Mexican poultry producer and processor Industrias Bachoco S.A.B. de C.V announced unaudited results for the first quarter ended March 31, 2010. Highlights reported on PR Newsire include:
1.1% total sale increase over Q1 2009.
increase of 16.6% for 2009’s Q1 in chicken sales with additional increases for table eggs and swine,
8.6% lower EBITDA margin compared to 11.2% in Q1 2009,
earnings per share for the quarter reached Ps.$ 0.458, compared to Ps.$ 0.457 in 1Q 2009.
"While the economic conditions prevailing in Mexico continued to slowly improve, we observed a good demand for our products, impacting our first quarter results and showing an improvement from the previous year in terms of sales and volume sold,” sais Cristobal Mondragon, Bachoco's CEO. "Our results were strong and sound, while our financial position remained solid even after the investments made during the past quarters."
Monday, May 3, 2010
Poultry, livestock coalition calls for end of ethanol subsidies, protective tariff
Livestock and poultry trade associations recently asked the House Ways and Means Committee to allow a 30-year-old tax credit and a protective tariff for ethanol to expire at the end of this year. The request was made in a letter signed by national industry trade associations, including the American Meat Institute, the National Turkey Federation, the National Chicken Council and the National Cattlemen’s Beef Association.
“Although we support the need to advance renewable and alternative sources of energy, we strongly believe that it is time that the mature corn-based ethanol industry operates on a level playing field with other commodities that rely on corn as their major input,” the groups wrote in a letter to Michigan Congressmen Sander M. Levin and Dave Camp, the chairman and ranking Republican member, respectively, of the tax-writing committee.
“Favoring one segment of agriculture at the expense of another does not benefit agriculture as a whole or the consumers that ultimately purchase our products.”
The groups noted their concerns over the negative economic effects they say government support for corn-ethanol has had on animal agriculture, specifically the Volumetric Ethanol Excise Tax Credit (VEETC) and the import tariff on foreign ethanol.
“Although we support the need to advance renewable and alternative sources of energy, we strongly believe that it is time that the mature corn-based ethanol industry operates on a level playing field with other commodities that rely on corn as their major input,” the groups wrote in a letter to Michigan Congressmen Sander M. Levin and Dave Camp, the chairman and ranking Republican member, respectively, of the tax-writing committee.
“Favoring one segment of agriculture at the expense of another does not benefit agriculture as a whole or the consumers that ultimately purchase our products.”
The groups noted their concerns over the negative economic effects they say government support for corn-ethanol has had on animal agriculture, specifically the Volumetric Ethanol Excise Tax Credit (VEETC) and the import tariff on foreign ethanol.
China purchases US corn
The USDA recently announced the export sale of 115,000 metric tons (4.5 million bushels) of U.S. corn to China, according to a U.S. Grains Council press release.
The rapid growth of China’s agricultural output has begun to be outpaced by demand, despite strong production gains as a result of market-based reforms instituted 30 years ago. This, in conjunction with the country's dramatic economic growth, reportedly has encouraged China to open their markets to corn imports.
U.S. Grains Council sources suggest six additional cargos of U.S. corn (250,000-300,000 metric tons or 9.8-11.8 million bushels) may have been booked for China delivery.
"For the past 30 years, the U.S. Grains Council has had a presence in China, working with local producers, feed millers and manufacturers to demonstrate the value and cost effectiveness of U.S. corn and their co-products," said Rick Fruth, U.S. Grains Council chairman and Ohio corn farmer. "We are pleased to see that these market development efforts by the Council are being realized in corn sales to China. We anticipate China to be a long-term importer of U.S. corn and co-products."
Thomas C. Dorr, U.S. Grains Council president and CEO, says food security with our trading partners is dependent on continuous, transparent and stable trade relationships.
"We are hopeful the trade relationship with China will mimic the successful, longstanding relationships the United States shares with other parts of the world," Door said. "This is indeed encouraging news as U.S. corn growers proceed at one of the most rapid paces ever to plant what appears could be another record crop."
The rapid growth of China’s agricultural output has begun to be outpaced by demand, despite strong production gains as a result of market-based reforms instituted 30 years ago. This, in conjunction with the country's dramatic economic growth, reportedly has encouraged China to open their markets to corn imports.
U.S. Grains Council sources suggest six additional cargos of U.S. corn (250,000-300,000 metric tons or 9.8-11.8 million bushels) may have been booked for China delivery.
"For the past 30 years, the U.S. Grains Council has had a presence in China, working with local producers, feed millers and manufacturers to demonstrate the value and cost effectiveness of U.S. corn and their co-products," said Rick Fruth, U.S. Grains Council chairman and Ohio corn farmer. "We are pleased to see that these market development efforts by the Council are being realized in corn sales to China. We anticipate China to be a long-term importer of U.S. corn and co-products."
Thomas C. Dorr, U.S. Grains Council president and CEO, says food security with our trading partners is dependent on continuous, transparent and stable trade relationships.
"We are hopeful the trade relationship with China will mimic the successful, longstanding relationships the United States shares with other parts of the world," Door said. "This is indeed encouraging news as U.S. corn growers proceed at one of the most rapid paces ever to plant what appears could be another record crop."
Vietnam projects pork increase
An estimated seven million households in Vietnam produce pigs, according to a profile of national livestock production prepared by the Vietnamese Ministry Of Agriculture And Rural Development for an intergovernmental meeting on avian influenza held in Hanoi.
