Meat + Poultry - May 2005 - 10

Business Notes
Poultry and pork boost processed meats sales
According to a recently released report
from researcher Packaged Facts, the
deli and refrigerated processed
meats market is recovering
steadily after enduring challenging market situations
over the past four years.
The challenges stem
back to the Sept. 11, 2001
terrorist attacks on the
United States and include
the subsequent slowing
U.S. economy. Compounding
problems, a number of major food
safety-related meat recalls followed.
However, fueled by consumer
demand for convenient, low-carb,
high-protein products, the refrigerated
processed meat market was expected
to reach more than $17 billion in 2004,
according to the Packaged Facts report,
entitled "Market Trends: Deli and Other Refrigerated Processed Meats."
The report highlighted that demand
for poultry and pork products are
particularly strong. Sales of refriger-

ated, uncooked poultry surged from
$240 million in 1999 to $737 million
in 2003.
Despite the challenging conditions,
breakfast and luncheon meats continued to be the two largest categories of
refrigerated processed meat. Refrigerated bacon sales grew 10.67 percent
in 2003 over 2002 and are expected to
have grown by 6.53 percent in 2004,
with sales of about $2.2 billion. Fueled
by new varieties of flavors and leaner
offerings, sales of sliced lunch meat is
expected to top $3.1 billion in 2004, an
increase of 4.3 percent over the previous year.
Don Montuori, acquisitions editor
for Packaged Facts, says future success
will depend on how well companies are
able to market their products to an audience that is increasingly diverse.
"Targeting strategies will be especially important for future growth in
cold cuts and frozen meats, especially
as minority groups, such as Hispanics,
the largest and fastest-growing ethnic

U.S.D.A. closes two House of Raeford plants
Within days of ordering one of its
company's turkey plants to close, federal
inspectors closed a second House of Raeford Farms poultry processing facility.
In late March, U.S. Dept. of Agriculture inspectors ordered the Raeford,
N.C.-based House of Raeford Farms
chicken plant in Arcadia, La., closed, reportedly because repeated food safety citations had not been resolved.
"There was a food safety risk,
so we needed to take action,"
said Matt Baun, a spokesman
for U.S.D.A.'s Food Safety and Inspection Service. The Arcadia facility closure
affected about 700 workers.
Days later, in early April, one of the
company's turkey processing plants in
Raeford was ordered to close for similar infractions. The uncorrected problems included rust and leaking pipes
in the plant, record-keeping violations
and conditions that could lead to food
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MEAT&POULTRY

May 2005

being infected by Listeria, said Baun.
About 1,300 workers at the turkey processing plant were affected.
"This wasn't out of the blue. The plant
knew about our concerns all along, and
they haven't effectively addressed those
concerns," Baun said.
The company issued a brief statement,
saying, "The plant will reopen as soon
as company and (U.S.D.A.)
officials are in agreement that
outstanding issues have been
addressed."
At press time, both plants had resumed production. "Both plants are up
and running," Baun says. "The plant in
(Arcadia) Louisiana is running under a
consent order issued by the administrative law judge last Thursday (May 5)."
As part of the consent order, "If the plant
violates the consent order F.S.I.S. would
send the plant a letter saying we are going to withdraw inspection again."

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group in the U.S., show distinct preferences for different types, forms, and
flavors of meat," he said. "A proactive
look at smaller and emerging ethnic
groups is also a smart strategy for
marketers, not simply for marketing
purposes but to keep an eye on food
and flavor trends."

Tyson closing
rendering plant
Officials with Tyson Foods Inc.,
Springdale, Ark., announced the
company would be closing its River
Valley rendering operation in Noel,
Mo., citing cost savings and odor
complaints by area residents. Production at the plant will be discontinued no later than June 3, according to
a statement released by the company.
The poultry processing operation in
Noel, however, will continue
The Noel rendering operation
will consolidate with similar work
in Scranton, Ark., the company
said. That facility has five times the
capacity as the Noel operation and
is newer than the Noel plant, which
was built in 1963.
Approximately 45 workers are affected by the move, and Tyson said
most of the employees would be offered other positions with the company. Some will likely take jobs at
the Noel chicken processing plant,
which employs more than 900.
Noel residents and business owners have complained about the odors
produced by the rendering plant for
years.
"After months of consideration,
we determined it will be more costeffective to close the plant and move
the production to another facility,"
said Bill Lovette, Tyson group vice
president of foodservice. "This
decision has the added benefit of
addressing concerns from some
neighboring businesses about the
Noel rendering operation, which we
inherited when our company bought
Hudson Foods in 1998."

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Meat + Poultry - May 2005

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