2024 - Page 173 of 174 -

JBS’s New R$570m Feed Facilities

Over 570 Million Reais Earmarked for Three New Plants, Bolstering Seara’s Production and Creating Hundreds of Jobs

São Paulo, Brazil – JBS SA, a leading global food company, has confirmed a substantial investment exceeding 570 million reais ($117 million) to construct three new feed factories in Santo Inácio, Itaiópolis, and Seberi, strategically located in Brazil’s southern region.

Expanding Capacity to Meet Growing Demand The move is seen as a strategic response to adapt the supply of inputs to meet the increased production capacity of Seara, JBS’s Brazilian poultry division. The company has observed significant growth in recent years, necessitating this expansion.

State-of-the-Art Facilities to Boost Production Upon completion, these factories are expected to enhance Seara’s feed production by over one million tonnes annually. João Campos, president of Seara, highlighted the advanced automation and technology employed in these factories, emphasizing JBS’s commitment to expanding production capabilities and supporting regional socioeconomic development.

Significant Investments in Individual Plants

The Santo Inácio plant, set to receive 145 million reais ($29.62 million), will occupy 11.3 thousand square meters, creating approximately 80 jobs. This facility will play a pivotal role in supporting the processing capacity in Paraná’s three cities.
In Itaiópolis, JBS plans to invest 194 million reais ($39.58 million) for two factories over 13.8 thousand square meters. These plants will support over 200 integrated producers and 300 poultry farms. An additional facility focusing on premixes for animal nutrition is expected to create over 120 jobs.
The Seberi facility, with an investment of 230 million reais ($46.92 million), aims to optimize deliveries and reduce logistic costs, potentially creating up to 110 jobs.

A Strategic Move for Regional Growth This large-scale investment by JBS SA not only aims to augment Seara’s feed production but also signifies a substantial contribution to the local economies, potentially creating over 300 jobs across these regions. This move underscores JBS’s commitment to enhancing its operational efficiency and supporting community development in the areas where it operates.

Tyson Foods & Cargill shut down beef plants

Snowstorm Shuts Down Major US Beef Plants: Tyson Foods and Cargill Halt Operations in Kansas

In a significant blow to the U.S. meat industry, Tyson Foods (TSN.N) and Cargill (CARG.UL) announced a temporary suspension of operations at their beef plants in Kansas due to a severe snowstorm. This disruption comes at a time when beef prices remain elevated, following a reduction in U.S. cattle herds.

Blizzard conditions left many meatpacking employees stranded or forced to spend the night at their workplaces. The United States Department of Agriculture reported a sharp 25% drop in cattle slaughtering compared to the previous week, with only an estimated 94,000 cattle processed on Tuesday.

Cargill’s Dodge City plant closure, attributed to snow, freezing temperatures, and power outages, is a critical hit to ground beef production. The company expects to resume operations as early as Wednesday, contingent on the restoration of power and safe conditions. Cargill spokesman Chuck Miller emphasized the company’s efforts to minimize customer impact and noted that tow trucks were deployed to assist employees stuck on the roads.

Approximately 50 of Cargill’s 2,850 employees stayed overnight at the plant due to road closures, but the company assured that they had access to necessary amenities, including food and water.

The eastern half of the U.S. is also grappling with the storm’s aftermath, with over 418,000 homes and businesses across 12 states losing power.

Tyson Foods cancelled shifts at its Holcomb, Kansas plant, offering some workers the option to shelter on-site with provisions. By Tuesday morning, employees were able to leave the premises.

The Kansas Department of Transportation reported severe traffic disruptions, with numerous vehicles stranded near both Cargill’s and Tyson’s facilities. Highways near the plants resembled parking lots, filled with vehicles abandoned overnight due to the treacherous conditions.

This snowstorm has not only impacted road safety but also poses significant challenges to the beef industry, underlining the vulnerability of critical supply chains to extreme weather events.

Red Sea Attacks Trigger 250% Spike in Shipping Costs

The recent attacks by Yemen’s Houthi rebels on commercial vessels in the Red Sea have led to a dramatic increase in shipping costs, raising concerns of global inflation. Industry analysts report that the price of transporting a 40-foot container from China to Europe has soared, reaching around $4,000, a 248% jump from late November 2023.

Major Shipping Companies Reroute Due to Red Sea Tensions

Several of the world’s largest shipping companies, including MSC, Maersk, and CMA CGM, have been forced to suspend their Red Sea routes, seeking alternative passages. This strategic shift not only increases travel time but also adds substantial fuel costs.

