Editorial

Boar’s Head Listeria Outbreak Continues

According to a recent release by the Centers for Disease Control and Prevention, the outbreak of listeriosis attributed to Boar’s Head deli meats has risen to 57 confirmed cases, all requiring hospitalization and including ten fatalities. Following epidemiologic investigations, Boar’s Head ultimately recalled 7 million pounds of deli meat in a series of actions.

 

Of 44 patients interviewed, 41 reported consuming deli-sliced meats with either or both liverwurst or the Boar’s Head brand identified. Health authorities in Maryland and New York have isolated the infectious strain of Listeria monocytogenes in unopened containers of liverwurst.  Commonality of strains from patients, and unopened products are homologous as determined by whole genome sequencing.

 

It is evident that far more cases of listeriosis will and have occurred as a result of consuming contaminated product. Among this cohort, the immunosuppressed, elderly and pregnant were the most susceptible and if demonstrating symptoms requiring medical treatment, microbiological examination to confirm the diagnosis would have been performed. Current news reports indicate that “The infection is spreading”.  This is factually incorrect, since listeriosis is not contagious.  Since the infection may have an incubation period of up to 70 days, incident cases are emerging despite the series of recalls in July.

 

The reality that infected product was sliced at deli counters in numerous supermarkets represents an additional problem beyond primary contamination. Transfer of organisms from Boar’s Head product emanating from the Jarratt plant to slicers and the environment of deli stations must have occurred. This could have resulted in secondary contamination of other cold cuts distributed from multiple locations. Cleaning of slicers to eliminate Listeria infection is a complicated process as evidenced by the Listeria outbreak attributed to a Maple Leaf  Foods plant during 2008. 

 

An egregious aspect of the case is the fact that between August 2023 and 2024 four inspections of the Jarratt, VA. plant by USDA-FSIS documented 69 non-compliances and disclosed deviations from acceptable processing practices.  These included:

 

  • Heavy discolored meat buildup and meat overspray on walls

 

  • Large pieces of meat on floors

 

  • Fly infestation

 

  • Black patches of mold on a ceiling

 

  • Blood puddled on the floor

 

  • Rancid smell in coolers

 

Following suspension of inspection the Jarratt plant has ceased operation.  The question arises as to why the USDA failed to act expeditiously to protect the health of consumers.

 

The deficiencies as observed in the Jarratt plant certainly contributed to the problem although it is recognized that even “clean” plants operated in accordance with acceptable standards may be a source of Listeria. The pathogen can persist in niches including drains, work surfaces and on processing and packaging equipment.  It is questioned if Boar’s Head management knowing the risk of Listeria contamination was implementing a microbiological surveillance program and whether the genus was detected. This should have been subject to USDA review and verification during inspections irrespective of other obvious violations.

 

The marketing, legal and financial consequences of this case may be so severe that the family-held ownership and structure may be changed as in the case of Blue Bell Creamery involved in a multistate Listeria outbreak in 2015. The Boar’s Head brand is now seriously degraded. Their marketing program developed over decades in partnership with supermarkets and other outlets has evaporated.

 

It is inconceivable how a prominent and long-established company supplying cold cuts, could be indifferent or negligent to the risk of Listeria infection and its consequences.  It is also difficult to understand the lack of action by the USDA.  This case certainly strengthens the justification for an independent food safety agency since this episode and the 2023 baby formula crisis under the FDA suggests that consumers are not protected.

 

With the 10th fatality Congress is calling for an inquiry and is urging the Department of Justice to consider criminal charges, reminiscent of Blue Bell Creamery and the Peanut Corporation of America

 

Poultry Industry News

McDonald’s Corp Suing Beef Suppliers

McDonald's Corporation has filed a lawsuit against nine packers that supplied beef for menu items.  The plaintiff alleges that the suppliers illegally colluded to maintain high prices by manipulating levels of slaughter.  The company stated in its complaint that collusion commenced in 2015.  Defendants will include Cargill Inc., JBS SA, National Beef, and Tyson Foods as the main suppliers.

 

McDonald’s Corporation alleges violation of Section 1 of the Sherman Antitrust Act by holding prices at a higher level through collusion through sharing production and cost data at industry events and trade shows.

 

In addition to substantial direct and punitive damages, McDonald’s is also requesting an injunction to enjoin the suppliers from continuing with anticompetitive activities.

