Hedegaard Foods sells 1 billion eggs in 2012

Denmark’s Hedegaard Foods sold 1 billion eggs in 2012, making it the market leader for egg supplies in the Nordic region.
The company’s latest annual results statement details that turnover at the company increased by 10 percent in 2012 to stand at DKK 933 million (US$163.7 million), while profits reached a new high of DKK 28 million. Sales were boosted by the inclusion of results for Swedish egg packing company Svenska Lantaggg, which was purchased by Hedegaard Foods in 2011. Hedegaard estimates that it now holds 20 percent of the market in Sweden, and a 50 percent market share in Denmark. 

National Chicken Council outlines Food Manufacturers Immigration Coalition principles

In testimony delivered February 26 to the U.S. House Subcommittee on Immigration and Border Security, National Chicken Council President Mike Brown testified on behalf of a broad food manufacturers coalition about the need for a stable and permanent workforce that can help sustain the rural communities where meat and poultry facilities operate.
The hearing, "From H-2A to a Workable Agricultural Guestworker Program," was the second in a series of several hearings on immigration issues in the subcommittee. In addition to Brown, also testifying were: Bob Stallman, president, American Farm Bureau Federation; Chalmers Carr, president and CEO, Titan Farms; and Giev Kashkooli, political and legislative director, third vice president, United Farm Workers.
"To date much of the discussion has focused on the need to retain highly skilled workers such as scientists and engineers, and the need for additional temporary agricultural workers," said Brown. "These are important objectives, but they do not meet the needs of our industry sector. We are manufacturers, wanting a stable and permanent workforce that can help sustain the rural communities where we do business."
Brown in his testimony highlighted five major themes for immigration reform on which the coalition is focused: border security; a very simple improvement to the E-verify system as an alternative to a national identity card; clarity in anti-discrimination laws; an occupational visa category that the meat and poultry industry can use that could be tied to local or regional employment; and options to effectively address the 11 million undocumented workers in the shadows of our economy. "Some think there is an economic incentive for manufacturing employers to hire illegal immigrants at below-market wages," said Brown. "Nothing could be further from the truth. Our industry needs a stable workforce. We seek workers who will stay on the job long enough to become skilled and efficient, helping us to keep our food products and employees safe."
In terms of strengthening employment verification, Brown said that the government does not provide employers with a reliable verification method to prevent identity fraud and confirm whether new hires are legally authorized to work in the U.S. "E-Verify is a step in the right direction but does not work adequately in its current form," he said. "If strengthened, this program will serve as an effective and efficient 'virtual border'." Brown said that the current system, however, does not account for the meat and poultry industry's most common issue, identity fraud, e.g., a valid Social Security number that does not relate to the person presenting it. In addition to documents such as a driver's license or social security card which are easily falsified, the coalition believes employers should be allowed to require an E-Verify Self Check. E-Verify Self Check is an online service that allows U.S. employees to check their employment eligibility in the U.S. before beginning a new job.
In return for participating in these and other aggressive screening programs, Brown said that the coalition supports providing a safe harbor for employers that utilize the E-Verify Self Check and follow the automatic referral process. "An employer that does everything possible to avoid hiring unauthorized aliens should not be exposed to further liability," he contended.
Continued access to the labor pool is also a key element of the coalition's framework for immigration reform. "An effective occupational visa system may be the most important barrier to illegal immigration," said Brown. "The right visa system with the right screening tools will in effect be a second 'virtual border'." The existing temporary programs for general labor skilled workers are for seasonal labor only, which does not help manufacturers, whose occupational needs are year-round and ongoing. "Congress must create a general labor skilled immigrant visa for the manufacturing industry to recognize that employer needs in industry are permanent in nature, not temporary," said Brown. "Employers should have the ability to recruit outside of the U.S. and sponsor workers for a defined period of time."
A copy of the full testimony, including the coalition's complete framework of immigration reform concepts, is available online.

