Poultry Production

Tyson Foods will lay off 45 workers at its Harrisonburg, Va., poultry plant on Friday, January 2, according to the Associated Press.

The company is shifting the plant's production focus from whole chickens to cut-up chickens as it deals with high costs and an increasingly competitive marketplace, Plant Manager Danny Sutton was quoted as saying.

The plant's remaining 375 employees will work shorter hours in 2009, said the company. To view this news item, click here.

The U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS) announced that nominations are being sought for membership on the National Advisory Committee on Meat and Poultry Inspection (NACMPI).

The nominations are being sought from individuals representing industry, academia, state and local government officials, public health organizations, and consumers and consumer organizations. The full committee consists of 16 - 18 members, and each person is expected to serve a two-year term.

The NACMPI was established in 1971 to the provide advice and recommendations to the U.S. Secretary of Agriculture on meat and poultry inspection programs. Membership is drawn from a groups interested in food safety including consumers, producers, processors, exporters and importers of meat and poultry products, as well as those in academia, public health, and federal and state government.

Nominations must include the nominee’s typed resume or curriculum vitae and should be submitted by e-mail to NACMPI@fsis.usda.gov or by mail to Alfred Almanza, Administrator, Food Safety and Inspection Service, in care of Faye Smith, Room 1175-South Building, 1400 Independence Ave., SW., Washington, D.C. 20250, or by fax to 202-720-5704.

Nominations must be e-mailed or postmarked by Jan. 23, 2009. The NACMPI membership background information and an application form are available online at http://www.fsis.usda.gov/About_FSIS/NACMPI" title="http://www.fsis.usda.gov/About_FSIS/NACMPI" target="_blank"http://www.fsis.usda.gov/Abou... Nominations/index.asp. To view this item, click here.

A new field tool developed by Agricultural Research Service (ARS) scientists applies poultry litter to fields in shallow bands, reducing runoff of excess nutrients like phosphorus and nitrogen.

Poultry litter—a combination of poultry manure and bedding material, such as pine shavings or peanut or rice hulls—is a natural fertilizer. The conventional method of applying it to fields utilizes a broadcast spreader, which scatters the litter across the soil surface. Because it rests on top of the soil, the litter is vulnerable to runoff in heavy rains.

A new tool developed by ARS agricultural engineer Thomas Way and his colleagues at the agency's National Soil Dynamics Laboratory in Auburn, Ala., offers a solution. The tool digs shallow trenches about two to three inches deep in the soil. It then places the poultry litter in the trenches and covers it with soil. Burying the litter significantly reduces the risk of runoff.

Designed to attach to a tractor, the litter applicator can dig four trenches as it is pulled through the field.

Collaborators in six states have used Way’s litter applicator in their research, with positive results. In one project, Way worked with Dan Pote, a soil scientist at the ARS Dale Bumpers Small Farms Research Center in Booneville, Ark. The scientists applied the litter to Bermudagrass forage plots, and then watered the field with a rainfall simulator.

When the litter was applied with Way’s new tool, phosphorus and nitrogen runoff were 80 to 95% lower than when the litter was applied in the conventional manner.

Way has also collaborated with ARS scientists throughout the country to examine the tool’s effectiveness with different crops. They used the new implement in experiments in corn fields in Alabama, Kentucky and Maryland; cotton fields in Mississippi and Georgia; and in Bermudagrass and tall fescue stands in Alabama.

Their results showed that the new tool has the potential to reduce water pollution significantly when used to apply poultry litter to a variety of crops. Now, ARS is pursuing a patent and seeking companies to manufacture and market the litter applicator. To view this news item, click here.

The National Chicken Council (NCC), National Turkey Federation (NTF) and United Egg Producers (UEP) are urging farmers to register their premises with the National Animal Identification System (NAIS) to help protect their flocks in the event of an outbreak of disease.

