ESS-Feed Daily Headline “Brazil Meat Packers Share Prices Surge!”
ESS-Feed daily in association with Junto
Get smarter about money
Learn why 2,000+ professionals from Apple, Google, and Goldman Sachs trust Junto to get better at money. No stock picks or speculation. Just simple, timeless tips for wealth creation.
Most Read Articles
1. Brazil Meat Packers share prices surge on the back of Swine Flu in China
2. Norwegian Salmon additional 40% tax proposal is still on the cards
3. Evergreen Shipping pays employees huge performance bonuses
4. Chile begins culling birds due to bird flu outbreak
5. UAE approves a poultry price increase
Animal Feed & Nutrition Market News
Experts agree that disease prevention and good nutrition promote a reduction in antimicrobial use to treat illness Global sales of antibiotics for veterinary use are down nearly one-third since 2011, according to the World Organisation for Animal Health (WOAH), with some major livestock-producing countries in Europe, as well as the United Kingdom, cutting sales by more than 50%. By focusing on disease prevention, good nutrition and establishing a clear animal health management plan with a veterinarian, the need for the use of antibiotics can be reduced dramatically. “Consumers, and therefore our customers, down the value chain, increasingly want antibiotic-free protein
Animal Feed & Nutrition Company News
ADM
ADM has launched Knwble Grwn, a new brand of direct-to-consumer ingredients such as flaxseed, flax oil, hemp seed, hemp oil, and quinoa, which are available for purchase on Amazon. The brand sources from farmers who implement regenerative agriculture practices, and targets environmentally conscious consumers. The launch is a part of ADM’s strategy to expand its consumer products portfolio and lower its Scope 3 greenhouse gas emissions by 25% by 2035.
The Andersons Inc
The Andersons Inc. has announced the expansion of its wholesale fertilizer distribution terminal in Lordstown, Ohio, which will include a new 10,000-ton storage building and enhancements to the receiving system and loadout automation process. The project will increase dry bulk storage by nearly 65%, from 15,500 to 25,500 tons, and improve unloading capacity from 300 to 500 tons per hour. The Andersons expects to complete the expansion project by fall of 2023 and better serve customers throughout the northeast Ohio market.
CP Foods
Charoen Pokphand Group (CP Group) is considering an IPO of its seed and animal feed business in Thailand, which could raise up to $1bn. The company is restructuring its agricultural operations in preparation for the spinoff, which could include its animal feed and seed businesses under Charoen Pokphand Foods and Chia Tai. The IPO could take place as early as next year and may raise between $600m to $1bn, depending on market conditions.
Nutreco
BlueNalu has signed a letter of intent with aquafeed company Nutreco to scale up the production of its cell-cultured seafood products. The partnership builds on earlier collaborations and aims to create a food-grade supply chain infrastructure for cell-cultured seafood manufacturing. BlueNalu and Nutreco will work together to bring down cell feed costs and establish specifications for raw materials that meet food-grade regulatory requirements for countries in which BlueNalu plans to sell its products. The LOI constitutes the third agreement between the two companies, which first joined forces in December 2019.
Phibro
Pzena Investment Management has filed a 13G/A form with the SEC disclosing ownership of 2.04MM shares of Phibro Animal Health Corp (PAHC), representing 10.04% of the company. This is an increase from their previous filing in January 2023. Additionally, the average one-year price target for Phibro Animal Health is $17.08, suggesting an 8.48% upside from its latest reported closing price.
Volac
Volac, a company based in the UK, has introduced a new division focused on feed additives to aid the global feed industry in improving productivity and addressing the Net Zero challenge.
Zoetis
Zoetis, a leading animal health company, has been named one of the 2023 World’s Most Ethical Companies by Ethisphere. This recognition highlights companies with best-in-class ethics, compliance, and governance practices. Zoetis is the only standalone animal health company and one of three pharmaceutical companies included on the list. The assessment process includes over 200 questions on culture, environmental and social practices, ethics and compliance activities, governance, diversity, and initiatives that support a strong value chain.
Meat Market News
Chile has culled and buried around 40,000 poultry in response to its first case of bird flu in an industrial setting. The outbreak was detected in a plant belonging to meat producer Agrosuper, in Rancagua, central Chile. Chicken exports have been suspended for 28 days. The country’s head of livestock protection has described the event as “limited”, with no further cases detected in the surrounding area. Cases of bird flu have been detected in wild animals in Chile since late last year.
