Keystone Foods: The Global Protein Leader!

Keystone Foods: A Global Powerhouse in Protein Production and Supply, Marked by Strategic Expansion and Robust Revenue Growth

Keystone Foods, a notable food services company, is known for processing, producing, and supplying a variety of fresh and frozen animal protein products including poultry, beef, fish, and pork. These products are distributed to a diverse range of clients such as quick-service restaurants, food service locations, industrial food companies, retail outlets, and other market channels across the globe. The company has a strong presence in the food industry, particularly in providing value-added products like chicken nuggets, wings, tenders, beef patties, and breaded fish fillets.

An important development in the history of Keystone Foods was its acquisition by Tyson Foods Inc. in 2018 for $2.16 billion. This acquisition was a strategic move by Tyson Foods to expand its international presence, enhance its value-added production capabilities, and grow its portfolio in the global foodservice industry. The deal included six processing plants and an innovation center in the U.S., along with additional facilities and innovation centers in Asia Pacific countries like China, South Korea, Malaysia, Thailand, and Australia.

Keystone’s Pre-Tyson Boom: 11K Employees, $2.5B Revenue, and Global Expansion

As of the last reported period before the acquisition, Keystone Foods employed approximately 11,000 people and generated an annual revenue of $2.5 billion, with a significant portion of its revenue coming from U.S.-based production and the rest from its Asia Pacific operations. The acquisition by Tyson Foods was expected to be beneficial in terms of financial performance, contributing positively to Tyson’s earnings per share and generating annual synergies estimated at around $50 million by the third year through operational efficiencies and other optimizations.

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For a more in-depth look at Keystone Foods, including its financial performance and other business aspects, you can visit Zippia’s profile on the company here.

Container Shipping’s Latest Billion Dollar Problem

Shipping Industry Braces for Billion-Dollar Impact of EU Emissions Trading Scheme (ETS)

The International Transport Intermediaries Club (ITIC) is warning of a potentially massive financial impact on the shipping industry, possibly reaching billions of dollars, due to the European Union’s (EU) forthcoming Emissions Trading Scheme (ETS). Starting on January 1, 2024, the expanded EU ETS will set annual limits on greenhouse gas (GHG) emissions for large ships visiting EU ports.

However, this implementation is causing disputes between shipowners and charterers, particularly regarding the language in charter agreements aimed at fairly dividing costs and managing legal risks.

Robert Hodge, the General Manager at ITIC, is stressing the importance of ship managers doing thorough research to effectively handle these risks.

ITIC’s warning comes after a recent meeting of BIMCO’s documentary committee, which includes ITIC and other major players in the shipping industry. During this meeting, BIMCO made a significant move by adding an ETS allowances clause to its ship management agreement, SHIPMAN.

Additionally, they introduced three tailored ETS clauses for voyage charter parties. These clauses are designed to make compliance with changing regulations easier and to address the evolving issue of carbon emissions in the maritime sector.

As an advisor on the BIMCO document committee, ITIC is gearing up to host a webinar to guide its members through potential challenges and provide comprehensive advice to ship managers.

According to a statement, the EU ETS is a response to the growing regulatory demands set by the International Maritime Organization (IMO) and the European Union to reduce GHG emissions from ships traveling in European waters and docking at European ports.

Source: Container News

FrieslandCampina Cuts 1,800 Jobs for Profitability

FrieslandCampina, a prominent Dutch dairy cooperative, has unveiled a comprehensive cost-saving strategy that includes cutting 1,800 jobs across its global operations over the next two years. This strategic move, geared towards improving profitability, is projected to yield savings of up to €200 million ($215 million) and forms a pivotal component of the company’s ambitious plan to slash annual expenses by €400 million to €500 million by 2026.

Global Dairy Powerhouse

With a formidable presence in more than 100 countries, FrieslandCampina ranks as one of the world’s leading dairy cooperatives. Its product portfolio spans a wide spectrum, encompassing dairy staples such as milk and cheese, as well as vital components for the food and pharmaceutical sectors. The cooperative’s workforce currently spans 30 countries and comprises roughly 22,000 employees, underscoring its global significance.

Streamlining Operations for Efficiency

The decision to cut 1,800 jobs underscores FrieslandCampina’s commitment to operational efficiency and cost control. This ambitious workforce reduction initiative will require careful planning and execution to ensure that the company continues to meet the demands of its diverse international customer base while remaining competitive in an ever-evolving industry.