Chicken product sales help Maple Leaf Foods increase earnings

Sales of chicken products helped Maple Leaf Foods experience increased adjusted operating earnings for fiscal year 2012, as well as the fourth quarter, according to the company's latest report. During a quarterly conference call with investors on February 26, Maple Leaf Foods President and CEO Michael H. McCain reported a 58.9 percent increase in adjusted operating earnings to $91.3 million for the quarter, and an 8.1 percent increase to $280 million for the year.
The company’s meat products group saw a 5.3 percent decline for the final quarter of 2012 from the fourth quarter of 2011. However, the adjusted operating earnings increased 75.2 percent to 48.1 million, compared to $27.5 million a year ago. This was driven by stronger earnings growth in the prepared meats and fresh poultry businesses, which was partly offset by lower earnings in the primary pork processing operations. Sales of higher value products, such as the Maple Leaf Prime chicken brand, combined with an improved sales mix in higher value channels contributed to higher earnings in the fresh poultry operations.
“We are continuing to enhance our product mix,” said McCain. “Our chicken business has gone extremely well. In fact, the underlying improvements are even better because we had some head winds from our weaker industry margins in pork processing.”
Maple Leaf is continuing efforts to improve profits from its poultry products. The company is in the midst of a plan for simplification of prepared meats, which focuses on higher volume and more profitable products. The next phase of simplification includes value-added chicken, boxed meats and lunch kits categories, which McCain said will drive further benefits in 2013. Revamped Prime Chicken frozen entrees have so far done well. “Our early results in that initiative indicate a very positive response from our consumers,” said McCain. "They like the packaging. They like the flavor offerings.”
While the company is moving forward with plans to further improve profitability, they are still cautious of some of the costs involved. “The effects of food inflation driven by the North American drought of 2012 will be felt mostly in the first half of 2013," said McCain. "As a result, we expect some short-term volatility in our earnings as we pass those cost increases on in the marketplace. Beyond this, our strategic initiatives will accelerate in 2013 and contribute to continued margin growth."

Missouri Senate passes bill to allow kids to work on farm

Children younger than 16 would be able to avoid future federal regulation and keep working on their parents' farms under legislation passed by Missouri's Senate.
The federal government proposed rules in 2012 that would have prevented children from doing certain farm work, and though that proposal never came into fruition, the Missouri Senate went ahead and passed its own child-labor legislation. The bill, which passed the Senate by a 33–0 vote, is now headed to the state House. The Senate measure would exempt children doing farm work from getting a work certificate and from limits on the number of hours and days they can work. Children would only need the consent of their parents to work on the family's farm.
Sen. Brian Munzlinger, R-Williamstown, sponsored the bill.

Marel Stork Poultry Processing to highlight products at VIV Asia 2013

Marel Stork Poultry Processing will highlight several products at VIV Asia 2013, including a harvesting module, an opening machine and a plucker, according to the company.
The fillet/wing harvesting module of the Stork front half filleting system (FHF-XB) harvests fillets with at least the first poultry joint attached. The module can cut of the wings with a minimum amount of breast meat, according to the company, and positions the fillets to facilitate downstream processes. This is done via several smart fillet handling belts.
The VO-20 RS opening machine reference series does its job in a way which prevents damage to the intestines and does not bare the tip of the breast bone. The length of the opening cut can be adjusted during production allowing an opening cut to be made irrespective of product weight. A leaf fat retention option adds value to the product and gives extra harvesting options.
Hygiene-focused design features such as a more open build, sloped horizontal surfaces and no blind spots make the machine easier to clean, said Stork.
The D203S plucker has two plucking cabinets shaped to suit heavier birds. Each cabinet has three rows of 20 plucking discs with six plucking fingers fitted at an angle. Each row of discs is offset from its neighbor to create a compact plucking/picking field covering the whole bird. Cabinets are adjustable for height and width and can be rotated about their central axis. Settings can be changed quickly, easily and precisely. The cabinet on one side of the machine can be swung out to provide generous access for finger changing and cleaning.
VIV Asia will take place in Bangkok, Thailand, March 13–15.

