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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.

Click here for more container shipping industry news!

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)

Danone’s Russian Political Maze

Explore Danone’s challenging journey in Russia amid unexpected management changes and complex negotiations, revealing the intricacies of corporate resilience.

Danone in Russia: Navigating a Corporate Maze Amidst Political Tensions

The Danone Dilemma in Russia: A Tale of Unexpected Management and Unsettled Deals

This summer, a group of Chechens linked to Ramzan Kadyrov, their regional leader, unexpectedly took control of Danone’s operations in Russia. This move occurred while Danone, a French dairy giant, was finalizing a deal to exit Russia. The Kremlin’s decision to place Danone and Danish brewer Carlsberg under “temporary external management” disrupted these plans, especially affecting Carlsberg, whose former executives are now imprisoned. However, Danone’s situation has evolved into a peculiar stalemate, with much of the company’s daily management remaining unchanged under the new Chechen leadership.

Business as Usual? Inside Danone’s Russian Operations Post-Takeover

While the Chechen takeover seemed alarming, the operations at Danone’s Russian dairy factories have continued with minimal disruptions. The new Chechen managers, surprisingly professional in their approach, have avoided aggressive tactics, maintaining a low profile. The situation, described as “extremely amicable,” has not provoked public complaints of mistreatment from Danone. Despite these developments, the company is still working to finalize the sale of its Russian business, seeking a Kremlin-approved buyer.

Impact and Response: Danone and Carlsberg’s Different Paths in Russia

Russia’s abrupt management changes in foreign companies, like Danone and Carlsberg, have created shockwaves. Danone, representing about 5% of the group’s annual revenue, is significantly impacted by these developments. Initially committing to stay in Russia post-invasion of Ukraine, citing responsibility towards employees and suppliers, Danone later shifted its stance, planning an exit that could lead to substantial financial losses. Meanwhile, Carlsberg’s situation contrasts sharply, with arrests and allegations of targeting innocent employees by the Russian government.

Navigating Uncertainty: The Road Ahead for Danone in Russia

Despite the takeover, Danone’s executive committee in Russia remains active, working towards asset protection and a potential sale. The company, while preparing to protect its shareholder rights, has stopped short of directly accusing Russia of expropriation. Interestingly, while Yakub Zakriev, Kadyrov’s nephew, is officially the general director of the renamed “Life & Nutrition,” Dutch Danone veteran Charlie Cappetti continues to play a significant role unofficially.

The Complexity of Yogurt Production: Danone’s Leverage in Russia

Danone’s expertise in yogurt production, involving complex supply chains and unique ingredients, offers it some leverage over the new management. This complexity ensures that the company’s unique production processes remain vital, posing challenges for any drastic changes by the new managers.

Conclusion: A Tense Balancing Act in Corporate Russia

Danone’s situation in Russia highlights the challenges faced by foreign investors in navigating uncertain political and economic environments. The company’s cautious approach and ongoing negotiations reflect the complexities of maintaining business operations while adhering to corporate responsibilities and navigating geopolitical tensions.

Is Tyson Foods Secretly Selling Insect Protein To Humans?

The simple answer is:

Kind of…

Tyson Foods and Protix Partnership: Focused on Animal Feed, Not Human Food

Insect Protein for Pets, Not People
In a recent development, Tyson Foods, a company primarily known for its poultry products, has entered into a partnership with Protix, an insect protein firm. However, this collaboration is not what some might think. Contrary to circulating rumors, Tyson Foods has no plans to introduce insects into human food. Instead, their focus is on developing insect-based proteins for animal feed, including pet food and aquaculture.

Read Now: Why Is Tyson Foods Collaborating With Protix?

New Facility for Insect-Based Products
October 2023 marked a significant milestone for Tyson Foods and Protix as they announced plans to construct an insect ingredient facility in the United States. This facility isn’t for human food production but for breeding and processing insects for use in pet food, aquaculture, and livestock feed industries.

Tyson Foods’ Clear Stance: No Insects in Human Food
Tyson Foods has made it clear on their website and through official statements that their business remains centered on poultry, pork, and cattle. There is no mention or indication of venturing into insect-based products for human consumption.

More about Tyson Foods: Tyson Foods hacked by cybercriminals

Edible Insects: Safe for Humans but Not Tyson’s Focus
While the FAO (Food and Agriculture Organization of the United Nations) acknowledges that insects can be a nutritious and safe food source for humans, Tyson Foods’ partnership with Protix is strictly for non-human consumption. Their aim is to utilize insects as a sustainable ingredient in animal feed, not for people’s dinner tables.

