Company News
Thursday
17 May 2021
In association with Stat Significant
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Headline
Will Tyson Foods initiate a major cost cutting strategy after these massive losses?
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Trending
Shocking Food Price Surge: Meat, Vegetables, and Yoghurt Prices Double in a Year Amidst Soaring Inflation
Discover the alarming reality of skyrocketing food prices as meat, vegetables, and yoghurt costs double in just one year. Learn how rampant inflation is impacting consumers and why a consumer watchdog is urging the Prime Minister to intervene. Find out more about the ‘Farm to Fork Summit’ and its implications for the food industry.
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Meat, Dairy & Seafood Company News
FrieslandCampina
FrieslandCampina WAMCO Nigeria PLC, the dairy organization and producer of popular milk brands such as Peak and Three Crowns, reported a 21% increase in revenue for the business year ended December 31, 2022. Despite facing economic challenges including slow growth, unemployment, and inflation, the company’s turnover reached N324.7 billion, up from N268.4 billion in the p revious year. Profit before tax also rose by 6% to N13.5 billion. FrieslandCampina attributed its growth to a focus on revenue growth management and redistribution initiatives, although there was a decrease in volume due to high inflation and reduced consumer purchasing power.
Glanbia
Glanbia, a nutrition company, has announced an extension of its share buyback program by € 50 million, bringing the total value of the program to € 100 million. The extended program will run until the end of September and allows Glanbia to repurchase up to 10% of the company’s issued share capital, equivalent to approximately 27.2 million shares. The announcement comes as Glanbia adjusted its full – year guidance for earnings per share growth from 7% to 11% following a first quarter that met expectations. Despite a decline in group revenue and sales volumes, Glanbia remains confident in its platforms and expects strong full – year growth. The company’s performance nutrition division showed growth in sales volumes and prices, while Glanbia Nutritionals experienced a decline in volumes and revenues. Glanbia maintains its target of an operating cash flow conversion rate of 80%+ for the year. The company’s net debt declined year – on – y ear, and it has committed debt facilities of $1.3 billion.
Golden West Foods
Golden West Food Group Inc., a manufacturer and distributor of premium food products, has announced the completion of a $475 million refinancing transaction. The transaction includes a $355 million revolving credit facility, a $45 million term loan, and a $75 million accordion.
HKScan
Finnish fo od group HKScan has reported a double – digit increase in net sales for the last quarter but remains focused on improving profitability. The company recorded net sales of EUR 457.6 million ($500 million) for the first quarter of the fiscal year, representing a 15.6% year – on – year increase. The improvement was attributed to higher sales prices and strong sales performance. HKScan’s CEO, Juha Ruohola, emphasized the company’s commitment to implementing strategies aimed at enhancing profitability in the future.
Inghams
Inghams Enterprises, a poultry supplier, has applied for clearance from the Commerce Commission of New Zealand to acquire certain assets of Bromley Park Hatcheries. Inghams Enterprises, through its New Zealand subsidiary, intends to acquire the Cobb Commercial and Riverland business assets, which operate in the North Island of New Zealand. Bromley Park Hatcheries is involved in the production of day – old chicks and operates breeder farms and a hatchery. The acquisition excludes the Shaver/SXB business unit, which focuses on day – old chicks for egg production.
Maple Leaf
Curtis Frank has been appointed as the new President and CEO of Maple Leaf Foods Inc., succeeding Michael McCain, who is stepping down after 25 years in the role. McCain will continue to serve as the executive chairman of the board. Frank’s promotion is part of a succession plan announced last year. With over 23 years of experience at Maple Leaf, including four – plus years as the COO, Frank has held various positions within the company, showcasing his leadership and connection with people.
Land O’Lakes
Truterra LLC, the carbon farming and sustainable agriculture unit of Land O’Lakes Inc, revealed that it paid U.S. farmers a total of $5.1 million in 2022 for capturing and storing 262,000 metric tons of carbon through sustainable practices. This marked an increase from the $4 million paid out in 2021 for sequestering 200,000 tons of carbon. The payments were made to 273 growers enrolled in the carbon program.