Working with the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS), the trade associations for poultry and eggs have developed and are distributing a brochure, “First Steps: Register Your Premises,” which encourages growers to register their farms . The brochure is being distributed to the membership of all three associations. While registration is voluntary in most states, NTF, NCC and UEP encourage poultry growers and egg producers to register their premises to assist state governments and first responders in reacting to a disease problem.

“We urge all broiler growers to register their premises with the National Animal Identification System (NAIS),” said NCC President George Watts. “Getting registered means chicken producers will be informed promptly if there is a serious animal disease outbreak in the vicinity. This will help protect the flock and the grower’s livelihood.”

“NTF members recognize the importance of registering turkey production premises and encourage all growers to register their production sites with their respective state premises registration systems,” said NTF President Joel Brandenberger.

The UEP board of directors supports premises registration for egg production facilities. UEP encourages producers to register their premises under NAIS through state agencies and poultry associations working with USDA. UEP President and CEO Gene Gregory said, “Egg producers have worked hard to prevent an outbreak of highly pathogenic avian influenza in the nation’s layer flock. At the same time, they have spent vast resources in preparing for such an outbreak anywhere in the United States. The ability to assess vulnerability to egg layer sites or other poultry farms and contain quickly any outbreak depends on readily available and accurate premises information.”

Poultry growers and egg layers can obtain a copy of the brochure by contacting NCC, NTF or UEP. To view this item, click here.

Authorities in Bangladesh have culled nearly 10,000 chickens in five districts as a fresh outbreak of bird flu has been detected in the country, according to a senior government official.

“We have detected avian influenza, known as H5N1, in four commercial farms and a household in five districts so far this month," said Muhammad Salehuddin Khan, director of Bangladesh's Fisheries and Live Stock Department.

"Some 9,950 birds on the farms and in the household and nearby areas of the country's western Natore, central Gazipur, eastern Narsingdi, and northern Gaibandha and Kurigram districts were culled this month," he said.

"We have taken special steps to stem the outbreak of the disease, and we are asking farmers to adopt more preventive measures," he said.

Muhammad said his department is yet to confirm the sources of fresh attacks of the disease, "but it may be due to germs of bird flu remained as we faced huge outbreak last winter," he said.

However, he added that there had been no report of human infection of the disease in Bangladesh to date. To view this news item, click here.

FSIS has posted to its web site the 2008 second quarterly progress report that provides preliminary data on salmonella testing results of selected raw meat and poultry products.

In this report, FSIS is announcing several changes to how the agency will be providing future aggregate data on the salmonella verification testing program.

Establishments will be placed in Category 1, 2 or 3 only after completing two salmonella sets, said the agency. Additionally, establishments having a current salmonella set at or below 50% of the performance standard or guidance for their product class but a prior set in Category 2 or 3 will be identified as 2T (defined as a Category 2 plant that is in transition to Category 1). In this manner, FSIS is acknowledging those establishments working to achieve consistent process controls. These changes will align the quarterly reports with the monthly posting of names of broiler establishments in category 2 and 3.

The agency will also lower the number of acceptable positives for Category 1 status in those product classes that have an odd number of acceptable positives to meet the performance standard or guidance. This will affect three product classes: turkey, ground beef and ground turkey.

FSIS said it recognizes that an establishment with highly consistent process control should strive to operate over time at a relatively low level of salmonella positive samples if it is to maintain its category 1 status. The agency said it views this more stringent policy (i.e., rounding down) as a necessary and important incentive to improve performance in controlling salmonella.

FSIS has also removed approximately 1,000 very low-volume-producing ground beef (<1,000 pounds/day) establishments from the traditional set-based salmonella verification testing program and is sampling these establishments for salmonella when these establishments are also tested for E coli O157: H7. The agency can better allocate testing resources towards higher risk (e.g. higher volume) establishments.

The quarterly report is available on FSIS' web site at www.fsis.usda.gov/Science/Quarterly_Sal monella_Results/index.asp. To view this news item, click here.

KFC will introduce a new grilled chicken option across the country next year. David Novak, chairman and CEO of the KFC’s parent Yum Brand! spoke about plans for a second-quarter rollout of the grilled item during an investment conference in New York.

