Meat, Seafood & Dairy Company News
The chairman of Kaira District Cooperative Milk Producers’ Union Limited, also known as Amul Dairy, has stated that no director of “the original” Amul Dairy was part of the delegation that toured New Zealand, and has accused Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) of “tarnishing the Amul brand name”. He has threatened to revoke the rights to use the brand name by GCMMF and other milk cooperatives if they do not clarify that no director of Amul was part of the delegation. GCMMF has denied that two members of a dairy delegation from Gujarat had harassed a woman while on a study tour to New Zealand.
Cargill’s significant investment in the beef industry is facing difficulties due to a decrease in demand caused by food inflation. This has led to declining margins for the meat unit, coinciding with the start of the tenure of the new CEO. Cargill’s profits have slowed down following two consecutive years of record earnings.
Cargill, Mars, Walmart, Costco, WWF and Finance Earth have launched an innovative concept to finance the transition to more sustainable fisheries worldwide, aiming to catalyze over $ 100m in investment in fisheries improvement by 2030. The new financing model focuses on reversing the trend of fisheries decline while scaling global fisheries improvements toward nature-positive outcomes, including healthier marine ecosystems, thriving fishing communities and an environmentally sustainable blue economy. Finance Earth will establish and manage the Fisheries Improvement Fund (FIF), a unique opportunity to attract a range of investors to support fishery improvement worldwide.
Dongwon Enterprise Co. has withdrawn its bid to acquire McDonald’s Korea after the two sides failed to reach a middle ground for their differences. This is the second time the attempt to sell McDonald’s Korea has failed, with the first time being in 2016 when the Carlyle Group’s bid fell apart. Earlier this year, Dongwon emerged as the only participant in the preliminary bid for the sale of McDonald’s Korea and carried out due diligence in January. However, the negotiations about the price were halted because they could not agree on the terms.
Glanbia, an Irish nutrition company, has completed the sale of its mozzarella assets in Europe, including Glanbia Cheese EU Ltd and Glanbia Cheese Ltd, to Leprino Foods for a total of EUR178.9 million. The transaction includes a EUR114 million consideration and a EUR64.9 million repayment of shareholder loans received in cash, along with up to EUR25 million in contingent consideration, subject to the performance of Glanbia Cheese over the next three years. The proceeds from the sale will be used for general corporate purposes, and Glanbia Cheese will be renamed Leprino Foods UK Ltd and Leprino Foods EU Ltd.
Wesley Batista Filho will take over as CEO of JBS USA starting from May 1, replacing Tim Schellpeper, who is retiring. Batista Filho has been working at JBS since 2011 and has served in various executive roles, including as CEO of Seara, president of JBS Canada and JBS USA Fed Beef Division, and most recently as global president of operations at JBS SA since July 2022. Schellpeper, who has been with JBS since 2017, expressed gratitude for his time at JBS USA and is looking forward to spending more time with his family.
Parag Milk Foods has reported a net profit of INR 22.35 crore ($ 2.97 million) in the quarter ended 31 March 2023, compared to a loss of INR 591.78 crore ($ 78.66 million) in the same quarter last year. The company’s total income grew 41.43% to INR 810 crore ($107.84 million) in the reviewed quarter, against INR 572.75 crore ($ 76.14 million) in the year-ago period. For FY23, the company reported a net profit of INR 53.254 crore ($ 7.08 million) compared to a loss of INR 532.495 crore ($ 70.86 million) in FY22. The company’s e-commerce business grew by 2.2 times on a year-on-year basis.
Perdue Farms CEO Randy Day will retire this summer after more than 40 years with the poultry processor. Kevin McAdams, currently COO and president of Perdue Farms, will take over as CEO. Day plans to stay on to help with the transition. He has been with the company since 1980 and served as CEO since 2017. Under his leadership, Perdue Farms weathered the COVID-19 pandemic and implemented some of the company’s largest initiatives in both agribusiness and food production.
Perdue Farms has partnered with GreenGasUSA to reduce carbon emissions at its Lewiston, N.C. plant by capturing methane from the operation’s onsite wastewater treatment facility and converting it to renewable natural gas (RNG). The partnership has achieved a 24.9% reduction in greenhouse gas emissions and expects to exceed its 30% goal. Perdue has also launched an initiative to capture carbon in the soil, reduce truck usage, and drive down carbon impact. The company is committed to continuous improvement and has made significant progress in environmental, animal care, innovation, and supply chain improvements.
During a conference call with analysts on February 27, Pilgrim’s Pride CEO Fabio Sandri noted that there has been a rise in sales of chicken meat in the deli category. He attributed this to a consumer trend of seeking affordability and convenience, which he finds encouraging. Sandri discussed this trend and other retail trends as Pilgrim’s Pride released its financial results for the first quarter of fiscal year 2023.
Pilgrim’s Pride Corp reported its financial results for the first quarter of fiscal year 2023, indicating a focus on diversifying its portfolio and growing operational efficiency in 2022. Despite challenging business conditions, the company’s net sales were $4.17 billion, down 1.8% from last year. Adjusted earnings per share were 8¢, with adjusted net income at $19.05 billion. Adjusted EBITDA was $151.9 million, down 70% from a year ago. Pilgrim’s sustainability efforts are ongoing, including the unveiling of a poultry farm in the UK that can reduce emissions by nearly 100%. The company also mentioned its plant expansion in Athens, Georgia, and its new protein conversion plant are on track.