 

In retrospect this lawsuit that may lack merit depending on evidence appears to be a case of the dog biting the hand that feeds it!

 


 

Effect of Prop. #12 on Pork Consumption in California

California Proposition #12 banned the sale of pork derived from sows held in gestation crates effective 2024. This 2018 legislation and the CADFA regulations has had minimal effect on price and consumption in California.  Despite the dire predictions of unavailability and high prices as a result of implementation, prices of pork products including bacon are only slightly higher than in the rest of the U.S. 

 

The small but real increases in the prices of bacon, ribs and loin cuts were predicted to depress consumption.  Prior to introduction of Proposition #12, California accounted for 9 to 12 percent of pork consumption consistent with a population of 40 million in the state.  Current pork consumption has fallen to approximately 8 percent of national demand suggesting a 20 percent reduction in pork eaten, favoring chicken and possibly turkey.

Economists at the University of California at Davis calculated that at the time of implementing Proposition #12 that there was an adequate supply of product from sows held under group housing and that no incremental investment was necessary to comply with Proposition #12.

 

As experienced with eggs, ballot initiatives intended to improve flock and herd welfare have financial implications for consumers, a reality that is generally underplayed by proponents who emphasize the appeal to emotion and conveniently omit the quantifiable implications of passage of ballot initiatives dealing with welfare.


 

Ukraine Broiler Industry Dependent on Exports

According to USDA-FAS GAIN report UP2024-15 released on August 20th, Ukraine will produce 1.33 million metric tons of RTC broiler meat in 2025.  This is 0.8 percent above the volume in 2024.  Exports will attain 0.45 million metric tons representing 30 percent of production, emphasizing the disparity between output and domestic consumption.  Based on a population of 38 million, per capita, consumption is projected at 24kg (53.2 lb.),

Since most broiler production facilities are in central and western Ukraine, damage associated with the invasion of the nation by the Russian Federation has not been as severe as with the egg industry.  Support from the European Union in the form of reduced tariffs has maintained broiler production.

 

The industry is dominated by MHP with this integrator representing 70 percent of national output.  Four other producers Agrol, Agro Oven, Dniprovskiy and ULAR are responsible for the remainder. Despite ongoing hostilities and damage to warehouses and coldrooms, MHP has expanded and has achieved full utilization of facilities. 

 

Challenges facing the industry include population outflow with at least six million residents displaced westward to the E.U., disruption of the transport infrastructure, currency devaluation and conscription of employees.  Electricity supply is variable and may deteriorate in 2025 since Russia is intensifying missile and drone attacks on the power grid.  On the credit side feed ingredients are both available and inexpensive now representing 55 percent of live weight cost according to the GAIN report followed by day-old chicks at 20 percent.

 

Currently, broiler producers in the Ukraine function with an export limit of 133,283 metric tons per year for the E.U. representing 30 percent of shipments.  Other nations receiving broiler products from the Ukraine include the U.K., the Middle East and Eurasian regions in addition to  feet to Hong Kong and China.


 

Chipotle Mexican Grill Testing New Chicken Recipe

Chipotle is currently evaluating Honey Chicken in 80 restaurants in Nashville, TN. and Sacramento, CA.  Field trials followed successful taste tests using trained panels.  Chris Brandt, Chief Brand Officer for Chipotle stated, “Consumers have clearly shown their enthusiasm for sweet-heat combinations, and we believe Chipotle Honey Chicken will capture fans with a high level of excitement.”

 

As with many QSRs and casual dining restaurants chains, there is an evident transition to more chicken-based menu offerings.  Apart from the popularity of chicken, displacing beef enhances margins and allows greater flexibility in menu options compared to alternative proteins.

 


 

Nebraska to Introduce Restrictions on Cell-Cultured Meat

The Nebraska Department of Agriculture has been directed by Governor Jim Pillen to develop rules restricting cell-cultured meat.  It is intended that cell-cultured meat should be clearly labeled and separated at point of sale from natural meat derived from livestock.

 

In establishing the policy, Governor Jim Pillen, himself a Veterinarian and hog producer, stated at an event, “Nebraska farmers and ranchers like those here today are committed to producing the best food products anywhere.  We feed the world, and we save the planet more effectively and more efficiently than anybody else and I will defend those practices.”

 

A number of states with beef and pork production have introduced or are intending to pass legislation banning or restricting the manufacture or sale of cell-cultured meat including Florida and Alabama. The constitutionality of legislation directed against cell-cultured meat will be challenged in court following filings by Upside Foods and the Institute for Justice.

