Koch Foods CEO has eye on acquisitions

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  Andrea Gantz

  Poultry company Koch Foods could grow, as its CEO Joe Grendys says he would like to acquire more companies.

  From WATTAgNet:
  Joe Grendys, CEO and majority owner of privately-held poultry company Koch Foods, is pleased with the success of the poultry company. But he would like to see the company to grow through acquisitions.
  That growth may not necessarily be through buying more poultry companies. He told the Chicago Tribune that other animal proteins are also being considered.
  "I want to acquire more" companies, Grendys said. "I definitely have our hook in the water, but right now the industry is performing well. So there aren't a lot of fish biting. But I could see us branching out in the next three to five years possibly into another protein; not sure what that protein would be yet."
  Listed No. 261 on the Forbes list of the 400 richest Americans, Grendys leads the company that operates in six states and processes the chicken for Wal-Mart’s "Great Value" Buffalo wings, chicken strips, chicken tenders and popcorn chicken. The company also processes the chicken nuggets sold at Burger King and other private-label brands at grocery stores, such as Kroger and Aldi. None of those products carry the label “Koch Foods.”
  Koch Foods, headquartered in Chicago, processes 624 million birds annually, according to the WATT Global Media Top Companies Database.

Poultry products recalled over Salmonella enteritidis concerns

The Aspen Foods Division of Koch Meats, Chicago, is recalling 28,980 pounds of chicken products that may be contaminated with a particular strain of Salmonella enteritidis, the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced October 24. FSIS requested Aspen Foods conduct this recall because this product is known to be associated with a specific illness cluster.
The recalled product includes partially prepared chicken products sold by retailers under the Antioch Farms brand name, with “sell by” dates of October 1, 2015 and October 7, 2015. The products subject to recall bear the establishment number “P-1358” inside the USDA mark of inspection. The chicken products were produced on July 2, 2014 and July 8, 2014. These products were shipped to retail stores and distribution centers in Minnesota.
The product is identified as single 5-ounce plastic packets of Raw Stuffed Chicken Breast Breaded, Boneless Breast of Chicken with Rib Meat “A La Kiev”
FSIS was notified of an investigation of Salmonella enteritidis illnesses on October 9, 2014. Working in conjunction with Minnesota Department of Health, the Minnesota Department of Agriculture, and the Centers for Disease Control and Prevention, FSIS determined that there is a link between the Chicken Kiev from Aspen Foods Division of Koch Foods and this illness cluster. Based on epidemiologic investigation, six case patients have been identified in Minnesota with illness onset dates ranging from August 17 to September 27, 2014. Among the six case patients with available information, one was hospitalized. No deaths have been reported. All 6 case patients reported chicken Kiev consumption prior to illness onset. Samples of product collected during the course of this investigation by Minnesota Department of Agriculture tested positive for Salmonella enteritidis with the outbreak strain. It is not known at this time if this outbreak strain has any drug resistance.
On October 17, FSIS received evidence that linked the illnesses associated with this outbreak to a specific product or production lot. Evidence that is required for a recall includes obtaining case-patient product that tests positive for the same particular strain of Salmonella that caused the illness, and packaging on product that clearly links the product to a specific facility and a specific production date, which were all met. FSIS is continuing to work with our public health partners on this investigation and will provide updated information as it becomes available.

Community poultry vaccinators to fill Malawi veterinary gap

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  File photo

  A group of community-based poultry vaccinators has received training in Malawi in hopes of filling gaps in veterinary care.

  From WATTAgNet:
  The National Rural Poultry Centre (NRPC) Malawi, has trained 31 community-based poultry vaccinators around the Malomo and Chipuka extension planning areas in Ntchisi on how they can manage poultry and assist in implementing the work done by veterinary workers. NRPC, a non-government organization (NGO), has also given poultry medicine to the trained community-based poultry vaccinators.
  GRM International, an agricultural development company based in Australia, provided funding for the training.
  Speaking during a recent certificate presentation ceremony to the farmers, NRPC Malawi Interim Director Pat Poland, called on the certified community-based poultry vacinators to utilize the skills they gained during the three-day training to help assure that poultry meat becomes readily available at affordable price.
  "We have decided to assist poultry farmers because veterinary officers are very few and they not reach out to all farmers. … The trained community-based poultry vaccinators will train fellow farmers in their respective areas," he said.
  In her remarks, Ntchisi District Development Officer (DADO) Hycinthe Jere commended National Rural Poultry Centre in partnership with the Kyeema Foundation for training the community-based poultry vaccinators. Jere said having a new group of poultry vaccinators will reduce the gap of poultry veterinarians and will go far to reach more farmers.

Seaboard hopes to build hog finishing facility in Western Kansas

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  File photo

  Seaboard is filing paperwork in hopes of building its second hog finishing facility in Greeley County, Kansas.

  From WATTAgNet:
  Seaboard Foods has registered its intention to open a new hog finishing operation, Ladder Creek West, in Greeley County, Kansas. If approved, it would make Seaboard’s second hog finishing company in the county on the Colorado border.
  The operation is expected to have 110 buildings and would contain about 132,000 pigs. A filing with the Kansas Department of Health and Environment (KDHE) states that the waste from the operation would go into a lagoon for treatment, then be spread on fields.
  KDHE has yet to approve the facility. The company, based in Shawnee Mission, Kansas, will need to submit an application that includes engineering plans and nutrient management plans.
  If the project is approved, Seaboard would be able to house about 330,000 between the two facilities in Greeley County. Seaboard’s other finishing facility, which opened in 2010, is in the process of an expansion.
  Jack Arnold, a supervisor for Greeley County, said the new project would have both supporters and opponents in the county that is home to about 1,300 people. Supporters seem to favor the proposed project because of its job creating potential and the additional tax revenue it would bring in. Opponents include other farmers in the area, who are concerned about having to compete with Seaboard for water usage.

