86 a share, wider than the average estimate for a 91-cent loss from 10 analysts surveyed by Bloomberg.

U.S. chicken processors lost on average 12 cents a pound in August, compared with a 14-cent-per-pound loss in July, according to estimates from Stephens Inc.
Chicken producers have been facing higher costs for corn and soybean-meal feed and lower prices for items such as chicken breasts amid high U.S. unemployment, the company said in the statement.

Cash prices for corn delivered to the company rose 85 percent from a year earlier while soybean meal increased 26 percent, the company said.

‘Nadir in July’

“The poultry industry’s profits hit a nadir in July and are beginning to bounce,” Farha Aslam, a New York-based analyst for Stephens, said in a report today. “We believe that it will take six months for profits to recover.”
Aslam raised her rating on Sanderson shares to “overweight” from “equal- weight” and boosted her price target to $48 from $45...

more: http://www.businessweek.com/news/2011-08-25/sanderson-farms-may-be-profitable-in-six-months-ceo-says.html

Source: Argentine Beef Packers S.A.

Senate Ag Committee Chair Debbie Stabenow says specialty crops and organics are bright spots in the nation’s economic future.
But the Michigan Senator adds that critical support for research and risk management will be key to continuing growth in the sectors.
She says focus must be placed on research and other critical tools that assist growers with pest and disease prevention and risk management.

Stabenow says specialty crop and organic growers are making a major contribution to the American economy...

more: http://www.kticam.com/news/agricultural/24cd0a5e-85bf-45d4-b12f-432d2fda49f7

Source: newsroom - meattradenewsdaily.co.uk

Tyson Foods said Friday it will temporarily lay off 135 people from one of its Council Bluffs plants as the facility undergoes a $48 million renovation.

The project, Tyson said, will transform the current cooked meats operation at 2101 S. 29th St. into the company's fifth dry sausage and pepperoni operation.

The layoffs will begin to hit workers in September, when Tyson begins to slow production at the facility.
By October, the plant will be closed until sometime in the spring of 2012, when the renovation is completed.

That means some workers could be facing at least six months of layoffs.
During that time, Tyson said, employees still will qualify for some benefits, including health care, which the company helps pay for.

There are about 170 employees that currently work at the plant...

more: http://www.omaha.com/article/20110730/MONEY/707309883

Source: newsroom - meattradenewsdaily.co.uk

Uruguayan cattle slaughter for 2011 and 2012 is forecast to fall to its lowest level since the countries' Foot and Mouth Disease (FMD) crisis in 2002, estimated at around 2 million head (Uruguayan Meatpacking Industry Association).

The lower cattle throughput come as a result of a combination of factors, namely the severe drought in 2009, high live cattle exports, along with the very strong competition for land, especially from cropping enterprises.

Total Uruguayan cattle slaughter in 2011 is expected to fall 9% on 2010 levels, 23% lower than the record number processed in 2006.

The lower cattle slaughter and beef production for 2011 has also been reflected in export volumes during the first seven months of 2011 (in a country that exports approximately 65% of its production), falling 23% year-on-year, to 121,234 tonnes swt.

The resilient demand from Uruguay's export markets and higher global prices has resulted in a 37% increase in average export prices during the seven month period, averaging US$5,876/tonne.
For the same period, cattle prices have risen 32%, to 378US¢/kg cwt.

Source: MLA.com

An expanding Cornish food producer has more than tripled the size of its footprint with the help of a £400,000 European Convergence grant as it eyes further growth.

Bodmin-based Call Caterlink Ltd, which makes flavours, cones, toppings and packaging for the ice cream industry has moved from a 9,000sq ft unit on the Callywith Gate Industrial Estate to a purpose-built 30,000sq ft base at Bodmin Business Park.
The new building significantly increases the firm's storage capacity from 200 to 2,000 pallets which will allow it to target larger contracts.

"It opens the door to the big boys," said managing director Michael Wodskou, who set the business up in Newquay, in 1993.
"It's a state-of-the-art premises which will help us to move forward.
The staff are very proud of where they are now and I think we're ready to take the next big step – everyone is up for it."
Originally a one-man band, the company now has a workforce of 30 and a 1,000-strong client base that includes artisan producers through to multi-nationals across the UK and Ireland.

