Latest US avian influenza cases involve 425,300 turkeys

An estimated 425,300 turkeys in Minnesota and South Dakota have been affected in four new cases where H5N2 avian influenza has been detected, the Animal and Plant Health Inspection Service (APHIS) said on April 21. Of those four cases, three were in Minnesota.
The largest flock impacted was in Wadena County, where the virus appeared in a flock of 301,000 birds. This is the first confirmed case in Wadena County. Other new Minnesota outbreaks were in Cottonwood County, impacting 30,000 turkeys, and in Kandiyohi County, where 61,000 birds were affected. Cottonwood County has now had two cases, while Kandiyohi County has had eight.
The South Dakota case occurred in Spink County, infecting a flock of 33,300 turkeys. This is the county’s first case of avian influenza.
The affected premises have been quarantined and birds on the property will be depopulated.
To date, 17 states have had confirmed cases of avian influenza. In addition to Minnesota and South Dakota, avian influenza has been found in Washington, Oregon, California, Idaho, Nevada, Utah, Montana, Wyoming, North Dakota, Wisconsin, Missouri, Kansas, Arkansas, Iowa and New Mexico. 
Stay informed by using WATTAgNet’s avian influenza map to track cases confirmed across North America. Filter the map view by avian influenza strain, type of operation, species, region and date confirmed.

Pilgrim's on track for bankruptcy exit

Pilgrim's Pride reported an operating profit of $16.74 million in May after one of $13.92 million in April. The company is not planning any further cuts in production after reducing output 9-10% earlier this year, a Reuters report said.
Pilgrim's Pride is still on track for exiting bankruptcy later this year, according to CEO Don Jackson.

USDA forecasts increase in broiler production

The latest USDA forecast shows the prices for broiler products are on the rise.
Though prices have not reached last year's mark, low production has forced prices to increase. Chick placement for grow-out is on the rise because of high broiler meat prices.
The USDA expects rates to reach last year's level by the fourth quarter of 2009.

22,000 chickens die in farm fire

On June 19, 22,000 chickens died in a fire in a 300-foot chicken house on McPhail's Chicken Farm in Townville, S.C., according to Upstate Today.
The chicken house fire was discovered about 10:30 p.m., but by the time fire officials were able to control the blaze, the chickens had been lost.
Farm owner Floyd McPhail said he was using a generator because of a power outage earlier in the day, speculating the possible reason for the fire.
An investigation team will return to the farm June 22 to verify the exact cause of the fire.

CDC's report misleading says NCC

The National Chicken Council said unconfirmed data has skewed the report by the Centers for Disease Control and Prevention on foodborne illness.
The report suggests that poultry is the single leading cause of outbreaks of foodborne illnesses, held responsible for 21% of the cases. NCC says the data blames poultry for 1,355 out of 6,395 cases. Of these, 741 stemmed from a single incident in an Alabama jail in 2006, which has still not been confirmed to have been caused by poultry. Without this number, poultry would account for 641, or 10.9% of the reported incidents.
Steve Pretanik, NCC's director of science and technology, said it was unfair to present a picture that is skewed by a single event and which presents a misleading picture of the safety of poultry.

Cameco recalls under-processed meat and poultry products

New Jersey-based Cameco Inc. has issued a Class 1 recall of about 79,312 pounds of various fully cooked, ready-to-eat meat and poultry products because they may contain under-processed ham after contacting surfaces of equipment, according to a report by the Food Safety and Inspection Service.
The products were produced on May 29 and June 1 and were distributed in Alabama, Arizona, California, Connecticut, Michigan, North Carolina, Ohio, Puerto Rico, South Carolina, Texas and Virginia.
The recalled products include cooked ham and turkey products, sold under the Appleton, Bridgford, CV Clear Value, Dean's, El Primero, Fas √ Chek, Food Club, IGA, Lay's Classic Meats, Meijer, Mrs. Stratton's, Pro's Ranch, Red Osgood, Quality Meats, Thank You by Cameco and Valu Time.

Enforcement-oriented OSHA back with appetite for fines

“OSHA is back! The best advice I can give you is get ready,” Larry Stine of Wimberly & Lawson told listeners at the National Safety Conference for the Poultry Industry in Hilton Head Island, S.C.Stine said the Occupational Health & Safety Administration, with Jordan Barab appointed as acting OSHA chief, is back with a renewed mandate for aggressive enforcement.
OSHA has a big budget and an even bigger appetite not only for fines, but also for stiff monetary penalties that far exceed their their non-punitive stance, Stine said.“Remember those ergonomics standards that the Clinton administration published on their way out the door, and that the the Bush Administration canceled during its first weeks in office?
Get ready, they’re coming back. As a matter of fact, that’s the best advice I can give you: Get ready!"Among other advice, Stine said companies should plan ahead and be prepared for OSHA visits. He also advised companies to correct conditions before inspectors enter the premises.

