Rembrandt Foods postpones plans for new egg facility

Rembrandt Foods’ plans for a new $92 million egg processing facility in Winnebago County, Iowa, are on hold until further notice.
Plans for the new plant were initially announced in February 2015, before the company had flocks affected by highly pathogenic avian influenza. The plant was expected to create 197 jobs and process eggs supplied from new egg production facilities.
According to an Associated Press report in the Newton Daily News, Rembrandt informed the Winn-Worth-Betco economic development agency that the company intends to re-evaluate its needs and finances once production ramps up, to determine a course of action and potential timeline for the project.
The avian influenza outbreak of 2015 affected about half of the company’s flocks, and the company stated it expects it to take as long as two years to resume full production.
Rembrandt Foods’ most substantial avian influenza-related loss occurred at a farm in Rembrandt, Iowa, where an estimated 5.5 million layers were lost. Rembrandt Foods estimated that it would begin restocking that farm in January 2016.
Rembrandt Foods is the third largest egg producer in the United States, according to the February 2015 Egg Industry Top Egg Company survey, with 14.5 million hens housed on December 31, 2014.

Herbruck’s Poultry Ranch expansion effort gets boost

Herbruck’s Poultry Ranch is getting an extra boost in its plans to expand its egg production facilities in Saranac, Michigan, with additional funding through a Michigan Business Development Program (MBDP) performance-based grant.
The company was originally selected to receive a $500,000 grant, but that amount was increased to $750,000, according to a Sentinel-Standard report.
“Herbruck's is an important employer in Ionia County, and today’s announcement means more jobs for area residents for years to come. Herbruck’s decision to further expand and invest here underscores Michigan’s business-friendly environment and talented workforce,” said Michigan Economic Development Corporation CEO Steve Arwood.
“Quality organic, cage-free eggs are in high demand and Herbruck’s is uniquely positioned to capitalize on this growth opportunity,” added Herbruck's Poultry Ranch Executive Vice President Herb Herbruck. “We are very proud of our Ionia heritage and look forward to continued growth and investment in the community.”
Herbruck’s Poultry Ranch announced more than a year ago its plans to expand the Saranac facilities, investing up to $33 million and creating 50 jobs.
Headquartered in Saranac, Michigan, Herbruck’s Poultry Ranch is the 14th largest egg company in the United States, housing 6.6 million laying hens, according to the WATT Global Media Top Companies Database. The company raises 60 percent of Michigan’s eggs.

Michael Foods to close egg plant in Altura, Minn.

Michael Foods plans to close an egg processing plant in the southeastern Minnesota town of Altura, and move production to another plant in Britt, Iowa. Both egg plants are new to the company's operations, as Michael Foods' subsidiary M.G. Waldbaum acquired the two egg plants in the June purchase of Primera Foods.
"As we closed the sale and started to review the entire business with our team, the team determined expanding the plant in Britt and integrating the Altura production into our facilities was the best approach," Diane Sparish, Michael Foods vice president for communications, told the Winona Daily News.
About 40 employees at the Altura plant will be entitled to severance pay and retention incentives, and employees in Altura have been encouraged to apply for open positions within Michael Foods. The amount of employees needed for the Britt expansion is not yet known. 

Cal-Maine Foods posts loss for first quarter 2010

Cal-Maine Foods, the nation's largest egg producer, posted a net loss of $3.8 million on sales of $187.7 million for the first quarter of fiscal 2010, ending August 28, 2009. The loss compares to a profit of $11.1 million on sales of $206.9 in the corresponding period of FY 2009.
Net average selling price on 193 million dozen eggs sold was $0.92 compared to 170 million dozen which generated $1.14 in Q1 2009. The 19% decline in unit revenue was responsible for a decrease in gross margin from 19.6% compared to 9.7% in Q1 of 2010. During the quarter, Cal-Maine produced 80.9% (78.3% in Q1 2009) of eggs sold and increased sales of specialty eggs to 22.5% (17.2%) of sales. Feed cost per dozen declined by 22% to 35.7 cents from 45.8 cents in Q1 2009.
Fred Adams, Jr., chairman and CEO, in commenting on results stated, "All factors considered, our results for the first quarter of fiscal 2010 were satisfactory." He added, "All of our operations are running smoothly and efficiently."
The company carries long term debt of $88 million with a LTD:equity ratio of 0.26 (0.34) and a current ratio of 2.2 (2.3) which indicates prudent management of risk.