OSHA investigating Jennie-O plant where illnesses occurred

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  Andrea Gantz

  OSHA is investigating a Jennie-O Turkey Store plant, trying to determine why workers at the plant became sick.

  From WATTAgNet:
  The Occupational Safety and Health Administration (OSHA) is working on an inspection of a Jennie-O Turkey Store processing plant in Willmar, Minnesota, where more than two dozen workers became ill on October 17.
  OSHA is presently gathering information to determine what may have caused so many people to get sick, said James Honerman, spokesman for the state's OSHA division, part of the Minnesota Department of Labor and Industry.
  "Minnesota OSHA Compliance will ... review what factors contributed to or caused the incident and then determine whether existing OSHA standards were violated," said Honerman. "The goal is to reduce hazards to workers and avoid a recurrence of similar accidents."
  The plant was evacuated after workers were displaying symptoms of illness, including coughing and vomiting. The affected employees all worked in the same area of the plant.
  Officials from Jennie-O Turkey Store and the Willmar Fire Department inspected the plant to check for any chemical leaks, but none were found. Tests to find carbon monoxide, carbon dioxide and ammonia were negative.
  Honerman said OSHA would aim to close the inspection within a few months and said that if work hazards are found, citations or penalties from OSHA are possible. The plant’s last routine inspection, according to OSHA records, was conducted in February 2013 and did not yield any citations.

Moy Park begins construction on 100th new poultry house

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  Bigstock

  Moy Park has started construction on its 100th new poultry house.

  From WATTAgNet:
  Moy Park has hit a major milestone with its “Plan to Grow” program, as construction has started on its 100th new poultry house since launching the program in 2013. The 100th new poultry house will be located on a farm in Dungannon, Northern Ireland.
  Clive Marshall is the operator of the farm, and he expects birds to be housed there as soon as early 2015.
  “This is my first venture into poultry farming,” said Marshall. “I am currently a part time beef farmer with my father. I’ve always had a keen interest in farming and wanted to expand the existing farm business. I felt this opportunity with Moy Park was the perfect first step in making farming a long-term career for me.”
  David Gibson, Moy Park Director of Agriculture commented: “We are delighted to have reached this fantastic milestone and the success of the ‘Plan to Grow’ program has been highlighted through this build. We currently work with over 600 of the very best local poultry farmers, who employ the highest standards on their farms and we are very proud to be developing our farming base in Northern Ireland.’’
  Moy Park, through its Plan to Grow program, anticipates having 250 new poultry houses by the end of 2015.

Agri-food producers push for strong outcomes through TPP

At the round of Trans-Pacific Partnership (TPP) negotiations taking place in Australia, agri-food producer and processor groups from Canada, Australia and New Zealand are calling for negotiators to maintain a high level of ambition in the trade talks, and to conclude a comprehensive trade agreement with equal access for competing products across the region.
The groups calling for an ambitious, comprehensive agreement through the TPP trade talks include the Canadian Agri-Food Trade Alliance, the Australian National Farmers’ Federation and the Federated Farmers of New Zealand. Representing hundreds of thousands of farmers, producers, processors and exporters with millions of employees across the TPP region, these groups remain united in support of an expedited and successful conclusion to the negotiations.
“The value of this agreement is reflected in the significant economic boost it offers to our countries,” said Lisa Skierka, president of the Canadian Agri-Food Trade Alliance. “However, in order for our agricultural sectors to benefit from these opportunities, we need to ensure that a plurilateral agreement is in place. If TPP members provide select market access to some countries over others, our regional supply chains may actually be worse off than they were before.”
Preferred access within the TPP region is seen as a key component of future economic success.
“Once implemented, the TPP has the potential for agriculture and agri-food businesses in the region to pursue new export opportunities, to diversify their operations and thus ultimately improve their competitiveness,” said Brent Finlay, president of the Australian National Farmers’ Federation. “This is the time to, work together in securing a high quality agreement which addresses trade barriers – both at and behind the border. Our economies and supply chains will all benefit from increased access to agricultural and agri-food commodities.”
With a total population of 792 million people, the TPP region is a burgeoning portion of the global economy—but one that lacks a comprehensive trade agreement. In fact, the region boasts a total GDP that comprises nearly 40 percent of the world’s economy.
“The agriculture sector needs the TPP to be in place in order to take advantage of the huge opportunities that would be afforded by it,” said Dr. William Rolleston, president of the Federated Farmers of New Zealand. “We are calling for trade talks to progress this week, as the global value chain cannot continue to wait for commercially meaningful growth.”
A critical element of a truly plurilateral agreement is the comprehensive elimination of tariffs throughout the region.
Currently, there are 12 TPP negotiating parties: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam. In 2012, trade among TPP partners was more than $2 trillion. This number is poised to increase provided that the TPP eliminates tariff and non-tariff barriers.
The Canadian Agri-Food Trade Alliance, the Australian National Farmers’ Federation and the Federated Farmers of New Zealand remain committed to the need for a plurilateral agreement, access to new market opportunities and the elimination of tariffs and other barriers in the TPP trade agreement.

Longtime egg industry leader Don Bell dies

Egg industry leader Donald Dean “Don” Bell died October 17 at a California hospital. The funeral service will be held at 11:00 a.m. November 1 at the Calvary Presbyterian Church, Riverside, California.
Bell was serving as a Poultry Extension Specialist Emeritus for the University of California – Davis, and had served the industry in that capacity for more than 50 years.
Bell received his bachelor’s degree in animal science from UC Davis in 1955 and his master’s in avian science from Colorado State University in 1972. He served as the California state poultry specialist as well as an economic advisor to the United Egg Producers (UEP).
Bell was nationally regarded as a true visionary with a genuine passion for the egg industry. His significant awards include the United States Department of Agriculture's Superior Service Award, Poultry Science Association Extension Teaching Award, the U.S. Poultry Hall of Fame Award and the 2013 USPOULTRY Lamplighter Award. He served as president of the Poultry Science Association and as a member of the Egg Industry Center advisory board.
In addition, he was co-editor and author of Commercial Chicken Meat and Egg Production as well as miscellaneous chapters in several books, professional scientific journals, industry periodicals, university publications and monthly industry newsletters, according to the UEP.
Bell’s work set a standard that others in the industry will long remember, the Egg Industry Center at Iowa State University said in a statement.
“Don took great pride in sharing his immense love for extension and outreach and this love has been, and will continue to be, embodied in the mission of the Egg Industry Center.”
Bell and his wife Lucy, have two adult children, Warren and Sharon.