Tyson Foods settles artificial inflation lawsuit with donation

Tyson Foods Inc. has agreed to donate fresh poultry to Illinois food banks in order to settle an eight-year-long lawsuit claiming the company artificially inflated the retail weight of its poultry, as reported in The Associated Press.
The company, which has denied any wrongdoing, agreed to resolve the matter out of court to avoid additional costs related to the lawsuit.
The case began in 2001 when three individuals claimed that Tyson artificially inflated the weight of poultry products sold between 1997 and 2003 through a cold-water immersion chilling process that resulted in absorption and retention of water under the birds' skin and muscle tissues.
Due to a lack of customers providing proof of their previous purchases, the company agreed to donate the unclaimed compensation funds in the form of 1.7 million pounds of fresh poultry to the Illinois Food Bank Association, according to the article.
Tyson spokesman Gary Mickelson was quoted, "We are pleased the outcome will help feed thousands of those in need."

Pilgrim’s rejects bid for El Dorado plant

A bid for the Pilgrim's Pride El Dorado, Ark., plant was rejected by the company May 27, according to an article from the Arkansas Democrat Gazette.
Pilgrim's Pride rejected the bid because of being too low, according to El Dorado Mayor Mike Dumas, although the bid amount was kept confidential. However, El Dorado Poultry, the company who made the bid, has not given up on buying the plant despite the rejection.
Judge Michael Lynn, of the U.S. Bankruptcy Court in the Northern District of Texas, ordered Pilgrim's Pride to offer the plants for sale through a bid process after the company filed for Chapter 11 bankruptcy, despite the company's intention to keep the plants.
Upon learning of the rejected bid, the judge suggested going back to mediation with the companies interested in the plant.
"We will keep working with our potential investors toward this deal," said Matt DeCample, spokesman for Gov. Mike Beebe.
The next scheduled hearing for the El Dorado plant bid is June 16, Dumas said.

Aramark wins T.O.M. Award for variety

The National Turkey Federation presented Aramark Corporation with its Seventh Annual “Turkey on the Menu” Award at the National Restaurant Association convention. The award recognizes the non-commercial foodservice operator for its variety of value-oriented, non-commercial turkey menu applications across many day parts, segments and cuisines.
Aramark uses 18 specified turkey products across all segments of the non-commercials business, including fresh and frozen, cooked and raw, totaling more than 30 million pounds of turkey per year.
“Turkey has a consistent presence both as limited time offers and regular menu items because its versatility and health profile allow us to provide our customers with options,” remarked Ed Jones, food production manager, who accepted the award on behalf of Aramark.
Port of Subs, winner of the casual/family style category, J. Alexander’s, winner of the fine dining category, and Jason’s Deli, winner of the fast food category, joined Aramark at the awards reception.

Willow Brook cuts deal in watershed litter suit

Willow Brook Foods Inc., one of the eight poultry companies being sued over alleged poultry litter pollution in the Illinois River watershed, agreed with Oklahoma Attorney General Drew Edmondson to pay $120,000 in order exempt itself from the lawsuit, according to an article by the Arkansas Democrat Gazette.
The federal court must approve the agreement before it goes into effect.
Willow Brook ended its operations in the Illinois River watershed last year before the company transitioned to a refrigeration business, now known as Cold Zone Inc.
"The very bottom line is Cold Zone was no longer involved in the business so continuing to be involved in this litigation didn't have any practical advantages to Cold Zone," said Frank Evans, an attorney representing the company.

Avian flu at another Tennessee farm

The avian flu virus has been detected at another poultry farm in Tennessee, according to a news report.
The low-pathogenic virus was confirmed after a strain of avian influenza virus was found in tests carried out at a Lincoln County farm, as reported by WATE.
The Tennessee Agriculture Department said that the strain poses minimal health risk to humans and might cause slight illness in poultry. Officials have reportedly said no poultry from the farm has entered the food supply.
A similar strain was found in a farm in Giles County in April but there is no visible connection between the two.

Tyson’s chicken operations profitable since late February

Tyson Foods Inc. reported that its chicken segment lost $46 million in the second quarter of fiscal year 2009, which ended March 28, 2009. There was a distinct positive note for the company’s broiler operations, however.
"Our chicken segment has been profitable since the end of February, and I am pleased with the consistent progress we are making," said Leland Tollett, interim president and CEO of Tyson Foods. "We have improved our operational efficiencies, our product mix, and we are benefiting from lower grain costs and more favorable chicken prices."
Donnie Smith, senior group vice president of poultry and prepared foods, said that if not for losses on grain hedging in the second quarter, Tyson’s chicken operation would have been profitable. Smith attributed $63 million in additional costs to grain hedging losses for the chicken operations in the second quarter.
Tyson reported that it was able to reduce its finished goods inventory by 150 million pounds in the second quarter, and most of this reduction came in chicken products. Earlier this year, Tyson reported that it reduced chick placements by 5% in December 2008 to help the company reduce its frozen chicken inventory. In a conference call held in February the company said that these placement cuts would be maintained until inventories were reduced to normal levels and customer demand warranted an increase in volume. During the May 4 conference call, the company said that it had not increased chick placements, even though finished goods inventories have been reduced to what were described as “normal” levels.
“We will add back when our market demands it and not before,” Tollett said. “We will not put chickens down on the come.”
The company as a whole lost $104 million in the second quarter. Tyson officials expressed some guarded optimism that operating margins for all of its businesses will continue to improve in the third and fourth quarters of this fiscal year. When asked if a return to normal profit margins in the chicken business would prompt Tyson to increase chick placements back to its pre-placement cut levels, Tollett said that the company would not add volume unless they think that they could maintain these profit margins unequivocally at the increased volume levels.

