Hormel Foods Corp, the holding company for Jennie-O, Turkey Store has announced an expansion program to add 20,000 square feet of space to their Willmar, MN. plant.  The project will be completed during the fourth quarter of 2025 and will include modernization of equipment to improve efficiency and to expand product range to include additional value-added items.

United Natural Foods, a major wholesale distributor was the subject of a lawsuit filed by NYSM Organics of Vineyard Haven, MA.  The complaint filed in the Superior Court of Rhode Island charges UNFI with breach of contract arising from unjust use of prompt-paid discounts.  The plaintiff alleges “intentional and systematic but unjustified discounts despite withholding payments on supplier invoices.”

The complaint apparently disclosed discriminatory practices against small suppliers.

In rebutting the claim, UNFI stated, “We value all our supplier relationships and take any concerns seriously.”

For the most recently concluded FY2024 ending August 3rd UNFI posted a loss of $112 million on sales of $30,980 million with a negative EPS of $(1.89). Comparable values for FY 2023 were earnings of $24 million on sales of $30,272 million with an EPS of $0.40.

Beyond Meat (BYND) has agreed to settle a 2022 lawsuit claiming false and misleading promotion and deceptive business practices. The company falsely claimed superior nutritional content of its products compared to animal-derived meat.  Beyond Meat claimed higher availability of amino acids from plant-based protein compared to animal-derived products.

Beyond Meat will not admit to wrongdoing but will pay the plaintiff class $7.5 million subject to a January 2025 settlement hearing.

In past months, Beyond Meat has shifted its promotional message from the original focus on welfare and sustainability to health in an attempt to stimulate consumer demand.  Given the financial performance of the company characterized by declining sales, it is questioned whether the current sales strategy can move the needle.  Beyond Meat products lack acceptability based on price compared to equivalent real meat and quality is inferior including appearance and texture when cooked.

The outgoing USDA administration recently announced grants amounting to $20 million for 26 projects under the Local Meat Capacity (MCap) Program.  To date, USDA has funded 97 projects valued at $56 million under this initiative.  The objective of the program is to support small-scale and regional livestock production and processing to increase options for farmers.  The program is justified by an internal USDA report Competition and Fair Practice in Meat Merchandizing that claims to lower food prices and to assist livestock producers and ranchers.

Over the past four years, USDA has attempted to restructure meat and poultry production using funding from the Inflation Reduction Act and dipping into the Commodity Credit Corporation piggy bank.

What is important is the magnitude of ultimate benefits to both producers and consumers through funding euphemistically referred to as “investment.” USDA has yet to demonstrate or to quantify a return on the use of public funds or to account for expenditures under diverse ‘giveaway’ programs.

In January 2016 the Competition Bureau of Cananda investigated alleged price-fixing in the bread industry extending from 2001 through March 2015.  As a result, Canada Bread a subsidiary of Grupo Bimbo SAB de CV paid a fine of US$35 million.

Canada Bread was acquired by Grupo Bimbo  in 2014 at which time Maple Leaf owned 90 percent of the voting stock.  Recently Maple Leaf Foods alleged that Canada Bread defamed Maple Leaf Foods, a shareholder and major meat packer in published statements.

It is anticipated that the Maple Leaf claim and counterclaims by Canada Bread will continue at considerable expense until settled, with the probability of degrading the corporate image of both parties.

EGG-NEWS is indebted to Corey Earle for a review of the Cornell Poultry Science Program recently published in an alumni newsletter.

Professor James Rice, who graduated in 1890, submitting a thesis on poultry production, was appointed to the faculty of the Land Grant University. He established a teaching program in poultry production in 1892.  Rice was a giant among the early promoters of poultry, organizing a judging school, establishing teaching and extension programs culminating in the establishment of the first poultry-dedicated department in the U.S.  His activism and the importance of the emerging poultry industry in the Northeast led to the erection of a poultry science building in 1912, subsequently dedicated in his honor as Rice Hall. 

During the early 1940s, Cornell established a turkey farm with Professor Earl Smith as the Director. He established a breeding program to develop a meat turkey. His hybrid was based on a cross between the White-Holland breed and the Broad-Breasted Bronze to create the Empire White, the first of the turkeys with a broad breast.  Smith also developed artificial insemination due to the dimorphism of toms and hens.  The Empire White debuted in 1953 and was used extensively by the industry. Additional refinement resulted from scientific breeding programs incorporating index selection and biomarkers for desirable traits.

Food scientists, including Dr. Bob Baker, were instrumental in developing further processed products both for eggs and turkeys that contributed to the early success of the U.S. poultry industry.

