Today’s Trending Headlines in association with
Top 3 Trending Articles
1. Beyond Meat’s share price surges!
2. Container shipping to contract 2.5% according to Maersk
3. Sheep meat imports and exports surge
Animal Feed & Nutrition Market News
The government of Canada will provide support to two feed and grain companies under the Adoption Stream of the Agricultural Clean Technology Program. Entosystem will receive up to CAD2 million to purchase energy-efficient technologies for the production of insect-based products for animal feed and fertilizer, while 2173-0130 Québec Inc. will receive up to CAD376,860 to install a new grain dryer. The goal of the program is to reduce greenhouse gas emissions and promote the adoption of clean technologies in the agricultural sector. The Research and Innovation Stream of the program is also open for intake.
Animal Feed & Nutrition Company News
AB Agri
AB Agri, a leading feed company based in the United Kingdom, is facing the possibility of nationwide strike action by its mill workers, supported by trades union Unite. The workers are preparing to vote on future strike action early next month and, if they vote in favor of a strike, the feed company’s operations across the country are likely to be severely disrupted. An offer of increased pay has already been rejected by the workers, who say it falls well short of the inflation rate. In its latest full-year fiscal results, ABF reports revenue in 2022 at more than GBP1.72 billion (US$2.08 billion), with trading performance by AB Agri described as “strong.”
Nutreco
Nutreco, a Netherlands-based animal nutrition company, has acquired a minority stake in BiomEdit, a US microbiome biotech company. The acquisition follows the companies’ research and commercial partnership on feed additives announced in January 2023. Nutreco CEO Fulco van Lede said the investment would reinforce the unique collaboration between the two companies, with the potential to help Nutreco’s supply of ultra-specialty ingredients, create a more sustainable future, and speed up progress on feeding the future. BiomEdit CEO Aaron Schacht said the strategic partnership with Nutreco would help both companies launch new products addressing animal health, sustainability and food security.
Nutreco has promoted Erik Tveteraas to lead its investment arm, NuFrontiers, replacing Joost Matthijssen who moved to the role of chief strategy officer. NuFrontiers has a portfolio of 14 companies, with one exit so far, and usually makes two to three investments annually. Last year, NuFrontiers invested in Scottish firm Roslin Technologies, Norwegian land-based salmon company Andfjord Salmon, and acquired a majority stake in India-based shrimp group Eruvaka after being a minority investor since 2018.
Meat Market News
The United States has seen a significant increase in pork exports to the Dominican Republic since the implementation of the Central America-DR-U.S. Free Trade Agreement in 2007. With the DR’s domestic pork industry suffering from African swine fever, U.S. pork has become increasingly attractive to consumers, leading to a record-breaking year for exports in 2022. Despite the unfortunate situation with ASF, the DR’s growing demand for high-quality protein has presented new opportunities for U.S. pork in the country’s retail sector, with diverse cuts and products now being exported. Funding support for promotional activities is provided by various U.S. organizations and programs.
According to the AHDB, the UK sheep meat trade increased in 2022 with imports reaching 54,300 tonnes, up 17% compared to 2021. A near four-fold increase in shipments from Ireland was the main driver of growth, while imports from New Zealand declined. UK exports of fresh and frozen primary sheep meat also increased by 8% compared to 2021, with shipments to the EU rising 9%. The proportion of UK sheep meat exports sent as carcases increased to 81% in 2022, and sheep offal exports saw a 9% increase.
Meat Company News
2 Sisters Food Group
Poultry processor, 2 Sisters Food Group, has said that it will close its Llangefni site in Wales as the plant is no longer sustainable and it would require significant investment to bring it up to the standards of its other factories. The closure of the site will impact the jobs of the workers there, and the Welsh Government has formed a taskforce to identify and co-ordinate assistance to support the workers impacted as a result of the closure, both in terms of securing future employment and their wellbeing. 2 Sisters has said that it will continue to work with agencies to support the affected employees.
BRF
Sources familiar with the matter report that BRF SA, a leading poultry company in Brazil, is in discussions to divest its pet food business as part of a broader business revamp to generate cash. The company is said to be working with Santander SA’s Brazilian unit to sell the division for approximately 2 billion reais ($384 million), after acquiring it for 1.35 billion reais in 2021.