Brazil’s competition body approves JBS’s purchase of Tyson do Brasil

Brazil’s competition commission (Cade) has given its full approval to JBS’ purchase Tyson do Brasil Alimentos.
Established in 2008, Tyson do Brasil has three integrated processing plants, two in Santa Catarina and one in Parana.
The purchase of the Tyson’s Brazilian poultry business, for US$175 million, was announced on July 28. Tyson’s Mexican poultry operation, known as Tyson de Mexico, was also purchased, with a total purchase price of US$575 for both operations. 
Tyson do Brasil, which has been in existence since 2008, had been employing 5,000 people and is expected to generate annual revenues of about $350 million for JBS Foods. When the transaction was announced, JBS had stated that it expects to maintain all the operations working to capacity with the existing workforce and to maintain all labor contracts.
Donnie Smith, CEO of Tyson Foods, had said that it hopes to use the revenue from the sale of Tyson do Brasil and Tyson de Mexico to help finance its recent acquisition of Hillshire Brands, and to help expand the company’s presence in China.
"Although these are good businesses with great team members, we haven't had the necessary scale to gain leading share positions in these markets," Smith said.

Difficulties continue for French poultry producers

While overall poultry production in France may have declined throughout the past 10 years, broiler production has increased.
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French poultry production fell in the first quarter of 2014, yet the country’s demand for poultry meat continues to grow, with imports taking a greater share of the market. The French poultry sector is experiencing difficulties both at home and in international markets.
French poultry production fell sharply since the 1990s and the industry’s difficulties are continuing. Over the past decade, French production declined by an average of 2.3 percent each year, and this contraction was again evident over the opening months of 2014.
World poultry production has grown by an average of 3.8 percent per annum over the last 10 years. In the global market, French poultry producers have become increasingly uncompetitive, and on the home market a similar story has played out with French producers less able to compete against imports.
Despite these difficulties, however, the country remains Europe’s largest poultry producers if all species are considered, and the sector remains an important contributor to the economy with nearly 50,000 employees.
Poor start to the year
While 2013 may have been positive for French poultry production, figures released by France’s Ministry of Agriculture for the period show that the number or birds slaughtered from January to May this year stood at 382.5 million, while by weight the figure stood at 679,130 metric tons, decreases of 7.3 percent and 4.7 percent, respectively.
The number of broilers slaughtered was 8.7 percent lower while broiler meat produced contracted by 5.5 percent. The same data revealed that the number of turkeys slaughtered contracted by 0.4 percent while the number of ducks processed increased by 1.1 percent.
The figures reveal a continuing worsening from the first quarter when 440,000 metric tons was recorded, a contraction of 4 percent in comparison with the year before. The Ministry attributes much of this decline to reduced exports.
Consumption growing
Yet French poultry meat consumption grew by 4.6 percent during the first quarter to stand at 431,300 metric tons, up on 2013’s record high. Broiler meat consumption was up by 6.6 percent to 270,000 tons, turkey meat consumption rose by 2.6 percent to 87,000 tons, while duck meat sales fell by 4.5 percent to 46,600 tons, the Ministry notes.

Per capita poultry meat consumption in France has followed an upward trend during the past 40 years.
Imports and exports
2014’s first quarter figures reveal a negative trade balance for meat and meat products. Exports have dropped sharply and imports continue to rise.
Overall poultry meat and poultry product imports stood at 136,000 metric tons, an increase of 3.4 percent over the quarter, while exports at 130,700 metric tons were 20 percent lower. As far as broiler meat and products are concerned, imports were 3.6 percent higher at 118,000 metric tons, while exports contracted by 20 percent to stand at 102,000 metric tons.
The situation is a marked turnaround from reports issued at the end of the first quarter last year, when poultry exports were described as “stable”.Where imports are concerned, the main supplying countries were Germany, Spain, Belgium and Brazil.
Egg production
A stronger position has been recorded in French egg production, although growth has slowed this year compared to last. Over the first quarter, production of table eggs grew by 5 percent in comparison with the same period last year,
Exports of table eggs and egg grew by 1.2 percent over the first quarter, while imports contracted by 17 percent.
Stimulated by this upturn in the export market, the producer price of eggs was 9 percent higher in May this year in comparison to May 2013.

Semi hauling Prestage turkeys overturns; driver critically hurt

The driver of a tractor-trailer carrying live turkeys for Prestage Farms was reported to be in critical condition in a South Carolina hospital after being involved in a wreck. The accident occurred on the highway SC 34 in Kershaw County, South Carolina, and is currently under investigation.
Lugoff Fire-Rescue emergency crews were dispatched to the scene on the morning of October 21 after receiving a 911 call, Fire Chief Dennis Ray told The State.
The driver, whose identity has not been released, was found trapped inside the cab, while many turkeys in crates were scattered along the roadway. It is not known how many turkeys were lost or injured in the accident.
Emergency personnel stabilized the overturned truck and rescued the driver from the cab. He was then airlifted to a local hospital, where he was last reported to be in critical condition.
Prestage Farms was using a tractor-trailer from JB Hunt Trucking to transport the live cargo from Cassatt to Newberry, both in South Carolina.
Work crews from Prestage Farms went to the scene to assist with the cleanup and to tow the tractor-trailer.
Headquartered in Clinton, North Carolina, Prestage Farms produces more than 425 million pounds of turkey annually. It also produces nearly 850 million pounds of pork annually, according to the company’s website.