Financial Performance

In its financial report for 2022, FrieslandCampina reported a substantial turnover of €14 billion, a testament to its market dominance. Nonetheless, the dairy industry is not without its challenges, including fluctuating milk prices, shifting consumer preferences, and mounting environmental concerns. In response, FrieslandCampina is proactively adapting its operations to navigate these challenges while sustaining profitability. FrieslandCampina plans to cut 1,800 jobs worldwide in 2 years, aiming for €200 million savings to boost profitability and reduce annual costs by up to €500 million by 2026.

Navigating Industry Challenges

This strategic workforce reduction by FrieslandCampina reflects a proactive response to the multifaceted challenges confronting the dairy industry. By focusing on cost efficiency and profitability, the cooperative aims to maintain its position as a competitive and sustainable player in the global dairy market.

As FrieslandCampina embarks on this transformative journey, its actions are poised to shape not only its future but also the broader landscape of the dairy industry. Stakeholders, employees, competitors, and industry observers will closely monitor the cooperative’s progress as it strives to adapt to changing market dynamics while ensuring long-term sustainability.

Source: Amsterdam, December 12, 2023 (Reuters)

How McDonald’s Made OSI a Super Power in The Food Industry

OSI Group’s Rise: From McDonald’s First Burger Supplier to Food Giant

Back in 1955, a small company called Otto & Sons shook hands with Ray Kroc, the man behind McDonald’s. That handshake turned them into the first supplier of fresh burgers for McDonald’s in Des Plaines, Illinois. Fast forward, and now they’re known as OSI Group. They don’t just make burgers; they cook all sorts of meat – like bacon, sausages, and even pepperoni. And it’s not just meat; they also make loads of pizza crusts, breads, snacks like taquitos, and even big pots of mac and cheese, soups, and beans.

OSI Group, a major player in the food manufacturing industry, possesses the capability to cook various meats to the desired finish, whether it’s browning, searing, or charring. Their range includes items like bacon, sausage patties and links, riblets, deli meats, meatballs, meatloaf, pepperoni, and salami. Beyond meat products, OSI can produce vast quantities of pizza crusts, flatbreads, paninis, taquitos, mac and cheese, and even soups, chili, and beans.

The company began its journey as the first supplier of fresh hamburger meat to the original McDonald’s franchise in Des Plaines, Illinois. This partnership, formed with a handshake agreement with Ray Kroc in 1955, marked the beginning of OSI’s expansion. Initially known as Otto & Sons, the company was offered the opportunity to become one of five national suppliers of frozen hamburger patties for McDonald’s, propelling its growth.

Recently, OSI, now one of the world’s largest contract food manufacturers, has seen a change in leadership. The company’s new Chairman, Steven Lavin, is steering it into a new era, a transition that I explore in my latest feature.

Read Profile: Who is Steven Lavin, the Chair of OSI Group?

Who is Steven Lavin, the Chair of OSI Group?

Steven Lavin, as the chair of OSI Group, has played a significant role in the growth and success of the company. OSI Group is a major player in the food industry, known for preparing and providing food products to large brands like McDonald’s and Chipotle. However, detailed information on Steven Lavin’s specific achievements and career highlights at OSI Group is not readily available in the public domain.

From the available information, it’s clear that Lavin observed the growth and expansion of OSI Group under his late father’s leadership before taking over the reins. This experience likely provided him with valuable insights and understanding of the company’s operations, contributing to his capability to lead the organization effectively.

In general, leading a company like OSI Group requires a blend of strategic vision, operational expertise, and the ability to navigate complex global supply chains and client relationships. Given OSI Group’s prominence in the food industry and its role as a supplier to major global brands, Lavin’s leadership would involve maintaining high standards of quality, innovation in food processing technologies, and responding to the dynamic needs of the global market.

Why Is Tyson Foods Collaborating With Protix?

Tyson Foods and Protix Buzz into Future: Revolutionizing Protein with Insect-Powered Superfoods!

Tyson Foods, a global food industry giant, has recently teamed up with Protix, a leading company in insect-based ingredients. This exciting partnership is set to revolutionize the way we think about sustainable protein production.

Here’s the scoop: Protix is not your average company. They specialize in turning insects into ingredients for things like pet food, fish feed, and even organic fertilizer. Sounds quirky, right? But it’s seriously smart. They use food waste to feed these insects, making the whole process like a green loop.

