Meat&Poultry - March 2011 - 8

Commentary
BY JOEL CREWS, EDITOR
jcrews@sosland.com

Defense mechanisms
With prices at the pump galloping toward $4 per gallon, feed prices soaring to historic highs and global food prices topping high-water marks never fathomed, CFOs of meat and poultry processing firms have been forced to sharpen their pencils and streamline operations to su r v ive. E a rl ier this month, Smithfield Foods reported record-breaking performance for its fiscal third quarter, which served to sustain cautious optimism in the industry that the worst of the economic recession may be in the rear-view mirror. Many firms’ executives have made some sleep-depriving decisions over the past 24 months in response to stifling market conditions, including Smithfield, which committed to cutting $125 million in costs by the start of this year. The time and resources dedicated to scanning operations for opportunities to increase a yield percentage here or to save a labor dollar there has undoubtedly dominated the mindshare of leadership teams steered by the Larry Popes, Donnie Smiths and Wesley Batistas of the industry, as well it should. However, it is at times like these, when companies are operating to minimize financial losses that they could be most exposed and vulnerable to less-obvious threats. Immediately after the terrorist attacks of Sept. 11, 2001, there was outward concern and public discussion for several years about the threat of bioterrorism on the US food supply. That attention seems to have waned as the recession and its impacts have assumed front-burner status. In 2004, the Rand National Defense Research Institute’s Larry Chalk summarized some of the threats and identified areas where the food industry’s soft underbelly was most exposed. Chalk categorized agroterrorism as “the deliberate introduction of a disease agent, either against livestock or into the food chain, to undermine socioeconomic stability and/or generate fear.” His report summary went so far as to say: “Food processing and packing plants tend to lack uniform security and safety preparedness measures, particularly the smalland medium-scale facilities.” I hope I’m wrong in my assessment that while the industry’s leaders address the most immediate threat (becoming leaner and meaner operations in the face of a recession), they are distracted from what is a much clearer and more present danger: Threats related to food security and bioterrorism. Some companies, including OSI Industries, are quietly raising the bar and setting the standard on this front. It is heartening to hear about companies that have taken action to address a real issue that is temporarily off the radar of most. Likewise, events like the International Symposium on Agroterrorism, scheduled for April 26-28 in Kansas City, Mo., and initiated by Heart of America Joint Terrorism Task Force and the Kansas City Division of the FBI, is a clear indication that a growing amount of attention is being paid to what is a serious issue domestically and globally. I attended the inaugural ISA event in 2005 (which was held again in 2006 and 2008) and was impressed with the thoroughness of the program and convinced of the many vulnerabilities in the food production chain. My biggest concern at the time was how few of the 1,000-plus attendees were representing companies or trade associations in the meat and poultry processing industry. It is my hope that ISA 2011 will signal a new era of awareness for this industry and a realization that this is no time for its collective guard to be down. For more information on ISA 2011, go to www.fbi-isa.org. ■
We would like to hear from you – to comment on this story or to request reprints, contact us by e-mail at meatpoultry@sosland.com.

EDITORIAL STAFF
Editor

Joel Crews
Executive Editor

Keith Nunes
Senior Editor

Bryan Salvage
Managing Editor

Kimberlie Clyma
Contributing Editors

Richard Alaniz Steve Bjerklie Dr. Temple Grandin Steve Krut Bernard Shire

Larry Aylward Dr. David Theno Steve Kay Leo Quigley Dr. Glen Miller

Online Editor

Erica Shaffer
Graphic Designer

Mike Gunther

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Chairman and Group Publisher

Charles S. Sosland
Vice-Chairman

L. Joshua Sosland
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Publisher

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Publisher Emeritus

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8 • Meat&Poultry • March 2011 • www.MeatPoultry.com