Bachoco triples net income in third quarter

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  Peter Dean/Agripicture

  Mexican poultry company Bachoco finished a successful third quarter, tripling its net income.

  From WATTAgNet:
  Mexican poultry company Bachoco reported its net income jumped to MXN1,124.2 million (US$ 82.95 million) in the third quarter of fiscal year 2014, roughly tripling it net income of MXN353.5 million (US$26.1 million) recorded in the same quarter of 2013. The company attributes much of this increase to a higher operating income and more stable expenses.
  Bachoco also reported that its net sales increased 12.5 percent during the third quarter. The quarter ended September 30.
  “For Bachoco, a third quarter used to be the weakest quarter for the year in terms of profitability; this year, the quarter did not follow that pattern, as favorable conditions present in the second quarter were extended into the third one,” said Rodolfo Ramos Arvizu, CEO of Bachoco.
  “Flexibility in our processes and implementation of new procedures, allowed us to take advantage of the conditions the industry offered and to achieve sound results. In general, during the quarter we observed a very stable supply in our main product lines in both the U.S. and Mexican markets; this, combined with the downtrend in our main raw material prices, allowed us to post a reduction in our production cost, contributing to our profits.”
  The largest poultry company in Mexico, Bachoco has more than 700 production and distribution facilities currently organized into nine complexes throughout Mexico with a presence in the U.S. as well, according to the WATT Global Media Top Companies Database.

Ronald Prestage pleads guilty to lesser charges in gun case

Ronald Prestage, president of Prestage Farms of South Carolina and president-elect of the National Pork Producers Council (NPPC), has plead guilty to lesser charges in a case where he attempted to enter a federal building in Washington, D.C., with a loaded handgun.
The pork and turkey company executive earlier had entered a not guilty plea to a charge of carrying a pistol outside his home or business, which is a felony in Washington, D.C. On October 21, he pleaded guilty to possessing an unregistered firearm and ammunition. The guilty plea carries with it a suspended sentence of 30 days in jail and six months unsupervised probation. He must also register as a gun offender in Washington, D.C., and pay $100 to a crime victims’ compensation fund, according to The Island Packet.
The plea stems from a July 23 incident, when Prestage attempted to enter the Cannon House Office Building with a 9-millimeter Ruger handgun in his bag. Prestage holds a concealed-carry permit in his home state of South Carolina, and according to his attorney, carries a firearm for protection because he has received death threats from animal rights and environmental activists.
Prestage said outside the courtroom he regretted that he took his handgun into the federal building, and that the incident “was totally unintentional.”
In addition to his roles with Prestage Farms and the NPPC, Prestage is also a trustee for North Carolina State University and a member of the National Turkey Federation’s executive committee.

Learn to make poultry operation ‘YouTube-proof’ at IPPE

The Market Intelligence Forum is returning to the 2015 International Production& Processing Expo (IPPE). Sponsored by U.S. Poultry & Egg Association (USPOULTRY) and the National Poultry & Food Distributors Association (NFPDA), the program will address the need to “YouTube-proof” operations by adopting a food-centered, rather than production-centered, paradigm.
The program will also provide insights on how domestic and global economies and consumer demands impact the poultry and egg industries, identify challenges facing the industry and discuss how the domestic and international poultry industries are positioned to move forward in 2015.The Market Intelligence Forum is free to all IPPE attendees and NPFDA meeting attendees.
“The Market Intelligence Forum is a popular program on the Expo schedule, and we are pleased to include it again in the 2015 education line-up. It is important to stay informed on current conditions and projections for the future affecting the poultry and egg industry. This program helps keep industry leaders up-to-date on the many factors that influence financial performance,” said USPOULTRY Chairman Elton Maddox, Wayne Farms, Oakwood, Georgia.
The program will feature an agriculture communication and media specialist, a leading economist and an industry performance analyst. Andy Vance, Penton Farm Progress Livestock Group, will review Messaging and Consumers: Understanding the Problem. Dr. Paul Aho, Poultry Perspective, will discuss Domestic and Global Drivers for 2014. Mike Donohue, Agri Stats, will provide insight into Performance Trends for the Poultry & Egg Industry.
The 2015 IPPE, the world's largest annual poultry, feed and meat industry trade show, will be held from January 27 – 29, 2015, at the Georgia World Congress Center in Atlanta. The Market Intelligence Forum is scheduled from 9 to 11:30 a.m. on Wednesday, January 28, 2015.

Canada threatens retaliation against US if COOL law not changed

Canadian leaders have vowed to take retaliatory action against the United States if it does not update its country of origin labeling (COOL) law, which the World Trade Organization (WTO) on October 20 ruled was in violation of U.S. international trade obligations by discriminating against pigs and cattle from Canada and Mexico.
The COOL law requires meat to be labeled with the country where the animal from which it was derived was born, raised and slaughtered.
“Canada will be watching this situation closely to ensure U.S. compliance in accordance with the WTO’s clear ruling. We will continue to fully assert our rights to achieve a fair resolution to our concern, including seeking authorization to implement retaliatory measures on U.S. agricultural and non-agricultural products if and as necessary,” Ed Fast, Canadian minister of international trade, and Gerry Ritz, minister of agriculture and agri-food, said in a joint statement.
Several U.S. meat organizations have stated they agree with the WTO ruling, and are urging lawmakers to fix the rule.
“The United States must avoid retaliation from Canada and Mexico. Retaliatory tariffs on pork would be financially devastating to U.S. pork producers,” said National Pork Producers Council (NPPC) President Howard Hill. “The United States economy can't afford to have its products restricted, through tariffs, to its No. 1 and 2 export markets. "Congress and the White House need to address this now."
In a joint statement, the North American Meat Association and the American Meat Institute, expressed similar concerns: “USDA’s mandatory COOL rule is not only onerous and burdensome on livestock producers and meat packers and processors, it does not bring the U.S. into compliance with its WTO obligations. By being out of compliance, the U.S. is subject to retaliation from Canada and Mexico that could cost the U.S. economy billions of dollars.”