On the other side of this partnership is Tyson Foods. These guys are big in the food world, known for their protein-packed products. They’re all about finding new, earth-friendly ways to feed the planet.

Tyson Foods and Protix Launch Mega-Insect Protein Facility, Aiming to Feed the World Sustainably

So, what’s the plan? Together, they’re building a new facility in the U.S. just for making insect ingredients. We’re talking a whopping 70,000 tons of live larvae every year! Plus, Tyson Foods is investing a cool €55 million to help Protix grow even bigger globally.

This isn’t just about making bugs into food. It’s a big step towards feeding our growing population without hurting the planet. The big brains at Protix and Tyson Foods think this could be a game-changer in how we make food for pets, fish, and farm animals.

And get this: the demand for protein is shooting up. By 2050, we’ll need 70% more of it! Insect protein could be the answer, and this partnership might just be the push it needs to go mainstream.

Protix has big dreams. They’re aiming to open 13 plants by 2035 and rake in about €1 billion in sales. With Tyson Foods in their corner, they might just do it.

But can bugs really replace the protein we’re used to? Protix says, “Why not?” With a bit more research, some new rules, and more people getting on board, insects could be the next big thing on our plates and in our pet’s bowls.

So, there you have it: a partnership that’s all about bugs, big ideas, and a better planet. Stay tuned to see how this bug story unfolds!

Fonterra’s Huge Profit Jump as Milk Prices Surge!

Discover how New Zealand’s Fonterra Co-operative is thriving, raising its 2024 earnings forecast amid strong dairy demand. Learn about the significant increase in farmgate milk prices to NZ$7.00-NZ$8.00/kg and a boosted earnings outlook, with a first-quarter profit surge of 61.7% reaching NZ$346 million.

Fonterra Boosts 2024 Earnings and Milk Price Forecasts Amid Surging Demand, Reports 61.7% Profit Jump

New Zealand’s Fonterra Co-operative has raised its fiscal 2024 earnings and farmgate milk price forecasts due to increased demand for dairy products, particularly from significant importers. The new farmgate milk price range is NZ$7.00 to NZ$8.00 per kilogram of milk solids, up from the previous NZ$6.50 to NZ$8.00. This change follows a rise in Global Dairy Trade prices. The company also boosted its 2024 earnings per share projection to between 50 and 65 NZ cents, anticipating a robust interim dividend.

Fonterra’s first-quarter profit soared by 61.7% to NZ$346 million, driven by higher margins in its main sales channels: ingredients, food service, and consumer products. CEO Miles Hurrell expects these margins to remain high in the first half of the year, with a tightening anticipated in the second half.

About Fonterra Dairy

Fonterra Co-operative Group, a leading player in the global dairy industry based in New Zealand, is renowned for its financial achievements and strategic initiatives. Originating from a merger in the early 2000s, Fonterra has grown into one of the world’s largest dairy exporters. Central to its ethos are quality and sustainability, supported by a network of over 10,000 farmers who are not just suppliers but shareholders. Despite its global presence in over 140 countries, Fonterra maintains a keen understanding of local market nuances.

Innovation is key to its operations, with significant investments in research and development to stay ahead in the competitive dairy industry. While facing challenges such as market fluctuations and environmental concerns, Fonterra’s adaptability has been its strength.

Looking forward, the company aims to bolster sustainability, improve efficiency, and expand its global reach, continuing to be a leader in the dairy industry and a symbol of innovation, quality, and resilience.

Top Dairy Producers In The World

Explore the top dairy producers of 2023 in this comprehensive report, featuring a detailed analysis of leading dairy-producing countries and companies. Gain insights into the global dairy industry with key data on production volumes and revenue, highlighting major players like Nestlé, Lactalis, and Dairy Farmers of America. Essential reading for industry professionals and those interested in global dairy market dynamics.

As of 2023, the top dairy producers in the world can be categorized into two main groups: countries and companies.

Top Dairy Producing Countries

European Union
United States
India
China
Brazil

These rankings are based on the overall production of cow milk.

Top Dairy Companies by Revenue

Nestlé (Switzerland)
Lactalis (France)
Dairy Farmers of America (United States)
Danone (France)
Yili Group (China)
Fonterra (New Zealand)
FrieslandCampina (Netherlands)
Mengniu Dairy (China)
Arla Foods (Denmark)
Saputo Inc. (Canada)

Dairy production is crucial globally, providing essential nutrition, economic livelihoods, cultural value, and contributing to food security. Despite sustainability challenges, it remains a key sector, driven by continuous innovation and research.