Projections from the ministry’s livestock department suggest that on-farm pig numbers in Vietnam could rise from 33 million in 2008 to 57.6 million in 2020, taking the country’s annual pork production from 2.77 million to 4.12 million metric tons, as the demand for pork by Vietnamese consumers rises by 38% from 30.7 kilograms to 42.5 kilograms per person per year.
Vietnam is a rapidly growing nation with a population of some 86 million people, according to the ministry. Its human population is expected to increase to 110 million by 2030—equivalent to adding another million people annually. Population density is highest in the Red River Delta and the south and southeast, including the Mekong River Delta and Ho Chi Minh City. In 2009, 29.6% of the population was living in towns or cities, compared with 23.5% in 1999. Urbanization is a strong influence on the market, with 77% of all population growth over the past 10 years occurring in cities.
Livestock production is one of the fastest growing sub-sectors in Vietnam’s agriculture and is projected to account for about 42% of the agricultural yearly turnover by 2020. Based on a recent assessment, agriculture represents about 22% of the national GDP and more than 60% of employment. The livestock sub-sector supplies 27% of agriculture’s share of gross domestic product (about 6% of the total gross domestic product). Out of this, pig production is the most significant contributor—it provides about 71% of the total contribution to national income from all livestock sectors.
Projections from the ministry’s livestock department suggest that on-farm pig numbers in Vietnam could rise from 33 million in 2008 to 57.6 million in 2020, taking the country’s annual pork production from 2.77 million to 4.12 million metric tons, as the demand for pork by Vietnamese consumers rises by 38% from 30.7 kilograms to 42.5 kilograms per person per year.
Vietnam is a rapidly growing nation with a population of some 86 million people, according to the ministry. Its human population is expected to increase to 110 million by 2030—equivalent to adding another million people annually. Population density is highest in the Red River Delta and the south and southeast, including the Mekong River Delta and Ho Chi Minh City. In 2009, 29.6% of the population was living in towns or cities, compared with 23.5% in 1999. Urbanization is a strong influence on the market, with 77% of all population growth over the past 10 years occurring in cities.
Livestock production is one of the fastest growing sub-sectors in Vietnam’s agriculture and is projected to account for about 42% of the agricultural yearly turnover by 2020. Based on a recent assessment, agriculture represents about 22% of the national GDP and more than 60% of employment. The livestock sub-sector supplies 27% of agriculture’s share of gross domestic product (about 6% of the total gross domestic product). Out of this, pig production is the most significant contributor—it provides about 71% of the total contribution to national income from all livestock sectors.
Friday, April 30, 2010
Financial seminar to examine global poultry market
The 2010 Financial Management Seminar, sponsored by U.S. Poultry & Egg Association’s Poultry & Egg Institute, will examine the global poultry market, review bank lending trends, and provide an update on accounting practices. The seminar is geared toward financial management professionals and is scheduled for June 21-23, 2010, at the Sandestin Resort in Destin, Fla.
“Financial management becomes increasingly complex in the economic environment that we have been experiencing,” said program chairman Alan Duncan of Mountaire Farms. “So it is essential that we stay up to date. This year’s seminar will ensure that poultry industry financial managers are informed on economic and market conditions, changes in tax laws, and accounting procedures.”
Other topics on the program include product recall business interruptions, changing consumer trends and an economic forecast.
U.S. Poultry & Egg Association is registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education.
“Financial management becomes increasingly complex in the economic environment that we have been experiencing,” said program chairman Alan Duncan of Mountaire Farms. “So it is essential that we stay up to date. This year’s seminar will ensure that poultry industry financial managers are informed on economic and market conditions, changes in tax laws, and accounting procedures.”
Other topics on the program include product recall business interruptions, changing consumer trends and an economic forecast.
U.S. Poultry & Egg Association is registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education.
Supreme Court passes on Rose Acre Farms claim
The Supreme Court declined to review “Rose Acre Farms Inc. v. United States” in a decision which let stand the ruling by the U.S. Court of Appeals for the Federal Circuit. The action came from a claim made by Rose Acre Farms following an SE trace-back with a USDA-imposed diversion of shell eggs from affected flocks to breaking.
Rose Acre Farms claimed USDA action represented “regulatory taking” and was unconstitutional. The Court of Federal Claims awarded Rose Acre $5.4 million in damages but this was overturned by the higher court.
Rose Acre Farms claimed USDA action represented “regulatory taking” and was unconstitutional. The Court of Federal Claims awarded Rose Acre $5.4 million in damages but this was overturned by the higher court.
China imposes more duties on US chicken
China announced Wednesday that it will impose new tariffs on U.S. chicken of 3.8% to as much as 31.4% of the import price, according to Business Week.
This action comes on top of tariffs of up to 105.4% placed on U.S. chicken after imposing anti-dumping duties in February. The Commerce Ministry of China said that U.S. producers received improper support that hurt Chinese competitors due to government subsidies that lowered the price of feed.
The tariffs, which vary by producer, reportedly apply to chicken parts and whole birds but not to live chickens or cooked products such as chicken sausage.
This action comes on top of tariffs of up to 105.4% placed on U.S. chicken after imposing anti-dumping duties in February. The Commerce Ministry of China said that U.S. producers received improper support that hurt Chinese competitors due to government subsidies that lowered the price of feed.
The tariffs, which vary by producer, reportedly apply to chicken parts and whole birds but not to live chickens or cooked products such as chicken sausage.
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