Month:

Canadian dairy giant Saputo has announced plans to shutter six of its U.S. facilities by early 2025, as part of its ongoing efforts to optimize operations and reduce costs. This decision was detailed in a post-Q4 results call by Chief Operating Officer Carl Colizza.

Details of the Closures

Saputo has already closed its Belmont, Wisconsin, and Big Stone, South Dakota, facilities. The previously announced closures of the Lancaster, Wisconsin, plant and the Bardsley facility in Tulare, California, are expected to be completed by the end of the first quarter. Additionally, the company will close its facilities in Green Bay, Wisconsin, and South Gate, California.

The total number of jobs affected by these closures has not been disclosed.

Operational Optimization

Colizza explained that these closures are part of a strategy to reduce duplicate costs and enhance efficiency within Saputo’s network. The consolidation efforts will focus on optimizing the Franklin, Wisconsin facility, which will absorb the operations from the closing sites.

Saputo is also engaged in several capital projects to support its growth in the U.S., including establishing new facilities and expanding capacity for key product categories. These projects include a new automated cut-and-wrap facility in Franklin, which is expected to be fully operational in the coming months.

Financial Performance and Future Plans

In a statement accompanying the Q4 results, CEO Lino Saputo, who will step down in August, highlighted the company’s resilience despite a challenging macro-economic environment characterized by commodity price volatility, a struggling consumer base, and ongoing inflationary pressures.

Saputo reported revenues of C$4.54 billion for the quarter ending March 31, marking a 1.7% increase year-on-year. However, adjusted EBITDA decreased from C$392 million to C$379 million, and net earnings dropped from C$159 million to C$92 million. For the full fiscal year, revenues were C$17.34 billion, down from C$17.84 billion the previous year. Adjusted EBITDA fell from C$1.55 billion to C$1.50 billion, and net earnings plummeted from C$622 million to C$265 million.

Strategic Investments

Despite the closures, Saputo continues to invest in its global network. CEO Lino Saputo emphasized that fiscal 2024 was a year of significant progress, with major capital projects under the Global Strategic Plan nearing completion and several facilities ramping up commercial production.

When asked about the financial impact of these initiatives, Colizza noted that previously announced initiatives in the U.S. are expected to generate close to C$100 million in savings by the end of fiscal 2025, out of a total of C$200 million in planned savings.

Challenges in the Australian Market

In addition to its U.S. operations, Saputo has faced challenges in its Australian dairy division. The company booked a loss in the third quarter due to a C$265 million impairment charge related to this division.

Conclusion

Saputo’s decision to close six U.S. facilities reflects its broader strategy to streamline operations and reduce costs amidst challenging economic conditions. The company remains focused on optimizing its global network and investing in growth initiatives to sustain its competitive edge in the dairy industry.

Read: Top 10 Australian Dairy Companies

Pilgrim’s Pride, through its unit Pilgrim’s Europe, has announced plans to shut down its snacking products factory in Spurway, West London, a move expected to impact 270 employees.

Job Reductions Across All Levels

A spokesperson for Pilgrim’s Europe told Just Food that positions “at all levels” are at risk of redundancy. This decision is part of the company’s ongoing review of its operational footprint to ensure that its sites are fully optimized, securing a sustainable future for the business and its employees.

Negotiations with union representatives are anticipated to commence soon, with the company exploring opportunities for relocating affected employees to other Pilgrim’s Europe sites.

Commitment to Quality and Service

The spokesperson emphasized Pilgrim’s Europe’s dedication to maintaining its 30-year heritage and capability to deliver high-quality food solutions and best-in-class service to its customers. Despite the closure, the company remains committed to investing in its operations.

The Spurway facility specialized in producing snacks for the UK retail market, including products like cocktail sausages and scotch eggs. Just Food has reached out to the Moy Park brand owner to confirm the size of the Spurway site and the expected closure date.

