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How Did JBS Become The World’s Largest Meat Producer?

JBS S.A.’s ascent to becoming the world leader in the meat industry is marked by strategic acquisitions, significant investments, and expansion across various segments and geographies.

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Here’s a more detailed expansion of JBS’s journey:

Founding and Early Expansion: Founded in 1953 by José Batista Sobrinho in Anápolis, Brazil, JBS began as a slaughtering business. Expansion accelerated with the establishment of Brazil’s new capital, Brasilia, which opened a new market for the company. By the late 1960s and 1980s, JBS expanded within Brazil, acquiring other meat processing companies.
Going Public and Major Investments: In 2007, JBS became a publicly held company and received significant investment from the Brazilian Development Bank (BNDES), propelling its expansion.
International Acquisitions: JBS’s international growth was marked by several key acquisitions:
- In 2007, JBS acquired U.S. firm Swift & Company, entering the pork market and becoming the third-largest producer and processor of pork in the U.S..
- The company further strengthened its position by acquiring Smithfield Foods’ beef business and 64% of Pilgrim’s Pride in 2010, establishing itself in the chicken production industry.
- In 2009, JBS acquired Grupo Bertin in Brazil, consolidating its status as the largest beef producer globally.
- In 2015, JBS expanded its U.S. pork business with the acquisition of Cargill Inc.’s pork operations.
Reorganization and IPO: In 2016, JBS announced a reorganization plan involving an IPO in the United States for its international operations, signaling its presence on five continents.
Controversies and Compliance Issues: Despite its success, JBS faced several controversies, including accusations of purchasing cattle from illegally deforested Amazon land and involvement in bribery scandals. These issues led to investigations and fines but did not significantly halt its growth.
Diversification and Future Endeavors: JBS continues to diversify its operations. Notably, in 2021, the company invested $100 million in cultured meat through BioTech Foods, with plans to enter the market by 2024.

Conclusion

JBS’s journey to becoming a global leader in the meat industry is characterized by aggressive expansion strategies, bolstered by significant financial support and acquisitions, alongside navigating through various environmental and legal challenges.

Read Now: Who is Wesley Batista Filho? JBS’s new CEO

Top 10 Global Leaders in Food Packaging for 2023: Innovating for a Sustainable Future

The top food packaging companies in the world as of 2023 are notable for their diverse range of operations, global presence, and recent advancements in sustainable packaging solutions. Here is a detailed report on the top 10 food packaging companies:

Top 10 Global Leaders in Food Packaging for 2023:

Amcor plc: Founded in 1896 and headquartered in Melbourne, Australia, Amcor is a global leader in responsible packaging solutions, offering flexible packaging, specialty cartons, rigid containers, and more. They have a significant presence in 40 countries with over 230 manufacturing units. In December 2022, Amcor opened a new manufacturing plant in China, focusing on automated food packaging solutions.
Berry Global: Established in 1967 and based in Indiana, U.S., Berry Global operates in health, hygiene, consumer packaging, and engineered materials. The company introduced thermoformed, injection stretch blow molded food packs manufactured in recycled PET in August 2022.
Sealed Air Corp: Founded in 1960 and headquartered in North Carolina, U.S., they are known for Bubble Wrap and Cryovac food packaging. They offer easy-open packaging solutions, films, trays, and food packaging equipment systems.
Coveris: Based in Vienna, Austria, and founded in 2013, Coveris manufactures paper and plastic-based flexible packaging. They have around 29 facilities across Europe and Egypt. In January 2022, they partnered with UPM Rafkatac for new label and recycling solutions.
DS Smith: Founded in 1940 and headquartered in England, U.K., DS Smith offers fiber-based food packaging and operates at 37 sites. They partnered with Veetee in July 2022 to create a fully recyclable rice box.
Smurfit Kappa Group Plc: Established in 1934 and based in Dublin, Ireland, they produce corrugated packaging, ‘bag in box,’ and containerboard. In January 2022, they introduced sustainable packaging solutions for fast food.
Tetra Pak International: Founded in 1951 in Switzerland, Tetra Pak delivers filling machines, processing systems for dairy, and beverages. In February 2023, they commenced research on fiber-based substantial food packaging.
Mondi Inc: Established in 1967 and headquartered in the U.K., Mondi is a leader in sustainable packaging and paper. In March 2023, they collaborated with ATS-Tanner to create a unique paper band for packaging, aiming to reduce plastic usage.
Sonoco: Founded in 1899 and based in Carolina, U.S., Sonoco is a major supplier of diversified consumer packaging and the world’s largest producer of composite cans. In May 2022, they reported successful results from a recycling trial with Sustana and Kellogg’s.
WestRock: Founded in 2015 and headquartered in Georgia, U.S., WestRock specializes in sustainable, fiber-based packaging solutions. They have a presence in about 300 production facilities globally.