South Africa’s largest poultry producer, Astral Foods, has said that the shortage of smaller-sized chicken portions for fast-food restaurants has worsened due to load shedding, which has caused a backlog of chickens in the slaughtering process. This has led to chickens becoming fatter, making it difficult to find birds in the weight ranges required for quick-service restaurant production. Astral has commissioned diesel back-up generators at all its processing sites, but there is still a backlog of large live birds on farms.
The Abu Dhabi Ministry of Economy has approved a temporary maximum increase of 13% in the prices of egg and poultry products, after companies submitted requests to raise prices due to high production costs and a rise in international shipping costs. The ministry conducted an analytical study and verified the necessity of the increase, which will be assessed within six months, and if there are no reasons for it, it will be canceled or amended. The increase aims to protect companies and farms from negative effects, help sustain their operations, and ensure stable and reasonable prices for consumers.
The government of Finland is exploring the possibility of setting up a state fund to help farmers with the cost of controlling Salmonella on livestock farms, as changes in insurance coverage have made it difficult for farmers to bear the costs. A report by the Natural Resources Institute Finland (Luke) found that a state Salmonella fund would be the most viable solution. The fund could be financed by collecting payments from livestock farmers, which would be used to compensate them for the costs of eradicating disease outbreaks. A majority of at least two-thirds of votes in parliament would be required to approve such a bill. In addition, researchers have found a link between inferior inspection grades and increased incidence of Salmonella and Campylobacter infections in foodborne illnesses.
Meat Company News
2 Sisters
The poultry plant owned by 2 Sisters Food Group in Llangefni, Wales, will be closed on March 31. The decision to shut down the small and old plant, which lacks adequate space to operate efficiently, was jointly announced by the company and the union. They stated that consultations regarding the future of the plant had been “exhausted”. Earlier this year, the company had indicated that it was evaluating the possibility of shutting down the plant because it was not viable.
Danish Crown
Danish Crown has acquired a factory site from Skare meat packers in Vejen, southern Denmark, in a deal of undisclosed value. The purchase includes a 120,000 sq metre site with 14,000 sq metres of buildings, which is set to expand Danish Crown’s domestic footprint. The site will be transferred from director Kurt Skare on 1 April. The acquisition does not include production equipment or inventory as they do not match Danish Crown’s “future needs”. The company has not disclosed how the site will be used.
Hormel Foods
Hormel Foods Corp. has launched a new product called Hormel Sliced Chorizo to its line of ready-to-use pepperoni products. Made with premium ingredients and authentic spices, including pimento, peppers and garlic, the chorizo is designed to be both a quick snack and a convenient way to elevate homecooked meals. The product is now available in 5-oz packages, retailing at around $4.50, in-stores nationwide. Hormel hopes that its new sliced chorizo will appeal to consumers who are eager to explore new and diverse flavors.
JBS & Marfrig
Shares of Marfrig Global Foods SA increased by 10.2%, while JBS SA shares climbed 7.9% along with other Brazilian meatpackers’ shares, as news spread about the African swine fever outbreak in China. Marfrig shares reached 7.56 reais ($1.43), a decrease of 21% from the end of last year up until Wednesday’s closing. JBS shares rose to BRL20.77, while Minerva SA and BRF SA shares increased by 6.9% and 6.1% to BRL11.85 and BRL7.10, respectively. With reports of another swine fever outbreak in China, one of the biggest consumers of Brazilian beef, market expectations are that demand from China may increase again if they have to cull their swine herds. During the last swine fever outbreak in China, Brazilian beef prices surged as meatpackers increased exports, which lowered supply in their domestic market.
Perdue
Perdue Farms Inc. has agreed to pay $60.7 million to settle claims of conspiring to suppress competition for labor and to lower workers’ wages at poultry processing plants and other facilities. This settlement comes after over three years of litigation, where Perdue Farms and other poultry processors were sued for allegedly violating the Sherman Act by conspiring to drive down hourly wages and salaries at poultry processing operations. In December 2022, Perdue agreed to the settlement. Despite the settlement, Perdue Farms has denied the allegations throughout the process.
Sysco
Delivery drivers working for Sysco in Louisville may be going on strike after 88% of employees rejected the company’s latest offer. The unionization of Sysco drivers in 2022 was prompted by concerns over long hours, exhaustion, low wages, and time away from family. One of Sysco’s largest accounts in Louisville is Jefferson County Public Schools, which has had to make adjustments to its menu due to delayed deliveries. Sysco management has been urged to return to the negotiating table to address driver concerns.