 

States with livestock production are pressing ahead with restrictions on sale and labeling despite the fact that none of the startups or established cell-cultured meat companies has been able to produce commercial quantities of product or will be likely to do so in the foreseeable future. This situation follows a decade of “almost there” optimism that has swallowed up almost $2 billion in venture capital worldwide. Restrictive legislation at this time is essentially political theatre to engender and solidify support from livestock producers. It may also be coupled with a twinge of Luddite opposition to innovative technology.


 

Broiler Production in Turkiye Expands Despite Economic Problems and Middle East Tensions

The broiler industry in Turkiye continues to expand with an eight percent projected increase in domestic production to 2.6 million metric tons.  According to a USDA-FAS-GAIN Report TU2024-41 released on September 4th, exports will increase by 14.4 percent in 2025 over 2024 to 374,000 metric tons. This quantity was down from 445,000 metric tons in 2023.  Domestic consumption will increase to 2.23 million metric tons, an eight percent increase over 2024 representing a per capita consumption of 26.2 kg (56.7 lbs.) assuming a population of 85 million.

 

Turkiye has encountered competition from Ukraine and Russia in their traditional Eurasian markets.


 

Legal Conflict Over Heme Proteins Resolved

Long-running litigation between Impossible Foods and Motif FoodWorks over inclusion of heme protein in plant-based meat substitutes has been resolved.  Impossible Foods includes soy leghemoglobin produced by a genetically engineered strain of yeast to simulate the color of their product.  Motif uses a yeast-derived version of myoglobin in their product apparently representing an infringement of patents held by Impossible Foods.

 

 

Under the agreement, Impossible Foods will assume the heme-related activities conducted by Motif FoodWorks and the case will be dismissed with each party responsible for their respective legal fees and expenses.

The settlement agreement recognizes that the parties will continue advancing plant-based meat alternatives through innovation, collaboration and fair competition.

 

The U.S. Patent Appeal Board recently invalidated one patent awarded to Impossible Foods but sustained six other patents that were pivotal to litigation.

 

 


 

Angola Continues as An Importer from the U.S.

According to a USDA-FAS-GAIN Report dated September 6th, broiler production in Angola will remain fairly static at 52,000 metric tons in 2025, up four percent from the preceding year.  Most of the domestic production is derived from small rural units, and a limited number of commercial operations.  The major restraint to domestic production is the cost of ingredients with an unjustified restriction that all imports should be from non-GM cultivars. 

 

Imports of chicken will be unchanged for 2025 at 190,000 metric tons representing 78.5 percent of domestic consumption.  Assuming a population of 36 million, per capita consumption will be 6.7 kg (14.8 lbs.) in 2025.  It is recognized that due to the wide disparity in income between high and low earnings demographic, consumption in urban areas will be higher than the national average.

 

For the first half of 2024, Angola was ranked 10th among importers from the U.S. with 50,395 metric tons representing approximately half of the volume imported by Angola with the remainder supplied by Brazil.  For the first half of 2024 Angola represented 3.1 percent of volume and 2.4 percent of U.S. export value at an average unit price of $1,078 per metric ton.


 

UAE Dependent on Imports

According to USDA FAS GAIN Report TC2024-07 released on September 4th, production in the United Arab Emirates will increase by 16.7 percent from 2024 to attain 70,000 metric tons.  The Nation is dependent on imports with 400,000 tons representing 85.1 percent of consumption. Domestic consumption will increase by 5.6 percent in 2025 attaining 50 kg per capita (110 lbs.) assuming a population of 9.4 million comprising Emiratis and expatriates and including foreign manual workers in construction. Domestic broiler production is supported by government feed subsidies and other concessions.

 

The UAE market is dominated by Brazil exporting set-weight whole frozen chicken from 900 g to 1,200 g in addition to portions and further-processed items.  Brazil operates plants capable of satisfying UAE Halal and labeling requirements for a wide range of products in demand.

During the first half of 2024 UAE was ranked 9th in volume among importers from the U.S. with 51,973 metric tons valued at $56.7 million.  Compared to the first half of 2023, volume and value were higher by 59 percent and 83 percent respectively.  Over the first half of 2024, UAE represented 3.2 percent of export volume and 2.5 percent of value.  Over the six-month period average unit value was $1,091 per metric ton, below the average for the period that attained $1,366 per metric ton.  U.S. leg quarters exported to the UAE are mainly consumed by foreign contract laborers.