It’s noteworthy that another source lists a slightly different ranking, which includes International Paper Company, Ball Corp, Oji Holdings Corp, Stora Enso Oyj, and UPM-Kymmene Corp, indicating the dynamic and competitive nature of the industry.

These companies are driving innovation and sustainability in the packaging sector, reflecting the industry’s ongoing evolution to meet environmental challenges and consumer demands.

Read: Top 10 Meat Processing Equipment Titans Revealed

Who is Gregg Uecker Perdue Farms New Chief Supply Chain and Operations Officer

Gregg Uecker has had a notable and successful career in the meat and poultry industry, particularly highlighted by his recent appointment as the Chief Supply Chain and Operations Officer at Perdue Farms. Before joining Perdue, Uecker amassed a wealth of experience during his time at CJ Schwan’s and Tyson Foods.

At CJ Schwan’s, Uecker held the position of Executive Vice President of the Global Supply Chain. However, it was his extensive tenure at Tyson Foods that particularly stands out. Over more than three decades with Tyson, Uecker held various senior leadership roles, such as Senior Vice President of Operations and Supply Chain for Prepared Foods, Senior Vice President of Supply Chain Strategy, and Vice President of Operations, among others. His responsibilities covered a wide range of areas including plant operations, live production, transportation and warehousing, customer service, food safety, quality assurance, procurement, and engineering.

Uecker’s career has been characterized by rapid promotions and a consistent rise through the ranks, demonstrating his proficiency and expertise in operational management and supply chain agility. His approach has always been proactive, focusing on continuous improvement, lean manufacturing techniques, and problem-solving. This was exemplified in his involvement with various projects, including groundbreaking work in automation, data collection, and maintenance management. His innovative mindset was particularly noted in his role at Tyson Foods, where he contributed to the design and development of a highly automated and technologically advanced bacon processing plant in Bowling Green, Kentucky.

Moreover, Uecker’s educational background in chemistry with an emphasis on business administration provided him with a unique perspective and approach to problem-solving and operational excellence. He was recognized for his achievements and leadership in the industry when he was named MEAT+POULTRY’s Operations Executive of the Year in 2022.

In summary, Gregg Uecker’s career trajectory is marked by significant contributions to operational excellence and innovation in the meat and poultry industry, making him a respected leader and a valuable asset to Perdue Farms.

Who is Julie Katigan The New Executive Vice President of Perdue Farms?

Julie Katigan has recently been promoted to a pivotal role at Perdue Farms, serving as the Executive Vice President and Chief Human Resources Officer. This promotion, announced in December 2023, marks a significant step in her career at Perdue Farms. Katigan joined the company in May 2022 as the Senior Vice President of Human Resources. Her promotion reflects the company’s commitment to talent acquisition, diversity, inclusion, and employee well-being, as she is responsible for overseeing all aspects of Perdue Farms’ people strategies.

Before joining Perdue, Katigan held the position of Chief Human Resources Officer at James Hardie Building Products. Additionally, she has a rich background in senior-level leadership roles at global business units and functional levels with various companies, including Colfax Corporation, Electrolux, Mead Johnson Nutrition, and Ford Motor Company. Her extensive experience and expertise are expected to significantly contribute to developing and implementing strategies that foster talent, shape organizational culture, and focus on the well-being of associates at Perdue Farms.

Perdue Farms is a fourth-generation, family-owned U.S. company in the food and agricultural sector. The company is known for its commitment to responsible food and agriculture practices, including a no-antibiotics-ever approach in poultry and livestock and leading in organic chicken and beef products. Katigan’s promotion to Executive Vice President and Chief Human Resources Officer is aligned with Perdue Farms’ long-standing values and strategic direction, focusing on quality, sustainability, and ethical practices within the company.

Perdue Farms Enhances Leadership Team with Key Appointments

Gregg Uecker Joins as Chief Supply Chain Officer

In a significant move, Perdue Farms announced the appointment of Gregg Uecker to the newly established role of Chief Supply Chain and Operations Officer. This strategic hire, disclosed on December 19, 2023, is part of Perdue’s commitment to strengthening its operational capabilities.

