Protein Producer Company News

Egg Exports From Brazil Double!

In 2023, Brazil’s egg exports dramatically increased, with a 99.9% rise in November alone, totaling 788 tons. From January to November, exports reached 24.5 thousand tons, a 170.5% increase from the previous year, and revenue soared to $60.7 million. Japan emerged as the leading importer, with significant growth in other Asian markets as well.

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Brazil’s Egg Exports Skyrocket with Japan Leading as Top Importer

In November, Brazil saw a remarkable 99.9% increase in egg exports compared to the same month in the previous year, reaching 788 tons. This significant growth is reported by the Brazilian Animal Protein Association (ABPA). The revenue from these exports also saw a substantial rise, reaching US$1,999 million, which is 36.4% higher than the US$1,465 million recorded in 2022.

From January to November, Brazil’s egg exports amounted to 24.5 thousand tons, surpassing the previous year’s total of 9,043 thousand tons by 170.5%. The revenue for this period reached US$60.7 million, a 187.4% increase over the US$21,122 million recorded in the first eleven months of 2022.

Japan is the top importer of Brazilian eggs this year, with 10,363 thousand tons, a staggering 947.9% increase over the previous year. Taiwan and Chile follow, with Taiwan importing 5,387 thousand tons (a new entry compared to the previous year) and Chile importing 2,584 thousand tons, which is 1,208% higher than in 2022.

The president of ABPA, Ricardo Santin, notes Chile’s significant rise in egg imports from Brazil, making it the third main destination and the top importer in recent monthly data. He anticipates that exports to Chile and other Asian destinations will continue to grow, maintaining volumes significantly higher than in the past decade.

What are the benefits and concerns around Smithfield’s Chinese Ownership?

The acquisition of Smithfield Foods, a major U.S. pork producer, by China’s WH Group (formerly known as Shuanghui Group) in 2013 for $4.72 billion, has had a significant impact. This deal, marking the largest Chinese acquisition of an American company at the time, brought various benefits and drawbacks, both economically and in terms of national security concerns. Here’s a detailed analysis:

WH Group’s Acquisition of Smithfield Foods: A Landmark Deal in Global Trade Balancing Economic Growth and National Concerns

History and Background

Smithfield Foods’ Origin: Founded in 1936 in Virginia, Smithfield Foods grew to become the world’s largest pork producer.
Acquisition: The WH Group purchased Smithfield Foods in 2013, which included 146,000 acres of land, making it one of the largest overseas owners of American farmland.
Economic Context: At the time of the sale, China was one of the largest pork importers, despite having a substantial pig population. The Chinese consumed significantly more pork per capita compared to Americans.

Read now: Smithfield Foods cuts farmers contracts

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Benefits

Economic Growth: The acquisition offered Smithfield an entry into the growing Chinese pork market. ShuangHui increased capital spending at Smithfield by 24%, which helped pay down its debt and improve its credit rating. This also led to more than 1,000 new jobs in Virginia.
Global Expansion: Smithfield began selling its pork directly to Chinese consumers online, opening new markets and revenue streams.
Operational Continuity: Post-merger, the company focused on maintaining continuity and trust with U.S. executives, union leaders, and local communities.

Drawbacks

National Security Concerns: The extensive U.S. farmland ownership by a Chinese corporation raised concerns about potential implications for U.S. national security. However, only a small percentage of U.S. farmland is foreign-owned, and Chinese ownership is a minor portion of that.
Image and Brand Risks: The acquisition posed a risk to Smithfield’s “all-American” image, and potential negative associations with environmental scandals in China’s food industry.
Employee Welfare: There were concerns about whether the new Chinese ownership would adhere to Smithfield’s labor standards, including minimum working hours and retirement benefits.
Economic Implications: U.S. politicians and unions were worried about the transfer of technology to China and the potential for a flooded U.S. market with cheaper pork products, which could harm the U.S. pork industry.
Environmental and Legal Issues: Smithfield has faced controversies, such as price-fixing allegations and pollution issues, further complicating its public image.

Conclusion

The acquisition of Smithfield Foods by the WH Group reflects the complexities of global trade and foreign investment. While it brought economic benefits and expansion opportunities for Smithfield, it also raised concerns about national security, employee welfare, and the potential impact on the U.S. pork industry. The success of such international mergers depends on carefully balancing these various aspects to ensure a positive outcome for all stakeholders.