Recent Layoffs and Union Concerns

Earlier this year, Pilgrim’s Food Masters, another division of the US-based meat giant, announced plans to close another UK factory, affecting 260 employees. Workers at that facility were represented by the British trade union GMB, which organized a 45-day consultation period to discuss the implications of the job losses.

GMB senior organizer Gavin Davies expressed serious concerns about the impact of these layoffs on members and the local community. In March 2023, the union highlighted threats to 1,000 employees at another UK site, who faced losing paid breaks, reduced sick pay, and the removal of Diwali holiday pay. Pilgrim’s Food Masters eventually withdrew these threats following union intervention.

Economic Challenges

The decision to close the Spurway site comes amid challenging economic conditions. Pilgrim’s Food Masters cited “difficult headwinds” and the “inflationary environment” as reasons for closing another site in Southall last year, which resulted in over 200 job losses.

Conclusion

Pilgrim’s Pride’s decision to close the Spurway snacks facility is a significant development, impacting 270 employees and reflecting broader economic challenges. The company’s efforts to optimize its operations and sustain its business underscore the difficult decisions faced by many in the current economic climate.

More News: Pilgrim’s Pride Immigrant Workers Struggle

Source: Just-Food

Introduction

Miratorg, Russia’s leading pork producer, has announced the commencement of construction on the country’s largest slaughterhouse. This ambitious project, estimated to cost €1 billion, will have the capacity to process 4.5 million pigs annually. The move underscores Russia’s ongoing efforts to bolster its agricultural self-sufficiency following the 2014 EU import ban.

---

Project Details and Capacity

The new slaughterhouse marks a significant expansion for Miratorg, which is owned by the Linnikov brothers, Russia’s most prominent farmers. Known for their vast interests in pork, beef, dairy, and tillage, the Linnikov brothers have made substantial contributions to Russia’s agricultural output. In the first half of 2017 alone, Miratorg produced over 154,900 tonnes of pork.

The facility, once completed, will dramatically increase Miratorg’s production capacity. By the end of the first phase in 2021, the company’s total meat output is expected to reach approximately 1.1 million tonnes annually. This figure is comparable to Ireland’s entire meat production for 2015, highlighting the scale of Miratorg’s operations.

---

Context of the EU Import Ban

The impetus for this significant investment stems from the Russian Federation’s 2014 ban on agricultural imports from the European Union. This ban prompted a concerted effort by Russian agri-businesses to fill the void left by EU food imports. Miratorg’s latest venture is part of a broader strategy to achieve national self-sufficiency in food production by 2020.

---

Government Support and Strategic Vision

The construction of the slaughterhouse is partly funded by the Russian government, demonstrating state support for the agricultural sector’s expansion. Miratorg’s vision aligns with national goals of self-sufficiency, particularly in light of the EU import ban. Earlier this year, Ciarán Lenehan, a beef livestock specialist with the Irish Farmers Journal, visited one of Miratorg’s 200,000 cow feedlots. Lenehan reported that Miratorg aims to develop an American-style ranch system for beef production, already owning 65 beef ranches covering 1.3 million acres.

---

Projected Output and Industry Impact

Miratorg’s projected total meat output for 2017 is estimated to reach 700,000 tonnes. The new slaughterhouse will significantly enhance this figure, reinforcing Miratorg’s position as a dominant player in the Russian meat industry. This development is expected to not only meet domestic demand but also position Russia as a potential meat superpower.

---

Future Prospects and Industry Implications

The completion of this slaughterhouse represents a pivotal step for Miratorg and the broader Russian meat industry. As Russia continues to strive for agricultural self-sufficiency, Miratorg’s expansion efforts will likely set a precedent for other companies in the sector. The substantial increase in production capacity will also have implications for global meat markets, potentially altering trade dynamics and competitive landscapes.