The new menu item, Kentucky Grilled Chicken, will hit nationwide stores after the longest market test in KFC history. The company hopes the grilled chicken will appeal to health-conscious consumers, allowing the chain to “overcome the key barrier of being a fried-only concept,” Novak said.

KFC has introduced grilled products in the past but could not sustain an initial sales upturn because of operational or marketing factors, Novak said. He predicted that this rollout would have lasting, positive results “This product will be a major transformational product for us that it is not the same KFC.” He told industry analysts during the investment conference.

KFC is also planning next year to introduce a national value menu with products ranging from 99 cents to $1.99. KFC hopes to compete with other foodservice chains enticing customers with the low-price menus. To view this news item, click here.

The Mexican Association of Poultry Producers (UNA) is estimating that close to 4 million whole turkeys will be sold in Mexico during the upcoming holiday season, according to USA Poultry & Egg Export Council’s MondayLine.

Of the 4 million, 1.8 million whole turkeys are domestically produced, 500,000 were imported from the U.S. and Chile in 2007 and 1.6 million were imported from the U.S. and Chile in 2008.

Whole turkey sales around the holiday season still represent 85% of the total domestic production. The remaining 15% is sold in the form of turkey meat cuts for retail, further processed products and as ingredients to the meat processing industry, said USAPEEC.

Turkey processors in Mexico recently reported that turkey meat output represents only 0.3%, when compared to chicken and table egg production. Increased feed costs, tight credits and the devaluation of the peso by nearly 30% are making it tough on the Mexican poultry industry as a whole.

Producers are estimating that domestic whole turkeys will sell at similar retail prices as imported whole turkeys; $1.69 per pound for smoked turkeys and $1.38 per pound for natural, uncooked turkeys.

The Mexican poultry processing industry continues to rely on turkey imports from the U.S., particularly thighs, drumsticks, MST and turkey breast, reported USAPEEC. The U.S. supplies Mexico with 97% of its turkey imports, with the remaining 3% coming from Chile, according to data from UNA.

Consumption of turkey in Mexico continues to rise, as turkey meat gains popularity for its low-fat content and health and nutritional attributes, said Jose Luis Cruz, USAPEEC Mexico director. To view this news item, click here.

President-elect Barack Obama has named Tom Vilsack, a former governor of Iowa, as his choice for agriculture secretary and Senator Ken Salazar of Colorado to head the Interior Department.

Obama played up Vilsack’s agricultural expertise as he introduced him at his choice to run the Agriculture Department at a news conference in Chicago. "Obviously, if you don't know agriculture, you're not going to become governor of Iowa," Obama said, adding that Vilsack has "also been forward-looking" in his policies.

Speaking at the news conference, Vilsack said that he looked forward to the challenge, adding that "farmers and ranchers deserve a secretary of agriculture that respects them."

Vilsack ranked a number of issues in order of importance: "Improving profitability for farmers," the need for "sustainable practices" and fighting "global climate change," and the centrality of good nutrition in feeding programs.

Both Vilsack and Obama have been strong supporters of ethanol, and one of their first decisions after taking office is whether to support the ethanol industry’s request for billions of dollars in federal aid in the economic stimulus bill.

“The big issue for him (Obama) and any incoming secretary is going to be biofuels, that’s the sector that right now is in such a volatile position,” Ken Cook, president of the Environmental Working Group, said in a New York Times interview. In the view of Cook, a critic of federal farm subsidies, American farmers “are hitched to both the food system and the energy system, both of which are oscillating.”

Vilsack, 58, briefly ran for president in 2008, and first endorsed Hillary Clinton, serving as co-chairman of her campaign. But in the general election, he campaigned vigorously, “promoting their common ideas on renewable energy and rural growth,” the article said. “Vilsack, like the president-elect, is a strong advocate of combating global warming and developing alternative sources of energy.”