Biomin World Nutrition Forum offers food for thought

The Biomin World Nutrition Forum, which took place in Munich in October, certainly gave delegates food for thought. With a focus on sustainability, presentations looked at how businesses can be made more sustainable, but alongside this there were warnings on what could happen to the planet if action is not taken.
Growth in output comes at a cost. Michael Eder, Biomin CEO Americas, reminded delegates that the rising population, global warming and changes in economic development are leading to serious problems that will need to be resolved and that, if we continue to waste resources, by 2040, we will need the resources of two Earths to satisfy demand.
Failing to change
This situation is avoidable, but how quickly society is willing to change is another matter. The consequences of failure were detailed by Jorgen Randers of the BI Norwegian Business School, who offered a global forecast for the next 40 years.
The Limits to Growth report, published in 1972, argued that humanity will allow its footprint to grow beyond levels that can be sustained in the long run. Its arguments were rejected.
Now, however, we know better, but are we doing enough? The UN Intergovernmental Panel on Climate Change was established more than 25 years ago and, had we listened to its advice, we would already be well underway in efforts to reduce greenhouse gas emissions.
“It is surprisingly cheap and easy to reduce emissions,” Randers said. “All it takes is a shift of 1-2 percent of the labor force and invested capital from ‘dirty’ to ‘clean’ activity. But instead, we have spent 25 years in fruitless international negotiations, with little impact on global emissions.”
So what will happen over the next 40 years? According to Randers, society will face ever more problems: depletion, pollution, climate change, inequity and social strife.
“I assume these problems will finally be met with increasing investment in solutions, but not before the problems become intense, only afterwards when repair costs are unavoidable,” he said.
Global growth will slow, but not fast enough to avoid a climate crisis mid-century. Similarly, the global population will peak and then slow. And while many developing economies will catch up with leading economies, many will not.
New ways of thinking
More positively, Randers believes there will be a shift toward less carbon-intensive energy sources over the next 40 years and this will accelerate as society becomes more concerned about climate change.
To solve climate change, global society needs to shift investment flows from what is most profitable to what benefits society most in the long run.
Sadly, Randers said, capitalism won’t do this. Capitalism is made to allocate money to what is profitable, not to what society needs. Furthermore, he said, democratic parliaments seem unable to pass the regulations that would align maximum profitability and societal interests. Democratic parliaments do what the voters want, and most voters are against solutions that require higher taxes, more expensive gasoline, or higher electricity prices in the short term.
Without a change in attitudes and action, by the mid-21^st century, an ever-growing share of a nation’s labor and capital will be used to repair climate damage and to access more expensive resources, handle pollution problems and provide security, he warned, and after-tax income for citizens will be lower.
A route forward
It is surprisingly easy to reduce emissions, all it takes is a shift of 1-2 percent of the labor force and invested capital
Against this vision of the future, attendees were told that it was in their hands to make a change.
How to ensure sustainable production was examined by Marty Matlock, of the University of Arkansas, who argued that the environmental impacts of increasing production must be addressed, and that reducing environmental impacts, improving economic well-being and creating more resilient communities will require a transparent, science-based, and outcomes-driven sustainability strategy for continuous improvement.
The framework for a sustainability strategy that supports continuous improvements includes three primary stages: defining, measuring and implementing, he said.
The define stage requires a definition of sustainability for the enterprise in question, defining key performance indicators (KPIs) that represent the enterprise’s important elements of sustainability, and selection of metrics for each.
The definition of what sustainability means for the individual enterprise often is overlooked, and this is a mistake. Animal agriculture producers must clearly understand the scope of their sustainability strategy prior to its adoption and implementation.
For animal agriculture producers, the definition of sustainability should contain four primary domains: community, economics, environment and animal welfare.
Seeking agreement
Developing the list of KPIs with stakeholders can result in increased trust and agreement across stakeholders – and this can increase the range of acceptable options. KPIs should meet the following criteria:
• Science base
• Outcomes driven
• Technology neutral
• Transparent
KPIs often are categorized as efficiency or impact indicators. Efficiency indicators are those that improve a unit of production output per unit of input, such as kg of meat per kg of feed. Increasing efficiency indicators can have a double advantage: it increases sustainability but also reduces production costs.
It should be remembered that KPIs are not the same as metrics, Matlock said. Metrics are the things we can measure, while KPIs are the things we care about. In most cases, we cannot measure KPIs, but we can measure some characteristics that inform the KPIs. For example, feed conversion efficiency is a very common KPI, with several metrics.
Once the KPIs and metrics are identified and prioritized, the enterprise should start the measurement stage. This includes benchmarking each KPI, implementing a monitoring program to assess each metric and developing goals to improve each KPI. The benchmark metrics for each KPI must be publicly reported if the process is to be legitimate. Developing goals for each KPI is, perhaps, the most critical step in a continuous sustainability strategy. The goals will drive priorities in decisions across the enterprise.
Getting things done
The implementation stage of continuous improvement begins with the declaration of goals, as this is when performance timelines are started. Strategies should be properly detailed to ensure legitimacy.
So long as the enterprise is achieving its strategic goals, the processes by which management accomplishes those goals should remain within the enterprise, giving the producer the authority to innovate and adapt processes without intervention. The alternative is that stakeholders dictate practices and procedures for the new enterprise, often based on ideological rather than scientific criteria.
The definition of what sustainability means for the individual enterprise is often overlooked, and this a mistake.
The status of each strategic goal should be reported annually, with a more in-depth report published every five years. The five-year report should include a multi-stakeholder initiative process for review of outcomes, processes and emerging concerns. Proposed adaptations to the strategic goals, including KPIs, metrics and implementation practices, should be described.
This process should be an ongoing part of the enterprise’s continuous improvement strategy, and should be effective in expanding opportunities for prosperity in a rapidly changing world.