The U.S. Department of Labor (DOL) accused Qvest LLC of hiring underaged workers for cleaning services at the Seaboard Triumph Foods plant in Sioux City, IA.  The alleged contraventions occurred between September 2019 and 2023.  The Department of Labor accused Qvest of violating the Fair Labor Standards Act by employing 11 minors to clean dangerous equipment during a night shift. Qvest settled with the DOL paying a penalty of $171,000 and required the Company to hire a compliance officer and conduct appropriate training. The Agreement binds Fayette Janitorial Services that acquired the contract in 2023 continuing the illegal practice of employing underage workers.

Seaboard Triumph was not accused of wrongdoing as it did not employ any of the underaged workers.  In a statement, Seaboard Triumph that “it will not tolerate any vendor’s use of underage labor within its facilities.”  Currently cleaning services are provided by members of the United Food and Commercial Workers International Union.

Employment of underage and in some cases illegal immigrant workers to clean plants has been a subject of investigation involving numerous packers. The DOL documented 4,000 violations in 736 facilities from 2023 to date involving $15 million in penalties

Although operators of packing plants claim innocence through the use of third-party contractors, they have a moral and managerial obligation to ensure that obviously underaged workers are not present or performing prohibited work in their plants.  Difficulty in relying on contractors to adhere to state and federal regulations and evident risk to corporate image and reputation resulted in JBS USA undertaking cleaning services within the company.

President-elect Donald J. Trump has threatened to deport all illegal immigrants both in his pre-election rhetoric and in subsequent statements and social media posts. The USDA estimates that half of the nation’s two million farm workers lack legal status.

Dave Puglia, President of Western Growers, noted that production will be seriously impacted if illegal workers were to be deported.  Representative John Duarte (R-CA), currently awaiting the result of his reelection bid, commented that his constituency, which includes the Central Valley, was dependent on illegal immigrants and that serious economic consequences would follow mass deportation. Green produce, dairy and meat-packing companies would be adversely affected if workers were to be deported.

Tom Homan, appointed to secure the Southern border and to implement a program of deportation, has indicated that the priority will be illegal immigrants with criminal records or involvement with law enforcement in the U.S.

Given that a significant proportion of U.S. citizens, many receiving SNAP and other federal and state benefits, are disinclined to perform agricultural labor, it will be necessary to extend the program of H-2A visas. This will regularize the employment situation and allow workers to enter the U.S. to perform agricultural labor without displacing U.S. citizens and permanent residents.

During the first Administration of President Trump, there was only limited action against illegal workers including a few raids on poultry processing plants in Mississippi and produce-packing facilities in Nebraska.

The 2025 Poultry Market Intelligence Forum will be presented at the International Production and Processing Expo. (IPPE) from 09H00 to noon on Wednesday January 29, 2025.

The program will feature economists who will highlight problems and opportunities facing the poultry industry.  Speakers will include:

• Christian Richter of The Policy Group delivering the Washington Update for 2025.

• Mark Jordan of Leap Market Analytics will discuss the current economy and future trends.

• Wendy Reinhardt Kapsak of the International Foods Information Council will discuss the supply chain, consumerism and related issues.

The Forum is available to all IPPE registrants at no charge.

Despite news reports indicating that consumers are moving away from turkey as the main protein for Thanksgiving celebrations, a Consumer Digest survey confirmed the popularity of roast turkey. The survey involved 400 Kroger consumers over the three months prior to Thanksgiving showed that turkey was overwhelmingly favored as the centerpiece. Of those surveyed, 81 percent planned turkey as their main protein with ham at 7 percent and chicken at 3 percent.

  It was disconcerting to note that 11 percent of respondents had no plans to celebrate Thanksgiving in 2024. This was perhaps a reflection of family fragmentation, the growing wave of loneliness and possibly cost considerations.

Reflecting convenience, 13 percent of the respondents planned to purchase complete meals, encouraged by advertisements by supermarket chains for special Thanksgiving meal kits with both ingredients and instructions. Many retail chains offered prepared meals to serve up to ten diners.

According to a posting on ProMED Mail cases of listeriosis were attributed to consuming prepared meals produced by Yu Shang Food, Inc. Of 11 diagnosed cases nine required hospitalization. One case involved a pregnant woman and her twins both of whom dyed.  Cases were reported in California, Illinois, New Jersey and New York.  As with many foodborne outbreaks, the actual number of those infected is higher than the confirmed cases.  Traceback and identification of the source of Listeria infection is complicated by the prolonged incubation period that may extend to 70 days.