The U.S. Department of Agriculture is entangled in a contentious battle over energy policy, with corn farmers, in particular, supporting ethanol subsidies and targets, while livestock producers and other buyers of grain oppose them.

In the massive stimulus bill both Obama and democrats in Congress are putting together, they plan on promoting “green energy,” which they say will create thousands of new jobs.

“Let us build a 21st-century rural economy of cutting-edge companies and technologies that lead us to energy and food security,” Vilsack wrote in one of several op-ed articles he published during the campaign. “Such an investment will revitalize rural America, re-establish our moral leadership on climate security and eliminate our addiction to foreign oil.”

On another important issue, Vilsack will be overseeing the development of regulations for the 2008 farm bill.

In 1998, Vilsack was elected Iowa’s first Democratic governor in 32 years. To view this news item, click here.

ConAgra Foods Inc. reported a 31% loss in net income, reflecting the lack of income from the commodity trading unit it sold earlier this year.

The owner of brands like Healthy Choice, Hebrew National and Slim Jim said it posted net income of $168.1 million, or 37 cents per diluted share, for the quarter ended Nov. 23, compared with $244.8 million, or 50 cents per share, in the same period last year.

Sales rose 11% to $3.26 billion on price increases across all segments.

ConAgra's Consumer Foods division saw operating profit increase 2.2% to $252 million. Sales in the segment increased 4.4% to $2.042 billion even as volume fell 4%.The Associated Press reported that ConAgra’s Chief Executive Gary Rodkin told AP that “selling the commodity unity was the right move for the company, even though it will diminish quarterly profits through the rest of the year.” The unit sold for more than $2 billion, and the cash was used to buy back shares of the company and pay down debt, which will help ConAgra weather the current economic downturn, Rodkin said. To view this news item, click here.

OSHA’s final rule on the employer’s duty to provide and train employees to use personal protective equipment (PPE) was published in the Federal Register last week. The rule takes effect January 12, 2009.

While this rule imposes no new substantive obligations on employers, it greatly expands their potential liability for failure to provide PPE and, more importantly, for failure to train employees, subjecting employers to separate citations on a per-employee basis, according to J. Larry Stine at Wimberly & Lawson. This is of particular significance to employers in construction and certain other industries, where failure to train is one of the most commonly-cited OSHA violations, he said.

* The new rule provides that each failure to provide PPE or to train an employee on proper use may be considered to be a separate violation for each employee affected. For example, if an employer is determined to have failed to provide required PPE such as earplugs or respirators to 200 exposed employees in the workplace, OSHA could assess up to $7,000 in penalties on a per-employee basis. In this example, that would be a total potential fine of $1,400,000. Further, the failure to train the same employees could effectively double the penalty, to $2,800,000.

* The new rule amends a multitude of PPE and training standards in various industries. Given the enhanced potential liability for failure to train, it is in every employer’s interest to be sure that if any PPE is required for any job, a record of training on the proper use of that equipment is created and maintained as to each employee. This may be achieved with sign-up sheets from training sessions, or with signatures on orientation and training forms.

* Per-employee penalties used to be assessed only in “egregious” situations, where OSHA deemed the violation to be particularly reprehensible. However, under this new rule, whether per-employee penalties are assessed or not is left up to the agency’s discretion. In other words, a simple failure to train or provide PPE could expose an employer to penalties on a per-employee basis. The ability to propose substantially larger penalties will be a powerful weapon in OSHA’s arsenal. To view this news item, click here.

Tyson Foods Inc. will temporarily lay off 75 workers at its Wilkesboro, N.C., plant as it prepares the facility to process only larger birds, according to the Winston-Salem Journal. The plant currently produces smaller chickens for fast-food restaurants as well as larger birds for retail. Tyson plans to shift the production of the smaller chickens to another plant to improve the efficiency of operations at the facility.

Temporary layoffs will begin in January and should end in the first week of May, when Tyson expects that all of the equipment changes necessary to process only larger birds at the facility will be completed.