FSIS posts guide on new ready-to-cook poultry chilling rules

The USDA Food Safety and Inspection Service (FSIS) on October 21 posted a compliance guide that contains information regarding how official establishments that produce ready-to-cook (RTC) poultry can meet the new chilling requirements that became effective on October 20, and were established by the New Poultry Inspection final rule (79 Fed. Reg. 49566; Aug. 21, 2014).
These establishments can meet the new requirements by implementing the regulatory time and temperature provisions that the final rule on modernization of poultry inspection removed from the rule 9 CFR 381.66 (b), by following the time and temperature chilling procedures that FSIS approved under the Salmonella Initiative Program (SIP), or by developing their own validated chilling procedures that will effectively control the levels, and prevent the multiplication of spoilage organisms and pathogenic bacteria. FSIS considers the removed regulations and the procedures approved under SIP as “safe harbors” that have been scientifically validated. The guidance is posted on the FSIS website.
This guide represents the agency’s current thinking on this topic, and FSIS encourages establishments to use it. FSIS is providing 60 days for public comment, and the guidance document may be updated in response to the comments.
Comments may be submitted via the Federal eRulemaking Portal.

JBS Foods again delays IPO

• JBS SA has been given regulatory approval to delay an initial public offering (IPO) of its JBS Foods unit, which produces value-added pork, poultry and food products. In delaying the IPO, JBS puts off its plan to raise BRL4 billion (US$1.61 billion) for a period that could stretch into 2015.
  JBS, a Brazil-based company, had been working with banks on the IPO, but opted to wait, wary that uncertainty from an upcoming presidential election may deter investors.
  The request to make JBS Foods a public company was removed from securities industry watchdog CVM's website, but the application to file for the IPO remained there.
  This marks the third time since June that JBS Foods has put the stock offering on hold.
  JBS Foods accounted for nearly 10 percent of JBS's $40 billion in revenue in 2014. JBS has stated that it intends to list JBS Foods on the São Paulo Stock Exchange's Novo Mercado.
  With an IPO, JBS had hoped to use the money raised to help pay down debt and make investments. Recent purchases made by JBS include Seara, Massa Leve and assets from Canada’s XL Foods. The company and its subsidiary Pilgrim’s also have a pending deal with Tyson Foods to purchase its and Brazilian and Mexican operations, known respectively as Tyson do Brasil and Tyson de Mexico. The acquisition of Tyson units is expected to be finalized before the end of 2014.

OIE: H5N6 avian influenza outbreaks in Vietnam resolved

Outbreaks of H5N6 avian influenza in Vietnam have been resolved, according to an October 22 report from the World Organisation for Animal Health (OIE).
The H5N6 strain of avian influenza was found for the first time in Vietnam as the OIE reported on August 12 that the highly pathogenic avian influenza virus was detected on two farms as part of outbreak disease surveillance practices conducted by the country’s Department of Animal Health.
One outbreak led to the death of approximately 300 birds, while an estimated 700 additional birds on the premises were destroyed. At the other location, about 600 birds died and an additional 1,400 susceptible birds on the premises were destroyed.
In addition to stamping out the susceptible birds, other control measures were implemented by animal health officials. Those control measures included disinfecting the affected properties, screening, movement control inside the country and control of wildlife reservoirs. Samples taken from surrounding poultry flocks were taken and evaluated, with all of them testing negative for avian influenza.
While the origin of the Vietnam avian influenza outbreaks is still unknown, OIE considers the avian influenza cases to be resolved and stated that it will not issue any further reports on the matter.

Koch Foods expanding poultry plant in Gadsden, Alabama

Koch Foods is planning a $6 million expansion at its poultry plant in Gadsden, Alabama. With the expansion, the company hopes to increase its production of value-added products.
Koch Foods was awarded non-education tax abatements for the expansion by the Gadsden City Council on October 21, according to a report by the Gadsden Times.
Terry Stephens, Koch Foods complex controller, told the city council that the company hopes to complete the expansion by January. Of the $6 million to be invested in the expansion, an estimated $5.5 million of the expansion will be used for additional equipment.
Once the plant expansion is completed, about 80 new jobs will be created, adding roughly $2.16 million annually to its payroll. Presently, the plant employs 505 people, and has a low absentee rate. Stephens said that low absentee rate is one of the reasons the Gadsden plant was chosen for the project.
Koch Foods purchased the Gadsden plant from Tyson Foods in 2007. The facility presently processes about 2 million chickens every five days.
Koch Foods’ Gadsden plant recently gathered industry attention as a recipient of a USPOULTRY Clean Water Award. The company was recognized for its full treatment of wastewater that not only reduces the plant’s carbon footprint, but also traps methane gas that is a source of green energy utilized and burned in the plant’s boiler unit.

Formaldehyde key to in-feed PEDv control

New research performed at Kansas State University (KSU) suggests that a commercial formaldehyde and organic acid blend product may offer the most effective means of controlling porcine epidemic diarrhea (PED) virus in swine feed.
Dr. Kurt Richardson, Anitox pathogen specialist and chief scientific officer, explained: “This research builds on earlier data published by Pipestone Veterinary Clinic and South Dakota State University, which identified PEDv-contaminated complete feed as a vehicle for infection of juvenile swine.
“The latest work compared four chemical treatment options: Termin-8, sodium bisulfate, sodium chlorate and organic acids. Feed was treated with the various products individually and then contaminated with PEDv. Kansas State also evaluated the effect of these products in ingredients such as meat and bone meal, blood meal and spray dried animal plasma. Termin-8 offered the highest level of control in the complete ration and in all three feed ingredients throughout the 42 day period of the trial.”
Richardson explained that this work is important as it offers producers a critical control point in the battle against PED virus.
“By selecting feed treated with a high-performance formaldehyde pathogen control solution such as Termin-8, producers can be confident they’re not introducing PEDv to their animals through rations,” he said.

