Meat + Poultry - March 2006 - 4

Seaboard to build
pork processing plant
SHAWNEE MISSION, Kan. - In
its 2005 annual report, Seaboard
Corp. announced its pork division,
Seaboard Foods, plans to expand
its processed meat operations by
building a $40 million facility that
is scheduled to open in 2007.
In addition, the company is
planning to pursue the construction of a processing plant to utilize byproducts from its Guymon,
Okla., pork slaughtering and processing facility to produce biodiesel, which will be marketed to third
parties. The plant will be completed in 2007 and is estimated to cost
$18.5 million.
For fiscal year 2005, which ended Dec. 31, Seaboard Foods posted an operating income of $182.7
million, compared with $147.4
million for fiscal year 2004. Net
sales for the year were $1,023 million, which compared with $961.6
million for fiscal 2004.
Seaboard said the net sales increase for the pork segment was
due to the acquisition of Daily's, a
bacon processor with two plants in
Montana and Utah, this past July,
and strong international demand
for pork. However, the company also noted that some of the net
sales increase was partially offset
by lower prices for pork products in
the domestic market.
Overall, Seaboard Corp. posted net earnings of $266,662,000,
or $212.20 per share, for fiscal
2005. The results compare with
$168,096,000, or $133.94 per share,
during fiscal 2004. Net sales for
fiscal 2005 were $2,688,894,000,
compared with $2,683,980,000
during fiscal 2004.
For the fourth quarter of fiscal 2005, the company reported
net earnings of $82,811,000, or
$65.65 per share, compared with
$59,915,000, or $47.74 per share,
during the same period during fiscal 2004. Net sales for the quarter
during 2005 were $601,826,000.
4

MEAT&POULTRY

March 2006

Hong Kong suspends beef imports from Swift & Co.
HONG KONG - Hong Kong's Food
and Environment Hygiene Department
said in a statement on March 11 that
Hong Kong had suspended imports from
Swift & Co., Greely, Colo., after discovering its products contained bones prohibited under regulations aimed at protecting against B.S.E.
"The decision was made following discovery of beef imports with bones from
that plant during inspections," said the
statement. "We will contact the relevant
authorities for more information concerning the beef imports in question."
Hong Kong partially lifted a twoyear ban on U.S. beef imports in December, imposed after B.S.E. was detected in a cow in Washington state.
Only boneless beef from cattle less

than 30 months old - and without
the animal's brain, spinal cord or other
parts considered high risk for B.S.E.
- are allowed into the territory.
The spokeswoman for the
U.S. Consulate General in
Hong Kong, Susan Stevenson, was cited as saying it was an isolated case,
with a bone shard found
in Swift's products. "This is
not a food safety issue," she said.
"There is not a risk of B.S.E. from the
bone shard."
Mamoru Ishihara, vice agriculture
minister in Japan, also wanted to know
why the beef shipped to Hong Kong
contained banned cattle parts. "This is
very disappointing," he said.

Norbest, West Liberty to join sales and
marketing operations in Iowa
WEST LIBERTY, Iowa - West Liberty Foods, L.L.C., and Norbest, Inc, Midvale, Utah, will join forces in an alliance
of their sales and marketing functions
effective May 1.
Ed Garrett, president and C.E.O. of
West Liberty Foods, believes the marketing alliance with Norbest will broaden the product line for both companies.
"We believe that by establishing a marketing alliance between West Liberty Foods and Norbest that we will improve the capacity of both our companies, which will allow us to enhance our
ability to provide excellent products and
services to all of our collective customers," he said.
John Hall, president and C.E.O. for
Norbest, said, said he believes the alliance will put his company in a better po-

sition for the future.
Norbest products will continue to be
processed by Norbest cooperative members located in Utah and Nebraska. Production, processing, sales, distribution,
and other services to customers will continue unchanged and uninterrupted during and after the transition period. All contracts, commitments, and sales and marketing programs currently in place will be
fulfilled with minimal interruption.
However, it has been reported that
about 22 people selling and marketing
Norbest products out of Midvale will be
laid off or offered new positions in Iowa,
according to Paul Reed, director of marketing for the Norbest label. "You can
expect it's been quite a blow to us," he
said. "We're hoping we all find good positions after this is over."

North Side Foods to expand Georgia plant
CUMMING, Ga. - North Side Foods, a subsidiary of Smithfield Foods, announced plans for an expansion of its manufacturing facility located in Cumming. The expansion, set to be completed by December 2006, will increase processing and warehouse space by more than 40,000 square feet and allow North
Side Foods to double its current production of fully cooked breakfast sausage.
Under the Ember Farms brand name, North Side sells a product line that includes links, patties and sausage crumbles in a variety of flavors. With facilities
in Cumming and Arnold, Pa., the company employs more than 300 and produces
more than 110 million pounds of product per year.
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