This includes Westcountry brands such as Kelly's, Roskilly's and Langage Farm as well as national names including Walls and Unilever and shopping malls such as Bluewater.
Call Caterlink supplies a range of ice cream-related products and even has a stylish ice cream parlour installed at its base which serves as a training facility for ice cream makers themselves to test out the firm's products.
The business has a turnover of £7 million, which Mr Wodskou is seeking to double in the next three to five years.
"We will keep the expansion going.
That has always been one of the major objectives of the business – to keep going forwards rather than backwards," he said.
With low levels of staff turnover, Mr Wodskou said its skilled employees were key to the firm's success.

"We're the market leader in our field. That comes with good staff – we have a good team and we're like a big family," he said.
"We need the right skills and we take our time in recruiting people.
We can take up to six months or a year to make sure that we get the right person for the job and we encourage staff to go on training courses."
While the recession has not affected demand for ice cream, Mr Wodskou said it had resulted in increased levels of bad debts for the company.
More of a factor in demand levels, he said, was the British weather, with a good summer upping demand from ice cream makers.
"The more the sun shines, the busier we are," he said.
The new unit was built by Wodskou Properties Ltd, a construction firm set up specifically for the project, which is now taking on other contracts. It was designed by Penzance-based RLT Architects, who also project managed the build.

Source: newsroom - meattradenewsdaily.co.uk

Food exports in the second half of the year could grow 12 per cent to a total value of 421 billion baht, National Food Institute president Petch Chinabutr said on Monday.

Poultry and sugar exports were expected to rise, while rice and seafood exports looked to slow down due to limited raw materials, Mr Petch said.
Food exports should total 212 billion baht in the third quarter of this year and 2.09 billion in the fourth.
Food prices would likely remain high throughout the year, he said.

Factors that would affect the Thai food industry sector till the beginning of 2012 were the global economic situation, particularly in the United States and Europe, the strengthening Thai baht and the limited supply and high prices of raw materials, he added.

Source: newsroom - meattradenewsdaily.co.uk

Russian beef imports for 2010-11 increased 5% on the previous year, assisted by a surge in imports from Europe.

Imports from the European region for 2010-11 were up 324% year-on-year, totalling 101,762 tonnes swt.
The rise was largely driven by higher shipments from Germany (up 263%, to 29,541 tonnes swt), Lithuania (up 98%, to 13,749 tonnes swt), Italy (up 304%, to 13,185 tonnes swt), Poland (up 502%, to 10,893 tonnes swt) and Ireland (up 1,349% to 9,965 tonnes swt).
Similarly, imports of US product rose 52% on the previous year, to 22,134 tonnes swt.

A weak euro and US$ against the Russian rouble partly contributed to the rise in imports, in contrast to stronger currencies and higher beef prices from South America.

Although Brazil continued to be Russia's main beef supplier, shipments fell 6% year-on-year, to 287,262 tonnes swt.
Meanwhile, imports from Uruguay were down 12%, to 77,583 tonnes swt, whilst shipments from Argentina slumped 82%, to 20,927 tonnes swt.

Despite a very strong A$ throughout the year, Australia took advantage of the reduced shipments of South American product, with Russian imports of Australian beef increasing 281% year-on-year, to 68,199 tonnes swt.

Source: MLA.com

Philippines poultry producer Swift Foods Inc. (SWF.PH) said Friday that it is temporarily closing two of its chicken farms after it discovered infections of Newcastle disease.

The farms are located in Rizal and Bulacan provinces near Manila that are major suppliers of chicken to the Philippines capital.

Source: newsroom - meattradenewsdaily.co.uk

A surge in domestic cattle prices, combined with an appreciation in the local currency (the guaraní), has contributed to a slowdown in Paraguayan beef exports.
For the first seven months of 2011, Paraguayan beef exports were back 13% year-on-year, at 110,516 tonnes swt.