Wal-Mart proposes to advance sustainability

The extent to which a proposed Wal-Mart program will advance sustainability, benefit the environment or the U.S. economy is unknown. Advocating solar-powered livestock housing, using locally grown feed ingredients, recycling manure and installing methane digesters for ruminant operations promises "green results." However, these moves are incompatible with many aspects of intensive livestock production in the U.S. Effectively, high-density egg production has been shown to be environmentally superior to free-range systems.
The first phase of the Wal-Mart program will take the form of a detailed questionnaire. In the second phase, universities and non-governmental organizations will recommend steps relating to conservation and reducing the carbon footprint of production units. Finally, a numeric score that informs customers of the specific environmental attributes of food products will be developed.
However, questions as to whether the same standards will apply to the vast quantity of items imported by Wal-Mart from China have been raised. The question of sustainability and carbon footprint should also take into account the extensive rail system and the major waterways, which effectively reduce transport costs and consumption of resources.

FAST program reviewed at AVMA

The Association of Veterinarians in Egg Production Group convening at the American Veterinary Medical Association Conference in Seattle reviewed aspects of the Federal and State Transport Plan (FAST). This program comprises both proactive and reactive activities in the event of an outbreak of a catastrophic disease such as HPAI or Exotic Newcastle Disease.
Dr. Will Heuston, executive director of Global Initiative for Food Systems leadership affiliated to the University of Minnesota emphasized that business continuity is an important part of any disease control program.
The FAST program would lay down rules and procedures which would allow egg production operations in areas affected by a catastrophic disease to move product to the market subject to high standards of biosecurity and ongoing disease surveillance. It has been determined that both raw and pasteurized liquid egg and washed and sanitized shell eggs from approved farms and plants complying with the FAST requirements represent a negligible risk of disseminating infection provided that biosecurity precautions are followed during transport.
Movement of liquid and sanitized shell eggs will be permitted in terms of the Egg Movement Control Model Plan and Risk Assessment designed to prevent the spread of HPAI. The EMCMP was developed through collaboration among industry groups including the UEP and the USDA Animal Health Plant Inspection Service Veterinary Services. The plan incorporates provisions of FAST which mandate advanced rapid molecular biological diagnostic techniques and risk assessment.

Food safety regulations tightened

The Obama administration initiated the overhauling of food safety regulations, which have come under-fire following numerous product recalls. As part of the new regulations, the administration has outlined measures to prevent salmonella from spreading in the U.S., a news report said.
The FDA issued a final rule to reduce the contamination in eggs, which it believes will reduce illnesses related with the consumption of raw or undercooked eggs by 60% and save more than $1 billion per year. The USDA's FSIS said they will also develop new standards to reduce the incidence of salmonella in turkeys and poultry.
The administration's hope is that 90% of poultry establishments will meet the standards of the salmonella verification program by 2010.

Ohio livestock measure slated for ballot

Ohio farm families joined lawmakers to support a measure that would help ensure animal well-being, consumer choice and the availability of Ohio-grown food, according to a Ohio Farm Bureau Federation release.
The Ohio House and Senate Agriculture Committees have passed joint resolutions that will allow Ohio to create a Livestock Care Standards Board to supervise how farm animals are raised.
The Ohio House approved the resolution by a vote of 84-13. The measure will be placed before voters in November.

Egg farmers ask for clarification of Proposition 2

The Association of California Egg Farmers has asked the state Legislature to enact clear standards for housing egg-laying hens as the mandates in Proposition 2, a ballot measure Californians approved last year, are vague.
Californian egg farmers are not sure how much space they need to provide the hens to comply with the proposition.
Debbie Murdock, executive director, ACEF, said the farmers need clear-cut housing standards to determine how they can comply with the law.
If the provision is violated, farmers face fines up to $1,000 per violation and/or a jail sentence of up to six months.

Major damages in Washington egg farm fire

About 180,000 chickens were killed in a three-alarm fire that broke out at an egg farm near Stanwood, Wash., on June 2, according to a report in The Seattle Times.
The property is owned by the National Food Corp. The fire burned through three large chicken coops which were attached at one end by a connecting structure. The total damage is estimated to be $2.2 million. The Snohomish County officials said the fire was accidental.

Bill intended to extend Proposition 2 out-of-state

California’s $648 million egg industry is – so far – neutral on legislation that would extend the Proposition 2 ban on small cages for egg-laying hens to out-of-state producers. The bill is being championed by the same groups that backed Proposition 2 according to the report in PE.com.
Supporters, reportedly including legislators who opposed Proposition 2, say the bill will help California's egg industry compete with out-of-state producers who, under current law, will not need to comply with the ruling when it takes effect in 2015.
An Assembly committee analysis of the bill raised concerns that expanding Proposition 2's rules to out-of-state egg producers could violate the interstate commerce clause of the U.S. Constitution meant to prevent states from restricting imports from other states.
California egg producers are forming a new group, the Association of California Egg Farmers, mainly to deal with Proposition 2's implementation.

Cobb announces Flock of the Year award

Chris and Sarah Budden of Offwell, near Honiton, Devon, U.K., are the winners of Cobb’s Flock of the Year award.
In presenting the award, Antony Taylor, regional account manager for Cobb Europe, said it was an excellent achievement for the Buddens to have the best flock in 2008 out of almost 30 million Cobb parent stock throughout the region. The flock provides hatching eggs for P.D. Hook.
The winning flock was the third that the Buddens have managed since they bought the Northcombe Farm unit.