---

Conclusion

Miratorg’s €1 billion investment in the new slaughterhouse underscores the company’s commitment to expanding its production capabilities and supporting Russia’s goal of food self-sufficiency. With the capacity to process 4.5 million pigs annually, this facility will be a cornerstone of Russia’s agricultural strategy, bolstering the country’s meat production and enhancing its position in the global market. As construction progresses, all eyes will be on Miratorg to see how this ambitious project transforms the Russian meat industry.

Read: Russian Pork Export to China

---

For more information, visit Miratorg.

Introduction

Tyson Foods, one of the largest meatpackers in the United States, faces allegations from America First Legal (AFL), a conservative group founded by former Trump administration officials. The group claims that Tyson is discriminating against U.S. citizens by favoring immigrants, including undocumented individuals and children, in its hiring practices. This has sparked calls for investigations by several governmental agencies.

---

Accusations and Calls for Investigations

America First Legal sent letters to the U.S. Department of Justice, the Equal Employment Opportunity Commission (EEOC), and an Iowa civil rights agency, urging them to investigate Tyson Foods’ employment practices. AFL alleges that Tyson employs 42,000 foreign workers, accounting for more than one-third of its U.S. workforce, and participates in programs aimed at recruiting even more immigrant labor.

The letters point out that more than half of all meatpacking workers in the U.S. are immigrants, compared to approximately 17% of the overall U.S. workforce, based on data from the Center for Economic and Policy Research. AFL claims Tyson has exploited the recent surge in illegal border crossings to build a pool of cheap labor.

Related: Is Tyson Foods Favouring Migrants Over US Workers?

---

Leadership and Legal Context

AFL is led by Stephen Miller, a former senior adviser to President Donald Trump known for his stringent immigration policies. Matthew Whitaker, former Acting U.S. Attorney General, serves on AFL’s board, and several staff lawyers previously worked at the Trump-era Justice Department.

In its complaint, AFL references a recent case where a major food sanitation company, contracting with Tyson and other meat processors, paid $1.5 million in penalties for employing minors in hazardous jobs. Some of these children worked at Tyson plants, though Tyson itself was not implicated in the wrongdoing.

---

Legal and Social Implications

AFL contends that Tyson’s hiring practices violate federal and Iowa laws prohibiting discrimination based on citizenship status, race, national origin, and other protected characteristics. The group argues that Tyson’s actions represent a clear bias against American workers, favoring immigrants to reduce labor costs.

Tyson Foods has not responded to requests for comment. However, in March, the company refuted similar claims circulating on social media, stating: “Any insinuation that we would cut American jobs to hire immigrant workers is completely false.”

The Justice Department, the EEOC, and the Iowa agency are not required to respond to AFL’s complaints or initiate investigations. If they do decide to investigate and find merit in the claims, they could seek to negotiate a settlement with Tyson or pursue legal action against the company.

---

AFL’s Broader Agenda

America First Legal has a history of filing complaints against major U.S. companies, primarily focusing on accusations that diversity policies discriminate against men, white, Asian, and heterosexual workers. This complaint against Tyson Foods is notable as it appears to be the first involving claims of bias against American workers in favor of immigrants.

To date, the EEOC has not indicated whether it is investigating AFL’s complaints. AFL’s push against Tyson Foods could be part of a broader strategy to challenge corporate diversity and inclusion practices, framing them as discriminatory against certain groups.

---

Industry and Economic Impact

The allegations against Tyson Foods highlight broader concerns within the meatpacking industry, where immigrant labor is prevalent. The industry’s reliance on immigrant workers has been a point of contention, especially during times of increased scrutiny on immigration policies and labor practices.

Tyson Foods, headquartered in Arkansas, is a significant player in the U.S. meatpacking sector. The company’s employment practices and the recent accusations could impact its operations and reputation. As investigations potentially unfold, Tyson may face legal and financial repercussions, depending on the outcomes of any probes.

