Meat + Poultry - June 2004 - 13

Gold Kist reports strong third
quarter

O.I.E. and F.A.O. strengthen
partnership

Gold Kist, Inc., Atlanta, reported net margins
of $29.8 million for the third fiscal quarter ended March 27, compared to a net loss of $11.8
million in the same quarter this past year. Third
quarter sales were $575.5 million, compared to
$446 million for the same period last year.
For the nine months ended March 27, the
company reported net margins of $56.7 million, compared to a net
loss of $66 million for the same period this past year. This was on
sales of $1.62 billion for the first nine months of 2004, compared to
sales of $1.36 billion for the first nine months of 2003.
"An overall strengthening of the economy, favorable production
levels, improved export demand and higher prices in the beef and
pork meat sectors contributed to stronger demand and higher chicken sales prices in the fiscal 2004 periods," said John Bekkers, president and C.E.O. "Current diet trends emphasizing low-fat proteins
also have favorably impacted demand.
"Increased margins in the March 2004 period were primarily due
to higher chicken selling prices. These margins were partially offset
by higher feed ingredient costs, particularly soybean meal which is
25 percent higher than a year ago."

In response to an increase of "transboundary" animal diseases,
the World Organisation for Animal Health (O.I.E.) and the Food
and Agriculture Organization of the United Nations have agreed to
strengthen their collaboration. Animal diseases spreading between
countries, such as foot-and-mouth disease and avian influenza are
often having a severe economic and social impact.
F.A.O. and O.I.E. called upon countries and donors to invest more
in the control of contagious transboundary animal diseases. Such
animal diseases are on the rise as a result of international trade and
the movement of people and animals. "Animal diseases that cross
borders need an immediate and effective regional or international response," the two agencies said in a press release.
F.A.O. and O.I.E. have set up a global information and early warning system on highly contagious transboundary animal diseases. "In
an emergency situation, the rapid distribution of information and an
improved coordination between countries is essential to control contagious diseases. This will help to protect people against diseases of
animal origin and prevent the risk of diseases spreading into other
countries," F.A.O./O.I.E. said.
The new agreement, signed late this past month, clarifies the area
of competence of the two agencies and will improve synergies.

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JUNE 2004

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Meat + Poultry - June 2004

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