Read now: Smithfield Exit Shakes Up Utah Farmers’ Future

Why Marfrig Became The Majority Shareholder of BRF

Marfrig Global Foods S.A., a prominent player in the food processing industry, has solidified its position by becoming the majority shareholder in BRF S.A. This strategic move, marked by a significant increase in equity interest, was detailed in a securities filing by BRF dated December 28. Marfrig now holds a commanding 50.06% share in BRF, through its possession of 842,165,702 common shares and American Depositary Receipts (ADRs), encapsulating more than half of BRF’s total issued and outstanding capital.

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Despite this substantial acquisition, Marfrig has publicly announced its intention to maintain the status quo regarding BRF’s shareholding and administrative structures. In a statement, Marfrig clarified that it does not intend to make changes to the current management or the overall corporate governance of BRF. Additionally, it assured stakeholders that it has not entered into any contracts aimed at controlling voting rights or managing the buying and selling of BRF’s securities. This approach suggests Marfrig’s confidence in BRF’s existing operational framework and its commitment to stability in the company’s leadership and strategic direction.

The journey to acquiring majority ownership was gradual and strategically executed by Marfrig. It began in May 2021, when Marfrig first made a significant investment in BRF by purchasing a 24.23% stake. Over the next couple of years, Marfrig progressively increased its share, signaling a strong commitment and belief in BRF’s potential. By September 2023, Marfrig had increased its stake to 40.05%, holding a total of 673,879,961 common shares, setting the stage for the eventual majority ownership.

Interestingly, this consolidation in the food processing industry comes after previous speculations about a potential merger between Marfrig and BRF. In 2019, talks of a merger were in the air, hinting at a significant realignment within the sector. However, the merger did not materialize, and the companies continued their separate paths until this recent development.

The acquisition of a majority stake in BRF by Marfrig marks a significant shift in the dynamics of the food processing industry, especially in Brazil, where both companies are based. This move could have various implications, ranging from increased market influence and financial strength for Marfrig to potential strategic re-alignments in the industry. Moreover, it reflects the ongoing trends of consolidation in global food markets, as companies strive to enhance their competitive edge and expand their market footprint.

Marfrig Global Foods S.A.’s decision to become the majority shareholder of BRF S.A. could be motivated by several strategic business objectives:

Market Expansion and Diversification: By increasing its stake in BRF, Marfrig can expand its market presence and diversify its product offerings. Both companies are major players in the food processing industry, and this move could allow Marfrig to access new markets or enhance its presence in existing ones.
Operational Synergies: The acquisition could create operational synergies between the two companies. These synergies might include cost savings, improved efficiency, shared resources, and knowledge transfer, leading to enhanced productivity and profitability.
Increased Influence and Control: As a majority shareholder, Marfrig gains significant influence over BRF’s strategic decisions. This control can be crucial in steering the company in a direction that aligns with Marfrig’s broader business goals.
Financial Performance and Value Creation: Marfrig might foresee a potential for improving the financial performance of BRF, leading to increased shareholder value. By leveraging its expertise and resources, Marfrig could aim to enhance BRF’s profitability and overall market value.
Risk Mitigation: Diversifying its investment portfolio can also be a way for Marfrig to spread its risks. In volatile markets, having a diverse range of investments can safeguard a company against sector-specific downturns.
Responding to Industry Trends: The move could be a response to consolidation trends in the global food industry. By acquiring a larger stake in BRF, Marfrig positions itself as a more formidable competitor in an increasingly competitive and globalized market.

Each of these reasons reflects a strategic perspective, aimed at strengthening Marfrig’s market position, financial stability, and future growth prospects.

In conclusion, Marfrig’s acquisition of a majority stake in BRF is a notable development in the food processing industry. It not only changes the ownership landscape of these companies but also sets a new direction for their future growth and strategic initiatives. This move is a testament to the dynamic nature of the industry and the continuous evolution of corporate strategies in response to market opportunities and challenges.

Read now: Brazil’s Top 10 Largest Meat Supplier Powerhouses

How Did JBS Become The World’s Largest Meat Producer?

