Top Headline
How Elior & its 134 000 employes are becoming the global leader in the food service industry
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FEED, NUTRITION & INGREDIENTS NEWS
Bunge
Bunge’s Brazilian unit is launching a “regenerative agriculture program” aimed at promoting practices that will help minimize the growth of greenhouse gas emissions. The program involves protecting and restoring soil health, with a view to capturing more carbon from the atmosphere to reduce emissions. Bunge’s program covers around 250,000 hectares of land in the states of Bahia, Maranhao, Mato Grosso, Parana, Piaui and Tocantins, and aims to improve the retention and infiltration of water in the soil while making more efficient use of energy resources and lowering the use of agricultural inputs.
Cargill
Cargill, one of the US’s largest beef producers, has cut ties with a Wisconsin-based janitorial service, Packers Sanitation Services (PSSI), which employed underage workers in violation of federal labor laws. The move follows a U.S. Department of Labor investigation that revealed more than 100 children were illegally hired by PSSI to clean meatpacking plants. The investigation found violations at slaughterhouses across the country, including Cargill-owned facilities in Texas and Kansas. Claims of misconduct did not target Cargill’s own employees, rather those of a subcontractor. The company’s human rights policy forbids child labor in its supply chain.
CHS
CHS Inc., the leading agribusiness cooperative in the United States, has reported a net income of $ 292.3 million for the second quarter ended Feb. 28, 2023. This represents an increase from the net income of $ 219 million reported in the same quarter of the previous year. For the first six months of fiscal year 2023, the company reported net income of $ 1.1 billion and revenues of $ 24.1 billion compared to net income of $ 671 million and revenues of $ 21.2 billion recorded in the first half of fiscal year 2022. The strong global demand for commodities and improved market conditions for refined fuels drove increased earnings for the quarter and the first half of the fiscal year, according to the company’s president and CEO, Jay Debertin. The company’s diversified portfolio offset margin pressures experienced within its ag segment, particularly wholesale and retail agronomy products.
ForFarmers
ForFarmers N.V. has scheduled an Extraordinary General Meeting of Shareholders on June 5, 2023, to appoint Rob Kiers as a member of the Executive Board (COO). The meeting will take place at the company’s offices in the Netherlands and more information is available on the ForFarmers corporate website.
Royal DSM
Royal DSM is in exclusive negotiations to acquire Adare Biome, a pioneer in the development and manufacturing of postbiotics, for an enterprise value of € 275 million. Postbiotics consist of inanimate microorganisms and/or their cellular components and metabolites that confer a health benefit to the host. Adare Biome’s Lactéol is a supplement that relieves gut upsets and is available over the counter in 35 countries. DSM anticipates being able to rapidly extend the availability of Lactéol through its B2C unit, i-Health, and establish itself as a frontrunner in the growing microbiome management market for pets. The transaction remains subject to consultation of the workers council and customary regulatory conditions.
MEAT, DAIRY & SEAFOOD NEWS
FrieslandCampina
FrieslandCampina Engro Pakistan Limited (FCEPL) reported a revenue of Rs 22,651 million in Q1 2023, with 62% topline growth versus last year, driven by mix improvement, widening distribution footprint, and volume growth in Dairy-Based Products and Frozen Desserts segments. Despite inflation and rupee devaluation, the Company improved its gross margin and operating margin by 70 bps and 30 bps respectively by driving cost efficiencies across the value chain. FCEPL partnered with Engro Eximp FZE to expand its global footprint and enter new markets. The management is confident that it will continue to drive efficiencies and deliver growth despite various constraints.
Olymel
Canadian pork producers are seeking a national solution to the closure of Olymel’s Vallée- Jonction plant, which was announced recently due to the pandemic, labor shortage, inflationary pressures, and challenges in accessing foreign markets. Rene Roy, Chair of the Canadian Pork Council, emphasized the need for long-term solutions to ensure the industry’s competitiveness and food security. The pork industry is valued at $ 7 billion in Canada, with exports accounting for almost $ 5 billion. The closure will affect Quebec, Atlantic Canada, and other parts of the country, leading to the layoff of almost 1,000 Olymel employees and the need for producers to find new buyers.
Mowi
Mowi, a leading seafood company, has reported Q1 2023 earnings that are over EUR 100 million higher than in the previous year. The company posted operational earnings before interest and taxes (EBIT) of EUR 322 million in Q1 2023, compared to EUR 207 million in Q1 2022. The harvest volume exceeded expectations in the quarter, with volumes reaching 102,500 metric tons (MT) gutted weight equivalent (GWE). Norway, Scotland, Canada, Iceland, and Ireland either met or exceeded their harvest performance expectations, while Chile lagged behind. Mowi’s full Q1 2023 report is due to be released on 10 May.
W H Group
China’s WH Group has issued a profit warning to shareholders and potential investors, indicating that its first-quarter profit for 2023 is expected to drop around 56% compared to the same period in 2022, citing challenging market conditions in the US pork segment. Hog raising costs remain high, while pork prices have been affected by lower consumer demand, and the industry gross cut-out margin has declined significantly year-over-year during the three months, according to the filing with the Stock Exchange of Hong Kong. The unaudited consolidated management accounts have not been finalized and are subject to adjustments, with the official announcement expected to be published in late April.
CONTAINER SHIPPING NEWS
Maersk
Maersk, UPS Foundation/Coyote Logistics, Good360, LIFT Non-Profit Logistics, and the Kale Foundation are working together to transport 440 pallets of US-donated humanitarian aid to Turkey in response to the earthquakes that occurred in February. The relief goods will be transported by both land and air and will include items such as clothing, bedding, food, and solar-powered lights. Maersk Air Cargo’s daily Boeing 747 cargo service will be used to transport the entire shipment to Frankfurt-Hahn Airport, after which it will be placed into 20 trailer trucks for inland transportation to Turkey. Good360’s partner, the Kale Foundation, will distribute the items to survivors.
Ocean Network Express
Ocean Network Express (ONE) has ordered two containerized wind assist units from Netherlands-based company, Econowind, for installation on one of their container feeder ships by the end of 2023. The wind assist systems will contribute to ONE’s Green Strategy and reduce fuel oil consumption, helping the company achieve net-zero emissions by 2050. The 10.5 x 2.8 meter VentoFoil units will generate thrust and save up to 400 kW of engine power. Collaboration between ONE, Norse and Econowind will enable data collection and learning from the retrofit, serving as a justification for investment in wind-assisted ship propulsion.