Leroy Seafood
Ler?y Seafood Group, a global seafood corporation based in Norway, reported a 26% year – on – year increase in revenue for the first quarter of its financial year. Operating EBIT reached NOK 989 million (€ 85.5 million), up from NOK 889 million ( € 76.8 million) in the same period in 2022. The company attributed its performance to price inflation on seafood products and challenges in the farming segment during the second half of 2022, resulting in low average harvest weight and suboptimal harvest prices in the first quarter. CEO Henning Beltestad highlighted the impact of a weak Norwegian krone on prices and expressed concern about proposed government tax measures that could limit industry development. Ler?y Seafood Group anticipates a slight increase in farming costs in the second quarter but lower costs in the latter half of 2023.
Perdue
Perdue Perdue, a poultry company, has entered the beer market by introducing a limited – edition brew called “Beer Can Chicken Beer.” Designed specifically for making “beer can chicken,” the 12.5 – ounce can of honey double – citrus summer ale is brewed with grilled chicken seasonings like rosemary, thyme, and pink peppercorn. Priced at $14.99 for a six – pack, the beer will be available exclusively online starting from May 22. Perdue partnered with Torch & Crown Brewing Company in Manhattan to produce the beer. The company aims to address the lack of consensus on the best beer for beer can chicken, a popular grilling method. Additionally, Perdue is promoting the beer by selling whole chickens with special packaging at grocery stores nationwide.
Retail & Food Services
High Liner Foods
High Liner Foods, a Canada – based seafood firm, experienced strong financial results in the first quarter of 2023, driven by its foodservice segment. The company saw a significant increase in sales, with a jump of $34.5 million or 11.7%, reaching $329.2 million compared to $294.7 million in the previous year. Sales volume also rose by 3.6 million pounds or 4.9%, reaching 77.0 million pounds. High-Liner Foods attributes its success to the foodservice business and highlights that it has achieved eight consecutive quarters of Adjusted EBITDA growth. The company’s performance comes amid inflationary pressures affecting the industry.
Jollibee
Jollibee Foods Corp, the largest restaurant operator in the Philippines, will divest from PHO24 in order to focus on its chosen segments of chicken, coffee and tea, burger, and Chinese cuisine. The decision to let go of PHO24, a small brand that does not align with Jollibee’s strategy, aims to provide better returns for shareholders. Additionally, Jollibee identifies Vietnam as the “next big market” outside of the Philippines, with 157 profitable stores already operating there. The company also expresses interest in expanding to other Southeast Asian ma rkets where they are not yet present. While Jollibee is open to potential acquisitions, it believes it already has solid brands that have not reached their full potential. The US market is seen as the biggest opportunity for international expansion, and Jo llibee has acquired Coffee Bean and Tea Leaf as well as Smashburger to capture a wider market in the country. As of January 2023, Jollibee operates a network of 6,481 stores globally.
McDonald’s
McDonald’s McDonald’s has reopened two restaurant locations in war affected Ukraine, specifically in Kremenchuk and Poltava. The restaurants will operate under expanded security rules to ensure the safety of staff and customers.
Pizza Hut
Pizza Hut is planning to introduce an AI – enabled mood detection device at select restaurants in India. The device will analyze customers’ facial expressions using facial expression analysis and recommend pizza options based on their mood.
Feed & Nutrition
A record crop of soybeans is expected in the United States. The eyes of the oilseed market are therefore focused on sowing activities there. The planting is going well. As of May 14, 49% of US soybean acreage was sown. The 5-year average is 36% on the same reference date. According to the US Department of Agriculture (USDA), America expects soybean production of 122.7 million tons this season.
