Year: 2024

Craig Tomkinson, the Group Chief Financial Officer (CFO) of 2 Sisters Food Group, has announced his decision to step down from his role after nearly six years of dedicated service to the U.K.-based poultry company.

Successor Named: Nigel Williams

In Tomkinson’s place, the company has appointed Nigel Williams as the new CFO. Williams brings with him over 20 years of extensive experience in leading multi-site food and beverage retailers, making him a fitting successor to Tomkinson.

Tomkinson’s Contributions and Career Break

Having served as Group CFO and Board Director for almost six years and contributing to the company for over a decade, Tomkinson has decided to take a career break before exploring new opportunities. His official departure will occur in July after handing over responsibilities to Williams.

Williams’ Professional Background

Williams boasts an impressive background, having served as the CFO of global business Collins Foods in Australia for the past eight years. Prior to that, he held the position of Finance Director for Starbucks UK, showcasing his diverse expertise in financial leadership roles.

Transition Plan and Responsibilities

Williams will undergo a full induction in March before officially assuming his role in April. Meanwhile, Tomkinson will focus on key projects until his departure in July, with Chairman Richard Pennycook overseeing the transition process.

Tomkinson’s Outlook and Future Plans

Tomkinson expressed that he believes now is the right time for a career hiatus. He plans to take some time off to rejuvenate with his family before embarking on new challenges and opportunities.

Gratitude and Optimism from Chairman

Chairman Richard Pennycook expressed gratitude for Tomkinson’s significant contributions to the company, recognizing his pivotal role in its transformation. He warmly welcomed Williams to the board, expressing confidence in his capabilities and optimism for the future of 2 Sisters Food Group under his leadership.

Conclusion

The transition from Craig Tomkinson to Nigel Williams marks a significant moment for 2 Sisters Food Group. As Tomkinson steps down after years of dedicated service, Williams steps into the role with a wealth of experience and a promising outlook for the company’s future growth and success.

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Brazilian meat companies have reached unprecedented levels of production, processing enormous quantities of chicken and hogs, along with the second-highest cattle slaughtering in history, as revealed by the 2023 data from the national census bureau. This surge solidifies Brazil’s position as a global leader in meat production.

Expanding Global Reach

With a clientele spanning across the globe, Brazil’s meat companies serve numerous countries, with significant exports to key destinations like China and the Middle East. The country’s status as a powerhouse in grain and meat production ensures its continued prominence in the global meat trade.

Staggering Cattle Slaughtering Numbers

The statistics agency IBGE reports a substantial increase of nearly 14% in cattle slaughtering in Brazil, which holds a significant share of the global beef trade. This growth trend has been consistent since the previous year, highlighting Brazil’s ongoing expansion in the meat industry.

Key Players in Brazil’s Meat Industry

Some of the world’s largest meat companies, including JBS, BRF, Marfrig, and Minerva, are based in Brazil. These companies play a pivotal role in driving the country’s meat exports and maintaining its dominance in the global market.

Related: The Latest on JBS SA’s Dual Listing Delay

Record Beef Exports

In 2023, Brazil set a new record by exporting 2.01 million metric tons of fresh beef, reaffirming its position as a major player in the global beef market. Despite the United States being the only country producing more beef, Brazil’s significant cattle inventories ensure its competitive edge in the industry.

Strength in Chicken and Hog Meats Trade

Brazil’s competitive advantage extends beyond beef to chicken and hog meats, where it commands substantial shares of 37% and 13% respectively in total world sales, according to trade data compiled by meat lobby ABPA. The record-breaking numbers in chicken and hog slaughtering further cement Brazil’s dominance in these sectors.

Conclusion

Brazil’s meat industry continues to flourish, with record-breaking production levels across various categories. With its robust infrastructure, extensive cattle herds, and strategic global partnerships, Brazil remains a powerhouse in the global meat trade, poised for further growth and expansion in the years to come.

Related: BRF’s Fortunes Change For The Better…

In an ambitious move designed to harness the collective strength of its diverse protein portfolio, Maple Leaf Foods has announced a major restructuring plan. This innovative strategy seeks to amalgamate its meat and plant protein operations, positioning the company as a formidable contender in the global protein industry. Maple Leaf Foods CEO Curtis Frank passionately articulated the vision behind this integration, promising the emergence of a “brand-led protein powerhouse.”