Purina – Nestle
During Q1 2023, Purina PetCare continued to be the largest contributor to Nestle’s organic growth, with sales reaching $5.267 billion, up from $4.629 billion in the same period of 2022. The growth was fueled by strong momentum for science-based and premium brands like Purina ONE, Purina Pro Plan, and Friskies. Purina PetCare gained market share in North America, Europe, Asia, and Latin America. Overall, Nestle sales increased by 5.6% to $26.5 billion in Q1 2023 compared to $25 billion in the same period of 2022, with Purina PetCare leading growth worldwide for Nestle in 2022.
Savencia Fromage & Dairy reported sales of € 1,669 million, up 14.7% YoY due to organic growth of 17.6%, partially offset by a negative exchange rate effect of 3.0%. Sales of cheese products increased by 13.6% and sales of other dairy products increased by 23.2%. The company is focusing on the successful integration and development of synergies following the takeover of Sucesores de Alfredo Williner. The company is committed to reducing its absolute greenhouse gas emissions and has received validation from SBTi for its decarbonisation trajectory. However, uncertainties such as global geopolitics, inflation, energy, purchasing power, and dairy economy do not provide visibility over 2023.
Vietnam’s leading dairy brand, Vinamilk, has announced plans to participate in international trade promotion events in search of new export opportunities and developing new sales channels. Despite economic uncertainty, the company aims to expand its global reach and has secured a total value of $ 100 million for its six-month export plan, with the Middle Eastern region accounting for 85%. Vinamilk has been in business in the Middle East since 1997, and its baby products, particularly Dielac milk powder and RiDielac baby nutrition powder, have been well-received and trusted by consumers. The company also exports to 58 other countries and territories worldwide, with accumulated export revenue of $ 3 billion.
Feed, Nutrition & Ingredients
Dr. Curtis Novak has been appointed as the general manager of Alltech’s U.S. poultry division. In this role, Novak will lead Alltech’s poultry team and strengthen alignment across all business units, from research and development to account management. Prior to joining Alltech, Novak served as the manager of poultry sales and research at Purina Animal Nutrition. He holds a doctoral degree in poultry science from the University of Nebraska-Lincoln and has research interests in enzyme supplementation, non-antibiotic feeding programs, and other nutritional factors affecting poultry production.
Viterra Australia has had its biggest shipping month ever, loading over 990,000 tonnes of grain onto vessels across its six port terminals in March, surpassing the May 2011 mark by over 20,000 tonnes. The company has already loaded over 100 vessels destined for 31 countries during this busy shipping season. Viterra’s total 2022-23 season grain receivals now stand at over 8.9 million tonnes, and it has delivered over 3 million tonnes of Southern Australian grain loaded onto vessels since the beginning of the season.
Animal health company Zoetis plans to build a new manufacturing facility in Douglasville, Georgia. The $ 100m project, expected to create 150 jobs, will improve an existing facility to expand capacity of its monoclonal antibody and vaccine portfolios. Operations are scheduled for 2026. Zoetis, which was spun off by Pfizer, is the world’s largest producer of medicine and vaccinations for pets and livestock.
Read: COFCO Corporation Emerges as a Major Exporter and Processor of Brazilian Agricultural Products
Logistics Company News
COSCO SHIPPING Ports has reported a flat total throughput of 30.3 million TEU for Q1 2023, with a 0.5% YoY decrease in revenue to $ 328 million. However, the company saw a YoY increase of 11.2% in gross profit to $ 89.9 million, and its gross profit margin also expanded by 2.9 percentage points to 27.4%. Total throughput from subsidiaries decreased by 11.1% YoY, while total throughput of the terminals in China increased by 0.6% YoY to 22.7 million TEU, accounting for 74.7% of the Group’s total.
Taiwanese mainline operator Evergreen Marine Corporation is reportedly seeking to build up to 24 16,000 TEU methanol dual-fuelled container ships. The company has invited yards from China, Japan and South Korea to submit quotes for the newbuildings. The ships will have to run on green methanol, and likely to be deployed on Asia to Europe services, with analysts suggesting the Mediterranean region as a suitable market due to upcoming European emissions rules. Delivery of the vessels is expected to start in 2026.
Maersk has suspended all shipments to Sudan due to the ongoing conflict in the country. The company has stopped accepting bookings until further notice and is closely monitoring the situation. The conflict has led to hundreds of deaths and concerns of it evolving into a civil war. Additionally, one of the cranes at the port is not working, causing slow vessel operations. London’s marine insurance market has also added Sudan to its list of high-risk areas.
Mediterranean Shipping Company (MSC) has joined a $ 70m Freeport Harbour deal with Royal Caribbean and ITM Group, with completion targeted for October. MSC is reportedly seeking another port of call where it has a level of financial interest, after having already developed its own private island destination in The Bahamas. Royal Caribbean and ITM have been negotiating the deal’s terms with the Freeport Harbour Company for several years. The proposed investment will improve the port and expand the number of cruise ship berths, and develop a water-based adventure theme park for passengers.
Container line ONE did not provide a full-year forecast for 2023 in its 2022 results due to the difficulty of predicting the market, according to the company. ONE cited the impact of supply chain congestion, geopolitical changes, and shifts in consumer behavior as contributing factors. Other container lines have also highlighted the challenge of forecasting for 2023 and have shown lower earnings and revenue figures as demand and rates fall. ONE’s 2022 results showed a $ 15bn profit, down $ 1.7bn YoY. The company has implemented several measures, such as extending blank sailing periods and deploying larger vessels, to respond to the changing market.