Pregnant women and their infants, the immunosuppressed and elderly are more susceptible to listeriosis than healthy individuals.  In this outbreak, the age of patients ranged from less than one year of age to 86 years. All cases were of Asian ethnicity consistent with the products distributed by Yu Shang Foods.  The vehicle of infection was confirmed to be ready-to-eat chicken products.  Investigations showed that processed pork snouts were contaminated with Listeria suggesting the presence of the pathogen in the environment and equipment of the plant of origin. 

On November 9th, Yu Shang Food recalled ready-to-eat meat and poultry products with a further expansion to a total recall in late November.

According to a company release, Koch Foods will invest $145 million to upgrade the Morton, MS. plant funding an expansion and installation of modern equipment.

Part of the cost will be borne through the Mississippi Flexible Tax Incentive Program.

Koch Foods, based in Park Ridge, IL, operates across a broad area of the Southeast with facilities in Alabama, Georgia, Mississippi in addition to Ohio and Tennessee.

According to a recent publication*, a survey conducted by Rutgers, Columbia and Cornell University in collaboration with the International Food Policy Research Institute reported on the motivators for selection of meat products based on perceived attributes.  A sample of 1,224 U.S. adults conducted in 2021 clearly demonstrated the value of quality and taste with health intermediate but revealing indifference towards environmental sustainability and animal welfare. 

The study was conducted to rank motivators determining purchase to ascertain whether reducing meat consumption could benefit the environment.

The significant motivators and their relative rankings were:-

• Quality 85%

• Taste 84%

• Health 63%

• Price 61%

• Availability 59%

• Convenience 44%

• Environmental Sustainability 29%

• Animal Welfare 28%

Among those rating environmental sustainability, 30% characterized the attribute as “not very important” and 36% “somewhat important”.  Among the respondents rating animal welfare, 36% regarded the attribute as “not very important” and 32% as “somewhat important”.

Among participants in the survey, 78 percent consumed red meat one to four times per week and 79 served poultry with the proportions influenced by socioeconomic status.  There was a trend towards reducing red meat with 70% declaring lower consumption as opposed to 34% reducing poultry intake.  This may reflect either health considerations or cost given the availability of both categories of animal-derived proteins in U.S. supermarkets.  Considerations of environmental sustainability and animal welfare were less important motivators in reducing meat intake.

Principal investigator, Dr. Shauna Downs of the Rutgers School of Public Health stated, “Our findings suggest that messaging focused solely on sustainability may not resonate with U.S. consumers regarding their meat choices.”

*Downs, S. et al Sustainability considerations are not influencing meat consumption in the U.S. Appetite. 203: December 1, 2024, doi.org/10.1016/j.appet.2024.207667

Unilever has undertaken a program of divesting non-core businesses and brands in a move to rationalize products in diverse markets.  The most recent action in this regard is a decision to sell the Vegetarian Butcher producing plant-derived meat that in all probability is not generating a return on investment commensurate with company standards.

Unilever has commissioned an investment bank to assist in the disposal of the business with a number of prospective purchasers identified.

Following an outbreak of New World screwworm (Cochliomyia hominivorax) in the Mexican state of Chiapas near the border with Guatemala, the U.S. APHIS has halted importation of live cattle from Mexico awaiting a response from the Government of Mexico.

New World screwworm was eradicated from North America in 2006, with a barrier represented by the Panama Canal blocking northward spread of the parasite. Elimination was achieved by releasing irradiated sterile flies and tactical administration of insecticides coupled with surveillance of livestock.  Recently illegal movement of cattle and failure to regulate livestock has allowed northward movement of the infestation with transfer of infective eggs and larvae on cattle from Nicaragua to Mexico.

Based on the import ban, cattle producers in Mexico are pressing their authorities for immediate action to prevent illegal movement of livestock from Guatemala to Mexico.  Action includes strengthening enforcement at border crossings, increasing penalties for illegal livestock movement and encouraging collaboration between government authorities and stakeholders.

The magnitude of trade between Mexico and the U.S. is evidenced by importation of 89,000 head in October with a 13 percent year-to-date increase in introduction of feeder cattle from Mexico compared to 2023.

The APHIS is recommending that livestock producers along the southern U.S. border closely monitor livestock and pets for any indication of screwworm myiasis as denoted by wounds with visible larvae or eggs.

The ban on importation imposed on November 26th resulted in a sharp increase in the price of feeder cattle to $187 per cwt. in December and $256 per cwt. for January delivery.

The APHIS is cooperating with livestock administrators in Mexico, Guatemala and other Central American nations to release sterile male screwworm flies at targeted locations.