 

Broiler Production in South Korea to Expand in 2025

According to USDA-FAS GAIN Report KS2024-19 released on September 12th, domestic broiler production in Korea will increase by one percent to 945,000 metric tons in 2025. This projection  is based on the volume of breeding stock placed. Imports will rise by 2.5 percent over 2024 to 200,000 metric tons.  Exports of 65,000 metric tons are nominal representing 5.6 percent of total supply.  Given a population of 56 million per capita consumption will attain 19.3 kg (42.4 lbs.) in 2025. 

 

Highly pathogenic avian influenza is currently under control after 3.6 million chickens were depopulated on 32 farms during the 2023-2024 outbreak.  Of this quantity, 201,000 broiler parent flocks were lost on two farms. Depletion in the broiler segment of the poultry industry was limited to 80,000 commercial growing birds.  Egg- producing flocks on fifteen farms represented 88 percent of birds depopulated.

 

Consumption of broiler meat in South Korea is moving towards small packs of portions, meal kits and convenience items given the preponderance of single and two working-member households.

 

Imports by country of origin in 2023 confirmed the dominance of Brazil at 72 percent of volume, with Thailand the second largest supplier.  The U.S. held one percent of the market in 2023 mainly due to cost and product considerations but was limited by unresolved trade policy.


 

Oklahoma Water Pollution Case in a Back-and-Forth Mode

Judge Gregory Frizzell for the U.S. District Court for Northern Oklahoma ruled for the State on January 23rd concerning pollution of the Illinois River watershed by poultry litter.  Defendants in the case included Tyson Foods, Cargill, Culp-Vantress, Aviagen, Cal-Maine Foods, Simmons Foods and George’s among others.  Mediation that concluded in November 2023 failed to produce a settlement.  Accordingly, Judge Frizzell is now intending to impose penalties.

 

Secretary of Agriculture, Blayne Arthur, petitioned the court for leniency noting, “Respectfully, judicial adjustment of standards and requirements applicable to the poultry industry may circumvent the law making process which is best left to elected legislators and officials in the Executive Branch.”  Secretary Arthur is concerned that an adverse ruling and penalties would result in “unintended consequences”. 

 

Based on the submission of the petition Judge Frizzell has provided an opportunity for the parties to submit any new evidence relating to the responsibility of poultry producers for damage to the ecosystem.

 

Since the case that was filed in 2003 is of importance to both poultry producers and farmers using litter as a fertilizer and soil amendment, new standards for disposal and use of litter are required. Recent court rulings have emphasized the deleterious impact on local communities from inappropriate disposal of waste. In contrast decades of stewardship by chicken producers on the Delmarva Peninsula have improved the quality of water in the Chesapeake Bay.


 

Hormel Foods to Face Mismanagement Suit Over Retirement Plan

In February a former employee of Hormel Foods filed a lawsuit against the Board of Directors of Hormel Foods alleging mismanagement of the company retirement plan.  A Federal court in the District of Minnesota has rejected a motion by Hormel for dismissal, allowing the case to proceed. 

 

The claimant maintains that Hormel directors deviated from their “fiduciary duty of prudence” by including equities with high risk in the $1.2 billion retirement plan.  While the outcome of this case will not affect the ongoing operations of Hormel Foods, disaffection of employees may result if the allegations are substantiated.


 

Better Meat Company Receives DOD Grant

Following the recent controversy over the Department of Defense funding research and development of cell-cultured meat, grants were rescinded as a result of vigorous opposition by legislators representing beef-producing states.  The Better Meat Company that manufactures an ersatz meat product using Rhiza mycoprotein received a grant of $1.4 million. The Better Meat Company protein recently received approval under the “Generally regarded as safe” category for their fungal-derived protein.

 

Paul Shapiro is a shareholder in the Better Meat Company. He was previously affiliated with HSUS and was a supporter of Josh Tetrick who established a series of businesses to produce food products without using livestock or poultry.

 

A number of research organizations and start-ups also received Department of Defense grants including the Battelle Institute in Columbus, OH., Molecular Genetics, MA., Genomatica in San Diego, CA. among others.

 

This round of grants to alt meat producers and research organizations will most certainly elicit a negative response from beef-state members of Congress and some grants will in all probability be rescinded.