A Unified Vision for Growth

Maple Leaf Foods, a dominant player in the Canadian meat and poultry sectors, has historically embraced diversification as a growth strategy. This was evidenced by its strategic acquisitions aimed at expanding its footprint in the burgeoning plant-based protein market. Notably, in 2017, the company acquired Lightlife Foods, a U.S.-based plant protein manufacturer, followed by the acquisition of Field Roast Grain Meat Co. in 2018. These moves underscored Maple Leaf’s commitment to becoming a versatile player capable of meeting the evolving dietary preferences of consumers across North America.

The creation of Greenleaf Foods SPC as an independent subsidiary under Maple Leaf’s umbrella further illustrated the company’s intention to innovate within the plant-based protein space. However, the latest strategic realignment signifies a more holistic approach by merging its meat and plant protein divisions. This approach is not merely structural but is driven by a vision to leverage synergies, optimize operations, and streamline the innovation pipeline across all protein categories.

Financial Trajectory and Market Challenges

Maple Leaf Foods’ decision comes at a time of mixed financial performances within its diverse business units. The company’s meat protein group has shown resilience and growth, registering a 3.1% increase in sales in the most recent quarter compared to the same period in the previous fiscal year. Conversely, the plant protein group faced headwinds, with sales dipping by 13.2% year-over-year. Adjusting for the impact of foreign exchange rates, the decline sharpens to 16.3%. These figures highlight the challenges and opportunities that lie ahead as Maple Leaf Foods embarks on its ambitious integration strategy.

Leadership at the Helm of Transformation

Integral to the success of Maple Leaf Foods’ strategic realignment are the recent executive appointments, signaling a fresh leadership direction poised to drive the company’s unified vision forward. Adam Grogan, a seasoned veteran of Maple Leaf Foods with over 25 years of service, has been promoted to Chief Operating Officer (COO). Grogan’s extensive experience, spanning prepared foods, meats, poultry, and plant proteins, equips him with a comprehensive understanding of the company’s operational landscape.

Complementing this leadership shakeup is the promotion of Casey Richards to President of Maple Leaf Foods USA, a newly minted position that underscores the company’s commitment to expanding its U.S. market presence. With over 20 years of global marketing and general management experience, Richards is tasked with spearheading growth initiatives in both retail and foodservice channels across the United States.

Navigating the Future

Maple Leaf Foods’ strategic pivot to unify its meat and plant protein businesses under a single operational framework is a bold step towards realizing its vision of becoming a global protein powerhouse. By leveraging brand synergy, optimizing product innovation, and harnessing the strengths of its diverse protein portfolio, Maple Leaf Foods aims to navigate the challenges of a competitive market landscape.

This restructuring not only reflects the company’s adaptability but also its commitment to meeting the dynamic demands of consumers seeking diverse protein options. As Maple Leaf Foods embarks on this new chapter, the industry will be watching closely, anticipating the transformative impact of its unified protein strategy on its growth trajectory and on the broader protein industry.

Related: Top 10 Largest Canadian Meat Exporters & Industry Review

Trident Seafoods, a prominent player in Alaska’s fishing industry, has announced its intention to sell three of its shoreside plants in the state. The decision, part of a broader restructuring initiative, marks a significant development for the company and the local communities involved. Despite the challenges posed by declining salmon prices, Trident Seafoods is actively engaged in negotiations with potential buyers, aiming to ensure a smooth transition that prioritizes the well-being of its employees and maintains its commitment to Alaska’s seafood sector.

Strategic Restructuring Amidst Industry Challenges

In December 2023, Trident Seafoods revealed its plans to divest four processing facilities in Alaska. This strategic move follows a period of volatility in the fishing industry, underscored by plummeting salmon prices. By seeking buyers for these plants, Trident aims to streamline its operations and position itself for long-term sustainability in a competitive market environment. The decision, though unsettling for some, reflects the company’s proactive approach to adapt to evolving industry dynamics.

Navigating Sale Negotiations

As Trident Seafoods progresses towards finalizing the sale of its Alaska plants, company officials emphasize their commitment to securing suitable buyers who will uphold standards of excellence and community integration. CEO Joe Bundrant underscores the importance of ensuring a seamless transition for both the fleet and employees, highlighting the company’s dedication to responsible business practices. With negotiations nearing completion for plants in Petersburg, Ketchikan, and False Pass, Trident Seafoods demonstrates its proactive stance in minimizing disruptions to operations and livelihoods.