---

Conclusion

The accusations by America First Legal against Tyson Foods underscore ongoing tensions around immigration, labor practices, and corporate responsibility in the U.S. meatpacking industry. As governmental agencies consider whether to investigate these claims, the situation at Tyson Foods serves as a critical case study in the complex interplay between immigration policies and labor market dynamics. The outcome of this dispute could have significant implications for Tyson Foods and the broader industry, shaping future employment practices and regulatory approaches.

Source

Introduction

Imagine having an expert on hand to offer meal ideas and cooking tips for that fresh chicken in your fridge. Wayne-Sanderson Farms has made this a reality with the debut of its revolutionary AI Chicken ChatBot, affectionately known as “Sandy.” Powered by OpenAI’s API for ChatGPT, Sandy is ready to assist customers with everything from recipes to serving suggestions on the Sanderson Farms website.

---

Meet Sandy: Your New Culinary Companion

“We are excited to introduce Sandy, the first-ever chicken chatbot tool designed to answer virtually any question related to chicken recipes and cooking tips,” said Hilary Burroughs, Vice President of Marketing for Wayne-Sanderson Farms. “We hope consumers find Sandy to be polite, witty, and helpful, just like a good friend discussing all things chicken.”

When users visit the Sanderson Farms website, they are prompted to start a chat with Sandy, who can provide delicious chicken recipes tailored to specific dietary needs and preferences, such as gluten-free, Keto, and low-fat. Sandy is also adept at suggesting meal ideas for picky eaters, creative ways to use leftovers, and introducing international cuisines.

---

Innovative AI Enhancing Customer Experience

“For over 70 years, Sanderson Farms has been committed to delivering good, honest chicken. From healthy and affordable recipes to straightforward labels on our packaging, we continually seek to add value for our consumers,” Burroughs explained. “Leveraging innovative artificial intelligence technology is another way for us to connect with home cooks and empower them in the kitchen.”

---

A Tradition of Quality and Transparency

Sanderson Farms, a brand under Wayne-Sanderson Farms, the nation’s third-largest poultry producer, prides itself on offering 100% natural chicken. This means no added steroids, hormones, salt, broth, or preservatives—just pure chicken. All Sanderson Farms’ chickens are hatched, raised, and harvested in the USA, maintaining a tradition of quality and transparency.

---

The Future of Cooking with Sandy

The introduction of Sandy marks a significant milestone in Wayne-Sanderson Farms’ mission to enhance the online customer service experience. By integrating AI technology, the company aims to provide customers with an interactive and intuitive way to discover new recipes and cooking tips. Sandy’s ability to offer personalized recommendations based on user inputs ensures that every meal is tailored to meet individual preferences and dietary requirements.

---

Connecting with Home Cooks

Sandy is more than just a chatbot; it represents Wayne-Sanderson Farms’ dedication to connecting with their customers in meaningful ways. By providing a tool that can engage with users on a personal level, the company enhances the overall cooking experience. Whether you’re a seasoned cook or a novice in the kitchen, Sandy is designed to assist and inspire.

---

User-Friendly and Accessible

The AI Chicken ChatBot is designed to be user-friendly and easily accessible. Simply visit the Sanderson Farms website, start a chat with Sandy, and begin exploring a world of culinary possibilities. Sandy’s intuitive interface and vast knowledge base make it an invaluable resource for anyone looking to elevate their chicken dishes.

---

Empowering Home Cooks

At its core, Sandy aims to empower home cooks by providing them with the tools and knowledge needed to create delicious and healthy meals. By leveraging AI technology, Wayne-Sanderson Farms ensures that their customers have access to expert advice and creative inspiration at their fingertips.

---

Conclusion

With the launch of Sandy, Wayne-Sanderson Farms sets a new standard in the poultry industry, combining tradition with innovation. This AI-powered chicken chatbot not only enhances customer service but also reaffirms the company’s commitment to quality and customer satisfaction. Visit the Sanderson Farms website today and let Sandy help you discover your next favorite chicken recipe.