 

Global Trade Impacted by Restrictions on Transiting Suez and Panama Canals

World trade has been affected by the ongoing restrictions placed on passage through the Panama Canal due to low water level.  Administrators of the waterway imposed a Long-Term Slot Allocation Program effective October 1st.   During 2023, LPG crude oil and automobiles were reduced by delays in passage and increased transit times. 

 

The action by Houthi terrorists affecting passage of vessels in the Red Sea has resulted in vessels avoiding the Suez Canal and traveling around the Cape of Good Hope, adding both time and cost to shipments.


 

Environmental Working Group Sues Tyson Foods over GHG Claims

The Environmental Working Group (EWG) an activist organization that advocates for climate issues and opposes intensive livestock production has filed suit against Tyson Foods Inc.,  alleging contravention of the District of Columbia Consumer Protection Procedures Act. The case, if it proceeds, will be heard before the D.C. Superior Court

 

The EWG claims that Tyson Foods has issued misleading statements relating to their intentions to reduce greenhouse gas emissions.  Tyson Foods accounts for twenty percent of beef, chicken and pork production in the U.S. Previously the Company announced plans to reduce emissions by thirty percent by 2030 and to achieve net-zero emissions by 2050.  Tyson Foods intends to achieve these goals by using renewable energy, by expanding grazing for beef cattle and eliminating deforestation in supply chains.

 

The EWG allege that Tyson Foods claims represent “greenwashing” and that the company spends less than 0.1 percent of annual revenue on reducing greenhouse gas production.


 

Cargill Undergoing Restructuring

Following a decline in profitability, privately held Cargill Inc. is apparently to undergo structural changes.  Informed observers have noted that a high proportion of Cargill businesses failed to meet earnings goals during fiscal 2024.

 

The Company will consolidate operations into three units:

 

  • Food to be led by Jon Nash

 

  • Ag and Trading to be managed by Roger Watchorn

 

  • The Specialized portfolio including Animal Nutrition and Health guided by David Webster

 

Concurrent with these changes in operations, a number of executives will retire including Julian Chase Head of Business Operations and Supply Chain.  The Company has also embarked on a program of reducing costs to increase return on capital.

 

Changes at Cargill parallel the consolidation of facilities and programs to reduce


 

Legal Settlement by House of Raeford Farms and Koch Foods Approved

An Illinois, federal court granted approval to a $75 million settlement by House of Raeford Farms and Koch Foods to the “Direct Purchaser Plaintiff class”.  Effectively this approval precludes individual class members from pursuing separate litigation against the Defendants.



 

Hybrid Turkeys Announces Executive Appointments

Dr. Owen Willems has been appointed as Global Director, Research and Development for Hendrix Genetics.  In his new role, he will be responsible for all species within the Hendrix Genetrics portfolio.  Willems is a 12-year veteran with Hendrix joining after completing his doctoral studies at the University of Guelph, Ontario.

 

Dr. Willems has gained considerable experience both in North America and Europe applying creative and innovative solutions for the benefit of the industry. In his new position, Dr. Willems will be located at Hendrix-Genetics Global Headquarters in the Netherlands.

 

Blair McCorriston has been promoted to Director, Sales and Commercial Excellence, replacing Dr. Owen Willems. In her new position, Ms. McCorriston will report to Trevor Aitchison, General Manager, Americas.  Blair will become a member of the National Turkey Federation Executive Committee replacing Dr. Willems. She has served in various positions at Hybrid Turkeys over 12 years and has gained experience with Internal Operations, R&D, Sales, Technical and Marketing teams.

 

Her appointment supports a strengthened connection among sales, product management, technical service and marketing.  In commenting on the promotion, Trevor Aitchison, General Manager, noted that Blair has “demonstrated her commitment to excellence in the turkey industry and her leadership will support the Company dedication to delivering high-quality products and services”.


 

Hormel Seeking to Diversify Customer Base

According to recent comments by Hormel CEO, James P. Snee, the Company will expand product scope to capture new distribution channels. Hormel will promote products including snacks comprising their Planter’s Nut brand and a range of pork and turkey products through convenience stores that offer potential for increased sales.  Hormel is also promoting Jennie-O ground turkey through retail channels despite indications of oversupply.  Hormel is also accessing the market for pizza toppings and sliced meats.