Complexities and Considerations in Kodiak Plant Sale

While the sale of three plants advances steadily, Trident faces unique challenges in negotiating the sale of its Kodiak facility. As the largest and most intricate of the four plants, with year-round operations supporting multiple species, the due diligence process is understandably more extensive. Despite the complexity, Trident remains optimistic about the outcome, assuring stakeholders of continued support during the transition period. The company’s commitment to maintaining market access for Kodiak’s salmon season underscores its dedication to sustaining local economies and ensuring the security of its workforce.

Long-Term Commitment to Alaska

Throughout the sale process, Trident Seafoods reaffirms its enduring commitment to Alaska and its fishing communities. By consolidating operations and pursuing strategic partnerships, the company aims to optimize resource allocation and foster sustainable growth in the seafood sector. CEO Joe Bundrant emphasizes the symbiotic relationship between Trident and Alaska’s fishermen and communities, emphasizing a shared vision for long-term prosperity. As Trident navigates the complexities of restructuring, its unwavering dedication to supporting local stakeholders underscores its role as a responsible steward of Alaska’s marine resources.

Conclusion: A Path Forward for Trident Seafoods

Trident Seafoods’ decision to sell its Alaska plants signifies a pivotal moment for the company and the broader fishing industry. By embracing strategic restructuring, Trident positions itself for resilience in the face of market challenges while reaffirming its commitment to Alaska’s economic vitality. As negotiations progress and sale agreements near completion, Trident Seafoods remains focused on ensuring a smooth transition that prioritizes the well-being of its employees and the communities it serves. With a long-term vision guiding its actions, Trident Seafoods stands poised to continue its legacy of excellence in Alaska’s rich maritime heritage.

Related: Largest Seafood Companies in USA – Top 10 List

Tyson Foods, a major meatpacker, has announced the permanent closure of its pork plant in Perry, Iowa. The decision, which affects approximately 1,200 employees, reflects shifting dynamics in the meat industry following the COVID-19 pandemic.

Impact on Perry, Iowa Community

The closure of the Tyson Foods pork plant comes as a significant blow to the community of Perry, Iowa, where the plant serves as the largest employer. With about 8,200 residents, the loss of 1,200 jobs will undoubtedly have far-reaching consequences for the local economy and residents’ livelihoods.

Company’s Response and Optimizing Operations

Tyson Foods has not only closed several U.S. chicken plants over the past year but has also laid off corporate employees. The decision to shutter the Perry pork plant underscores the company’s efforts to streamline operations and adapt to changing market demands. While the closure was a difficult decision, Tyson emphasizes its commitment to optimizing efficiency to better serve its customers.

Financial Challenges in the Pork Industry

The closure of the Perry plant reflects broader challenges facing Tyson Foods and the pork industry as a whole. Despite experiencing significant profits during the height of the pandemic, the company’s pork business suffered an adjusted operating loss in the fiscal year ending September 30. Declining sales volumes and sliding prices have contributed to the financial strain on Tyson’s pork operations.

Industry Trends and Oversupply

The closure of Tyson’s Perry plant is not an isolated event within the pork industry. Smithfield Foods, another major player, announced similar measures, including ending contracts with hog farms and shuttering production facilities in response to oversupply and weakened consumer demand. These trends underscore the broader challenges facing the pork industry and its stakeholders.

The Future of Pork Production in the U.S.

The closure of Tyson’s Perry plant highlights the need for strategic reassessment within the pork industry. As companies grapple with oversupply and shifting consumer preferences, there may be opportunities for innovation and restructuring to ensure long-term sustainability. The fate of pork production in the U.S. hinges on the industry’s ability to adapt to evolving market dynamics and consumer demands.

Conclusion: Navigating Challenges in the Meat Industry

The closure of Tyson Foods’ pork plant in Perry, Iowa, marks a significant development in the meat industry, reflecting ongoing challenges exacerbated by the COVID-19 pandemic. As companies like Tyson navigate financial pressures and shifting market dynamics, communities and workers bear the brunt of these changes. Looking ahead, stakeholders must collaborate to address industry challenges and forge a path toward a more resilient and sustainable future for meat production.

Related to Tyson Foods: Tyson Foods Aims for Double-Digit Growth With Godrej

By Miles Hurrell, Chief Executive of Fonterra

The global dairy industry, like many others, faces a landscape marked by uncertainty and rapid change. In such times, it becomes paramount for exporters to leverage their strengths and adapt to the shifting tides. As CEO of Fonterra, I believe our cooperative’s heritage and strategic initiatives position us to weather the storms and provide stability amidst the sea of change.