Cal-Maine
Cal-Maine Foods, the largest egg producer in the US, reported a 32% increase in revenue in 2022 compared to 2021 despite consumers paying more for a dozen eggs. The company holds 16.8% of market share and is the only public egg producer. The egg industry is worth around $10 billion with nearly 13% growth annually in profit from 2017 to 2022, but is volatile and sensitive to market changes or environmental factors.
COFCO
COFCO Fortune, the agri and grain business arm of China’s largest food manufacturer COFCO Group, has raised 21 billion yuan ($3.1 billion) in a strategic investment. The financing was raised from investors including China’s National Council for Social Security Fund, COSCO Shipping Group, and China Life Insurance. COFCO Fortune operates a global network for the processing, warehousing, logistics, and sales of agricultural products and is preparing for an initial public offering (IPO) under the guidance of China International Capital Corporation. The strategic investment coincides with COFCO Fortune’s plan to go public on a domestic stock exchange.
Cooperl
A webinar on February 23 will explored the environmental impact of castrating male pigs, in addition to the welfare and feed efficiency issues already known. The webinar, titled “Footprint of entire male pigs in Europe,” discussed how entire male pigs grow more efficiently, requiring less feed and producing fewer excrements, which can be calculated through their carbon footprint. The free webinar shared the results of recent European studies on this topic.
CP Foods
Charoen Pokphand Foods Plc (CPF) reported a 20% growth in sales revenue to 614 billion baht in 2022, with a net profit of 13.9 billion baht, up 7%, thanks to rising sales in several countries and higher product prices. The company’s biosafety control and adjusted business model, including embracing technology and innovation, contributed to the financial improvement despite challenges such as outbreaks of animal and human diseases and economic downturns. CPF aims to achieve sustainable growth by reducing coal use and switching to renewable energy. CPF’s board of directors plans to ask for shareholders’ approval for a dividend payment of 0.75 baht per share for the 2022 performance at the first-quarter annual general meeting.
Iowa Select
The Deb and Jeff Hansen Foundation and Iowa Select Farms have launched the “A Special Adventure” program to provide Iowa families with children fighting cancer with an all-inclusive weekend getaway to enjoy time together and bring some adventure into their lives. The foundation will gift 40 Iowa families with their choice of four local trips, and families will also receive Special Adventure t-shirts, a Mini Polaroid camera and trip journal, and Special Surprise Fun Boxes filled with family-friendly travel games, travel accessories, activities, and snacks. The program aims to help families reset and renew together and is promoted through Children’s Cancer Connection and Iowa oncology programs.
Minerva
Brazilian meatpacker Minerva SA announced that it can continue to supply China with beef, despite Brazil’s self-imposed ban on exports due to a case of mad cow disease. The ban was triggered by a sanitary agreement signed between Brazil and China in 2015, with Minerva being the most affected meat company, followed by rivals Marfrig and JBS. However, Minerva will not be affected as it can export beef from plants in Uruguay and Argentina. The ban will impact meatpackers’ first-half results, but JBS is expected to be the least impacted due to its geographic diversification.
Tanmiah & Tyson Foods
Saudi-based Tanmiah Food Company and US-based Tyson Foods held a meeting in Jeddah to discuss the potential growth opportunities in the Middle East and Saudi Arabia, following their strategic partnership agreement in 2022. The partnership aims to meet the growing demand for poultry in the Kingdom and support Saudi Arabia’s food security goals and economic growth. The companies discussed future expansion plans to increase the processing capacity of the Supreme Foods Processing Company, jointly investing in the expansion of further processing capacity. The expansion is expected to increase the total production capacity of Supreme Foods Processing to almost 100,000 metric tons per year.
Vall Companies
Spanish meat firm, Vall Companys, has gained full control of pork products specialist, Embutidos Rodríguez. Although the value of the deal has not been disclosed, Vall Companys initially took a 10% stake in the business in 2017, increasing that to 40% last year. Pork products are the second-largest part of Vall Companys’ €2.3bn ($2.4bn) turnover business, after poultry. Meanwhile, Embutidos Rodríguez generates €220m in turnover and employs 600 people at its factory in Soto de la Vega. The takeover of Embutidos Rodríguez consolidates Vall Companys’ Iberian ham operations and strengthens its growth prospects in the short- and medium-term.