Once the facility is fully operational, again, it will produce the same volume of birds in pounds. To view this news item, click here.

The fast-growing sustainability movement is making packaging an increasingly important aspect of poultry production. But "earth-friendly products won't save the environment if they don't save people money," according to Vernon Rowe, corporate environmental manager, Pilgrim's Pride, who spoke at the U.S. Poultry & Egg Association's processor workshop.

Polling data suggests that "sustainability" ; may influence consumer buying habits in the future. Presenting data from the FMI-Harris poll for 2007, Rowe stated that "92% of consumers agree with the statement that it is important for the U.S. food industry to be more proactive about addressing environmental concerns". He also reported that an Information Resources Inc. poll last year found that "89% of consumers are interested in eco-friendly' products and 30% actively look for them."

To attract those consumers interested in sustainable packaging, Rowe mentioned that poultry companies must recognize the importance of the terminology used in labeling. As consumers become more environmentally conscious, phrases such as "No Oil Used," "No Fossil Fuels Used," or "Made From 100% Renewable Resources" are the kind that are going to demand attention. The catch, however, is that many consumers are reluctant to spend more on sustainable packaging. They equate their part in sustainable practice with recycling rather than paying more for sustainable packaging, especially as food prices continue to rise. What this means is that the poultry industry must find a way to make packaging practices more sustainable without driving up costs, Rowe insisted. Keeping costs down begins with practices in the supply chain.

Assessing suppliers

Wal-Mart has embraced sustainability but is not giving up on its mission of providing the lowest prices. Since Wal-Mart is Pilgrim's Pride's biggest customer, and one of the poultry industry's biggest customers, it will be a factor in the "drive to sustainable packaging," according to Rowe. With its Sustainability Program, launched in 2005, Wal-Mart has initiated a sharp focus on its suppliers, assessing their practices in production, distribution, and transportation, as well as their plans to reduce carbon emissions and "an ability to define their carbon footprint".

Playing a big part in this focus is the use of what is called a Sustainable Packaging Scorecard. This tool allows buyers from Sam's Club and Wal-Mart to easily make comparisons between suppliers' packaging practices, and therefore make more informed purchasing decisions.

The scorecard collects data based on the eight aspects of "material value, product/package ratio, cube utilization, transportation, recycle content, recovery value, renewable energy, and innovation." This drives suppliers to be conscious of the ways they utilize energy and resources and keep a handle on what they can do to improve their practices in terms of sustainability. To view this news item, click here.

The World Health Organization said on Tuesday that Indonesia has confirmed two new cases of human bird flu, the first officially reported since September.

A nine-year-old girl in Riau province developed symptoms on November 7 after poultry apparently died at her home, WHO said in a statement. She was hospitalized five days later and discharged on November 22 after recovering.

A two-year-old girl from East Jakarta died on November 29 after developing symptoms on November 18. "Investigations into the source of her infection suggest exposure at a live bird market," WHO said.

The two latest cases bring Indonesia's known number of bird flu infections to 139, including 113 deaths, since 2003, according to the United Nations health agency. To view this news item, click here.

Hong Kong health officials said Tuesday that over 80,000 chickens will be culled after bird flu was detected on a poultry farm.

Up to 60 dead chickens were discovered on that farm, and tests showed that they did die from the H5 virus, said Dr. York Chow, Hong Kong's food and health secretary. He added that further tests were being done to see if they had the deadly H5N1 strain. However, the source of the outbreak is not yet known.

All chickens within a 3-km radius of the farm will be destroyed along with birds at a wholesale market, Dr. Chow said. He added that Hong Kong would also suspend poultry imports for 21 days. To view this news item, click here.

Petit Jean Poultry will close its processing plant in Danville, Ark., on Jan. 31, the Arkansas Democrat Gazette reported last week.

Employees at the plant were notified by the company at the end of November of the closing. Approximately 800 people will be affected.