Staying Afloat in a Volatile Market

The recent uptick in Global Dairy Trade prices offers a glimmer of hope for dairy farmers in New Zealand. However, amidst projections of increased volatility in the agricultural sector, it’s essential to remain vigilant. Rabobank’s annual outlook underscores the potential for significant shifts driven by factors like China’s economic recovery and geopolitical tensions.

Navigating Disruptions in Supply Chain

The disruption to shipping lines in the Red Sea, compounded by challenges in the Suez and Panama Canals, poses a significant threat to global trade. At Fonterra, we recognize the importance of controlling what we can amidst such disruptions. Our strategic partnerships, particularly the Kotahi joint venture, enable us to maintain the resilience of our supply chain, ensuring our farmer owners’ produce reaches markets worldwide.

Empowering Farmers Through Innovation

In times of uncertainty, providing farmers with stability is paramount. Fonterra’s scale and operational efficiency allow us to offer innovative solutions that support our farmers’ livelihoods. From advanced payment schedules to tools like fixed milk prices, we strive to empower farmers to navigate market fluctuations and secure their incomes.

Investing in Sustainability and Growth

Looking ahead, Fonterra remains committed to sustainable growth and industry leadership. Our focus on expanding our share of sustainable New Zealand milk, coupled with a flexible shareholding capital structure, underscores our dedication to fostering long-term prosperity. By strengthening partnerships with global industry leaders and embracing innovation across various channels, we aim to sustainably meet evolving consumer needs while maximizing value for our stakeholders.

The Power of Cooperation

At the heart of Fonterra lies a deep-rooted cooperative spirit, forged by generations of Kiwi dairy farmers. This ethos of collaboration and solidarity sets us apart, providing a foundation of strength and resilience. As we navigate the complexities of the global dairy market, our cooperative model ensures that we stand united, supporting each other through challenges and triumphs alike.

Conclusion: Sailing Towards a Brighter Future

In conclusion, Fonterra remains steadfast in its commitment to providing stability and security amidst a rapidly changing world. By leveraging our strengths, fostering innovation, and embracing sustainability, we navigate turbulent waters with confidence. As we chart our course forward, guided by the principles of cooperation and resilience, we remain dedicated to supporting our farmers and shaping the future of the dairy industry. Together, we sail towards a brighter, more sustainable future, anchored by the values that define us as a cooperative.

Related: Fonterra’s Huge Profit Jump as Milk Prices Surge!

Pork stands as the most consumed meat globally, with the United States playing a significant role in its production and exportation. However, the processes involved in pork production come with detrimental consequences for the environment, animals, and local communities.

Who Controls the U.S. Pork Production?

Smithfield Foods emerges as the leading pork producer in the United States, boasting a substantial workforce and extensive operations. Despite its American origins, Smithfield Foods fell under the ownership of China’s WH Group in 2013, a status that remains unchanged.

The Geographic Landscape of Pork Production in America

Pork production in the United States is not evenly distributed, with specific regions dominating the landscape. States like Iowa, Minnesota, and North Carolina emerge as key players, hosting the majority of pig farms, including those under Smithfield Foods’ ownership.

Insights into Pork Production Volumes

The United States maintains its position as a major pork producer, with staggering production figures and a notable role in international trade. The volume of pork produced annually, both for domestic consumption and exportation, underscores the industry’s significance.

Economic and Environmental Costs of Pork Production

Running a pork farm involves numerous expenses, ranging from feed and housing to labor and maintenance. Fluctuations in demand and prices pose challenges to profitability, exacerbated by a high mortality rate among farmed pigs. Moreover, legal battles and community backlash add to the industry’s economic burden.

The Toll on Animal Welfare

Factory farming practices inflict severe suffering on pigs, including painful procedures and cramped living conditions. Disease outbreaks further compound their plight, underscoring the ethical concerns surrounding pork production.

Health Risks Associated with Pork Consumption

Pig farms serve as breeding grounds for diseases that pose risks to human health. Despite regulatory oversight, concerns persist regarding food safety standards and the potential for contamination, raising public health concerns.

Environmental Impacts of Pork Farming

The environmental footprint of pork farming is substantial, contributing to air and water pollution, as well as greenhouse gas emissions. Manure management practices exacerbate these issues, highlighting the need for sustainable alternatives.

Conclusion: Rethinking the Role of Pork in Our Diets

Pork production entails significant ethical, environmental, and public health concerns. Embracing alternative protein sources offers a path towards a more sustainable and compassionate food system.