 

Initiatives to reduce costs have been implemented through streamlining the supply channel and application of technology. The implied benefits of improved planning and execution will be evident in subsequent quarterly reports according to Snee.


 

Fate of Pure Prairie Poultry in Question

Previously, CHICK-NEWS reported on the Chapter 11 petition filed by the company in the U.S. Bankruptcy Court for the District of Minnesota.  Pure Prairie Poultry claims assets of between $50 and $100 million but has liabilities between $100 and $500 million with numerous creditors.

 

The Court rejected the Chapter 11 bankruptcy petition since it was dependent on Sandton Capital providing debtor financing amounting to $15 million but with the lender, receiving secured status placing them above other creditors. Objections to the restructuring plan led to the rejection by the Court and Pure Prairie Poultry must now either find a buyer or cease operation under Chapter 8.

 

The U.S. Department of Agriculture is a creditor based on $37.6 million provided through a guaranteed-loan program. Due to financial restraints, Pure Prairie Poultry was unable to pay for feed for flocks held for 14 growers in Iowa.  Accordingly, the Iowa Department of Agriculture and Land Stewardship exercised emergency authority to acquire 1.3 million broiler chickens that required feed.  This action was taken under Iowa Code Chapter 717 and was approved by a state court on October 2nd.  The Department of Agriculture is cooperating with farmers to maintain flocks to market weight at which time they will be sold, and taxpayer funds will be reimbursed with the state representing a debtors entitled to proceeds of any income from disposal of assets or sale of the enterprise with a plant in Charles City, IA.

In principle, Pure Prairie Poultry should not have found itself in a position to file for bankruptcy protection.  Other small-scale broiler producers supplying niche markets have survived and expanded.  It is evident that the Company was undercapitalized in relation to projected volume. Their product carried claims of “all natural,” raised under acceptable welfare standards without antibiotics and fed vegetable-based diets. This should have allowed the Company to establish an acceptable share of the high-value market. Other benefits included the initial support of the USDA and other lenders and the availability of contract growers.  Obviously, Management erred in execution, despite their collective ‘pedigree’ including Foster Farms, Tyson Foods, Petaluma Poultry, GNP Company and Zacky Farms.


 

Minimal Expansion of Broiler Production for Canada in 2025

The September 25th USDA-GAIN Report on Canada, CA2024-44, projected a 2.5 percent increase in broiler production to 1.465 million metric tons (6.66 million lbs.) in 2025.  Producers in Canada operate according to a controlled quota system with independent farmer-growers purchasing feed and chicks, often through cooperatives and selling live birds to processors.

 

In 2025, USDA estimates total imports at 215,000 metric tons, up 4.9 percent from 2024.  Exports will amount to 125,000 metric tons resulting in net importation of 90,000 metric tons.  Given a population of 39 million, per capita consumption will attain 44.7 kg. (98.4 lbs.) close to that of the U.S.

In 2023, Canada was ranked 7th among importers of U.S. broilers and products with a total quantity of 142,434 metric tons valued at $435 million.  Imports in 2023 were respectively down 7 percent in volume and 11 percent in value with a unit price of $3,054 per metric ton indicating whole birds and added-value product.

 

For the first seven months of 2024, Canada moved to 6th place, importing 84,766 metric tons valued at $258 million with a unit price of $3,044 per metric ton.  This can be compared to the average of all exports for the seven-month period of $2,631 million with an average unit price of $1,382 per metric ton confirming a different range of products.

For 2024, the U.S. held 80.4 percent of Canadian broiler and product imports followed by Brazil at 7.5 percent, Thailand at 5.1 percent and Chile rising to 3.9 percent as a result of membership in the Comprehensive and Progressive Transpacific Partnership with a relatively low tariff rate quota.

 

Exports to Canada peaked in 2020 at 160,791 metric tons but this included deceptively-described broiler products as “spent fowl” to avoid paying a tariff.  With stricter border controls, this practice has ceased together with stricter scrutiny of the import for re-export program. 

 

The Canadian Food Inspection Agency enforces a ban on re-export of chicken from Brazil to the U.S.  Chicken products from Brazil do not enter non-eligible Canadian facilities that are authorized to export to the U.S. 


 

Chick-fil-A Expansion in the United Kingdom

After an initial failure to establish a foothold in the U.K. in 2019, Chick-fil-A intends to expand internationally with a second initiative involving stores in London and Northern Ireland and in industrial centers including Leeds and Liverpool.