Dairy Company News
Agropur
Agropur has named Pierre-Luc Ouellet as the new vice president of growth and commercial strategies. Ouellet has been with the company for five years, serving as senior director of Go-to-Market for all Canadian categories, where he was responsible for overseeing the development of the Go-to-Market team. Before joining Agropur, Ouellet worked for 16 years in various positions at Kraft and Kimberly-Clark.
Arla Foods
Arla Foods and the Nigerian government have signed a memorandum of understanding to develop Nigeria’s dairy sector. The two parties first formed a partnership in 2016, and the new memorandum aims to promote cooperative business structures among nomadic herders. The initiative will include training and knowledge sharing opportunities, product development, and job creation. Arla Foods is also involved in other dairy development projects in Nigeria, including training sessions for local farmers and the opening of an Arla-driven farm in Kaduna State.
Danone
Danone UK & Ireland has committed to not producing high-sugar, salt, or fat products for children and ensuring 90% of its portfolio by sales volume falls under the “healthy” category or scores at least 3.5 stars out of 5 in the Health Star Rating index. This new threshold applies to all Danone UK & Ireland consumer brands, including Alpro, Activia, and Evian. The company aims to support families in making healthy choices and meet the growing demand for nutritious products among health-conscious consumers. Research commissioned by Danone UK & Ireland shows that 94% of UK consumers pay attention to their food and try to eat healthily.
FrieslandCampina
FrieslandCampina, the Dutch multinational dairy cooperative, plans to optimize its butter production network in the Netherlands and make it more sustainable by relocating all butter production to Lochem and closing its production location in ‘s-Hertogenbosch by mid-2025. The company claims the decision is due to the rising demand for cream products for the foodservice market, which has led to a structural overcapacity in butter production. The expansion of the Lochem production location will lead to more efficient production and a reduction in CO2 emissions. The rebuilding of the production location in Lochem is expected to take about two years and create 27 new jobs. The company plans to adopt a social plan and support the affected employees in finding new jobs.
Lactalis
French authorities are conducting a criminal investigation against Lactalis, a major dairy company, for alleged failure to carry out product withdrawals and recalls, fraud, and negligent bodily harm, according to a statement from the company. The investigation is related to a recall in 2017 and 2018 of baby milk products that were contaminated with salmonella, which sickened dozens of infants in France and other countries.
Seafood Market News
The shrimp industry in Ecuador had a contradictory year in 2022, according to José Antonio Camposano, Executive President of the National Chamber of Aquaculture. Although production and export volumes increased, low prices and external factors, such as China’s contraction in demand due to the zero-Covid policy and Russia’s and Ukraine’s conflict, caused significant concern for the industry. The increase in the cost of the US dollar against other currencies also affected the cost of production, making shrimp 20% more expensive. Despite this, Ecuador sold 60% of its production to China and is still dependent on the Chinese market.
Seafood Company News
Alltech
Alltech and Finnforel have acquired the Raisioaqua fish feed production facility in Finland to support Finnforel’s sustainable circular economy fish farming chain. The acquisition will enable Finnforel to complete its aquaculture gigafactory project and enhance aquaculture producers’ access to Alltech’s nutritional technologies. Finnforel’s production chain uses recirculating aquaculture, which consumes 99% less water than traditional methods, and combines an efficient and vertically integrated fish farming chain. Finnforel’s gigafactories specialize in sustainable aquaculture, with the entire production chain, from parent fish and eggs to consumer products, in its hands.
Bornstein Seafoods & Astoria Pacific Seafoods
Bornstein Seafoods and Astoria Pacific Seafoods have been fined by the Oregon Department of Environmental Quality for violating wastewater regulations. Bornstein Seafoods was fined $32,000 for violating technology-based effluent limits, while Astoria Pacific Seafoods was fined $10,200. The companies exceeded guidelines several times over a period of months, resulting in the penalties.