Additional Factors Fueling Freight Charge Rise

Apart from the Red Sea disruption, other factors are contributing to the rise in freight charges. A surge in demand from China ahead of the Chinese New Year and higher ancillary costs such as insurance have compounded the situation, making it challenging for shipping companies.

Impact on Global Trade and Economy

The situation poses significant risks to global trade, particularly affecting the Asia-Europe trade route. The detour around the Cape of Good Hope adds considerable time and cost to shipments, potentially leading to delayed deliveries and increased expenses in various industries.

Increased Security Risks and Insurance Costs

The escalated tensions in the Red Sea have heightened security risks for shipping companies, leading to a spike in war risk insurance premiums. This increase, coupled with the potential for longer, riskier alternative routes, is likely to further strain the shipping industry’s finances.

Red Sea: A Crucial Global Trade Artery

The Red Sea plays a vital role in global trade, carrying a significant portion of the world’s oil shipments and container traffic. The ongoing conflict and resultant disruptions could have far-reaching implications for global supply chains and the economy.

Potential Long-Term Effects and Global Inflation

Experts warn that a prolonged closure of the Red Sea route could lead to global economic repercussions, including higher costs for goods and potential shortages. This situation could escalate into a broader concern for global inflation, affecting various sectors beyond shipping.

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JBT Corporation’s Marel Takeover: A Deal on the Brink?

Extended Deadline Raises Questions on the Future of JBT Corporation’s Bid for Marel

Chicago, IL – In a move that has raised eyebrows in the business community, JBT Corporation, a leader in food and beverage technology solutions, has been granted an extension until January 19, 2024, for its potential takeover bid of Marel hf. This extension, coming from the Financial Supervisory Authority of the Central Bank of Iceland, follows JBT’s initial non-binding proposal to Marel’s Board on November 24, 2023, and a subsequent revision on December 13, 2023. But with the deadline extension, speculation is mounting over whether the deal will fall through.

JBT’s Ambitious Acquisition Plans May Face Hurdles

JBT’s potential acquisition of Marel aligns with its strategic growth plans, aiming to create significant value through synergies. However, the need for an extended deadline suggests potential complexities or reconsiderations by JBT’s management. Although JBT is known for its disciplined approach to valuation and financial health, the uncertainty surrounding the finalization of this deal casts a shadow over its strategic merger and acquisition goals.

Uncertainty Prevails as JBT’s Board Yet to Approve Formal Offer

As of now, JBT’s Board of Directors has not sanctioned a binding offer for Marel hf. This lack of commitment, despite the extended deliberation period, fuels speculation about the viability and desirability of this acquisition. The business community is keenly observing to see if these discussions will culminate in a formal offer or if JBT will retreat from the negotiation table.

Goldman Sachs and Legal Teams Engaged Amidst Uncertainty

In navigating this complex transaction, JBT Corporation has engaged Goldman Sachs Co LLC as its financial advisor, while LEX and Kirkland & Ellis LLP are providing legal counsel. Their involvement is crucial as JBT navigates the intricacies of this high-stakes business maneuver.

JBT’s Worldwide Operations Continue Amidst Takeover Speculations

Despite the looming uncertainty of the Marel acquisition, JBT Corporation maintains its robust global presence, operating in over 25 countries and employing around 5,100 people. The company’s diverse portfolio, including technology solutions for the food & beverage industry and a strong base in recurring operations, highlights its resilience and adaptability in the face of potential strategic shifts.

This article is based on information from a press release by JBT Corporation, with the business world keenly awaiting the outcome of this potential takeover.

All About Pilgrim’s Pride Major Restructuring

Pilgrim’s Pride Announces Major Restructuring: A £4.2 Billion Transformation with Brazilian Leadership

New Chapter for UK’s Protein Industry as Pilgrim’s Pride Integrates European Operations

Pilgrim’s Pride, a leading protein company, has initiated a sweeping £4.2 billion restructuring plan, bringing in a new European executive team. The move aims to seamlessly integrate its key UK businesses: Moy Park, Pilgrim’s UK, and Pilgrim’s Food Masters.

Pilgrim’s Europe: A Vision Under Brazilian Leadership

Under the leadership of Ivan Siqueira, Pilgrim’s UK’s Brazilian president, Pilgrim’s Europe will emerge as a unified entity. Siqueira, now President of Pilgrim’s Europe, oversees Moy Park, Pilgrim’s UK, Pilgrim’s Food Masters, and Pilgrim’s Shared Services. The new team, consisting of 15 senior executives, will develop an integrated operating model for JBS’s European ventures.