Smithfield Exit Shakes Up Utah Farmers’ Future

The Decline of Hog Farming: A Blow to Rural Utah’s Way of Life

Smithfield’s Exit: Departure Leaves Beaver County Farmers Struggling for Survival

In a significant blow to the agricultural community of Beaver County, Utah, Smithfield Foods, a leading name in hog farming, has announced its withdrawal from the region. This departure leaves local farmers facing an uncertain future, as hog farming represents the primary employment sector in this rural part of the state.

The Tough Reality of Agricultural Life

Farmers in Beaver County are known for their resilience, a trait now put to the test as they confront the challenges posed by Smithfield’s exit. Commissioner Brandon Yardley reflects this spirit, stating, “We’ll figure it out. Seems like we always do.” However, the withdrawal of Smithfield, involving the termination of contracts with 26 hog farms, is not just a blow to the company’s employees but also to the entire community relying on this industry.

Economic and Personal Struggles of Local Farmers

Brett Bunker, a local farmer, highlights the broader challenges faced by those in rural agriculture. Beyond the direct impact of Smithfield’s departure, farmers like Bunker grapple with issues like water usage criticism and the overall uncertainty of the agricultural industry. The end of their contracts with Smithfield means a significant reduction in income, equating to a drastic pay cut for these hardworking individuals.

Statewide Impact and the Search for Solutions

The consequences of Smithfield’s decision ripple beyond Beaver County, affecting various counties across Utah. The agricultural sector, which boasted $220 million in hog inventory sales in Beaver County alone, is now in a precarious position. Officials and organizations, including the Utah Department of Agriculture and Food and the Utah Farm Bureau, are actively seeking solutions to support the affected communities and industries.

The Larger Picture: Economic and Environmental Consequences

The issue extends into environmental concerns as well. Plans for renewable energy projects, like methane capture from hog farming operations, are now uncertain. This setback not only affects local economies but also hampers efforts towards sustainable energy solutions.

Rural Resilience in the Face of Adversity

Despite these challenges, the people of Beaver County, including Commissioner Tammy Pearson and other community members, are determined to persevere and adapt. The agricultural community, deeply rooted in their way of life, is not ready to give up despite the hardships. They stand as a testament to the enduring spirit of rural America, facing adversity with determination and hope for a sustainable future.

Tyson Foods Innovative Child Care Plan

Innovative Child Care Program at Tyson Learning Center, Humboldt

Setting the Scene: Story Time in Tennessee

In the heart of Humboldt, Tennessee, at the Tyson Learning Center, it’s story time, a special moment under the guidance of teacher Tequeria Pewitte. As she gathers the children, all related to Tyson’s poultry plant workers, there’s a sense of community and care that goes beyond the usual.

Tyson’s Unique Solution for Employee Child Care Needs

Recognizing the need for accessible child care, Tyson Foods has taken an innovative step by partnering with KinderCare to run a facility that opens early to accommodate the schedules of their plant workers. Garrett Dolan from Tyson Foods explains the rationale: ensuring reliable child care aligns with their operational hours is crucial for their workforce.

Driving Force Behind the Initiative

Garrett Dolan, a human resources strategist at Tyson, spearheaded the company’s new child care program. With a substantial investment of nearly $5 million, Tyson has tackled a significant challenge in rural areas: the scarcity of affordable child care options. This scarcity often deters potential workers, as Dolan points out the financial dilemma faced by many employees in balancing income with child care costs.

Marketplace Morning Report: A Broader Perspective

The issue of affordable child care is gaining attention across various industries in the U.S. The federal government is stepping in, especially in sectors like the semiconductor industry, mandating child care plans for companies seeking significant CHIPS Act funding, as explained by Adrienne Elrod, director at the CHIPS Program Office.

Tyson’s Pilot Program: A Response to Workforce Needs

The Humboldt center is Tyson’s pilot project, strategically located in Tennessee due to its robust child care subsidy. The program offers affordable care, with parents paying substantially less than the state average. This initiative is not just about affordability; it’s about providing vital support for shift workers like Tiffany Butler, a mother of five and Tyson employee, who views the center as a gateway to re-enter the workforce.

The Impact and Future of Tyson’s Child Care Initiative

Tiffany Butler’s story is a testament to the program’s success. The facility not only supports her family’s well-being but also reinforces her loyalty to Tyson. This kind of benefit, known as a “sticky benefit,” is seen as a key factor in retaining employees. However, Elliot Haspel, an author on America’s childcare crisis, warns about the potential exclusion of gig workers and others without regular employment from such benefits.

Assessing the Program’s Effectiveness and Potential Expansion

Tyson acknowledges the need for a thorough evaluation of the Humboldt program over the next few years. Success will be measured not just in worker retention and reduced absenteeism, but also in the positive impact on Tyson’s community reputation, as highlighted by Garrett Dolan. If successful, this could signal a broader trend in industry-supported child care solutions.