Cooke & Nueva Pescanova
Canadian seafood firm Cooke is reportedly in discussions to acquire a stake in Spanish fishing and seafood processing firm Nueva Pescanova, with negotiations progressing well, according to sources familiar with the talks. The move would create one of the world’s top ten fishing groups, as Nueva Pescanova seeks a stable industrial partner and greater volume to strengthen its profitability, while Cooke aims to increase its processing capacity in Europe and diversify its products and markets further. Neither company commented on the reports.
CP Foods
Charoen Pokphand Foods Public Company Limited (CP Foods) plans to increase its installation of solar panels at 180 animal farms, feed mills, and processing plants in Thailand to reach a total capacity of 65 MW by 2023, and aims to achieve 100 MW of solar energy in its supply chain by 2025. The company’s initiative will reduce greenhouse gas emissions by approximately 44,000 tons of CO2 equivalents. CP Foods also aims to maximize the proportion of renewable energy consumption in its value chain to 50% by 2030 and become a food company that uses 100% renewable energy across its value chain. It has committed to Science Based Target initiatives (SBTi) with net-zero goals by 2050.
Dongwong
Dongwon Industries, the holding firm of Dongwon Group, has signed a memorandum of understanding to acquire a controlling stake in Boryung Biopharma for an estimated $384 million. This will allow Dongwon Group to enter the biopharmaceutical industry for the first time in its history. The company will conduct due diligence exclusively on Boryung Biopharma and is expected to make an announcement within the next three months. This decision comes after the company reportedly became the only participant last month in a preliminary bid to acquire McDonald’s Korea, which is also estimated at around $384 million. Dongwon Industries has yet to confirm rumors about its intent to buy the U.S. hamburger franchise’s Korean operation.
Mowi
Mowi, the world’s largest salmon farmer, has decided not to appeal a court ruling in Oslo that ordered the company to pay its former Ireland boss, Jan Feenstra, NOK 1.13 million (€102,953/$109,072) along with court costs of nearly NOK 200,000 (€18,221/$19,306). Feenstra had sued the company claiming he missed out on millions of Norwegian kroner after he was unable to exercise his stock options.
Nomad Food
Nomad Foods, the American-British frozen foods company, has achieved record annual revenue for the sixth consecutive year in 2022, reporting an increase in revenue of 12.8% to €2.9 billion for the full year 2022 compared to the full year 2021. The company reported a profit of €250m for the period and an adjusted EBITDA increase of 8% to €524m. Nomad Foods expects mid-single-digit revenue growth and cash flow conversion in the range of 90% to 95% for the full year 2023. The company’s adjusted gross margin decreased 80 basis points to 25.7% in the fourth quarter, driven by higher raw material costs and inflation, which was partially offset by higher pricing.
Pelagio
Pelagia, a major pelagics processing company in the North Atlantic region, expects a prosperous first half of 2023 due to the increased blue whiting quotas. The company experienced a significant increase in product sales and revenue in Q4 2022, which indicates that the upcoming quarters could be even more successful. Pelagia is a joint venture between Austevoll Seafood and Kvefi.
Royal DSM
Royal DSM has announced that it will resume production of its Rovimix Vitamin A product in Sisseln, Switzerland, after temporarily halting production in November 2022 due to a challenging cost environment that continues into 2023. The company’s decision to restart production is aimed at serving its loyal customers with animal nutrition premix solutions before the planned shutdown for lifetime extension work on the Vitamin A line this summer. The move is also aimed at maintaining a resilient vitamin supply that plays a critical role in food security. DSM is committed to sustainable production of high-quality feed additives, including the Rovimix product range, with a strong production base in Europe.
