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Meat, Dairy & Seafood Company News
The potential entry of Amul into the Karnataka milk market has become a heated political issue ahead of the elections, with local brand Nandini feeling threatened. Host Mugdha Variyar travels to the milk belt of Karnataka to explore the economics behind dairy politics and speaks to farmers and industry experts to understand the impact of the Amul – Nandini issue on them. Mugdha interviews the director of the women’s dairy cooperative in Sunnadadoddi, the women’s president of the Mandya District Bharatiya Kisan Sangha, the general manager of Mandya Milk Union, and the founder of Organic Mandya, who is also the Mandya candidate for the Sarvodaya Karnataka Party.
Glanbia has completed the sale of its shareholdings in Glanbia Cheese to US – based Leprino Foods Company in a deal worth at least €178.9m. The agreement will see the full ownership stake transferred immediately, and following a transition period post – completion, Glanbia Cheese will be renamed Leprino Foods UK Limited and Leprino Foods EU Limited. The sale will give Leprino access to key markets across the globe and will enh ance its international presence. The acquisition follows the joint venture between Glanbia and Leprino Foods in 2000, which made Glanbia Cheese a market – leading European mozzarella business.
JBS has created its own in – house cleaning service, JBS Sanitation, for its US operations and subsidiary, Pilgrim’s, after terminating its contract with Packers Sanitation Services Inc (PSSI) last month. PSSI was fined $1.5m for using child labour, with a U S Department of Labour investigation finding that the supplier illegally employed over 100 children. JBS Sanitation will begin operations at ten facilities and be extended to other sites if third – party service providers fail to meet the company’s standards . The move comes after the meat producer established a whistle blower hotline for employees to report suspicious activity regarding underage workers.
Norwegian salmon farming company Mowi has introduced a new range of value – added salmon items called “Bistro Bakes ” to help UK consumers control their food spending during a period of record inflation. The oven – ready salmon meals are available at various retailers, including Asda and Sainsbury’s stores across the UK. The launch is part of Mowi’s efforts to increase its share in the UK retail market.
Parag Milk Foods’ stock has risen 24% in the past month, but the company’s inconsistent financials may have an adverse impact on the current share price momentum. The company’s return on equity (ROE) is 6.6%, which is lower than the industry average of 11%, and its net income has declined by 65% in the past five years. Additionally, the company does not pay a dividend, which implies that all of its profits are being reinvested in the business. As a result, investors may not be benefiting from all the reinvestment due to the low ROE. Therefore, caution is advised when considering investing in the company.
The University of Illinois has partnered with Perdue Farms and Cornell University to develop strategies to reduce Salmonella cases linked to raw poultry. The project, fully funded by Perdue Farms, aims to build risk assessment models to optimize Salmonella control strategies in the supply chain, using Perdue’s data to identify the most effective management strategies. The research will further advance Perdue’s food safety practices , which already focus on Salmonella and Campylobacter control from the farm, while maintaining a stringent Pathogen Control Program during harvest. The goal is to provide consumers with the safest possible products and reduce Salmonella contamination throughout the poultry supply chain.
Pilgrim’s UK, a leading pork processor and producer, has announced a new structure for its agricultural operations, following the sudden departure of its pig supply chain director, Mark Haighton. Helen Webb, previously technical director – agriculture, will take up the new role of technical and customer director – agriculture, while livestock logistics manager, Rob Ayton – Norfolk, has been promoted to the new role of head of procurement and logistics. The depa rtures of Haighton and former UK agricultural director Barney Kay continue the changes within the company since the appointment of Ivan Siqueira as president of Pilgrim’s UK in January 2022.
The potential closure of 37 Smithfield sow farms in Missouri due to challenges in the pork market has raised concerns about the impact on the local economy and the state’s pork industry. The closures could result in the loss of over 1,000 jobs and a significant reduction in the state’s pork production capacity. This situation underscores the challenges facing the pork industry in the US and the need for greater support and investment in sustainable agriculture.
Sysco Corp has argued that it cannot be forced to continue litigating antitrust claims against the US’s largest meat suppliers, claiming that litigation financier Burford Capital is blocking settlement deals in hopes of securing a bigger pay out. Sysco says that it is owed full control of the price – fixing claims.
Thai Union, a global seafood company, has made alternative proteins a key part of its future business strategy. The company has launched multiple lines of plant – based seafood5 alternatives and is backing ce llular agriculture too. Thai Union’s ambition is to become a powerhouse in Asian plant – based manufacturing, servicing customers’ needs through its Global Innovation Centre (GIC) know – how and capabilities, assets on the ground, and powerful ecosystem. The c ompany is leveraging its capabilities as an original equipment manufacturer (OEM) partner and innovation capabilities of the wider group, along with its industry – leading GIC and its open innovation partnership via its Bangkok – based SPACE – F incubator and ac celerator program.
Tongwei & Haid
Chinese aquafeed producers Tongwei and Haid have begun work on land-based shrimp farming projects, as per their annual reports. The projects mark a significant shift from traditional open-water shrimp farming to indoor, recirculating systems that are expected to reduce disease outbreaks and help China meet its growing demand for seafood. Both companies are expected to complete the projects by 2023 and aim to produce up to 30,000 metric tons of shrimp annually.