Uecker, with a rich background in supply chain management, will be responsible for overseeing various facets of Perdue Foods’ supply chain. This includes live production, plant operations, transportation, warehousing, order fulfillment, customer service, food safety, quality assurance, procurement, and engineering. Kevin McAdams, CEO of Perdue Farms, expressed confidence in Uecker’s ability to enhance supply chain efficiencies, thereby meeting the unique needs of customers and contributing to sustainable company growth.

Prior to joining Perdue, Uecker accumulated extensive experience at CJ Schwan’s as Executive Vice President of the Global Supply Chain, and over 30 years at Tyson Foods in various senior leadership roles.

Read: Who is Gregg Uecker Perdue Farms New Chief Supply Chain and Operations Officer

Julie Katigan Promoted to Executive Vice President

Complementing the leadership revamp, Julie Katigan has been promoted to Executive Vice President and Chief Human Resources Officer. Her role will focus on developing Perdue Farms’ human resources strategies, encompassing talent engagement and development, shaping company culture, and ensuring associate well-being. These strategies will involve active talent management, diversity and inclusion, and total rewards.

Katigan, who joined Perdue Farms as Senior Vice President of Human Resources in May 2022, brings a wealth of experience from her previous tenure as Chief Human Resources Officer for James Hardie Building Products and leadership roles at Colfax Corporation, Electrolux, Mead Johnson Nutrition, and Ford Motor Company.

Read: Who is Julie Katigan The New Executive Vice President of Perdue Farms?

New Era of Leadership at Perdue Farms

These appointments come in the wake of Kevin McAdams assuming the role of CEO in July 2023. McAdams, who joined the company as Chief Operations Officer and President in 2022, is steering Perdue Farms into a new era with a focus on operational excellence and strategic growth. The latest additions to the leadership team underline Perdue Farms’ commitment to enhancing its operational and human resources capabilities, positioning it for continued success in the dynamic agricultural sector.

Container Shipping Industry Chaos

Antwerp Port Witnesses Unprecedented Container Pile-Up

Belgium’s Bustling Port in the Spotlight

September 23, 2022 – The port of Antwerp, Belgium, presents a striking image of modern commerce as containers are meticulously stacked aboard the colossal container ship CMA CGM Benjamin Franklin. This visual snapshot, captured by Reuters’ Yves Herman, underscores the immense scale of global trade operations.

Rising Tensions in the Red Sea Impact Global Shipping

Houthi Attacks Prompt Maritime Caution

December 19, 2022 – The escalation of hostilities in the Red Sea by Iranian-backed Houthi militants in Yemen marks a worrying trend for international trade. These attacks, primarily targeting key East-West maritime routes near the Suez Canal, are understood as expressions of solidarity with the Palestinian Islamist group Hamas amid conflicts with Israel in Gaza.

Strategic Rerouting by Major Shipping Companies

Shipping Giants Alter Course to Ensure Safety

In response to the heightened risks in the Red Sea, several prominent shipping companies have announced significant changes in their routing strategies. These decisions are reshaping the dynamics of global maritime logistics, especially for oil transportation.

CMA CGM Chooses Safety Over Speed

The French shipping giant CMA CGM, facing the volatile situation, has rerouted its vessels via the Cape of Good Hope. The company’s proactive stance also includes halting journeys for ships scheduled to traverse the Red Sea until a safer climate prevails.

Euronav and Evergreen Respond to Regional Instability

Belgian and Taiwanese maritime players, Euronav and Evergreen, have also echoed similar concerns. Their respective decisions to avoid the Red Sea underline the growing unease within the industry.

Frontline, Hapag-Lloyd, and HMM Adapt to Changing Times

Norway’s Frontline, Germany’s Hapag-Lloyd, and South Korea’s HMM have taken decisive steps to reroute their ships, demonstrating the industry’s agility in adapting to geopolitical shifts.

Maersk, MSC, and ONE Reassess Suez Canal Transits

The industry leaders like Denmark’s Maersk, Mediterranean Shipping Company (MSC), and Ocean Network Express (ONE) are not taking any chances, opting for longer but safer routes.

OOCL and Wallenius Wilhelmsen Take Precautionary Measures

Further emphasizing the seriousness of the situation, OOCL and Wallenius Wilhelmsen have temporarily suspended their Red Sea operations.