 

Chick-fil-A is a closely held corporation and does not release financial data.  Technomic a market research company specializing in the food industry estimates that annual sales are in the region of $20 billion annually.  With approximately 3,000 U.S. locations, each store generates  annual sales approaching $6.5 million, far in excess of competitors McDonald’s, Burger King and Wendy’s.

 

Joanna Symonds the designated head of U.K. operations noted, “We have always cared about the impact of our restaurants on the local communities that we serve, and we strive to positively impact areas throughout the U.K.  She added, “Caring for people, while delivering great food is at the heart of our brand and we encourage our local Owner Operators to partner with organizations that support their local communities.

 

Chick-fil-A intends sourcing both chicken and free-range eggs from local suppliers adhering to acceptable welfare certification.  Surplus food will be distributed to shelters and foodbanks and restaurants will donate to nonprofit charities. The PR campaign should offset some of the xenophobia directed against the first store established in Reading, Berkshire in 2019.

 


 

Amendment to Federal Meat Inspection Act Proposed

Senators Bernie Sanders (I-VT), Peter Welch (D-VT) and Cory Booker (D-NJ) have introduced the Livestock Owned by Communities to Advance Local Foods Act (LOCAL).  The proposed legislation would amend the Federal Meat Inspection Act of 1906 to support independent and small-scale meat processing under the “personal-use exemption”.  The Bill would allow consumers to purchase animals on the hoof for subsequent slaughtered and processing in other than a USDA-inspected abattoir.

 

The Federal Meat Inspection Act has stood the test of time and protects consumers. A continual process of eroding the supervision and inspection of meat products by the designated federal agency will not materially provide competition for major meat packers.  Unfortunately, it will expose consumers to potential foodborne disease.  Promotion of “food freedom” issues by extremists at both the left and right of the political spectrum is exemplified in the raw milk movement. Expanding availability of raw milk has considerable potential to disseminate a wide range of pathogens. This is confirmed by the incident rates of salmonellosis, campylobacteriosis, listeriosis and STEC infection, attributed to non-pasteurized milk.


 

Revised USDA-FSIS Labeling Guidelines

The August 2024 guidelines for labeling are intended to ensure transparency and to eliminate false claims that may mislead consumers.

 

The guidelines require substantiation of claims in relation to the following areas: -

 

  •  Animal welfare including statements relating to ethical and humane procedures.
  • Environmental claims including ‘sustainability’ and ‘carbon neutral’.
  • Management claims including ‘free-range’ and ‘pasture-raised’.
  • Breed claims including for specific beef strains associated with perceived quality attributes including  ‘Angus’ and ‘Wagyu’
  • Antibiotic use claims such as ‘raised without antibiotics’ should be subject to verification including assay.

The FSIS has been made aware of extensive use of green washing claims including unsubstantiated statements relating to sustainability and the application of regenerative grazing.

Producers making label claims must now present supporting evidence including third-party certification and appropriate documentation.


 

JBS and UFCW in Conflict over Greeley, CO Plant

The United Food and Commercial Workers Union, Local 7, claims that JBS has contravened labor law when employing workers from Haiti and Benin.  They allege illegal practices including abusive treatment, human trafficking and excessive rent charges.

 

JBS counters the allegations that appear to revolve around a recruiter who is no longer used and was never an employee of the company.  JBS noted that the HR function of the plant has been strengthened and training programs for recruitment have been introduced, consistent with Company hiring policy.

 

JBS does not charge employees for transportation, pre-employment services or mandate residence.  The company noted, “We want all of our employees to have access to safe housing and the opportunity to create a better life for themselves and their families.”

 


 

Expansion of Saudi Investments in Regional Broiler Production

The Saudi Agriculture and Livestock Investment Company (SALIC) has acquired a 13 percent stake in MHP SE of Ukraine.  This holding company operates Perutnina Ptuj that process meat and poultry in Slovenia, Croatia, Serbia and Bosnia.  Perutnina Ptuj also distributes through subsidiaries in 15 E.U. nations. 

This investment by SALIC adds to their broiler production portfolio which includes an investment in BRF S.A. with an 11 percent equity share allowing transfer of technology and domestic production in addition to assurances in supply from Brazil.   The investment in MHP will generate synergy since the company will cooperate with Tanmiah Food Company in existing facilities and will include a proposed joint venture in Saudi Arabia.

 


 

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