Elanco announces full-value approach to poultry market

After five years of growth and multiple acquisitions, Elanco Animal Health has announced its new strategy to service the poultry markets. At a press conference at the 2015 International Production &Processing Expo (IPPE), Kerryann Kocher, director, U.S. Poultry Operations, explained how the company came up with its Full Value Poultry business strategy.
She explained that Elanco conducted a global survey across all animal species to identify the core profit drivers. She said the company has concluded there are four elements that cross all species – health, output, feed and access.
“Health is obvious: identify and manage diseases,” said Kocher, “Feed is optimizing feed for the highest efficiency. Output is making sure you have the right bird at the right time for the right market. That’s the hard part, managing the variation in the production process.”
Elanco defines the fourth factor, access, as the ability to seize global market opportunities by helping to understand and manage regulatory influences, consumer and political influence and global trade.
“Our approach is to serve the customer based on those four pillars,” said Kocher. “We put together teams from across our divisions that can help the customer manage all four of those challenges.”
This approach has been made possible by Elanco’s string of acquisitions over the last five years – culminating with the closing of the acquisition of Lohmann Animal Health early this year. “The ChemGen acquisition in 2012 got us into the enzyme market and Agri Stats in 2013 gave us the ability to help our customers enhance their analytics abilities, which are vital in today’s markets”
“Elanco is seeking to be a total solutions provider across the poultry chain,” said Kocher. “Poutlry producers have to have all of their systems optimized to maintain sustainable profitability. It’s Elanco’s goal to help them do that with our team approach.”
Elanco continues to invest in the market. Kocher said Elanco has just broken ground on a $15 million research center that will house 75 scientists at the company’s Greenfield, Indiana, headquarters. 

FAO focuses on Jakarta poultry market restructuring

With the assistance of CREATE, the Food and Agriculture Organization of the United Nations has assisted Jakarta's administration officials in assessing the preparedness and increasing the competency of the poultry relocation centers set up by the government to control outbreaks of highly pathogenic avian influenza.
The centers, which exist in limited numbers and were instituted in 2007 after a ban was set on the movement of live birds within Jakarta's city limits, have been seen by small poultry producers as a way for the government to constrain their business prospects. This belief led to discord between the small businesses and the government, eventually culminating in the decision to restructure the market around the desire for fair business and the need to contain H5N1 HPAI, which is more prevalent in Jakarta that any other area in the world.
The FAO stepped in to analyze organizational and training needs, proposing solutions through the development of training modules and standard operating procedures, and assisting in the implementation of the training and organization of individuals involved in poultry market restructuring. As a result of this, the management staff of the poultry relocation centers in Jakarta has a better understanding of the needs of the collectors and slaughterers. They are now better prepared to handle the hundreds, if not thousands, of small collectors and slaughterers who will eventually make use of these facilities. Additionally, they will facilitate training and assist the collectors and slaughterers to operate the facilities and equipment in proper and efficient ways. The management will also ensure that the collectors and slaughterers abide by the biosecurity and food safety regulations. Standard operating procedures are now adapted to local requirements, resulting in optimization of facilities usage so that Jakarta consumers do not face supply disruptions or food safety problems.

Louisiana distributes $11.2 million in poultry grower aid

The Louisiana Agricultural Finance Authority has distributed $11.2 million in aid to 175 poultry growers affected by the 2008 bankruptcy of chicken processor Pilgrim's Pride.
The company's closing of its Farmerville plant in 2009 affected more than 300 poultry suppliers in Louisiana and Arkansas. Other growers were hit in Alabama, Florida, Georgia, North Carolina, Pennsylvania, Tennessee and Texas, and more than $60 million in total aid has been distributed. "This money will literally help some of the growers make back payments on their mortgages that will allow them to keep their farms," said Agriculture and Forestry Commissioner Mike Strain, D.V.M.

Sanderson Farms reports first-quarter loss due to feed prices, excess inventories

Sanderson Farms Inc. posted a first-quarter loss of $33.6 million compared with a year-earlier profit of $15.8 million, due largely to an excess of chicken brought on by slow restaurant sales and increased feed prices, according to the company.
Prices for breast meat, commonly sold to restaurants, were down 3.1% in the first quarter ended Jan. 31, and wing prices were down nearly 37%. "We expect this trend will remain until the national unemployment rate improves," said CEO Joe Sanderson. "Consumers are simply not dining out as frequently, and restaurant traffic has remained under pressure." At the same time, corn prices reached $6.50 a bushel during the quarter, up nearly 80% from a year earlier.
Sanderson recently completed a Kinston, N.C., plant that started operation in January and is expected to be at full production in 2012. The company said it will delay construction of a second North Carolina plant due to concerns about corn's cost and availability.

Former Urner Barry President, Paul B. Brown dies

Paul Brown

Former Urner Barry President Paul B. Brown Sr. died on Oct. 17, 2010.
Brown joined Urner Barry in 1962, becoming president of the company in 1986 and remaining in the position until his retirement in 1997. All in all, Brown served 42 years in the turkey industry, beginning at the U.S. Department of Agriculture (USDA) Agricultural Research Center where he quoted the poultry market. In the early 1960s he was appointed the head of the USDA's dairy and poultry market news office, which led to his meeting the partners of Urner Barry.
Brown is survived by his wife of 56 years, four children and 12 grandchildren.

Moroccan poultry industry expanding

Morocco’s market for chicken is growing steadily, reports the U.S. Grains Council Corn Mission team. On a Dec. 4 visit to a Moroccan poultry farm, the team spoke with farmer Ahmed Addioui and USGC Consultant Abdellah Ait Boulahsen about changes in the country’s poultry industry, including new vaccination and labor standards.
Morocco’s per capita chicken consumption has grown from 7 kilograms in 1990 to 15.5 kilograms in 2008. According to Addioui and Boulahsen, all of the chicken is produced domestically, but 90% of feed is imported. The feed is about 60% corn.

Hungary's poultry production dips

The production of poultry meat in Hungary in the first nine months of this year was 6.6% lower than in the same period in 2008.
Producers' total sales of poultry meat were 5.3% lower year-on-year, including 3.7% lower sales on the domestic Hungarian market and 8.7% lower sales on export markets, according to the country's Central Statistical Office.

Poultry forum speakers announced

Economist Donald Ratajczak will be a featured speaker at the Poultry Market Intelligence Forum, during the International Poultry Expo in 2010. He will offer insight on U.S. and global economic conditions. Sponsored by U.S. Poultry & Egg Association, the event is slated for Jan. 27-29, 2010, at the Georgia World Congress Center in Atlanta.
Additional speakers include economists Mike Donohue and Paul Aho. They will examine the issues that will impact the domestic and international poultry industry in 2010.