Trident Seafoods
Trident Seafoods, a US-based seafood supplier, has introduced Alaska pollock fish fillet sandwiches in 7-Eleven stores as part of a Lent promotion. The initiative is supported by the Association of Genuine Alaska Pollock Producers (GAPP) North American Partnership Program, which has been partnering with 7-Eleven for the past three years to promote Alaska pollock during the Lent period. GAPP CEO Craig Morris stated that their research indicates that the convenience store channel is becoming a significant meal destination, particularly for young consumers who are on the move
Shipping & Logistics Market News
Canadians are facing the possibility of empty shelves and shortages due to the supply chain meltdown of recent years, which has impacted essential items such as cold and flu medicine, fresh fruits and vegetables, and new vehicles. At the same time, Canadian farmers are throwing away enough produce to feed entire provinces. The root causes of the problem include obsolete technology and infrastructure, as well as unexpected factors like a labour shortage during the pandemic. The solution lies in using innovative predictive AI tools to make the supply chain more efficient and resilient. Startups in Canada are working on such tools, and large corporations must be made aware of them to overcome daily problems affecting their customers. The DMZ at Toronto Metropolitan University has incubated several such startups that can create long-term, high-paying jobs in Canada and generate millions of dollars in revenue.
Shipping & Logistics Company News
CHEP
Lee Leggett has been appointed as the new CEO of CHEP Network, starting in April. She joins from Wunderman Thompson, where she was CEO for AUNZ and later chief growth officer for the Asia Pacific region. Leggett has experience working at leading creative and digital agencies in the UK such as Digitas, Tribal DDB and Dare. Clemenger Group CEO Les Timar expressed his pleasure at welcoming Leggett, citing her as a proven CEO and industry leader who understands the importance of the intersection between business and creativity.
CMA CGM
CMA CGM Group is reshuffling its West Africa operations by ending the EURAF 3 service and deploying a full fleet of 1,700 TEU in its WAZZAN service. The company will also introduce a dedicated Central Range Feeder and a weekly North Range Feeder. Freetown will be added to the rotation of the MEDWAX service. The updates are expected to improve frequency and connections to and from Monrovia, San Pedro, Takoradi, Banjul, and other main connections. CMA CGM promises more allocations and a direct link between Sierra Leone and West Med.
Evergreen
Taiwan’s Evergreen Marine Corp is giving year-end bonuses equivalent to 50 months’ salary, or more than four years’ pay on average, to some of its staff to celebrate a standout year. The windfall varies based on an employee’s job grade and function and is only applicable for staff with Taiwan-based contracts. The unprecedented industry-wide shipping boom over the past two years, driven by a pandemic-fuelled surge in demand for consumer goods and freight rates, has resulted in Evergreen Marine’s 2022 revenue expected to triple that of 2020 to $20.7 billion.
Hapag Lloyd
JM Baxi Ports and Logistics Limited has entered into a strategic partnership with Hapag-Lloyd Aktiengesellschaft. The deal involves HLAG purchasing around 35% from Integral Investments South Asia VIII, a Bain Capital affiliate, and subscribing to a capital increase by the company to raise its shareholding to 40%. Trilegal advised JM Baxi Ports and Logistics Limited on the deal, which was led by corporate partners Nishant Parikh, Harsh Maggon, and Pranav Atit, along with other key partners and attorneys.
Knight Swift Transportation
Envestnet Asset Management has decreased its holdings in Knight-Swift Transportation Holdings by 3.2% during the third quarter, selling 5,913 shares and leaving it with 177,950 shares worth $8,707,000. Other hedge funds and institutional investors have added or reduced their stakes in the company, with 89.95% of the stock currently owned by institutional investors and hedge funds.
MSC
The Australian Maritime Safety Authority (AMSA) has banned a Liberian-flagged Mediterranean Shipping Company (MSC) containership, the MSC Kymea II, from entering Australian ports for 90 days due to maintenance and safety-related deficiencies. AMSA says the move follows months of sub-standard performance from the ship’s operator, Cyprus-based MSC Shipmanagement Ltd. AMSA has detained nine MSC-operated ships over the past two years, including five in 2023, due to systemic sub-standard maintenance practices onboard. The MSC Kymea II was found with 21 deficiencies, including a defective free fall lifeboat steering system and dangerously-stored flammable materials.
ONE
Ocean Network Express (ONE) is collaborating with Sony Network Communications Europe to develop and integrate a smart container solution across its global fleet. This technology will provide ONE with greater visibility of its container fleet, enabling faster decision-making and more efficient container movement. Customers will also benefit from live updates throughout a shipment’s journey and more reliable shipping data for easy communication with relevant stakeholders. ONE is the world’s seventh-largest container carrier, operating over 205 vessels and offering an international network of over 130 services to 120 countries.