EuroTier 2014 to feature Eastern Europe and Central Asia series

EuroTier 2014, taking place November 11-14 in Hanover, Germany, will feature an event series “Animal Production in Eastern Europe and Central Asia. This will be the first time the series will be a part of EuroTier.
The event series will not only focus on the countries of Eastern Europe, but also those of Central Asia, covering Ukraine, Russia, Kazakhstan, Uzbekistan, Kyrgyzstan and Turkmenistan.
Participation in the series is free of charge for EuroTier 2014, but for organizational reasons, registration is required by November 5.
Billed as the world’s leading trade fair for animal production, an estimated 2,300 exhibitors from 50 countries are expected to attend EuroTier.

Save Farm Families video highlights Hudson legal battle

A documentary video called “Collateral Damage: Farm Families” that chronicles the Waterkeeper Alliance’s lawsuit against Perdue Farms and contract growers Alan and Kristin Hudson. The video is presented by Save Farm Families and can be seen online.
According to Save Farm Families, the video “reviews the questionable political and academic actions that enabled the New York-based Waterkeeper Alliance to push forward with its lawsuit against the Hudson family, and the continuing threat that environmental extremists pose to family farmers, not just in Maryland, but across the nation.”
The Hudsons, who farm near Maryland’s Eastern Shore, were targeted by environmental group the Waterkeeper Alliance and its local affiliate, Assateague Coastal Trust, when the group in 2009 decided to challenge the poultry industry and its potential impact on water quality.
When the Waterkeeper Alliance conducted flyovers of area farms and saw what it believed to be a large pile of chicken manure on the Hudsons’ property. However, what they actually saw was not poultry manure. The environmental group proceeded with the case anyway.
The plaintiffs in the suit were represented by the University of Maryland Environmental Law Clinic.
After nearly three years of litigation, the judge ruled against the Waterkeeper Alliance, chastising the organization for not conducting adequate research. He also criticized the university’s law clinic. Maryland Gov. Martin O’Malley was equally bothered by the university law clinic’s handling of the case, calling it a “misuse of state resources.”
While the Hudsons won the suit, they still had legal expenses to pay. Those expenses were covered by efforts from area farmers and organizations, including Save Farm Families.

NPPC urges Obama, Congress to fix COOL law

Following the October 20 release of the World Trade Organization (WTO) decision on the U.S. meat labeling law, the National Pork Producers Council (NPPC) urged the Obama administration and Congress to fix the law to avoid trade retaliation from Canada and Mexico.
As expected, the WTO ruled that the mandatory Country-of-Origin-Labeling (COOL) statute violates U.S. international trade obligations by discriminating against Canadian cattle and pigs and Mexican cattle. COOL requires meat to be labeled with the country where the animal from which it was derived was born, raised and slaughtered. The decision could allow the two countries to place tariffs on U.S. imports.
“The United States must avoid retaliation from Canada and Mexico,” said NPPC President Howard Hill, a veterinarian and pork producer from Cambridge, Iowa. “Retaliatory tariffs on pork would be financially devastating to U.S. pork producers.”
But, pointed out Hill, tariffs likely would be placed on a host of U.S. products, including non-agricultural ones.
As it did in a 2012 ruling on a previous version of COOL, the WTO requested that the United States bring the “inconsistent measure into conformity with its [international trade] obligations.”
NPPC opposed COOL when it was being debated by Congress as part of the 2002 farm bill, worked for flexibility in the labeling scheme when lawmakers said it would be part of the 2008 farm bill and joined with several other meat organizations in filing a lawsuit against the most recent iteration of the regulation implementing the law.
NPPC supports an approach to labeling that provides important information to consumers, complies with U.S. international trade obligations and does not undermine U.S. meat supply chains and unnecessarily raise costs.
"The United States economy can't afford to have its products restricted, through tariffs, to its No. 1 and 2 export markets," Hill said. "Congress and the White House need to address this now."

GAO report: FSIS must work harder to reduce pathogens in poultry

• The Government Accountability Office (GAO) in a recently released report, said the USDA’s Food Safety and Inspection Service (FSIS) must set strict pathogen limits for poultry products with the highest contamination rates and find ways to measure a poultry plant’s success in meeting these new standards approved earlier in 2014. The GAO is an independent legislative-branch agency.
  The GAO report noted that after FSIS set a standard of 7.5 percent for Salmonella on whole chicken carcasses, contamination rates fell to the single digits. A pathogen standard establishes the level of a bacteria that can be found on a poultry product before it is declared unfit for commerce.
  Federal law does not prohibit the sale of poultry products that are contaminated with pathogens, so the department has pledged to set limits for Salmonella and Campylobacter.
  The GAO pointed out that the FSIS missed a September 30 deadline for setting Salmonella and Campylobacter limits for chicken and turkey parts as well as Campylobacter in ground turkey. It also missed a deadline for updating the rate of Salmonella allowed in ground poultry, which is currently more than 44 percent for both chicken and turkey.
  FSIS stated it finds merit with the GAO’s report and is working toward meeting its recommendations.
  “FSIS appreciates the GAO’s acknowledgment that FSIS is putting in place an ‘increasingly science-based, data-driven and risk-based approach’ to protecting public health. We agree with the report’s recommendations and will continue implementing them,” an agency spokesperson stated.

UK pork industry targets trade with Philippines

Trade of pork products between Britain and the Philippines could be greatly enhanced after a recent trade mission organized by the British Pig Executive (BPEX) and UK Trade and Industry (UKTI).
Half a dozen people paid a visit to Manila and the party included traders and abattoir representatives.
BPEX export marketing manager Jonathan Eckley said: “There is already some pig meat being exported but it is a growing economy and there is scope to expand that trade. We have been working with UKTI locally and the mission included a visit to a cold store, a cutting plant, a wet market and retailers.
“This was followed by a meet the buyer session, attended by 20 Filipino companies which included some the of the country’s leading meat importers. The business to business meetings were extremely successful.”
According to Eckley, the aim of these meetings was to build relationships between traders and for those from the UK to meet significant players in the Philippines.
“We had a great many inquiries so we are hopeful that will result in enhancing the trade between the UK and the Philippines. The Philippines has a population of 100 million and import about 100,000 [metric tons] of pig meat a year,” said Eckley.