More News: Perdue & Sanderson Settles Chicken Price-Fixing Cases

Source

Introduction

Moorefield, a small town in West Virginia’s Potomac Highlands, is known as the “Poultry Capital” due to its largest employer, Pilgrim’s Pride. For thousands of immigrant workers, the promise of employment at this poultry plant has been both a lifeline and a source of profound hardship. These workers face significant challenges, including finding affordable housing, paying rent, and navigating complex immigration and benefits systems.

---

Tatiana’s Story: A Harrowing Journey

In 2020, Tatiana faced a heart-wrenching decision: stay in Honduras, a country plagued by poverty, or take a risky journey to the United States. A Honduran man living in Moorefield offered her a lifeline, promising work for undocumented immigrants and financial support for her and her child. Tatiana chose to make the arduous 15-day trip to Moorefield, hoping to secure a better future for her children.

Shortly after arriving, Tatiana began working on the production lines at Pilgrim’s Pride’s chicken factory. Despite the plant’s desperate need for workers, Tatiana’s situation soon turned dire. The man who had helped her became violent, forcing her and her daughter into homelessness. “My daughter would cry a lot,” Tatiana recalls. “She questioned why we came to the United States if she was happy in Honduras.”

---

Systemic Challenges for Immigrant Workers

For three decades, immigrants like Tatiana have come to Hardy County to work for Pilgrim’s Pride. The company benefits from their labor, often listing new immigration legislation or enforcement as potential threats to its business operations. However, the support system for these workers is severely lacking.

Many newcomers arrive with high hopes, only to find limited access to affordable housing, adequate interpretation services, and financial assistance. Moises Saravia, an immigrant from El Salvador and a pastor of a Spanish-speaking church, notes, “Every year, it’s more problems, more problems.”

---

Pilgrim’s Contributions and Local Realities

Pilgrim’s Pride has made several charitable contributions to Moorefield, including nearly $1 million for local projects like a daycare facility, an indoor recreation center, and an apartment complex near the factory. Despite these investments, the company’s support often falls short. Pilgrim’s charges workers high rents, often exceeding federal fair market rates, exacerbating the housing crisis for its employees.

Local government programs and nonprofits have tried to bridge the gap, but they face significant challenges. Limited funds and the need to communicate with people who speak over a dozen languages hinder their effectiveness. “There’s a lot of things with the immigrant community that we don’t have a real good handle on,” admits David Workman, Hardy County Commission president.

---

Struggles Beyond the Factory

Former and current immigrant workers frequently go without benefits they qualify for or medical treatment they need. Tatiana, once a government worker in Honduras, found herself homeless and struggling to navigate the complexities of U.S. aid systems. “I honestly don’t know what I can apply for,” she says.

Katy Lewis, a senior attorney with Mountain State Justice, highlights the difficulty immigrants face in understanding U.S. immigration laws and available aid. “Our immigration system is so complicated,” she explains. Erika Perez, a permanent resident from Peru, faced similar challenges, struggling for months to renew her food assistance due to language barriers.

---

Community Efforts and Persistent Gaps

Saravia, the Salvadorian pastor, witnesses these struggles daily among his congregation. He took on additional responsibilities, from finding funding for a food bank to driving members to distant appointments. This schedule took a toll on his health, ultimately forcing him to leave his job at Pilgrim’s Pride.

The turnover at the factory is high, with about 500 employees quitting or being fired in the first half of 2023. This instability leaves many immigrants struggling to find alternative employment, as most local jobs require English proficiency.

---

The Need for Greater Support

Moorefield’s community, including the Hardy County School District and local nonprofits, strives to support immigrant families. Pilgrim’s Pride contributes to some initiatives, but the need far outweighs the help provided. For instance, the district employs only four English learner teachers for a growing population of immigrant students.

Organizations like the Eastern Regional Family Resource Network also struggle to meet basic needs with limited budgets. Joanna Kuhn, the network’s director, suggests that consistent monthly donations from Pilgrim’s could significantly improve their ability to support immigrant families.