Tonnies
Tönnies, the German meat company, has announced the closure of one of its export packaging departments for Asia due to continuing import bans on German pork by countries like China, Japan, and South Korea after an outbreak of African swine flu. The move is set to impact around 140 employees at the Tönnies plant in Weißenfels, Saxony-Anhalt. The company stated that export packaging would now take place at a plant in Rheda-Wiedenbrück, near Bielefeld. Tönnies is working with the council to create a social plan for the affected employees and also in contact with the Federal Employment Agency to help find new jobs for those workers who do not wish to relocate.
Tyson Foods
Tyson Foods, the largest US meat company, will be shutting down two chicken plants, one in Virginia and the other in Arkansas, on May 12. The move is part of the company’s efforts to improve its chicken business and utilize full capacity at its facilities. The closures will impact almost 1,700 employees. Tyson had struggled with supply and labor constraints last year and had to source chicken from other producers to meet demand.
Dairy Market News
Russian dairy companies have drawn backup plans in case new sanctions directly target European raw materials and technologies supplies. As an example of the impact on the sector, sour cream production will be affected, Sergey Bachin, owner of the Russian agricultural holding Agrivolga told local news outlet RBC. Russia imports roughly 90% of the sourdough needed for sour cream production. High import dependence on foreign, primarily European, starter cultures is observed in cheese, yoghurt and virtually all segments of fermented milk products, except kefir.
Dairy Company News
Arla
Arla Foods has opened a new solar power plant in Poland that is expected to produce 1,620 MWh of energy per year. The plant will meet about 85% of the site’s total energy requirements and will have the ability to store an additional 2.6 MWh in a battery. The investment will also be able to partly power the site at night and will reduce emissions by 1,645 tonnes per year, according to the company. The new solar power plant will allow the Danish-Swedish multinational cooperative to secure business continuity in an area with frequent power cuts and to create a renewable energy source in an energy grid with an otherwise high carbon factor.
Fonterra
Fonterra’s profits after taxes increased by 50% in the first half of the year, as the company moved its milk production to more expensive commodities such as cream and skim milk powder, which have higher margins for cheese and protein.
FrieslandCampina
FrieslandCampina Ingredients has constructed a new production plant to boost its lactoferrin production capacity by 60 metric tonnes per year, in response to the increasing global demand for the protein. The facility was built by the Dutch multinational dairy cooperative.
Nestle
Nestle South Africa has acquired N90.3m ($220,000) worth of shares in its Nigerian subsidiary, Nestlé Nigeria Plc. The acquisition took place in two tranches, with 40,000 ordinary shares sold for N1,092 per share and 37,967 shares sold for N1,096 per share on the Nigerian Stock Exchange in Lagos.
Saputo
Saputo Inc. has announced the appointment of Frank Guido and Haig Poutchigian as presidents and COOs of its US and Canadian dairy divisions, respectively, effective April 1. Guido has been serving as president and COO of Saputo’s Canadian dairy division since 2019, while Poutchigian has been senior VP, finance, for the Canadian dairy division since 2016. They will both report to Saputo’s President and COO for North America, Carl Colizza. The company has stated that Guido’s appointment comes at a “pivotal time” for the US team as it executes a global strategic plan.
Tillamook County Creamery Association
A dairy cooperative named Tillamook County Creamery Association from Oregon has bought a former Prairie Farms plant for $2.55 million in November 2022. They plan to improve and develop the facility to use it for production and distribution purposes. The property is situated along Martin Luther King Jr. Drive, between Marietta Street and Wabash Avenue.
Seafood Market News
According to the Global Trade Tracker, despite concerns about rising food inflation in the EU and its potential impact on overall seafood consumption, imports of warm-water shrimp will reach 500,000 tonnes. This equates to an increase of 2.54% over the previous year. US shrimp imports level off in January. Ecuador exports remains strong. Huge volumes out of Ecuador ate into Indian shrimp’s market share in the US last year, but value-added and black tiger shrimp showed growth.
US Lobster tail prices still rising as supply shortage continues.
Alaskan processors have ridden the wave of salmon catches, but now they’re headed for an ugly price cut. Last year harvesting over 60 million, 104% higher than than the 20-year average of 29.4 million, with fishermen catching more than $350 million at freight prices.
Seafood Company News
Abanca
Abanca, the owner of Nueva Pescanova, a vertically integrated seafood firm, is seeking a partner or potential sale of the company. Cooke Inc. was reported to be in negotiations to buy a majority stake in Nueva Pescanova, but now faces competition from Red Chamber Group. Abanca is considering offers from both companies as it faces a deadline of a USD 150 million debt that is facing imminent maturation. Nueva Pescanova had total sales of EUR 1.087 billion in its latest fiscal year, with estimated sales price for the entirety of Nueva Pescanova at EUR 800 million.