While Paraguayan beef production has experienced a rise in recent years, exports have grown at a faster rate than domestic consumption, with exports now accounting for 54% of total production (compared to 25% in early 2000's).

The export growth led to a rapid increase in local cattle prices, with the steer indicator increasing 33% year-on-year, to average 202US¢/kg lwt during the first seven months of 2011.

Even though Russia remained Paraguay's main export market (accounting for 36% of total shipments), exports for January to July 2011 declined 13% year-on-year, to 39,492 tonnes swt. Similarly, exports to Chile fell 25% over the same period, to 38,705 tonnes swt.

In contrast, exports to Venezuela grew 61% year-on-year, to 9,126 tonnes swt, while shipments to Israel increased 104%, to 6,155 tonnes.

Source: MLA.com

New Zealand's pig farmers are heading to court in a last-ditch effort to keep New Zealand pigs free of a devastating Aids-like virus, according to Sunday Star Times.

The case, to be heard in August, will pitch the Ministry of Agriculture's disease modelling against that of Massey University.
The ministry argues the risk of the virus finding its way into the local pig herd is small but the Massey study indicates the risk is very real.
The virus does not affect humans.
The ministry is pushing for the change to ensure New Zealand complies with its agreement with the World Trade Organisation, court documents show.

New Zealand is one of the very few countries in the world free of the virus, porcine reproductive respiratory syndrome (PRRS), along with Australia and a couple of European countries.
Eric Neuman, a senior lecturer in pig medicine and epidemiology at Massey University, said that was a real luxury as the virus causes respiratory illnesses, abortions and the death of piglets.
It is difficult to eradicate once it establishes itself.

Dr Neuman, who will give evidence for the pork industry by affidavit in the case, said both sides agree that fresh meat will contain the virus, but the issue is how much, and how much will survive into the food chain.
The virus can be transmitted when pigs are fed leftover pig meat and, once a pig is infected, it can be transmitted by air.
The major danger is from the number of 'backyard pigs' in New Zealand being fed food scraps, Dr Neuman said.

The practice is regulated in New Zealand but compliance with those requirements is not high.
The ministry said the hearing is scheduled for 24 August.
"The decision to issue import health standards for the importation of uncooked pork from countries with PRRS was made after an extensive assessment of biosecurity risk, which included a detailed review of the available science, consultation with stakeholders, and an independent review panel," it said in a statement.

"Maf concluded that the risk of PRRS introduction via pork imports will be effectively managed by the measures outlined in the import health standards.
"These measures include restricting imports of fresh uncooked pork to cuts that have the lymph nodes removed and weigh no more than 3kg."
Sunday Star Times reports that the debate has Australian pig farmers – and politicians – worried.
Any New Zealand shift to allow fresh meat imports could give countries with PRRS the ability to mount a challenge against Australia through the World Trade Organisation, industry web site ThePigSite.com reports.

Australian Liberal Party senator Bill Heffernan, Greens senator Christine Milne and National senator John Williams have spoken out against the move.
South Australian independent senator Nick Xenophon said Australia's disease-free reputation is worth billions and could be lost at the stroke of a pen.
In an application in May for a judicial review in the High Court at Wellington, the New Zealand Pork Industry Board argued that the ministry's planned change would likely result in the introduction of PRRS and that the ministry's process in making its decision was flawed.
The board won an interim order to prevent the implementation of the new standard.

The Crown argued that the case against the change was weak and said the decision-making process was exhaustive.
It said research showed the prospect of the disease being introduced was one in 1,227 years.
'The Crown is also concerned that the relief sought would be inconsistent with New Zealand's international obligations under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures,' the interim judgement says.
The judgement quotes Dr David Lawton, a pig veterinarian, describing PRRS as 'the most devastating and important pig disease globally'.
Dr Lawton said the virus would infect New Zealand's herd within a year or two of significant importation of consumer-ready cuts.
He said it was a "horrible disease that causes much animal suffering" as well as economic impact, concludes the Sunday Star Times report.

Source: newsroom - meattradenewsdaily.co.uk