---

A Call for Fairness and Equality

Anthropology professor Angela Stuesse underscores the broader issue: companies profiting from immigrant labor without adequately supporting their well-being. “The problem isn’t having these new neighbors,” she says. “It’s the fact that somebody is profiting off of this movement of labor and humans and isn’t contributing what they should be to the well-being of the community.”

---

Conclusion: The American Dream Questioned

Tatiana continues to believe that staying in the U.S. is the best way to provide for her children, despite the hardships. She sends money to her family in Honduras whenever she can, driven by the hope of a better future for her children. Yet, the challenges she faces in Moorefield make her question the existence of the American Dream.

“You have to separate yourself from those who love you for a plate of food,” she says, reflecting on her journey and the sacrifices she’s made. Her story, like many others, highlights the urgent need for comprehensive support for immigrant workers in Moorefield and beyond.

Read: Pilgrim’s Pride Lawsuit

Source

How Lactalis Revitalized Kraft Natural Cheese After $3.2 Billion Acquisition

In 2021, Lactalis USA made headlines with its $3.2 billion acquisition of Kraft Heinz’s natural cheese business. This significant investment encompassed well-known brands such as Kraft Natural Cheese, Cracker Barrel, Breakstone’s cottage cheese, and Knudsen sour cream and cheese. The acquisition led to the creation of the Lactalis Heritage Dairy division, which has been methodically transforming these products over the past three years.

A Strategic Approach to Change

When Lactalis first acquired these iconic brands, they were in a state of decline. Ken Padgett, marketing director for Kraft Natural Cheese, recalls that the team didn’t rush into making immediate changes. “It wasn’t a rush to do something from day one that wasn’t meaningful in the market,” he explained. Instead, they took a calculated approach, recognizing the potential for innovation and growth.

The initial focus was on understanding the existing products, their market positioning, and consumer perceptions. By evaluating how customers used these products and identifying gaps in the market, Lactalis aimed to improve accessibility, availability, and brand loyalty.

Leveraging Lactalis’ Expertise

Lactalis, with its 90-year legacy in dairy through brands like Parmalat, Président, and Stonyfield, brought a wealth of research and development expertise to the table. This knowledge was instrumental in enhancing the Kraft cheese portfolio. Lactalis provided insights on optimal cheese blends, cutting techniques, and the science behind achieving the perfect texture and flavor.

Innovating the Product Line

After several months of intensive work, Lactalis began rolling out new products. In March, Kraft Natural Cheese introduced its first innovation since the acquisition: Signature Shreds. This product line features three blends—Cheddar, Mexican, and Mozzarella—each crafted with a whole-milk mozzarella developed by Lactalis. The goal was to create a cheese with a more melty texture, akin to what is found in restaurants, without compromising on flavor. Additionally, the shreds are wider than traditional shredded cheese, giving them a premium look and feel.

“Kraft is a brand that’s been around for over 100 years and holds a lot of nostalgia for people,” Padgett noted. “Our goal for the last three years has been to understand what that means to people and to reignite that connection in new and different ways, from our communication to our innovations.”

Refreshing Other Brands

The revitalization efforts extended beyond Kraft Natural Cheese. In January, Cracker Barrel launched premium Artisan Flavors cheeses in Truffle Cheddar and Dill Havarti, catering to the growing trend of charcuterie boards and upscale snacking. Late in 2023, Breakstone’s received a marketing overhaul, capitalizing on the rising popularity of incorporating cottage cheese into fruit pairings, ice cream, and smoothies.

A Roadmap for Future Innovation

The recent wave of product launches marks just the beginning of Lactalis’ innovation strategy. Padgett hinted at a faster pace of new product introductions moving forward, with a focus on items that simplify home cooking. “The first thing we had to do was build out what that pipeline looked like. And now we’re in the world of executing what that pipeline could be,” he said. “I would expect a more rapid pace of innovation, but making sure it’s the right ones.”

