Meat&Poultry - April 2012 - (Page 19)

Business Notes Praxair Technology Tyson addresses its strategy and stance on LFTB Tyson Foods Inc.’s multi-protein business model is the right approach because the company’s Chicken, Beef, Pork and Prepared Foods operating segments need not provide normalized returns at the same time for Tyson to be successful, according to Donnie King, senior group vice president of poultry and prepared foods for Tyson. King was speaking to investors at the JPMorgan 2012 Global Protein Conference. “Although there’s variability, and sometimes volatility, among the segments, the total company operating margin has remained solid under the current management team,” King said. “It’s good when all four segKing ColdFront™ Ultra Performance Spiral Freezer ments are within their normalized ranges, but it isn’t a requirement in order for our company to perform well as a whole.” He gave as an example the company’s Chicken segment performance in 2011. Earnings for the segment provided positive results during extremely difficult economic conditions due to operational improvements. “Since 2008 through 2011, we’ve achieved $800 million in operational efficiencies, and we’re on track to achieve an incremental $125 million this fiscal year,” King said. “We generated positive earnings in fiscal ‘11, which was possibly the worst year in chicken industry history.” King said currently, pricing for meat and poultry has improved on declining supplies and rising international demand. Another factor weighing on beef prices is the fallout from the lean finely textured beef controversy. Tyson released a statement outlining the adjustments the company will make since BPI’s decision to close three of its four processing plants. “Our company is one of many beef processors that sell beef trimmings to BPI. The reduction of BPI’s operations means less lean meat will be recovered and more of the beef trimmings will be converted into lower-value products,” the statement said. “We’re making some modifications in our production processes to adjust for this change. We’re also making adjustments to accommodate our customers that no longer want BPI’s lean fi nely textured beef in their ground beef.” Tyson declined to comment on the fi nancial impact BPI’s decision will have on the company. “We will say we believe the decrease in BPI’s production will result in less lean beef available in the market and may result in higher consumer prices,” the company said. “Alternatively, we believe there may be an increase in the supply of some of the raw materials used to pro- Get more cooling power from the same amount of cryogen. With the ColdFront™ ultra performance spiral freezer technology, Praxair experts perfected the delivery of both the cryogenic liquid and vapor – optimizing cooling power. Efficient & cost-effective space required 2 or CO2 cooling options performance Optimize your cooling process and your product quality with Praxair. Visit us at or use your smartphone to scan the QR code to read the Schenk Packing Co. case study. ™ duce ground beef, and this may result in lower values that could ultimately affect livestock prices.” ■ • April 2012 • Meat&Poultry • P-10416-3 19

Table of Contents for the Digital Edition of Meat&Poultry - April 2012

Meat&Poultry - April 2012
Table of Contents
Commentary - Assassinating effective technology
Business Notes - LFTB fallout continues
Business Notes - Thompson to CEO of McDonald’s
Business Notes - Introducing: NAMA
Business Notes - Group to acquire Burger King restaurants
Business Notes - JBS may leave Argentina
Business Notes - JBS Q4 earnings advance despite Pilgrim’s Pride loss
Business Notes - Tyson addresses its strategy and stance on LFTB
Washington - Family farm labor pains
Cover Story - Team builder
Food Safety - Full speed ahead
CEO Series - Executive experience
Ground Beef - Burger nirvana
Meat Processing - Operations & Engineering
Flooring - Building a solid foundation
Contract Sanitation - Focus on plant sanitation
Sanitation Tips (Consejos de Sanidad) - Cleaning compounds
Sanitation Tips - Be cautious with chemicals
Packaging Solutions - Sandwich success
Ingredient Issues - ‘Real food’ nutrition
Ingredient Trends - Tracking global ingredient trends
Small Business Matters - Remote possibilities
Leadership Development - Creating future leaders
From the Corral - On-farm handling
Labor - Balancing and bargaining act
Names in the News
New Product Showcase
Classified Advertising
The Insider

Meat&Poultry - April 2012