Controversy Amidst Transformation: Concerns Over Execution and Diversity

However, the restructuring announcement, described as “brutal and punishing,” has sparked controversy. Critics have condemned the execution of the restructure, citing potential harm to trading relationships and the influx of Brazilian executives. Alarmingly, many senior figures, crucial during the pandemic and cost of living crisis, were dismissed without prior communication.

The Team at the Helm: A Blend of Old and New

The new Pilgrim’s Europe executive team includes a mix of existing and new members. Joining Siqueira are Guilherme Cardozo, Raphael Lomonaco, and Ivanor Clasen, among others, bringing diverse expertise to the table.

Gender Diversity: A Missed Opportunity?

Critics also highlighted the lack of gender diversity in the new executive team, with only two women included, raising questions about the commitment to inclusive leadership.

Future Prospects: Pilgrim’s UK Responds

In response to the outcry, a Pilgrim’s UK spokesperson emphasized the continuation of current roles and denied any immediate job risks. The restructuring is seen as a step towards creating the UK’s largest food business, with Siqueira promising an exciting future with greater collaboration and synergies.

Pilgrim’s Pride’s Bold Move: Stability Amidst Change

As Pilgrim’s Europe shapes up, the existing executive teams of individual businesses will remain intact, ensuring no immediate changes in operational models. This transition period aims to maintain stability while setting the stage for Pilgrim’s Europe’s ambitious future.

Largest Seafood Companies in USA – Top 10 List

Top U.S. Seafood Companies Lead Market Growth: Key Players Shaping America’s Billion-Dollar Industry in 2024

The largest seafood companies in the United States, as of 2024, include a range of well-known firms. These companies vary in their specialties and the types of seafood they supply.

Here is a list of some of the major players in the U.S. seafood industry:

Admiralty Island Fisheries Inc.: This company is one of the significant contributors to the North America seafood market.
Beaver Street Fisheries: A key player in the seafood industry, Beaver Street Fisheries is known for its diverse product offerings.
High Liner Foods Inc.: This company is a major operator in the U.S. seafood market, known for its processed seafood products.
Inland Seafood Inc.: Another significant name in the industry, focusing on various seafood products.
Mowi ASA: A globally recognized seafood company with a strong presence in the U.S. market.
Sysco Corporation: Known primarily as a food distribution giant, Sysco also has a significant stake in the seafood industry.
Thai Union Group PCL: A major global seafood company that also has a substantial presence in the U.S. market.
Trident Seafood Corporation: One of the largest seafood companies in the U.S., known for its wide range of seafood products.
Pacific Seafood Group: A leading firm in the seafood industry, particularly strong on the West Coast.
Red Chamber: Another significant player in the industry, although details about their specific seafood offerings are less publicized.

These companies represent a significant portion of the seafood market in the United States, each contributing to the industry’s growth and diversification. They are involved in various aspects of the seafood supply chain, including processing, distribution, and retail.

The main association for the seafood industry in the United States is the National Fisheries Institute (NFI). NFI focuses on a range of issues pertinent to the industry, including trade, ethical business practices, seafood safety, nutrition, education, and sustainability. The organization plays a critical role in supporting its member companies in the global marketplace, ensuring that they adhere to responsible practices and policies. Furthermore, NFI works to provide accurate and science-based information about seafood to the media, consumers, and regulators, thus promoting healthy eating, sustainable fishing, and responsible aquaculture.

FrieslandCampina Key Nutrition Trends for 2024:

FrieslandCampina Forecasts Key Nutrition Trends for 2024: Emphasis on Sustainability and Personalized Nutrition

Sustainable Future in Focus: FrieslandCampina Ingredients, renowned for its protein and prebiotic solutions, in their recently released Nutritional Trends 2024 report, spotlights five pivotal trends expected to shape the food, drink, and supplement industries in 2024. Amid a complex global environment, consumers are increasingly seeking comfort and control through nutrition, presenting unique opportunities for brands to foster healthier choices.

One of the foremost trends, Securing the Future, Sustainably, highlights the growing consumer demand for sustainable products. Although more individuals are adjusting their diets for environmental reasons, skepticism about the authenticity of environmental claims persists. Manufacturers are thus urged to back their sustainability assertions with solid, verifiable data to ensure lasting success.

