Meat + Poultry - October 2003 - 4

Simplot closes Nampa processing plant
NAMPA, IDAHO - The poor Japanese economy is one reason the J.R. Simplot Co. has
closed its processing facility in Nampa. In 1996, Simplot and the Nichirei Corp. of Japan entered into a joint venture to supply meat products to Japan. The agreement was
terminated in 2000 as demand fell off due to the weak Japanese economy. The resulting shortfall in demand proved to be insurmountable as margins in other segments of
the beef industry also slipped. During the same period, the company spent more than
$8 million on plant improvements to increase its capacity from 70,000 to 130,000 cattle
per year. The plant produced boxed beef, primarily fresh and frozen cuts for the foodservice and retail markets.
Leigh Brinkerhoff, Simplot senior vice president, says beef industry economics
forced closure of the plant due to a lack of profitability. "This is a small operation by industry standards, engaged in a commodity business."
Prior to announcing the plant's closure, company officials unsuccessfully attempted to find a buyer that could keep it open. The 272 employees of the facility were notified this past June that the plant would close in September if a buyer couldn't be
found. Officials are hopeful that they will be able to sell the plant in the future. "A
new operator would have to focus on some type of value-added specialty meat product," said Brinkerhoff.

Certified Hereford Beef
reports strong 2003 results
KANSAS CITY, MO. - Packer expansion in
the southern Plains fueled another year of
double-digit sales increases for the Certified Hereford Beef Program. C.H.B. officials
credited licensing agreements with Swift &
Co., Greeley, Colo., and National Beef Packing, Liberal, Kan., for the 56-percent rise
in carcass certifications and 36-percent increases in boxed beef sales.
For the fiscal year, program packers combined to slaughter 226,185 program eligible
cattle and certified 137,089 carcasses as
C.H.B. Boxed beef sales totaled 32.5 million pounds during the year for an average
of 237 pounds of branded beef sales per certified carcass.

F.S.I.S. focusing on redefining poultry
WASHINGTON, D.C. - In an effort to better describe the characteristics of poultry
in the marketplace today, F.S.I.S. proposed to amend the definitions and standards
for the official U.S. classes of poultry. A notice in the Federal Register outlines a
plan to ensure poultry products are labeled in a non-misleading manner.
Currently, poultry classes are defined in terms of the age and sex of the bird.
However, genetic improvements and new poultry management techniques have reduced the grow-out periods for some poultry classes while crossbreeding has produced higher-yield poultry products. For example, 30 years ago it took 12 weeks to 13
weeks to produce birds with the physical characteristics of broilers. Today, they are being produced in as little as 6 weeks.
"F.S.I.S. continually strives to keep regulations aligned with advances in the market place," says Dr. Garry McKee, F.S.I.S. administrator. "Ultimately, revising outdated poultry class standards or identity will result in more accurate labeling for
consumers."
Comments must be received on or before Nov. 28, 2003.

Renderers in compliance with ruminant
feed ban
WASHINGTON, D.C. - Companies subject to the Food and Drug Administration's ruminant feed rule to prevent bovine spongiform encephalopathy in the U.S. have a nearly
100-percent compliance rate, according to an update published by the Center for Veterinary Medicine this past month.
Of the 1,664 inspected firms handling
prohibited materials, six firms, less than
one percent, had official action taken
against them. Only 171 firms were classified as "voluntary action indicated",
which means inspectors found conditions of little regulatory significance yet
still warranting correction. F.D.A. currently inspects 11,375 firms, only 15 percent of
which are handling prohibited materials.
4 MEAT&POULTRY * October 2003 * www.MEATPOULTRY.com

Tyson earnings to exceed
expectations
SPRINGDALE, ARK. - Tyson Foods, Inc., executives announced this past month they
expect fourth quarter earnings to exceed
previous expectations and be in the range
of $0.35 to $0.40 per share. "Our earnings
for the quarter will substantially exceed the
estimates in the market today," says John
Tyson, chairman and C.E.O. "Our beef segment is having an outstanding quarter and
is the principal reason for the better than
expected results.
"The performance is being driven by
strong domestic and international demand
for U.S. beef against a reduced supply environment resulting primarily from the ban on
Canadian beef imports for most of the quarter. Our value-added business continues to
benefit from improved domestic and international market conditions in our chicken
segment, and our pork segment continues to
perform well in a tough environment."
While the results of its fourth quarter
are positive, the company is also streamlining operations and preparing for the future.
The company began cutting approximately
25 percent of its workforce at its Hope, Ark.,
facility earlier this month. The production capacity is being shifted to facilities in Arkadelphia and Dardanelle, Ark.

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Meat + Poultry - October 2003

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