Flock study results released

Don Bell of the University of California, Riverside, has circulated Part 13 B of the National Flock Performance Study.
This report considered income over feed costs and pullet depreciation for flocks with a first-cycle length ranging from 47 to 91 weeks as the extremes.
Data was collected from 11 companies participating in the National Flock Performance Study. Seven of the 11 companies applied either non-molt or single-molt programs. The contribution margin was calculated from the difference between revenue, using standardized prices for grades, minus feed cost and pullet depreciation. This value was multiplied by 52 weeks.
The contribution margin ranged from $3.93 per hen housed to $5.37 per hen housed. The differences among respondents reflected length of the laying cycle, strain selected and management. Lower returns were associated with shorter flock aged at either depletion or onset of molt, and the higher contribution margins were associated with an extended first cycle, usually with flock depletion at approximately 80 weeks of age. The correlation factor between contribution margin and age was 0.43.
Each week of extending the first cycle from 50-90 weeks of age added 5.6 cents to the 52-week contribution margin.

Pilgrim's Pride to close Georgia plant

Pilgrim's Pride Corporation announced April 13 plans to close its chicken processing plant in Dalton, Ga., within 60 days and consolidate production at the company's processing facility in Chattanooga, Tenn., according to a press release from the company.
The purpose of closing the plant is to improve the company's capacity utilization and reduce costs, according to the company. Approximately 280 employees who work at the Dalton plant will be affected by the closing; however, the hatchery in Cohutta, Ga., will continue to operate. Other live production operations will also continue to function, but as a part of the Chattanooga complex or other nearby operations.
Approximately 120 independent contract growers who currently supply birds to the Dalton processing plant will be transitioned to begin supplying the company's Chattanooga plant or other nearby company facilities within approximately 90 days.
“While the decision to eliminate jobs is always painful, we are taking decisive steps now to protect the greatest number of jobs in order to restructure our business and ultimately emerge from Chapter 11 as a stronger, more efficient competitor," said Don Jackson, president and chief executive officer.
There will not be any disruption in the supply of product to retail, foodservice and industrial customers as a result of closing the Dalton facility, according to the release.

Investigation initiates change in layer housing

Following a welfare investigation of a Maine farm and refusal of deliveries by supermarket chains, the chief executive officer of Radlo Foods said they will stop using cage confinement systems.
On April 1 the Maine Department of Agriculture, together with a representative of the State Animal Welfare Department entered an in-line egg production complex in Turner, Maine.
The farm, owned by Quality Egg of New England LLC, is one of eight similar units formerly owned and operated by companies under the control of Austin “Jack” DeCoster who established the complex of approximately 4 million hens during the mid-1960s.
During the 1990s the operation was subjected to penalties imposed by the Occupational Safety and Health Administration and a multi-million dollar settlement of an action brought by employees and was reorganized in 1997 as an LLC.
The present problem arises from an undercover investigation by Mercy for Animals who placed an agent in the farm as an employee of Maine Contract Farms LLC, responsible for flock management. Allegations including neglect of flocks and mishandling are currently under investigation by state authorities and if substantiated will be referred to the Franklin County District Attorney. The farm was leased from Quality Egg LLC by Radlo Foods to produce branded eggs.
Faced with adverse publicity, a number of supermarket chains in the state and region refused deliveries of eggs from the complex. A national company that had franchised Radlo Foods, initiated an immediate investigation of the allegations. The franchisee revoked the agreement with Radlo Foods on grounds Radlo "was working with a farm that is not in compliance with the strict animal welfare standards required." Radlo Foods in turn is withdrawing from the operation in Maine.
Radlo Foods has pledged to become an exclusively cage-free company within 10 years.

Preemptive responses to caged legislation

House Bill 2151 has been introduced into the Oklahoma Legislature stating “The Legislature occupies and preempts the entire fields of legislation in this State but concerns in any way the regulation and enforcement of the care and handling of livestock to the complete exclusion of any order, ordinance, or regulation by any municipality or other political subdivision of this State.”
A similar motion was introduced into the Georgia House of Representatives reading “no county, municipal cooperation, consolidated government, or other political subdivision of this State shall adapt any ordinance, rule, regulation or resolution regulating crop management or animal husbandry practices.”
These initiatives are in response to California Proposition 2 which was a ballot initiative. It is presumed by some animal agriculture industry members that where animal rights and welfare activist have failed in their attempts to introduce legislation at the state level, that county and municipal action would be taken to prevent the establishment of Concentrated Animal Feeding Operations including egg production facilities.
These actions in Oklahoma and Georgia should be followed in all states which do not have constitutional provisions for either statewide or countywide voter initiatives.