According to recent comments by Hormel CEO, James P. Snee, the Company will expand product scope to capture new distribution channels. Hormel will promote products including snacks comprising their Planter’s Nut brand and a range of pork and turkey products through convenience stores that offer potential for increased sales.  Hormel is also promoting Jennie-O ground turkey through retail channels despite indications of oversupply.  Hormel is also accessing the market for pizza toppings and sliced meats.

Initiatives to reduce costs have been implemented through streamlining the supply channel and application of technology. The implied benefits of improved planning and execution will be evident in subsequent quarterly reports according to Snee.

Dr. Owen Willems has been appointed as Global Director, Research and Development for Hendrix Genetics.  In his new role, he will be responsible for all species within the Hendrix Genetrics portfolio.  Willems is a 12-year veteran with Hendrix joining after completing his doctoral studies at the University of Guelph, Ontario.

Dr. Willems has gained considerable experience both in North America and Europe applying creative and innovative solutions for the benefit of the industry. In his new position, Dr. Willems will be located at Hendrix-Genetics Global Headquarters in the Netherlands.

Blair McCorriston has been promoted to Director, Sales and Commercial Excellence, replacing Dr. Owen Willems. In her new position, Ms. McCorriston will report to Trevor Aitchison, General Manager, Americas.  Blair will become a member of the National Turkey Federation Executive Committee replacing Dr. Willems. She has served in various positions at Hybrid Turkeys over 12 years and has gained experience with Internal Operations, R&D, Sales, Technical and Marketing teams.

Her appointment supports a strengthened connection among sales, product management, technical service and marketing.  In commenting on the promotion, Trevor Aitchison, General Manager, noted that Blair has “demonstrated her commitment to excellence in the turkey industry and her leadership will support the Company dedication to delivering high-quality products and services”.

Senators Bernie Sanders (I-VT), Peter Welch (D-VT) and Cory Booker (D-NJ) have introduced the Livestock Owned by Communities to Advance Local Foods Act (LOCAL).  The proposed legislation would amend the Federal Meat Inspection Act of 1906 to support independent and small-scale meat processing under the “personal-use exemption”.  The Bill would allow consumers to purchase animals on the hoof for subsequent slaughtered and processing in other than a USDA-inspected abattoir.

The Federal Meat Inspection Act has stood the test of time and protects consumers. A continual process of eroding the supervision and inspection of meat products by the designated federal agency will not materially provide competition for major meat packers.  Unfortunately, it will expose consumers to potential foodborne disease.  Promotion of “food freedom” issues by extremists at both the left and right of the political spectrum is exemplified in the raw milk movement. Expanding availability of raw milk has considerable potential to disseminate a wide range of pathogens. This is confirmed by the incident rates of salmonellosis, campylobacteriosis, listeriosis and STEC infection, attributed to non-pasteurized milk.

The August 2024 guidelines for labeling are intended to ensure transparency and to eliminate false claims that may mislead consumers.

The guidelines require substantiation of claims in relation to the following areas: -

•  Animal welfare including statements relating to ethical and humane procedures.
• Environmental claims including ‘sustainability’ and ‘carbon neutral’.
• Management claims including ‘free-range’ and ‘pasture-raised’.
• Breed claims including for specific beef strains associated with perceived quality attributes including  ‘Angus’ and ‘Wagyu’
• Antibiotic use claims such as ‘raised without antibiotics’ should be subject to verification including assay.

The FSIS has been made aware of extensive use of green washing claims including unsubstantiated statements relating to sustainability and the application of regenerative grazing.

Producers making label claims must now present supporting evidence including third-party certification and appropriate documentation.

Previously, CHICK-NEWS reported on the Chapter 11 petition filed by the company in the U.S. Bankruptcy Court for the District of Minnesota.  Pure Prairie Poultry claims assets of between $50 and $100 million but has liabilities between $100 and $500 million with numerous creditors.

The Court rejected the Chapter 11 bankruptcy petition since it was dependent on Sandton Capital providing debtor financing amounting to $15 million but with the lender, receiving secured status placing them above other creditors. Objections to the restructuring plan led to the rejection by the Court and Pure Prairie Poultry must now either find a buyer or cease operation under Chapter 8.

The U.S. Department of Agriculture is a creditor based on $37.6 million provided through a guaranteed-loan program. Due to financial restraints, Pure Prairie Poultry was unable to pay for feed for flocks held for 14 growers in Iowa.  Accordingly, the Iowa Department of Agriculture and Land Stewardship exercised emergency authority to acquire 1.3 million broiler chickens that required feed.  This action was taken under Iowa Code Chapter 717 and was approved by a state court on October 2nd.  The Department of Agriculture is cooperating with farmers to maintain flocks to market weight at which time they will be sold, and taxpayer funds will be reimbursed with the state representing a debtors entitled to proceeds of any income from disposal of assets or sale of the enterprise with a plant in Charles City, IA.