Pilgrim’s worker dies at plant in Mount Pleasant, Texas

An employee at a Pilgrim's Pride plant in Mount Pleasant, Texas, has died after an apparent accident at the poultry plant. The accident is believed to have happened on October 17.
The worker, whose identity has not yet been released to the public, had apparently been working in the ice room at the Pilgrim’s facility in Mount Pleasant and was hit by a block of ice. The employee was found passed out in the ice room, according to a news report from KSLA TV.
When the worker was discovered on the floor, fellow employees attempted to revive him by performing CPR at the plant. Those attempts to resuscitate him were not successful. The patient was then taken to Titus Regional Medical Center in Mount Pleasant. Titus County Justice of the Peace Kay McNutt was called to the hospital and pronounced the patient dead around 1:30 p.m.
The Mount Pleasant Police Department is in the process of investigating the incident at the Pilgrim’s plant. A spokesperson with the police department was unable to confirm if the accident victim died as a result of the ice block’s impact, or if it was caused by a medical condition.
An autopsy has been ordered.

Thailand pork plants cleared for export to Russia

According to an announcement made by Rosselkhoznadzor, the Russian federal service for veterinary and phytosanitary surveillance, inspections were conducted from September 29 through October 10 at Bangkla Pig Slaughter House and Betagro Safety Meat Packing, with both plants obtaining the right to export pork products to Russia.
An expert from Rosselkhoznadzor that has been assigned to Thailand will control production and shipment of pork products intended for the Russian market. The assigned expert will oversee the processes for the purpose of provision of additional safety guarantees.
The decision made by Rosselkhoznadzor allows additional trade opportunities for Russia, which has had limited options since the country’s government implemented trade bans concerning agricultural products from many of the world’s leading pork markets. On August 6, following a decree from President Vladimir Putin, Russia implemented a ban of pork and other food products from the United States, Canada, Australia, the European Union and Norway.
Since that ban has been in place, Russia has approved the import of meat, including pork, form five Chinese companies. Russia has also since implemented talks with exporters from several Latin American countries.

Big Dutchman expanding US headquarters

Company and community officials participate in a ribbon cutting ceremony for the expansion of Big Dutchman USA's headquarters in Holland, Michigan. 
Increasing growth and strong sales of modern pig and poultry equipment in North and South America has made it necessary for Big Dutchman USA to expand its headquarter operation in Holland, Michigan.
The new two story building adds 12,000 square feet to the existing facility, doubling office space for Big Dutchman’s 138 employees. A new show room features innovative and future-oriented equipment and computer technology for the pig and poultry industry.
At the ceremonial building inauguration on October 15, Holland’s Chamber of Commerce and many guests witnessed the official cutting of the ribbon by Clovis Rayzel, president of Big Dutchman USA. Bernd Meerpohl, chairman of the board of management, delivered compliments and a special message of thanks to the successful American team. Clovis Rayzel proudly stated that “this investment will help us better serve our rapidly growing business in the U.S., Canada and Latin America”.
Big Dutchman is an industry leader in the development and sales of automatic feeding, housing and ventilation systems for pig and poultry management. Big Dutchman USA was established in the Holland/Zeeland, Michigan area in 1938 by the Dutch immigrant brothers Richard and Jack DeWitt. Their pioneer work led to the marketing of the world’s first automatic feeding machine for commercial poultry production. A restored antique “Champion” chain feeder is now on display in the new reception area of the Holland facility.
Big Dutchman has over 900 employees in Germany and 2,500 employees worldwide. It operates subsidiaries and logistic centers across six continents with sales in more than 100 countries.

Large hog feeding operation approved by Indiana county board

• The zoning board in Jackson County, Indiana, has given approval for a new large hog feeding operation in a rural area of the county.
  The board on October 15 voted 4-0 to approve a confined feeding operation site north of the community of Crothersville in Southern Indiana. The facility would house about 4,000 hogs.
  The vote followed a public comment period, where many opponents of the operation expressed worries about odors, truck traffic and possible water contamination to wells and the nearby Muscatatuck River from stored manure. An estimated 100 people attended the meeting.
  One neighbor, Trina McLain, said she had health concerns about the hog facility being about a quarter of a mile mile from her home and that it would harm the quality of life for nearly 500 homes in the vicinity.
  However, farmer Kyle Broshears said the hog facility would be built as far as possible from the closest home in the area.
  His plans call for spending about $900,000 on the facility that would include an 81-by-417-foot building housing the hogs and a concrete pit that would hold about 1 million gallons of manure. The facility meets all the requirements set forth by the county.

Chicken Farmers of Ontario recruiting new leaders

Chicken Farmers of Ontario (CFO) has begun an active campaign to recruit the next generation of board directors and district committee representatives.
This year, CFO launched a promotional drive to remind farmers-members to participate in the governance process of their industry by putting their names forward as a board director or a district committee representative (DCR).
“Good governance is at the core of CFO’s strategy and we take our responsibility for developing strong and effective practices and leadership renewal very seriously,” said Henry Zantingh, chair, CFO. “We are an equal opportunity board, and encourage all our farmers to contribute and be part of the election process in whatever capacity they can.
Being a director or DCR is an extremely educational and emotionally rewarding part of the farming business and I encourage all of my colleagues to consider putting their names forward in the upcoming elections.”
As part of the 2014 promotional campaign for electoral participation in the governance selection process, CFO has begun an active outreach program which includes extensive marketing through the CFO website, digital outreach on behalf of the board reaching CFO’s 1100 farmer-members and recruitment campaigns in each of the board’s nine districts.
The term for board directors and DCRs is two years, and this year CFO will be holding elections for both positions in Districts 1 through 5.
The CFO board consists of nine farmers-member directors and 33 farmer-member DCRs.