Logistics Company News
Hapag-Lloyd
Hapag – Lloyd, the fifth – largest shipping line in the world, has reported better – than – expected results for the first quarter of 2023. The CEO, Rolf Habben Jansen, believes that current freight rates are unsustainable and will eventually increase. While cargo volumes remained subdued in the fi rst quarter, Habben Jansen expects a gradual pickup in demand as destocking comes to an end. He argues that rates need to remain 25 – 30% above pre – COVID levels to cover the increased costs fa ced by carriers. Hapag – Lloyd’s first – quarter results surpassed pre – COVID levels, with net income 19 times higher than in Q1 2019. The company maintains its guidance for the full year, but analysts anticipate a steep earnings decline ahead.
Wednesday
16 May 2023
Headline
How will Brazil’s first case of bird flu affect international trade?
Trending
USDA agriculture demand & supply report looks bleak
Meat, Dairy & Seafood Company News
Beyond Meat
Plant – based meat producer Beyond Meat has announced plans for a $200 million equity offering to address dwindling sales and bolster working capital. The move comes after the company’s first – quarter earnings exceeded Wall Street’s projections. Beyond Meat a ims to achieve positive cash flow by the latter half of 2023. While facing weak demand domestically, particularly in the retail sector due to inflation and competition, the company has seen a two – fold increase in international food services revenue. Strate gic partnerships, such as with McDonald’s, have contributed to the company’s recovery. The equity offering will support investments in product innovation, marketing, and operational efficiency.
BRF
Miguel Gularte, the CEO of Brazilian meat processor BRF SA, stated that the confirmation of two cases of highly pathogenic avian flu in Brazil is unlikely to result in trade bans. He emphasized that Brazil’s sanitary status remains unchanged according to the guidelines of the World Organization of Animal Health (WOAH). Gularte reassured that the government and companies have taken necessary precautions to prevent the virus from spreading to commercial farms. These comments were made in relation to BRF’s first – quarter results, which revealed a wider – than – expected loss.
CPF
Charoen Pokphand Foods (CPF), Thailand’s leading food conglomerate, has pledged to transport food using electric vehicles as part of its commitment to becoming a renewable energy organization. The company aims to generate 100% of the electricity required for farm activities from renewable sources. CPF is installing solar panels on its farms, feed mill, and food manufacturing facilities, and implementing waste conversion to renewable energy programs. The company plans to source 30% of its total energy consumption from renewables by 2022 and increase it to 50% by 2030 and 100% by 2050. CPF has already phased out the use of coal in its operations and is focusing on biomass, biogas, and solar energy. Additionally, the company is piloting the use of electric trucks for transportation within its facilities to promote clean energy usage and reduce greenhouse gas emissions.
Creekstone
Creekstone Farms, a premium beef processor, has begun construction on a 20,000 – square – foot child care center near its headquarters in Arkansas City. The facility will a ccommodate over 100 children and is expected to open in the fall. The project, which sits on 3.5 acres, has an estimated construction cost of $3.5 million. The child care center will be available to the children of Creekstone Farms employees, with the company covering the renovation costs and employees paying a monthly fee to utilize the service. The learning center will operate as a separate entity under the name Walnut Valley Learning Center LLC. The project is part of Creekstone Farms’ commitment to supporting its employees and the local community.
Thai Union
Chris Shearlock has been appointed as the new Sustainability Director for Europe at Thai Union, a major seafood company. He replaces Tracy Murai, who has been promoted to Assistant Director, Global Fisheries Sustainability. Shearlock’s appointment comes at a significant time as Thai Union is preparing to announce an update to its sustainability strategy, SeaChange?, with new goals and commitments for the period until 2030. As part of his role, Shearlock will play a crucial role in implementing the SeaChange 2030 initiative.
Tyson Foods
Tyson Foods Inc. is planning to resume pig slaughtering operations at its Madison, Nebraska, pork plant in mid – May, following a fire that occurred two weeks ago. The temporary halt in slaughtering has been extended due to weak consumer demand for pork and low prices, which are impacting meatpackers’ profitability and affecting hog farmers. In the meantime, Tyson is redirecting hogs to other pork plants to compensate for the suspended operations at the Madison facility. The plant is currently operating on a limited scale while repairs and assessments are being carried out.