Rick Millsap, plant president and a part owner with his father Leon Millsap, Johnny Chambers and Jerry Jones, attributed the plant closing to the slowing economy and the loss of a Tyson Foods Inc. contract, for which it deboned chicken. The company closed its plant in Buffalo, Mo., earlier this year for the same reason. To view this news item, click here.

The 2 Sisters Food Group has averted a strike over pay levels at three of its poultry processing plants in the West Midlands, following discussions between the company and Unite, the UK’s biggest union.

The processor and Unite issued the following joint statement: "2 Sisters and Unite have reached an outline agreement on a two-year pay deal for employees at three sites in the West Midlands. Unite and 2 Sisters are confident that a formal agreement will be reached shortly." To view this news item, click here.

Cal-Maine Foods Inc. announced it will acquire the egg production and marketing assets of Tampa Farm Service Inc., located in Dover, Florida. Tampa Farm Service has been a participant in the egg industry in the southeastern United States for over 50 years.

The assets to be purchased by Cal-Maine include approximately 4 million laying hens in in-line facilities, pullet growing facilities, two feed mills and a fleet of delivery trucks for both eggs and feed. Additionally, Cal-Maine will acquire the 4-Grain brand of specialty eggs, certain flocks of contract laying hens and Tampa Farm Service’s interest in American Egg Products Inc. The company expects to close the transaction in early December 2008.

Fred Adams, Jr., chairman and chief executive officer of Cal-Maine Foods, said the additional production capacity will enhance Cal-Maine’s ability to service customers in the southeastern U.S. To view the news item, click here.

Hain Pure Protein Corporation announced it will expand its Plainville, New York, facility to accommodate the production of natural, kosher poultry products.

“Plainville Farms continues to be one of the leading suppliers of natural, antibiotic-free, vegetarian-fed turkeys in America, and we look forward to adding this production to our New Oxford Foods facility,” said David Wiggins, president of Hain Pure Protein and formerly CEO of Empire Kosher Poultry Inc. Processing of Plainville Farms' turkeys will be moved to the company's New Oxford, Pa., facility. The New Oxford turkey plant was purchased earlier this year from Pilgrim's Pride.

The Plainville plant will be closed for production at the end of December with modifications to the facility scheduled to begin in January. The conversion of this facility will result in the temporary lay-off of approximately 90 workers. Production of the new kosher line is expected to begin in late February, and it is currently anticipated that the total number of employees will increase. To view this news item, click here.

Pilgrim's Pride Corporation, together with certain of its wholly owned subsidiaries, announced that in an effort to address certain short-term operational and liquidity challenges, it filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas. The company's operations are expected to continue as normal throughout the bankruptcy process while it develops a reorganization plan to resolve its temporary operational and liquidity issues. Pilgrim’s operations in Mexico and certain operations in the United States were not included in the filing and will continue to operate outside of the Chapter 11 process. "Over the past year, Pilgrim's Pride has faced a number of significant challenges including high feed-ingredient costs, an oversupply of chicken, weak market pricing and softening demand," said Clint Rivers, president and chief executive officer. "After careful consideration of all available alternatives, the company's board of directors determined that a Chapter 11 filing was a necessary and prudent step and the best way to obtain the financing necessary to maintain regular operations and allow for a successful restructuring. We expect to emerge from this restructuring a stronger, more competitive company that is well positioned for growth and enhanced profitability. We are proud of the consistently high quality of our products, our valued customer relationships and the high level of service we provide." In conjunction with the filing, the Pilgrim’s is seeking approval to enter into a $450 million debtor-in-possession financing facility arranged by Bank of Montreal as lead agent. If approved by the court, the DIP Financing will provide an immediate source of funds to the company, enabling it to satisfy the customary obligations associated with the daily operation of its business, including the timely payment of employee wages and other obligations. The company has asked the court for additional authorizations, including permission to continue paying employee wages and salaries, to provide employee benefits without interruption and to continue with its various customer programs. According to Pilgrim’s, during the Chapter 11 process, suppliers should expect to be paid for post-petition purchases of goods and services in the ordinary course of business. To view the news item, click here.