Hotraco to introduce poultry computer at VIV Asia 2013

Hotraco will be presenting the MIRA-P poultry computer during VIV Asia 2013, which will be held in Bangkok, Thailand, March 13–15.
The MIRA-P is an expansion of the existing range of poultry computers IRIS, SIRIUS and ORION. In poultry barns for broilers, for example, the MIRA-P can control a wide range of processes, such as ventilation, heating, cooling, feed registration and water, as well as animal weighing. This is because the inputs and outputs of the MIRA-P can be freely allocated. This makes it the ideal computer for simple poultry houses, according to Hotraco.
The MIRA-P determines ventilation level on the basis of inside/outside temperature measured and humidity in the barn, if appropriate. The MIRA-P is equipped with a day counter and curve settings. Both adjustable and on/off fans can be connected to it.
The MIRA-P has multiple controls for controlling the air inlet, on the basis of the room temperature, on the basis of underpressure or synchronous with the ventilation setting. The MIRA-P can distinguish between left and right control and a tunnel inlet is also one of the options.
There are four controls in the MIRA-P for heating and a second temperature control can be controlled by means of a dedicated sensor (floor heating, for example). A cooling system can be switched on and off by the MIRA-P.
The lighting can be switched with a maximum of 24 on/off moments. A dimming function has also been included in the switching on/off of the lighting. The MIRA-P has two timers.
By connecting an external CAN-IO-LCA, the MIRA-P can also be used for silo weighing and/or animal weighing. The MIRA-P can also optionally be fitted with an SD card for logging data and updating software, and can be connected via USB to a PC with Rainbow+ management software.

Tyson remains optimistic about 2013 results despite near-term challenges

Tyson Foods Inc. told investors at the Goldman Sachs 17th Annual Agribusiness Conference on February 26 that its second fiscal quarter has been more challenging than anticipated due to margin compression in its beef and pork segments; however, the company remains optimistic about its results for the full year.
James Lochner, Tyson's chief operating officer, said, "Margins have been compressed throughout the past month as the value of beef has fallen more than the price of cattle. Historically, adjustments occur that allow for a spread between the revenue and the cattle cost. We run our plants for margin, not market share." Tyson's pork business also experienced some margin compression in the current quarter, although there have been signs of improvement recently, Lochner said. "We expect to continue our strong performance in the back half of the year," he said.
Meanwhile, Tyson's chicken segment has continued to do well. The company has said it expects a strong performance, particularly in the second half of the fiscal year, leading to continued optimism that the company's full-year results will be better than fiscal 2012. "Demand is strong, and we're seeing signs of consumers trading from beef to chicken," said Lochner. "Even with pricing up substantially year over year, chicken is a good value for consumers, and food service continues to promote chicken heavily."
Lochner announced that Tyson is launching a new line of all natural chicken under the new NatureRaised Farms brand. The product line will include a variety of fresh products produced from cage-free chickens raised without the use of antibiotics or added hormones and fed a 100 percent vegetarian diet. NatureRaised Farms brand fresh chicken will be available for sale to retailers in April, and is just one example of how the company is growing offerings in higher margin, value-added products.
Dennis Leatherby, Tyson's executive vice president and chief financial officer, told investors at the conference there is value in the diversity of Tyson's multi-protein, multi-channel, multi-national business. "We're going to grow sales of domestic value-added chicken and prepared foods," said Leatherby. "We're not a commodity protein company. That's not our goal, nor our destiny. Value added is currently about a third of our sales, which includes food service as well as branded retail products. Looking ahead to 2014 and beyond, we expect total company top-line sales to grow 3–4 percent annually, and value-added sales should grow 6–8 percent a year. We expect sales from international production to grow at an annual rate of 12–16 percent. International growth is focused on production and further processing in Brazil, China and India, in addition to our long-standing poultry business in Mexico. We're able to execute this growth strategy because we have a strong capital structure, and that creates opportunities for us."