The Future of Maritime Trade Amid Geopolitical Strife

Navigating the Complexities of Modern Shipping

As these shipping behemoths recalibrate their courses, the ripple effects on global trade, particularly oil transport, are yet to be fully realized. This unfolding scenario underscores the delicate balance between commerce and security in today’s interconnected world.

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Pilgrim’s Pride: Powerful Performance

Pilgrim’s Pride Corporation: A Strategic Success in Global Markets

Pilgrim’s Pride Corporation (PPC) has effectively executed a strategic plan that significantly enhanced its profitability and market presence globally. This achievement is marked by operational improvements and a strong focus on strategic initiatives.

Innovation Drives Growth in Europe and Mexico

The company has notably diversified its presence in the European and Mexican markets. Through innovative branding and new product launches, Pilgrim’s Pride has laid a solid foundation for profitable growth. This strategy has particularly paid off in branded and prepared food offerings. Remarkably, there was a 65% year-over-year increase in fully cooked branded offerings in the third quarter of 2023. Additionally, digital sales soared by 90% over the past year, thanks to successful partnerships in key customer media and strategic investments.

Mexico Operations: A Strong Quarter Performance

In Mexico, Pilgrim’s Pride showed impressive results in the third quarter. This success is attributed to improvements in live operations, favorable grain and currency conditions, and a well-balanced supply-demand dynamic. The company’s Mexican operations saw a significant rise in net sales, reaching $559.7 million, up from $429 million in the same quarter of the previous year.

Responsive Pricing Strategy Enhances Market Competitiveness

Pilgrim’s Pride has adopted a dynamic pricing strategy that responds well to market trends, product demand, and economic factors. By adjusting prices according to seasonal changes, supply-demand shifts, and cost factors, the company has maintained its profitability and competitive edge in the market. This approach helped maintain consistent sales volumes in the third quarter, contributing to growth in various segments, including commodity and value-added frozen products, as well as the dairy prepared department.

Boosting Foodservice Operations

Pilgrim’s Pride is strengthening its presence in the foodservice sector. Working closely with distributors, schools, and commercial chains, the company has enhanced its partnerships with leading retailers and foodservice providers. These efforts have led to secured long-term business and a wider range of product offerings. The third quarter saw an increase in foodservice channel volume sales, driven by more operators purchasing chicken and higher purchase rates among existing buyers.

In summary, Pilgrim’s Pride Corporation’s strategic and operational endeavors across global regions have yielded significant gains, positioning the company strongly in various market segments.

The Largest Pet Food Manufacturers Dominating the Market in 2023

The pet food industry is a significant and growing market, with several large manufacturers dominating the global landscape. As of 2023, here’s a list of some of the largest pet food manufacturers around the world, along with their notable information:

Nestlé Purina PetCare: Headquartered in St. Louis, Missouri, United States, Nestlé Purina PetCare is a key player in the pet food industry with a revenue of USD 15.42 billion. The company produces a variety of pet food products under brands like Purina Dog Chow, Purina Cat Chow, Friskies, and Fancy Feast, along with pet snacks under the Milk Bone brand.
The J.M. Smucker Company: This company, based in Orrville, Ohio, United States, owns brands like Meow Mix and Kibbles ‘n Bits. It has diversified its portfolio over time and reported a revenue of USD 8.17 billion.
Hill’s Pet Nutrition: A subsidiary of Colgate-Palmolive, Hill’s Pet Nutrition, headquartered in Topeka, Kansas, United States, specializes in dog and cat food, including prescription diets for various health issues. Its revenue was reported as USD 2.2 billion.
Diamond Pet Foods: A subsidiary of Mars Inc. and based in Meta, Missouri, United States, Diamond Pet Foods had a revenue of USD 1.5 billion. The company offers a range of pet food products for dogs and cats.
Simmons Pet Food: Located in Siloam Springs, Arkansas, United States, Simmons Pet Food markets products under brands like Advance and AvoDerm Natural Foods for Dogs and Cats. The company has a revenue of USD 1 billion and has recently made several acquisitions to expand its product offerings.
Freshpet, Inc.: An American manufacturer of cat and dog foods primarily sold in North America, Freshpet targets the middle-class demographic and reported a revenue of $425 million in 2021.
Sunshine Mills: Based in Red Bay, Alabama, this company manufactures pet foods under various brands and private labels, with revenue of $420 million in 2021.
Tiernahrung Deuerer GmbH: Europe’s top dog and cat food manufacturer, the company focuses on quality and reported sales of $750 million during 2021.
Blue Buffalo Pet Products Inc: A leader in all-natural dog and cat food based in Wilton, Connecticut, the company had a revenue of $870 million in 2021.
Agrolimen SA: A Spanish company with its subsidiary Affinity Petcare, a leading European dog and cat food provider, reported a revenue of $753 million in 2021.
Hill’s Pet Nutrition: A major supplier of specialty pet nutrition products for dogs and cats, the company’s revenue in 2021 was $2.20 billion.
Central Garden & Pet Company: With a focus on a variety of pet products, including food, this company reported a revenue of $3.30 billion in 2021.