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.

Investors favor U.S. meat

According to an article on www.reuters.com, people are increasing their investment in shares of Tyson, Smithfield, Hormel and Sanderson Farms.
With the recent overall rise in the stock market combined with impending warm weather encouraging people to cook meat on the grill, meat sales have increased.
Despite the meat industry losing money in 2008 due to high feed prices and meat production being down this year due to shrinking herds and flocks, prices should be driven up by smaller supplies once consumers start eating out again, according to the article.
As of now, consumers are sticking to homemade and lower-priced meat items because of the recession.
An explanation for the increased popularity of meat company stocks may be due to less favorable options elsewhere in the market, according to the article.
"They may be good compared with the alternatives," said Paul Aho, an industry economist, of meat company shares in the article.
"Would you put your money into GM right now or into a chicken company? I think food is going to be popular. People have to eat -- they may eat less, but they eat."
The stocks show the demand: Tyson Foods shares have about doubled since November, to $11; Smithfield Foods reached $11.60, about doubling since March; and at Sanderson Farms, shares have increased since November to $40.77. Hormel Foods Corp. prices have not increased as sharply but have risen from the March low of $29.40 to about $31.63 as of April 13.

2-year-old Egyptian boy ill with bird flu

A 2-year-old Egyptian boy from the province of Beheira has contracted the bird flu virus, according to a story from Reuters.
The case marks the 61st confirmed bird flu virus incident in Egypt, according to state news agency MENA.
Six new human cases of the flu strain have hit Egypt during the past month.
MENA health ministry spokesman Abdel Rahman Shahine said the boy contracted the virus after having contact with infected birds.

Poultry groups join forces on safety, health

Three poultry industry organizations have partnered to form the Joint Poultry Industry Safety and Health Council to streamline efforts in the area of worker safety and health:
National Chicken Council

National Turkey Federation

U.S. Poultry & Egg Association
This council will essentially replace the existing NTF/NCC Safety and Health Committee by combining with the respective committee at USPOULTRY. The JPISHC will represent the entire poultry industry on issues relating to worker safety and health.
In a similar move, NCC, NTF and USPOULTRY have also formed the Joint Poultry Industry Human Resources Council. This council will essentially replace the existing NTF/NCC Human Resources Committee by combining with the respective committee at USPOULTRY. Arrangements for committee chairmanship and staff support from the industry associations is being handled in the same way for the JPIHRC as it will be for the JPISHC.

Salmonella in only 0.3% of Danish poultry

Figures released in Denmark to cover food monitoring in calendar year 2008 show that there is little salmonella in Danish poultry, say local reports.
The data comes from a new report from Denmark's national food agency on the findings of salmonella and campylobacter in both locally produced and imported meat in 2008. The level of salmonella in Danish poultry meat is reported to have been only 0.3%.
Such a low level demonstrates that Denmark fully meets the requirements for achieving special status in the European Union for salmonella in broilers, said Danish food minister Eva Kjaer Hansen.

Sadia reports first loss in 64 years

Brazil’s Sadia reported losses in the fourth quarter and for all of 2008, despite record sales and exports, due to strong losses on currency derivatives.
The net loss for the quarter was 2.04 billion reais ($890.1 million), compared to profits of 374.5 million reais in the fourth quarter of 2007. For the full year of 2008, the company posted a loss of 2.48 billion reais, the first annual loss in its 64-year history.
Despite the large currency losses, net sales jumped 15.9% to 3.06 billion reais, led by an increase in frozen food products and poultry.
Sadia’s report emphasized that in 2008 it was the largest producer in the Brazilian meat sector and the largest exporter of animal protein.
Its gross sales increased 23% in relation in to 2007 with an increase in sales volume of more than 8%.
In the international market Sadia’s sales volume increased 5% to 1.2 million tons, representing 46% of its total sales, which is in line with the company’s strategy.
In the poultry sector, sales in the Brazilian market dropped very slightly in volume, 0.3%, but grew 11% in value, compared to 2007.

Vencomatic ventures into Spain

Poultry equipment producer Vencomatic of the Netherlands is opening a new operation in Spain: Vencomatic Iberica.
This new operation is a joint venture with the Spanish nest and feed equipment producer Gura Automatizaciones Avicolas.
Gura’s production unit in Reus, Spain, will be renamed Vencomatic Iberica.
“After having set up a production facillity in Brazil, starting a joint venture in China and opening several branch offices in the USA, Canada, the UK, Poland and the far east, this step fits very well to the strategy of Vencomatic to have a strong local presence worldwide,” Vencomatic’s General Manager, Koen Boot, said.
Vencomatic and Gura’s joint venture operation will be called Vencomatic Iberica.