The Impact of Thoughtful Revitalization

Lactalis’ careful and strategic approach to revitalizing Kraft’s natural cheese brands illustrates the importance of understanding consumer needs and leveraging existing expertise. By taking the time to assess and innovate thoughtfully, Lactalis has breathed new life into a declining segment, positioning it for future growth and success.

The company’s commitment to quality and innovation, combined with its ability to adapt to market trends, sets a strong foundation for continued expansion. As Lactalis continues to roll out new products and refine its offerings, it remains focused on maintaining the legacy and trust associated with the Kraft brand while meeting the evolving demands of modern consumers.

Conclusion

Lactalis’ acquisition of Kraft Heinz’s natural cheese business has proven to be a strategic move, bringing new vitality to a once-declining product line. Through deliberate and informed innovation, Lactalis has not only preserved the legacy of Kraft’s cheese products but has also positioned them for renewed success in a competitive market. As the company continues to innovate and expand, it serves as a testament to the power of thoughtful investment and strategic growth in the food industry.

Related: Lactalis 2023 Financial Results

Thai Union has announced the liquidation of its subsidiary in China due to insufficient profit margins, as revealed in a statement released on May 30 by the Samut Sakhon, Thailand-based seafood conglomerate.

Company Announcement

In a statement posted on the Stock Exchange of Thailand, Thai Union disclosed its plans for an early termination and liquidation of Thai Union China Company Limited (TUC), a wholly owned subsidiary. The decision, approved in the executive committee meeting on May 10, 2024, is part of the company’s strategy to divest from low-profit businesses and redirect resources toward more promising growth opportunities.

Thai Union President and CEO Thiraphong Chansiri stated, “The executive committee meeting approved the dissolution of TUC to scale down our low-profitability businesses and reinvest in other growth opportunities. The registration of dissolution is expected to be completed by June 2025.”

Financial Performance of TUC

Thai Union China Company Limited has a capital value of CNY 166.7 million (USD 23 million, EUR 21.2 million). In 2023, TUC reported sales of THB 400 million (USD 10.9 million, EUR 10 million), a growth from THB 300 million (USD 8.2 million, EUR 7.5 million) in 2022 but a decline from THB 800 million (USD 21.7 million, EUR 20 million) in 2021, according to Thai Union’s annual report.

History of Thai Union in China

Thai Union initially entered the Chinese market with its own-brand products in 2017, following the termination of a joint venture with the Philippines-based Century Pacific, which supplied the Chinese market with canned seafood. The company expanded its presence in China through a partnership with e-commerce platform Tmall to sell Chicken of the Sea products online. In 2019, Thai Union furthered its footprint by collaborating with Alibaba Group’s Shanghai Win-Chain in a seafood supply agreement.

At the time, Chansiri emphasized the strategic importance of the Asian market, particularly China, for the company’s growth. “Asia, especially China, is very important to our future growth, with the seafood market expanding steadily. Thai Union is very pleased to join hands with Win-Chain to provide our highest-quality seafood to Chinese consumers,” he said.

Recent Financial Performance

Despite the liquidation of TUC, Thai Union has experienced a robust first quarter in 2024, reporting higher profits and sales. However, the company faced financial setbacks due to its decision to sell its stake in the Red Lobster restaurant chain at a considerable loss.

Currently, Thai Union is engaged in a share-repurchase program initiated in January 2024, under which it aims to buy back 200 million shares by June 30, 2024. As of May 31, the company has repurchased 131.4 million shares for THB 1.9 billion (USD 51.6 million, EUR 47.6 million).

Strategic Focus Moving Forward

The dissolution of TUC represents Thai Union’s strategy to optimize its business portfolio by shedding underperforming assets and focusing on areas with higher growth potential. By reallocating resources from low-margin operations in China, the company aims to strengthen its market position and enhance profitability in more lucrative sectors.