Smithfield Foods cuts farmers contracts

Explore the latest developments as Smithfield Foods significantly reduces contracts with farmers. Understand the implications for the pork industry, local communities, and the broader market. Stay informed on how these strategic shifts by a key industry player reflect wider economic trends and affect various stakeholders. Get in-depth analysis and expert insights in our comprehensive coverage.

Smithfield Foods to Cut Utah Contracts Amid Market Challenges, Initiates Workforce Transition

Smithfield Foods’ decision to end contracts with Utah farms is part of a larger industry trend. Many food companies are facing similar challenges. High feed costs and changing consumer habits are big factors.

The company’s Utah operations have been significant. But now, Smithfield is focusing on other areas. They want to make their operations more cost-effective. This involves tough choices like contract cuts.

Shane Smith emphasizes the need for these changes. He says it’s vital for staying competitive. The company is committed to supporting its employees during this transition. They are offering help like job relocation and transition assistance.

Go to: Top 10 Largest Pork Producers in the USA – A Comprehensive Ranking

Smithfield’s Strategic Shift: A Ripple Effect Across the Pork Industry and Beyond

The impact of these changes goes beyond Smithfield. It affects the wider community and other businesses. Local farmers and suppliers might feel the effects too. Smithfield’s moves could influence the whole pork industry.

Smithfield Foods is a key player in the U.S. food sector. Its decisions often set trends in the industry. The company’s actions reflect wider economic and market pressures. They also show how big companies adapt to stay ahead.

In summary, Smithfield’s Utah contract ends are a sign of changing times. They show how companies respond to market challenges. They also highlight the impact on workers and local economies. Smithfield is adapting to stay strong in a tough market.

Check out: Top 10 Leading Pork Brands in the World

JBS Commitment to First Mover Coalition for Food

Explore JBS’s commitment to sustainable agriculture through its recent inclusion in the First Movers Coalition for Food. Led by the World Economic Forum and supported by global entities, this initiative aims to revolutionize farming methods to reduce carbon emissions and support the Paris Agreement goals. CEO Jason Weller emphasizes the crucial role of sustainable practices in meeting global food demands while protecting the environment. Discover how leading companies and governments are collaborating to create a more sustainable future in agriculture, with expected outcomes by the second half of 2024.

JBS Joins Global Initiative to Advance Low-Carbon Livestock and Sustainable Agriculture

JBS is now part of the First Movers Coalition for Food. This is a big step for them. They want to help develop livestock that creates less carbon. The World Economic Forum leads this project. The UAE government and 19 companies also help. Their goal is to make farming better and more sustainable. They want to use new methods and technologies. This will help the planet by reducing carbon from agriculture. The members of the coalition have a plan. They want to work together to buy $20 billion worth of eco-friendly products.

Also, this coalition is an extension of another project. The First Movers Coalition for Industry started at a big meeting called COP26. This was in Glasgow, Scotland. US President Joe Biden and the World Economic Forum started it in 2021.

Related: JBS explores Saudi investments

JBS CEO Stresses Crucial Sustainable Agriculture

Jason Weller, who is the CEO of JBS Global, talked about this. He said that how we make food is very important. It helps us meet the goals of the Paris Agreement. These goals are about reducing global warming. At the same time, we need to feed more people in the world. He thinks that farming in a sustainable way is key. It can help us move to a world where agriculture doesn’t harm the environment as much.

Many different groups are part of this coalition. There are big agriculture businesses and other important partners. These include groups of farmers and researchers. Governments are also joining in. Together, they want to improve how we produce food. They aim to use new, sustainable ways of farming. By 2030, they hope to have a big demand for products made this way.

Global Coalition Unites for Sustainable Farming Practices

The World Economic Forum shares more information. The companies in the coalition are very big. Together, they make $2.1 trillion. They work all over the world. These companies know that we need to farm in a way that’s better for the planet.

Starting in December 2023, they will begin working together. The World Economic Forum, the companies, and the governments will join forces. They will figure out how to support and grow this new way of farming. We can expect to see their first results in the second half of 2024.

Read: Top 10 Largest Meat Exporting Country Volumes