Meat&Poultry - March 2011

Table of Contents for the Digital Edition of Meat&Poultry - March 2011

Meat&Poultry - March 2011
Commentary - Defense mechanisms
Hormel earnings up 34 percent in first quarter
Cargill introduces Fressure patties
Maple Leaf earnings hit by input costs
Sanderson Farms touts record FY2010
Grant allows XL Foods to double capacity
Townsends poultry ops sold after bankruptcy
JBS reports positive results of food-safety technology
Taco Bell launches new beef image TV ads
Catfish inspection gets political
Sustainability strides
E xperience counts
THE TOP 125 PROCESSORS - Winner’s circle
THE TOP 125 PROCESSORS - Alphabetical listing by company name
THE TOP 125 PROCESSORS - by rank
Small Business Matters - Duty calls
Food Ingredient Solutions - Delectable pairings
Processing Innovations - Everything but the squeal
Sanitation - Cleaning passion
Food Safety - Reassigning resources
Food Safety - Food-safety fortress
Packaging Solutions - Packaging under pressure
New Product Rollouts - Unveiling ideas
New Products
Labor - Questioning benefi ts
Names in the News
New Product Showcase
Classified Advertising
Meat&Poultry - March 2011 - Meat&Poultry - March 2011
Meat&Poultry - March 2011 - 2
Meat&Poultry - March 2011 - 3
Meat&Poultry - March 2011 - 4
Meat&Poultry - March 2011 - 5
Meat&Poultry - March 2011 - 6
Meat&Poultry - March 2011 - 7
Meat&Poultry - March 2011 - Commentary - Defense mechanisms
Meat&Poultry - March 2011 - 9
Meat&Poultry - March 2011 - Hormel earnings up 34 percent in first quarter
Meat&Poultry - March 2011 - 11
Meat&Poultry - March 2011 - Maple Leaf earnings hit by input costs
Meat&Poultry - March 2011 - 13
Meat&Poultry - March 2011 - Sanderson Farms touts record FY2010
Meat&Poultry - March 2011 - 15
Meat&Poultry - March 2011 - Townsends poultry ops sold after bankruptcy
Meat&Poultry - March 2011 - 17
Meat&Poultry - March 2011 - Taco Bell launches new beef image TV ads
Meat&Poultry - March 2011 - 19
Meat&Poultry - March 2011 - Catfish inspection gets political
Meat&Poultry - March 2011 - 21
Meat&Poultry - March 2011 - Sustainability strides
Meat&Poultry - March 2011 - 23
Meat&Poultry - March 2011 - 24
Meat&Poultry - March 2011 - 25
Meat&Poultry - March 2011 - 26
Meat&Poultry - March 2011 - 27
Meat&Poultry - March 2011 - 28
Meat&Poultry - March 2011 - 29
Meat&Poultry - March 2011 - E xperience counts
Meat&Poultry - March 2011 - 31
Meat&Poultry - March 2011 - 32
Meat&Poultry - March 2011 - 33
Meat&Poultry - March 2011 - 34
Meat&Poultry - March 2011 - 35
Meat&Poultry - March 2011 - THE TOP 125 PROCESSORS - Winner’s circle
Meat&Poultry - March 2011 - 37
Meat&Poultry - March 2011 - THE TOP 125 PROCESSORS - Alphabetical listing by company name
Meat&Poultry - March 2011 - 39
Meat&Poultry - March 2011 - 40
Meat&Poultry - March 2011 - 41
Meat&Poultry - March 2011 - 42
Meat&Poultry - March 2011 - THE TOP 125 PROCESSORS - by rank
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Meat&Poultry - March 2011 - 45
Meat&Poultry - March 2011 - 46
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Meat&Poultry - March 2011 - 58
Meat&Poultry - March 2011 - 59
Meat&Poultry - March 2011 - 60
Meat&Poultry - March 2011 - 61
Meat&Poultry - March 2011 - Small Business Matters - Duty calls
Meat&Poultry - March 2011 - 63
Meat&Poultry - March 2011 - 64
Meat&Poultry - March 2011 - 65
Meat&Poultry - March 2011 - 66
Meat&Poultry - March 2011 - 67
Meat&Poultry - March 2011 - Food Ingredient Solutions - Delectable pairings
Meat&Poultry - March 2011 - 69
Meat&Poultry - March 2011 - 70
Meat&Poultry - March 2011 - 71
Meat&Poultry - March 2011 - 72
Meat&Poultry - March 2011 - 73
Meat&Poultry - March 2011 - 74
Meat&Poultry - March 2011 - 75
Meat&Poultry - March 2011 - Processing Innovations - Everything but the squeal
Meat&Poultry - March 2011 - 77
Meat&Poultry - March 2011 - 78
Meat&Poultry - March 2011 - 79
Meat&Poultry - March 2011 - 80
Meat&Poultry - March 2011 - 81
Meat&Poultry - March 2011 - 82
Meat&Poultry - March 2011 - Sanitation - Cleaning passion
Meat&Poultry - March 2011 - Food Safety - Reassigning resources
Meat&Poultry - March 2011 - 85
Meat&Poultry - March 2011 - 86
Meat&Poultry - March 2011 - 87
Meat&Poultry - March 2011 - Food Safety - Food-safety fortress
Meat&Poultry - March 2011 - 89
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Meat&Poultry - March 2011 - 94
Meat&Poultry - March 2011 - 95
Meat&Poultry - March 2011 - 96
Meat&Poultry - March 2011 - 97
Meat&Poultry - March 2011 - Packaging Solutions - Packaging under pressure
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Meat&Poultry - March 2011 - 100
Meat&Poultry - March 2011 - 101
Meat&Poultry - March 2011 - 102
Meat&Poultry - March 2011 - 103
Meat&Poultry - March 2011 - 104
Meat&Poultry - March 2011 - New Product Rollouts - Unveiling ideas
Meat&Poultry - March 2011 - New Products
Meat&Poultry - March 2011 - 107
Meat&Poultry - March 2011 - Labor - Questioning benefi ts
Meat&Poultry - March 2011 - Names in the News
Meat&Poultry - March 2011 - New Product Showcase
Meat&Poultry - March 2011 - 111
Meat&Poultry - March 2011 - 112
Meat&Poultry - March 2011 - 113
Meat&Poultry - March 2011 - 114
Meat&Poultry - March 2011 - 115
Meat&Poultry - March 2011 - 116
Meat&Poultry - March 2011 - Classified Advertising
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Meat&Poultry - March 2011 - 119
Meat&Poultry - March 2011 - 120
Meat&Poultry - March 2011 - 121
Meat&Poultry - March 2011 - 122
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