The global pet food market has been growing steadily. In 2023, it grew from $66.45 billion in 2022 to $72.02 billion, with a compound annual growth rate (CAGR) of 8.4% and is expected to reach $94.97 billion in 2027. The industry has seen significant changes and innovations over the years, including the introduction of premium, natural, and organic pet food options, along with advanced manufacturing processes like extrusion. The market is influenced by various factors including economic conditions, consumer preferences, and technological advancements in production and distribution.

IQI Joins Forces with OSI Group

IQI Joins Forces with OSI Group Global Food Industry Collaboration

In a significant move, IQI Trusted Petfood Ingredients has officially joined OSI Group, LLC. This collaboration, effective from October 18, brings together IQI, a leader in pet food ingredients, with OSI Group, a global supplier of a wide range of food products including meat and vegetables.

Expanding Horizons through Strategic Partnership Enhanced Supply Chain and Customer Reach

This partnership promises to be a game-changer for IQI. By tapping into OSI Group’s extensive supply chain, IQI is set to broaden its reach to new customers, expand its product portfolio, and strengthen its supply relationships. This strategic move is not just about expansion; it’s also focused on developing innovative, premium ingredients for the pet food industry.

A Shared Vision for Industry Excellence Leadership Comments on the Merger

Mark Oostendorp, CEO of IQI, is enthusiastic about the benefits of this step. He points out that OSI’s commitment to providing solutions aligns perfectly with IQI’s approach in the pet food sector. He believes this partnership will transform IQI into a global leader in animal and plant-based products and foster the co-creation of innovative solutions for their suppliers and customers.

Leveraging Strengths for Market Innovation Utilizing IQI’s Expertise in Pet Food

OSI Group plans to utilize IQI’s capabilities in pet food and functional ingredients across various categories. This includes animal protein, fish, Omega 3 fish oil, vegetables, and novel ingredients. The partnership also entails sharing IQI’s comprehensive process with OSI Group, encompassing ingredient sourcing, quality assurance, warehousing, logistics, distribution, and more.

Enhancing Customer Solutions Through Collaboration OSI Group Welcomes IQI to Its Global Family

Mark Richardson, Senior Executive Vice President of OSI International, emphasizes the partnership’s aim to integrate OSI’s extensive industry relationships directly with IQI’s customers. OSI Group is excited to welcome IQI into its global family and is looking forward to working together to create innovative ingredients that deliver unique solutions for IQI’s customers.

Alarming downturn for Sanderson Farms

High Feed Costs Impact Sanderson Farms Earnings

Sanderson Farms, a leading chicken producer, has reported a significant decrease in profits for its recent quarterly results. The company, based in Laurel, Mississippi, has been adversely affected by the rising costs of feed grain, a critical component in poultry farming.

Earnings Take a Hit in Major profit Drop

In the second quarter ending April 30, Sanderson Farms witnessed its earnings plunge to $6.2 million, or 30 cents per share. This is a stark contrast to the $26.9 million, or $1.33 per share, reported in the same period last year. This decline highlights the challenges faced by the company in a volatile market.

Skyrocketing Corn Prices

A key factor in this downturn is the soaring price of corn, a major ingredient in chicken feed. Corn prices have hit a record high of over $6 per bushel, driven by robust demand from various sectors including exporters, livestock and chicken producers, and biofuel ethanol manufacturers.

About Sanderson Farms

Sanderson Farms, with its headquarters in Mississippi, is known for its significant role in the poultry industry. The company’s recent financial struggles reflect broader economic challenges, particularly in the agricultural sector.

Source: NEW YORK (May 22, Reuters)