JBS S.A.’s ascent to becoming the world leader in the meat industry is marked by strategic acquisitions, significant investments, and expansion across various segments and geographies.

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Here’s a more detailed expansion of JBS’s journey:

Founding and Early Expansion: Founded in 1953 by José Batista Sobrinho in Anápolis, Brazil, JBS began as a slaughtering business. Expansion accelerated with the establishment of Brazil’s new capital, Brasilia, which opened a new market for the company. By the late 1960s and 1980s, JBS expanded within Brazil, acquiring other meat processing companies.
Going Public and Major Investments: In 2007, JBS became a publicly held company and received significant investment from the Brazilian Development Bank (BNDES), propelling its expansion.
International Acquisitions: JBS’s international growth was marked by several key acquisitions:
- In 2007, JBS acquired U.S. firm Swift & Company, entering the pork market and becoming the third-largest producer and processor of pork in the U.S..
- The company further strengthened its position by acquiring Smithfield Foods’ beef business and 64% of Pilgrim’s Pride in 2010, establishing itself in the chicken production industry.
- In 2009, JBS acquired Grupo Bertin in Brazil, consolidating its status as the largest beef producer globally.
- In 2015, JBS expanded its U.S. pork business with the acquisition of Cargill Inc.’s pork operations.
Reorganization and IPO: In 2016, JBS announced a reorganization plan involving an IPO in the United States for its international operations, signaling its presence on five continents.
Controversies and Compliance Issues: Despite its success, JBS faced several controversies, including accusations of purchasing cattle from illegally deforested Amazon land and involvement in bribery scandals. These issues led to investigations and fines but did not significantly halt its growth.
Diversification and Future Endeavors: JBS continues to diversify its operations. Notably, in 2021, the company invested $100 million in cultured meat through BioTech Foods, with plans to enter the market by 2024.

Conclusion

JBS’s journey to becoming a global leader in the meat industry is characterized by aggressive expansion strategies, bolstered by significant financial support and acquisitions, alongside navigating through various environmental and legal challenges.

Read Now: Who is Wesley Batista Filho? JBS’s new CEO

Top 10 Global Leaders in Food Packaging for 2023: Innovating for a Sustainable Future

The top food packaging companies in the world as of 2023 are notable for their diverse range of operations, global presence, and recent advancements in sustainable packaging solutions. Here is a detailed report on the top 10 food packaging companies:

Top 10 Global Leaders in Food Packaging for 2023:

Amcor plc: Founded in 1896 and headquartered in Melbourne, Australia, Amcor is a global leader in responsible packaging solutions, offering flexible packaging, specialty cartons, rigid containers, and more. They have a significant presence in 40 countries with over 230 manufacturing units. In December 2022, Amcor opened a new manufacturing plant in China, focusing on automated food packaging solutions.
Berry Global: Established in 1967 and based in Indiana, U.S., Berry Global operates in health, hygiene, consumer packaging, and engineered materials. The company introduced thermoformed, injection stretch blow molded food packs manufactured in recycled PET in August 2022.
Sealed Air Corp: Founded in 1960 and headquartered in North Carolina, U.S., they are known for Bubble Wrap and Cryovac food packaging. They offer easy-open packaging solutions, films, trays, and food packaging equipment systems.
Coveris: Based in Vienna, Austria, and founded in 2013, Coveris manufactures paper and plastic-based flexible packaging. They have around 29 facilities across Europe and Egypt. In January 2022, they partnered with UPM Rafkatac for new label and recycling solutions.
DS Smith: Founded in 1940 and headquartered in England, U.K., DS Smith offers fiber-based food packaging and operates at 37 sites. They partnered with Veetee in July 2022 to create a fully recyclable rice box.
Smurfit Kappa Group Plc: Established in 1934 and based in Dublin, Ireland, they produce corrugated packaging, ‘bag in box,’ and containerboard. In January 2022, they introduced sustainable packaging solutions for fast food.
Tetra Pak International: Founded in 1951 in Switzerland, Tetra Pak delivers filling machines, processing systems for dairy, and beverages. In February 2023, they commenced research on fiber-based substantial food packaging.
Mondi Inc: Established in 1967 and headquartered in the U.K., Mondi is a leader in sustainable packaging and paper. In March 2023, they collaborated with ATS-Tanner to create a unique paper band for packaging, aiming to reduce plastic usage.
Sonoco: Founded in 1899 and based in Carolina, U.S., Sonoco is a major supplier of diversified consumer packaging and the world’s largest producer of composite cans. In May 2022, they reported successful results from a recycling trial with Sustana and Kellogg’s.
WestRock: Founded in 2015 and headquartered in Georgia, U.S., WestRock specializes in sustainable, fiber-based packaging solutions. They have a presence in about 300 production facilities globally.