Tailoring Nutrition to Individual Needs: Another significant trend, Nutrition for All, points to the increasing awareness among consumers about their distinct nutritional requirements influenced by factors such as age, gender, genetics, and lifestyle. This awareness opens substantial opportunities for brands to create customized nutritional solutions catering to specific, and currently unaddressed, consumer needs.

Rise of Plant-Based Alternatives: The trend Alt Proteins Go Global reflects the mainstream acceptance of plant-based alternatives. As consumers, especially those following flexitarian diets, integrate more meat and dairy substitutes into their meals, the emphasis on innovation in plant-based products grows. These innovations should aim to match the taste and nutritional value of traditional products. The potential of alternative proteins, like those derived from precision fermentation, is also noteworthy, albeit needing myth dispelling and consumer education.

Holistic Gut Health Approach: The report also identifies the trend of Going Beyond via the Gut, acknowledging the connection between physical and mental health. Consumers are increasingly looking towards gut health solutions for overall well-being. Brands are encouraged to take a holistic approach to gut health, considering its impact on immunity, brain function, and muscle health.

Supporting Healthy Ageing and Recovery: The final trend, Ageing and Recovering Well, focuses on the older population’s proactive approach to health, emphasizing healthy ageing and maintaining an active lifestyle. Innovations in medical nutrition, incorporating muscle-boosting ingredients, are key to supporting recovery and overall well-being in this demographic.

Vicky Davies, Global Marketing Director at FrieslandCampina, underscores the importance of providing consumers with necessary nutrition amidst uncertainties. These trends demonstrate a growing consumer emphasis on managing nutrition as a controllable aspect of their lives, with a keen focus on environmental impact, sleep quality, and personal fitness goals.

JBS Brazil’s Big Green Initiative: A Major Leap in Environmental Sustainability

JBS Brazil Champions Forest Restoration with Innovative Green Offices Initiative

In a recent COP panel, JBS Brazil’s Sustainability Director, Liège Correia, unveiled the company’s Green Offices initiative, marking a significant stride in environmental conservation. The initiative has successfully restored over two thousand hectares, an area equivalent to two thousand soccer fields, showcasing JBS’s commitment to sustainability.

JBS’s Comprehensive Approach to Environmental Stewardship

The Green Offices project, launched in 2021, encompasses not just land regularization but also the dissemination of sustainable production techniques. It has provided crucial assistance to over 19 thousand farms, with more than 7 thousand making significant progress in socio-environmental compliance.

Brazil’s Ambitious Environmental Restoration Program

The initiative aligns with Brazil’s National Program for the Conversion of Degraded Pastures (PNCPD), aiming to transform 40 million hectares of degraded land into arable areas within a decade. This program, backed by a Federal Decree, opens up investment opportunities worth up to US$120 billion, focusing on sustainable agricultural practices and operational support.

JBS’s Role in Sustainable Agriculture and Climate Change Mitigation

Liège Correia emphasized JBS’s role in promoting sustainable land conversion and the need for financial support for small farmers. The company’s advocacy at COP highlighted Brazil’s potential in feeding the global population while combating climate change.

Government and Private Sector Collaboration for Sustainable Food Production

Brazilian government representatives underscored the importance of collaborative efforts to meet the program’s goals. The initiative is part of the new Growth Acceleration Program (PAC), seeking partnerships with international funds and the private sector to establish Brazil as a leading food supplier.

Banco do Brasil’s Support for Sustainable Farming

Banco do Brasil’s sustainable finance expert, Jorge Gildi, outlined the bank’s commitment to the government’s goal, with a portfolio of R$200 billion earmarked for investments by 2030. This includes partnerships and funding for carbon market projects, aiming to position Brazil as a key player in sustainable agriculture.

JBS’s Continued Efforts in Sustainable Practices and Carbon Reduction

JBS’s initiatives extend to the state of Pará, with significant investments in cattle chain transparency and regenerative practices. The company is also a part of the First Movers Coalition for Food, focusing on low-carbon agricultural products.

JBS’s Global Commitment to Net Zero and Sustainable Food Systems

JBS’s global efforts, as presented by Jason Weller, Global Sustainability Director, include various financing methods for climate action and a focus on enhancing the sustainability of family farms. The company is working on developing detailed GHG “fingerprints” for value chains, aiming for targeted actions to reduce emissions.