Conclusion

Thai Union’s decision to dissolve its Chinese subsidiary highlights the company’s commitment to strategic realignment and growth. As the seafood market in Asia continues to expand, Thai Union’s focus on high-quality, high-margin products positions it well for future success. The liquidation of TUC, coupled with ongoing investments in growth opportunities, reflects a proactive approach to navigating the competitive landscape of the global seafood industry.

Read: Thai Union Counters Red Lobster’s Mismanagement Claims

Workers Strike at Cargill Meat Plant in Canada Over Pay Disputes

Employees at Cargill’s meat processing facility in Guelph, Ontario, have initiated a strike over unresolved pay disputes. Nearly 1,000 workers from the Dunlop plant left their posts on May 27, following the rejection of a proposed settlement negotiated between Cargill and the United Food and Commercial Workers Union (UFCW), which represents the employees.

Background of the Strike

The strike action came after 82% of the workers rejected the settlement, which had been crafted through extensive negotiations between the agribusiness giant and UFCW. Earlier in April, an overwhelming 99% of the workforce had given the UFCW negotiating committee a strike mandate, underscoring the depth of discontent among the employees.

Workers’ Concerns

Several key issues were raised during the negotiations, primarily revolving around rising living costs and the controversial reduction of the $2 an hour pandemic pay. Workers argued that this pay cut was implemented while the pandemic was still affecting their lives and safety. The UFCW highlighted that these concerns were central to the workers’ decision to reject the settlement.

Cargill’s Response

In response to the strike, a Cargill spokesperson expressed disappointment, stating, “The unanimously recommended settlement included a wage increase in each year of the 4-year agreement, with over a 9.3% increase in the first year alone, retroactive pay from January 1, 2024, benefit enhancements, and a signing bonus.” The spokesperson emphasized that the proposal was designed to honor the skills and dedication of the Guelph workforce. They also noted concerns about the potential hardships that the labor disruption could bring to employees and customers.

Cargill has indicated plans to shift production to other facilities within its supply chain to minimize disruptions, aiming to maintain a steady supply of meat products to its customers during the strike.

Impact on Operations

Cargill’s Dunlop site employs approximately 950 people and processes around 1,500 head of cattle daily. The facility produces private-label case-ready meat products for retail customers in Canada, including poultry, pork, beef sausages, and ground beef. The strike’s impact on production and supply chain logistics could be significant, depending on the duration of the labor dispute.

Union’s Standpoint

Kelly Tosato, president of UFCW’s Local 175 branch, which represents the Dunlop site workers, commented on the strike, stating, “Our members at Cargill Dunlop are an integral part of a vital supply chain that helps keep food on the table for people every day. The decision to go on strike is never easy, but these members aren’t satisfied with what the company has brought to the table. We will support them until we can achieve a deal that reflects their hard work and commitment to creating quality food products.”

The UFCW criticized Cargill for failing to provide an offer strong enough to address the workers’ needs, despite the company’s mission to “nourish the world.” The union argued that Cargill’s inability to offer adequate pay and benefits was contradictory to its public image and mission statement.

Broader Implications

The strike at Cargill’s Dunlop plant highlights ongoing labor tensions within the meat processing industry, where workers have often faced challenging working conditions, especially during the COVID-19 pandemic. The dispute underscores broader issues related to worker compensation, safety, and the rising cost of living, which continue to be significant points of contention in labor negotiations across various sectors.

Conclusion

As the strike continues, both Cargill and the UFCW will need to find a resolution that addresses the workers’ concerns while maintaining the company’s operational stability. The outcome of this dispute could set a precedent for future labor negotiations within the meat processing industry and beyond. The dedication and resilience of the workers at Cargill’s Dunlop plant serve as a reminder of the essential role they play in the food supply chain, and their voices will likely continue to shape the industry’s labor landscape in the coming years.

Related: Why 1000 Cargill Workers are Striking?