Meat + Poultry - May 2006 - 4

Seaboard reports lower first quarter earnings
MERRIAM, Kan. - Net income of
Seaboard Foods in the first quarter ended April 1 was $51.5 million, equal to
$40.86 per share on the common stock,
down 25 percent from $68.7 million, or
$54.72 per share, during the first quarter
of 2005. Net sales were $442.6 million,
down 19 percent.
During the quarter, Seaboard experienced a decline in operating income
for each of its leading segments. The
company's pork business had operating income of $30.1 million on sales
of $245.3 million, down 40 percent and
up 1 percent, respectively, from the first
quarter of 2005.
The income decline was attributed
to lower prices for pork products partly
offset by lower costs for third-party hogs
used for processing. Triumph Foods be-

gan production at its new pork processing plant during the first quarter, and
Seaboard began marketing the related
pork products for a commission.
Looking forward, Seaboard does not
predict a rally in the pork business, noting that the high prices of late 2004 and
2005 represented an aberration from
past norms.
"Historically high market prices
have not been sustained over long periods of time but rather rise and fall
based on prevailing market conditions," Seaboard said. "Overall, management expects pork prices for the
remainder of 2006 to be lower than
2005, which could result in significantly lower operating income for this
segment during the remainder of 2006
compared to 2005."

U.S. announces A.I. pandemic plan
WASHINGTON - The U.S. Homeland Security Council has published its
response plans to what many believe
to be an inevitable pandemic resulting from a domestic outbreak of highly
pathogenic avian influenza in the United States. "Implementation Plan for the
National Strategy for Pandemic Influenza" addresses planning across all levels of government to deal with an outbreak. The plan includes 324 actions to
be carried out by federal officials within a specified timeline.
According to the U.S. Dept. of Agriculture, "The plan ensures that the
federal government, along with our

state and local partners, continues to
take appropriate steps in preparation
for H.P.A.I. and a possible human influenza pandemic in the country."
The plan directs U.S.D.A. to orchestrate 98 actions addressing the threat
of A.I. in the United States, including efforts to slow the spread of the
disease overseas, enhancing domestic safeguards and ensuring a rapid response plan is in place to deal with an
outbreak at local and national levels.
Safeguards include trade restrictions, wild bird monitoring, and federal-state-industry testing of poultry at
slaughter and processing plants.

Industry rallies against
latest Schlosser book
WASHINGTON - A group of 18 associations representing all segments of
the food industry have joined forces
to rebut information published in Eric
Schlosser's latest book, "Chew on This,"
which is critical of the overall U.S. food
system. The group claims Schlosser's
new book relies on inaccurate and outdated information and gives the entire
food chain a black eye. Schlosser's "Fast
Food Nation," published in 2002, used
a similar approach to criticize the fastfood industry.
"We welcome open dialogue about
our food system," said Janet Riley, senior vice president of public affairs with
the American Meat Institute, Washington, D.C. "These are important issues
worthy of discussion. However, some of
the information contained in this book
is inaccurate and misleading, and Americans should know the facts so they can
form their own opinions."
To help the public access accurate information, the associations have
launched a Web site, www.bestfoodnation.com, to communicating factual data
about the food industry.
The site provides facts about all segments of the food industry and focuses
on positive contributions delivered by
the food system. It features details about
food-industry efforts that directly benefit the public, including the various food
choices produced by food companies,
the creation of millions of good-paying
jobs and the practice of responsible animal welfare and environmental stewardship among U.S. food processors.

Johanns says B.S.E. prevalence in U.S. is 'extraordinarily low'
WASHINGTON - Late this past
program has been an enormous
month, Agriculture Secretary
undertaking, but well worth the
Mike Johanns quantified the suceffort," said Johanns. "We can
cess of the more stringent testing
now say, based on science, that
being conducted to prevent bothe prevalence of B.S.E. in the
vine spongiform encephalopathy
United States is extraordinarily
Johanns
in the United States. Based on
low. The testing and analysis resurveillance data dating back to 1999, inforce our confidence in the health of
U.S. Dept. of Agriculture officials esti- the U.S. cattle herd."
mate the prevalence of the disease in the
The estimate of B.S.E. prevalence in
United States to be less than one case the United States is based on data gathper million head of adult cattle.
ered since June 2004, when more rigor"Our enhanced B.S.E. surveillance ous testing began, but also from surveil4

MEAT&POULTRY

May 2006

www.MEATPOULTRY.com

lance beginning in 1999. U.S.D.A. officials used the BSurvE Prevalence B method and the Bayesian birth-cohort method
to measure the prevalence of B.S.E.
The findings of the two methods were
similar indicating the most likely number
of cases present in the United States is between four and seven animals. Therefore,
U.S.D.A. concludes that the prevalence of
the disease in the United States is less than
1 case per million adult cattle, based on an
adult cattle population in this country of
approximately 42 million animals.

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Meat + Poultry - May 2006

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