Hilton Foods
Hilton Foods Hilton Food Group has appointed Nicola Hunter as head of seafood purchasing and strategic sourcing. Hunter was previously the head of seafood buying at Sea-Farms for almost 11 years. Her appointment follows the departure of Phil Nickells, who was the head of procurement at Hilton Seafood UK.
Maruha Nichiro Corporation
Maruha Nichiro Corporation has decided to donate 10 million Japanese yen to aid relief and recovery efforts in the affected areas. The company has donated 7 million yen to the United Nations World Food Programme (WFP) and 3 million yen through the Japan-Turkey Society.
Nueva Pescanova
Nueva Pescanova is getting ready to fully repay its €150m syndicated loan. The company has financial autonomy to pursue its business plan, despite certain information reported in local media.
Salmar
Norwegian seafood company SalMar is set to close its SalmoSea slaughterhouse in Rørvik, resulting in the loss of more than 100 jobs. The move is largely based on economic reasons, with the facility requiring an investment of £20m to bring it up to standard. The company also cited a new tax on fish farmers as another reason for the closure. SalmoSea, which processes seafood and offers slaughtering services to SalmoNor and Bjørøya fish farming, installed a new production line in 2019, increasing its daily capacity to 260 tonnes of salmon.
Thai Union Group
Thai Union Group has confirmed its commitment to its investment in US foodservice operator Red Lobster despite booking a share of loss from the restaurant chain in its 2022 annual accounts. The Thai seafood giant holds a 25% share in Red Lobster and paid $575m for a minority stake in 2016. Last week, reports suggested that Thai Union was considering the future of its investment. However, the group’s annual report said the casual-dining chain suffered due to the impact of the Omicron variant of Covid-19, high inflation, slowed consumer spending, and threatened supply chains.
Logistics Company News
CMA CGM
French shipping giant CMA CGM Group has agreed to convert its previous financial support for Brittany Ferries into an equity stake in the operator of ferries between France, the United Kingdom, Ireland and Spain.
DB Schenker
DB Schenker is Europe`s first logistics service provider to offer global shipment tracking using ultra-thin tracking labels from high-tech developer Sensos. ‘‘Single-use labels can be attached to containers, pallets, or individual boxes to track land, air, and sea shipments for a single shipment,‘‘ a DB Schenker statement said.
Diana Shipping
Diana Shipping has agreed on a lower day rate for its 2011-built kamsarmax Leonidas P. C. with Cargill, which has already begun its contract at $17,000 per day. This is a 30% decrease from what Cargill agreed to pay in February last year. The charter is for 11-13 months, and Diana Shipping expects to earn approximately $5.6m for the minimum scheduled period of the charter. Although the deal is less profitable for Diana compared to last year, the fact that Cargill chartered one of its vessels at $12,000 per day last December indicates an upward trend for bulker earnings.
Maersk
AP Moller-Maersk has sold Maersk Supply Service to the Møller family holding company in the latest of his four sales of units in the energy sector. AP Møller Holding has acquired Maersk Supply Service for an undisclosed amount, it said in a statement emailed Monday. AP Moller-Maersk has outlined a strategy to focus on transportation and logistics in 2016, committing to sell its energy-related divisions Maersk Tankers, Maersk Oil & Gas, Maersk Drilling and Maersk Supply Service. Maersk had attempted to sell his Maersk Supply Service in 2019 before abandoning plans.
MSC
The Mediterranean shipping company will take over the giant MSC Tessa, a 400-meter long and 26-deep container stacker, fthe world’s largest container ship. Mediterranean Shipping Company (MSC) has taken delivery of a vessel built by Chinese shipbuilder Hudong Zhonghua, part of China’s National Shipbuilding Corporation.
ONE
ONE has announced a revised service network from Singapore to the Southern Philippines (PH3). ‘‘We will provide more efficient and competitive services from Singapore to the Southern Philippines,‘‘ ONE said in a statement.
Scott’s Logistics
Suppliers are scrambling to retrieve $500 million worth of frozen food from refrigerated warehouses belonging to a recently collapsed logistics group. About half a billion dollars worth of food is stuck in limbo in Scott`s Refrigerated Logistics warehouses. Most of the 1,500 workers employed by Scott’s Refrigerated Logistics have been made redundant with a skeleton staff remaining on the books.