Feed & Nutrition Company News
According to a Reuters report on Thursday, a group of technical experts from Turkey, Russia, Ukraine, and the United Nations will convene today to discuss an agreement that would enable the export of Ukrainian grains on the Black Sea. Turkish Defence Minister Hulusi Akar announced the meeting, stating that it precedes a scheduled meeting of the deputy defence ministers of Russia, Ukraine, and Turkey next week. Akar added that Ankara is striving to extend the current deal, which is set to expire on May 18.
ADM has announced the election of its board of directors at its annual stockholders’ meeting. Dr. Ellen de Brabander was added as a new director, bringing a strong background in scientific research and innovation experience in human nutrition, life science s, and animal health to the board. Ten incumbent directors were re – elected. The board also declared a cash dividend of $0.45 per share on the company’s common stock, payable on June 7, 2023, to4 shareholders of record on May 17, 2023. This is the company’s 366th consecutive quarterly payment, with over 91 years of uninterrupted dividends. ADM is a global leader in human and animal nutrition, developing solutions for today and the future.
Cargill has entered into an agreement with Polish CIECH group, a supplier of evaporated salt products, to provide a full range of specialty and evaporated food salt solutions to European food manufacturers. The deal complements Cargill’s existing food ingredients portfolio in Europe. By joining hands with CIECH, Cargill can provide access to its global network of ingredient, application and sensory specialists, as well as a full portfolio of specialty and evaporated food salt solutions to its European customer base. CIECH Group is one of Europe’s biggest producers of evaporated salt and has production facilities in Germany and Poland.
ForFarmers N.V. has reported a – 5.2% decrease in total feed volume during the first quarter of 2023, compared to the same period in 2022. The company attributed the drop to bird flu outbreaks in the UK and Poland, as well as a crisis in the pig sector. The good result in the ruminant sector in the UK was noted as a positive. The company has recently started a reorganisation to implement a local approach and responsibility as part of its revised strategy. ForFarmers believes that knowledge, innovation, and cost reduction are key drivers to adapt to changing market c onditions and increase returns.
The Andersons has reported “solid” Q1 results for its renewables segment, despite low ethanol crush margins during most of the quarter. The company saw an improvement in crush margins in March, which has continued into Q2. CEO Pat Bowe said the company had completed maintenance shutdowns at its ethanol plants and was in a good position to capitalise on higher spot pricing in the ethanol business. The outlook for demand has improved and the company feels it is in a good position to enjoy strong margins, Bowe added. The Anderson s’ renewables segment reported a pretax loss of $83m and adjusted pretax income attributable to the company of $6m for the first quarter.
Zoetis Inc, the veterinary drugmaker, reported weaker – than – expected sales in its pet products unit due to distributor de – stocking, with revenue of $1.23 billion for Q1 2023 falling short of analysts’ estimates of $1.4 billion. The company reassured investors that the dip was due to short – term factors and not a decline in demand from pet owners. Zoetis reiterated its annual forecast of adjusted profit between $5.34 and $5.44 per share and revenue in the range of $8.58 billion to $8.73 billion for the full year. However, shares in the company fell 3.4% to $171.71 in early trading.
Logistics Company News
C.H. Robinson, a logistics company, has announced a quarterly cash dividend of $0.61 per share payable on July 3, 2023, to shareholders of record on June 2, 2023. The company has distributed uninterrupted dividends that have increased annually on a per share basis for twenty – five years.
Chinese state – owned shipping company COSCO has sold a vintage cape to Dubai’s Lila Global for $16.3m, after its first attempted sale of the 2006 – built CHS Splendor fell through due to a deposit error b y the Middle Eastern buyer. This is the latest in a series of vintage sales by the company, which sold another same – aged cape to Jiangsu Steamship in March for $17m.
Hapag – Lloyd
Hapag – Lloyd has launched “Ship Green,” a climate – friendly transportation solution based on biofuel, enabling customers to choose different options representing different levels of avoidance in CO2e emissions: 100%, 50%, or 25% of their shipmen t’s ocean – leg CO2e emissions. The company guarantees the use of 2nd – generation biofuels sourced from certified supply chains and produced from waste material, with no edible virgin oils included in the fuel. At the end of every quarter, customers receive an emissions avoidance declaration verifying the total emissions prevented through Ship Green in the respective period.
A.P. Moller- Maersk has inaugurated its first warehousing and distribution facility in Cape Town, South Africa. The 10,000 sq. m. bonded W&D facility is expected to offer Maersk’s customers easy connectivity to rail, road, air, and port infrastructure. The warehouse is strategically located near the Belcon rail siding, the Port of Cape Town, and the N1 and N2 highways, with a dedicated backup power supply and top – notch safety measures. The new facilit y will be a significant milestone in building integrated logistics solutions for Maersk’s customers in the region and become a crucial link in the end – to – end supply chain management for their cargo from origin to destination.
Mediterranean Shipping Company (MSC) has announced updates to its India Africa Service (IAS) and India to South Africa Service from May. The updates include direct calls at Coega, Abu Dhabi, and Jebel Ali, which will provide MSC customers with improved connections and transit times between Africa, the Middle East Gulf, and India. MSC’s India to South Africa Service rotation will create a direct connection between Durban and the Middle East. The new rotations of both services will have weekly frequency. MSC recently launched a new Inter – Asia service called Shikra, aimed at strengthening port connectivity and availability in Asia.