JBS’s Strategy for a Sustainable Future

These comprehensive efforts are part of JBS’s strategy to achieve Net Zero emissions by 2040, demonstrating its commitment to environmental stewardship and sustainable food production.

Alaska Seafood Industry Crisis On The Horizon

Alaska’s seafood industry is currently facing a major upheaval following the announcement by Trident Seafoods that it plans to sell several of its processing plants in Alaska. This decision by the Seattle-based company, a significant player in the state’s seafood sector, includes the divestment of its assets in Kodiak, Ketchikan, Petersburg, and False Pass, as well as the South Naknek Diamond NN cannery facility and related support facilities in Chignik.

Alaskan Seafood Industry in Focus: The Vital Role of Processing Plants in the Local Economy

Kodiak’s Mayor, Pat Branson, expressed uncertainty about the future, noting that while Trident will process pollock and tanner crab in the Kodiak area for now, the long-term plans remain unclear. This development raises concerns about job losses and the impact on Kodiak’s economy, as Trident’s contributions form a substantial part of the city’s budget.

Local residents and businesses are anxious about the implications of this move. Commercial fishers like Gerry Cobban Knagin, who have relied on Trident for selling their catch, are facing uncertainty about their future market opportunities. In Petersburg, fisher Bob Martin expressed surprise at Trident’s decision to sell the local plant instead of the less frequently used Wrangell facility.

Gunnar Knapp, an economics professor emeritus, highlighted that it is too early to gauge the full impact of Trident’s decision on Alaska’s economy but predicted it would be significant. He noted the high volatility in the global seafood trade and the challenges this poses for the industry.

The Alaska Seafood Marketing Institute‘s Bruce Schactler described the situation as a crisis “years in the making,” pointing to market glut and other challenges. Mayor Branson echoed these sentiments, acknowledging the severity of the current situation and comparing it to previous economic fluctuations in the industry.

Trident, amidst these changes, has remained tight-lipped about its plans, with Vice President of Global Communications Alexis Telfer declining to comment further. This development has been a significant topic in the seafood industry, with experts and local authorities calling for awareness and preparedness in the face of this transformative event in Alaska’s seafood sector.

The Latest In The Pilgrim Pride Price Fixing Scandal

In a significant turn of events, Pilgrim’s Pride, a major player in the U.S. poultry industry, has seen its current CEO Fabio Sandri removed from a lawsuit filed by the company’s shareholders. This development is part of an ongoing legal saga that began in 2016, revolving around allegations of price-fixing in the chicken market.

Unraveling the Feathers of Controversy: Pilgrim’s Pride in the Throes of a Price-Fixing Legal Battle

The backstory of this case dates back to 2008 when Pilgrim’s Pride, along with Tyson and Sanderson Farms, was accused of coordinating broiler chicken prices. This collusion, instead of healthy market competition, led to artificially inflated prices. These three companies are major suppliers, collectively responsible for about half of the chicken consumed in the U.S.

Investor Patrick Hogan initiated a class-action lawsuit against Pilgrim’s Pride in 2016. Hogan accused the company of deceiving investors through public statements that boasted about their competitive prowess and record profits, while in reality, these achievements were allegedly the result of the price-fixing scheme.

The plot thickened when Pilgrim’s Pride faced criminal charges and, in 2021, pleaded guilty to the accusations, resulting in a $107 million fine to the Department of Justice. This guilty plea not only impacted the company’s financial standing but also shook investor confidence.

The legal journey saw its ups and downs, with Senior U.S. District Judge R. Brooke Jackson initially dismissing the case in 2018, only to allow an amended complaint later. The shareholders’ persistence paid off when they managed to keep the lawsuit alive despite Pilgrim’s Pride’s efforts to dismiss it.

The latest decision by Judge Jackson, detailed in a 15-page order, has led to the exclusion of Fabio Sandri, Pilgrim’s Pride’s former CFO and current CEO, from the lawsuit. However, the claims against the company and its former CEO, William Lovette, remain active. Interestingly, Lovette is now at the helm of C.F. Sauer, a Virginia-based spice company.

Although both Lovette and Sandri were not found guilty of criminal charges in July 2022, the legal proceedings highlighted the complexity of the case, including deadlocked juries and mistrials.

This ongoing legal battle not only highlights the intricacies of corporate governance and ethics in the food industry but also underscores the significant impact such practices can have on market prices, investor trust, and corporate reputation. As the case continues to unfold, it remains a pivotal example of the challenges and responsibilities faced by major players in the food industry.