In principle, Pure Prairie Poultry should not have found itself in a position to file for bankruptcy protection.  Other small-scale broiler producers supplying niche markets have survived and expanded.  It is evident that the Company was undercapitalized in relation to projected volume. Their product carried claims of “all natural,” raised under acceptable welfare standards without antibiotics and fed vegetable-based diets. This should have allowed the Company to establish an acceptable share of the high-value market. Other benefits included the initial support of the USDA and other lenders and the availability of contract growers.  Obviously, Management erred in execution, despite their collective ‘pedigree’ including Foster Farms, Tyson Foods, Petaluma Poultry, GNP Company and Zacky Farms.

The September 25th USDA-GAIN Report on Canada, CA2024-44, projected a 2.5 percent increase in broiler production to 1.465 million metric tons (6.66 million lbs.) in 2025.  Producers in Canada operate according to a controlled quota system with independent farmer-growers purchasing feed and chicks, often through cooperatives and selling live birds to processors.

In 2025, USDA estimates total imports at 215,000 metric tons, up 4.9 percent from 2024.  Exports will amount to 125,000 metric tons resulting in net importation of 90,000 metric tons.  Given a population of 39 million, per capita consumption will attain 44.7 kg. (98.4 lbs.) close to that of the U.S.

In 2023, Canada was ranked 7th among importers of U.S. broilers and products with a total quantity of 142,434 metric tons valued at $435 million.  Imports in 2023 were respectively down 7 percent in volume and 11 percent in value with a unit price of $3,054 per metric ton indicating whole birds and added-value product.

For the first seven months of 2024, Canada moved to 6th place, importing 84,766 metric tons valued at $258 million with a unit price of $3,044 per metric ton.  This can be compared to the average of all exports for the seven-month period of $2,631 million with an average unit price of $1,382 per metric ton confirming a different range of products.

For 2024, the U.S. held 80.4 percent of Canadian broiler and product imports followed by Brazil at 7.5 percent, Thailand at 5.1 percent and Chile rising to 3.9 percent as a result of membership in the Comprehensive and Progressive Transpacific Partnership with a relatively low tariff rate quota.

Exports to Canada peaked in 2020 at 160,791 metric tons but this included deceptively-described broiler products as “spent fowl” to avoid paying a tariff.  With stricter border controls, this practice has ceased together with stricter scrutiny of the import for re-export program. 

The Canadian Food Inspection Agency enforces a ban on re-export of chicken from Brazil to the U.S.  Chicken products from Brazil do not enter non-eligible Canadian facilities that are authorized to export to the U.S. 

After an initial failure to establish a foothold in the U.K. in 2019, Chick-fil-A intends to expand internationally with a second initiative involving stores in London and Northern Ireland and in industrial centers including Leeds and Liverpool.

Chick-fil-A is a closely held corporation and does not release financial data.  Technomic a market research company specializing in the food industry estimates that annual sales are in the region of $20 billion annually.  With approximately 3,000 U.S. locations, each store generates  annual sales approaching $6.5 million, far in excess of competitors McDonald’s, Burger King and Wendy’s.

Joanna Symonds the designated head of U.K. operations noted, “We have always cared about the impact of our restaurants on the local communities that we serve, and we strive to positively impact areas throughout the U.K.  She added, “Caring for people, while delivering great food is at the heart of our brand and we encourage our local Owner Operators to partner with organizations that support their local communities.

Chick-fil-A intends sourcing both chicken and free-range eggs from local suppliers adhering to acceptable welfare certification.  Surplus food will be distributed to shelters and foodbanks and restaurants will donate to nonprofit charities. The PR campaign should offset some of the xenophobia directed against the first store established in Reading, Berkshire in 2019.

The United Food and Commercial Workers Union, Local 7, claims that JBS has contravened labor law when employing workers from Haiti and Benin.  They allege illegal practices including abusive treatment, human trafficking and excessive rent charges.

JBS counters the allegations that appear to revolve around a recruiter who is no longer used and was never an employee of the company.  JBS noted that the HR function of the plant has been strengthened and training programs for recruitment have been introduced, consistent with Company hiring policy.

JBS does not charge employees for transportation, pre-employment services or mandate residence.  The company noted, “We want all of our employees to have access to safe housing and the opportunity to create a better life for themselves and their families.”

The Saudi Agriculture and Livestock Investment Company (SALIC) has acquired a 13 percent stake in MHP SE of Ukraine.  This holding company operates Perutnina Ptuj that process meat and poultry in Slovenia, Croatia, Serbia and Bosnia.  Perutnina Ptuj also distributes through subsidiaries in 15 E.U. nations. 

This investment by SALIC adds to their broiler production portfolio which includes an investment in BRF S.A. with an 11 percent equity share allowing transfer of technology and domestic production in addition to assurances in supply from Brazil.   The investment in MHP will generate synergy since the company will cooperate with Tanmiah Food Company in existing facilities and will include a proposed joint venture in Saudi Arabia.