It’s noteworthy that another source lists a slightly different ranking, which includes International Paper Company, Ball Corp, Oji Holdings Corp, Stora Enso Oyj, and UPM-Kymmene Corp, indicating the dynamic and competitive nature of the industry.

These companies are driving innovation and sustainability in the packaging sector, reflecting the industry’s ongoing evolution to meet environmental challenges and consumer demands.

Read: Top 10 Meat Processing Equipment Titans Revealed

Who is Gregg Uecker Perdue Farms New Chief Supply Chain and Operations Officer

Gregg Uecker has had a notable and successful career in the meat and poultry industry, particularly highlighted by his recent appointment as the Chief Supply Chain and Operations Officer at Perdue Farms. Before joining Perdue, Uecker amassed a wealth of experience during his time at CJ Schwan’s and Tyson Foods.

At CJ Schwan’s, Uecker held the position of Executive Vice President of the Global Supply Chain. However, it was his extensive tenure at Tyson Foods that particularly stands out. Over more than three decades with Tyson, Uecker held various senior leadership roles, such as Senior Vice President of Operations and Supply Chain for Prepared Foods, Senior Vice President of Supply Chain Strategy, and Vice President of Operations, among others. His responsibilities covered a wide range of areas including plant operations, live production, transportation and warehousing, customer service, food safety, quality assurance, procurement, and engineering.

Uecker’s career has been characterized by rapid promotions and a consistent rise through the ranks, demonstrating his proficiency and expertise in operational management and supply chain agility. His approach has always been proactive, focusing on continuous improvement, lean manufacturing techniques, and problem-solving. This was exemplified in his involvement with various projects, including groundbreaking work in automation, data collection, and maintenance management. His innovative mindset was particularly noted in his role at Tyson Foods, where he contributed to the design and development of a highly automated and technologically advanced bacon processing plant in Bowling Green, Kentucky.

Moreover, Uecker’s educational background in chemistry with an emphasis on business administration provided him with a unique perspective and approach to problem-solving and operational excellence. He was recognized for his achievements and leadership in the industry when he was named MEAT+POULTRY’s Operations Executive of the Year in 2022.

In summary, Gregg Uecker’s career trajectory is marked by significant contributions to operational excellence and innovation in the meat and poultry industry, making him a respected leader and a valuable asset to Perdue Farms.

Who is Julie Katigan The New Executive Vice President of Perdue Farms?

Julie Katigan has recently been promoted to a pivotal role at Perdue Farms, serving as the Executive Vice President and Chief Human Resources Officer. This promotion, announced in December 2023, marks a significant step in her career at Perdue Farms. Katigan joined the company in May 2022 as the Senior Vice President of Human Resources. Her promotion reflects the company’s commitment to talent acquisition, diversity, inclusion, and employee well-being, as she is responsible for overseeing all aspects of Perdue Farms’ people strategies.

Before joining Perdue, Katigan held the position of Chief Human Resources Officer at James Hardie Building Products. Additionally, she has a rich background in senior-level leadership roles at global business units and functional levels with various companies, including Colfax Corporation, Electrolux, Mead Johnson Nutrition, and Ford Motor Company. Her extensive experience and expertise are expected to significantly contribute to developing and implementing strategies that foster talent, shape organizational culture, and focus on the well-being of associates at Perdue Farms.

Perdue Farms is a fourth-generation, family-owned U.S. company in the food and agricultural sector. The company is known for its commitment to responsible food and agriculture practices, including a no-antibiotics-ever approach in poultry and livestock and leading in organic chicken and beef products. Katigan’s promotion to Executive Vice President and Chief Human Resources Officer is aligned with Perdue Farms’ long-standing values and strategic direction, focusing on quality, sustainability, and ethical practices within the company.

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.

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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.