Related: Smithfield Foods cuts farmers contracts

Godrej Tyson Foods Ltd. (GTFL), a collaboration between Godrej and Tyson Foods, aims for double-digit growth in FY24, focusing on processed and branded products such as ‘Real Good Chicken’ and ‘Yummiez.’

Godrej Tyson Foods: Driving Growth in Processed and Branded Products

Achieving Milestones: Revenue and Volume Growth

GTFL celebrates surpassing ₹1,000 crore turnover with a 28% revenue increase, maintaining a 16% year-on-year volume growth for its branded products in FY24.

Strategic Shift: From Poultry Trading to Brand Focus

Emphasizing profitability, GTFL scales back on poultry trading to concentrate on branded businesses, witnessing sustained growth in its branded segments.

Innovations and Product Expansion

Responding to market demand, GTFL introduces Crispy Fried Chicken under the Yummiez brand, tapping into the burgeoning fried chicken category with convenient at-home options.

Consumer Trends Driving Growth

The surge in demand for ready-to-cook and value-added chicken products propels GTFL’s growth trajectory, aligning with evolving consumer preferences and convenience-driven choices.

Market Penetration and Pricing Strategy

With frozen foods penetration below 5%, GTFL adopts a sachet strategy to enhance accessibility, offering protein-rich options like chicken sausages at affordable price points.

Expansion Plans: Domestic and International Reach

GTFL targets expansion in existing markets and unexplored regions, investing in freezers and doubling its footprint. Additionally, the company accelerates exports, seeding its Yummiez brand in new markets like Bangladesh and Singapore.

Related: Tyson Foods’ Strategic Recovery in Foodservice Sector

The global animal feed industry plays a crucial role in sustaining the livestock sector, which is essential for meeting the increasing demand for meat, dairy, and other animal products. This report aims to provide insights into the largest animal feed companies worldwide based on their revenue, market share, and influence in the industry.

Methodology: The assessment of the largest animal feed companies is based on various factors, including revenue, production capacity, geographical presence, and market share. Data has been gathered from reputable industry reports, financial statements, and market analyses to ensure accuracy and reliability.

Key Findings: After thorough research and analysis, the following companies emerge as some of the world’s largest animal feed manufacturers.

World’s Largest Animal Feed Companies

1. Cargill Incorporated:
   • Cargill is one of the largest privately-held corporations globally, with significant operations in the animal feed sector.
   • It produces a wide range of animal feed products for livestock, poultry, aquaculture, and pet food.
   • The company’s extensive global network and diversified product portfolio contribute to its dominance in the market.
2. China National Cereals, Oils and Foodstuffs Corporation (COFCO):
   • COFCO is a state-owned enterprise in China and one of the largest agribusiness companies in the world.
   • It has a substantial presence in the animal feed industry, producing feed for various livestock and poultry species.
   • With China’s growing demand for animal protein, COFCO’s influence in the feed sector continues to expand.
3. Land O’Lakes Inc.:
   • Land O’Lakes is a leading American agricultural cooperative, renowned for its dairy products and animal nutrition solutions.
   • The company manufactures a diverse range of feed products, including for livestock, poultry, and specialty animals.
   • Its focus on innovation and sustainability has propelled it to prominence in the global animal feed market.
4. New Hope Group:
   • New Hope Group is a Chinese agribusiness conglomerate with operations spanning feed production, livestock farming, and food processing.
   • It ranks among the top animal feed companies globally, serving domestic and international markets.
   • New Hope’s vertical integration strategy and investments in research and development contribute to its competitive advantage.
5. Archer Daniels Midland Company (ADM):
   • ADM is a multinational food processing and commodities trading corporation with a significant presence in the animal feed industry.
   • The company produces a wide array of feed ingredients and complete feed solutions for livestock, poultry, and aquaculture.
   • ADM’s global supply chain and expertise in agricultural commodities position it as a key player in the animal nutrition market.

Conclusion: The global animal feed industry is dominated by a few major players that possess extensive production capabilities, distribution networks, and technological expertise. Companies like Cargill, COFCO, Land O’Lakes, New Hope Group, and ADM play pivotal roles in meeting the nutritional needs of livestock worldwide and driving innovation in animal feed formulations. As the demand for animal protein continues to rise, these companies are expected to maintain their leadership positions and adapt to evolving market dynamics.

Related: The Largest Animal Feed Companies Worldwide