Retail & Food Service Companies
Sysco
Food distribution company Sysco has confirmed that it experienced a cyber attack earlier this year, resulting in the theft of customer, business, and employee data. The attack, which occurred on January 14, 2023, was detected by Sysco on March 5. The stolen data in cludes information from companies, suppliers, and employees in the US and Canada, such as names, social security numbers, and account numbers. Sysco has notified those affected by the breach and stated that it is working to comply with its obligations rega rding the compromised data. The company’s operations were unaffected, and measures have been implemented to enhance network security and prevent future breaches.
Wendy’s
Wendy’s, a leading fast – food restaurant chain in the US, reported strong earnings for the first quarter, surpassing revenue estimates and demonstrating growth in its business operations. The company achieved $0.21 earnings per share and generated $528.81 million in revenue, exceeding the predicted $525.77 million. Wendy’s impressive return on equity of 41.86% and net margin of 8.46% indicated its financial efficiency and profitability. Although Wendy’s share price experienced a slight increase, its moving averages suggest investors may seek higher short – term returns elsewhere. However, Wendy’s remains a significant player in the industry, with a market capitalization of nearly $5 billion and a promising future reflected in its favorable PEG ratio.
Feed & Nutrition Companies
Bunge
Bunge, a major agricultural commodities trader, announced the launch of its regenerative agriculture program in Brazil. The program aims to support farmers in transitioning to low – carbon agriculture by providing technical support, tools, products, and services. It will cover approximately 615,000 acres in Central – West and Southern Brazil. The program is part of Bunge’s broader commitment to sustainable agriculture, including ending deforestation in its sup ply chain. Regenerative agriculture focuses on protecting and restoring soil health to capture more carbon and reduce greenhouse gas emissions. The program will connect participating farmers with markets that demand sustainable products and involve partner s who provide expertise and tools. Orígeo, a joint venture between Bunge and UPL, will work with farmers to digitize crop data and promote high – quality, low – carbon grain production. The program is expected to reduce greenhouse gas emissions and promote sustainable agriculture practices.
Zoetis
CentralStar Cooperative has partnered with Zoetis to offer dairy producers in Michigan, Indiana, and Wisconsin easier access to genomic testing for their herds. The partnership aims to enhance producer profitability by providing convenient implementation of CLARIFIDE?, CLARIFIDE? Plus, and Herdity ? genomic testing. By working with thei r local CentralStar team, dairy producers can initiate a genomic testing plan to improve production, profitability, and sustainability. Genomic testing helps identify animals with superior genetic traits, allowing producers to make informed decisions for breeding and genetic progress. The partnership between CentralStar and Zoetis aims to provide reliable tools and accelerate genetic advancements for dairy farms.
Logistics Company News
Americold
Cold storage and logistics company Americold has been experiencing IT issues following a network breach that occurred on Tuesday night. The company has contained the attack and is currently investigating the incident, which has impacted operations according to customer and employee reports. Americold estimates that its systems will remain offline until at least next week, as stated in a memo sent to customers. The company has requested customers to cancel inbound deliveries beyond next week and reschedule non – critical outbound deliveries. The focus on rebuilding impacted systems and assessing data recovery suggests that the incident may be a ransomware attack, although Americold has not provided official details or statements regarding the breach. Americold was previously targeted in a cyberattack in November 2020, which affected its operations and was believed to be a ransomware attack.
CMA CGM
French container transportation and shipping company CMA CGM is proceeding with the $5 billion acquisition of the transport and logistics operations unit of Bollore Group, Bolloré Logistics. The acquisition aims to strengthen CMA CGM’s logistics division and is expected to result in combined revenues of over $24 billion based on 2022 results. The deal will expand CMA CGM’s workforce by over 14,000 employees and increase its annual shipping capacity in sea and air freight. It will also provide access to major logistics hubs, particularly in France and Asia. The acquisition is subject to regulatory approvals and employee representation. If finalized, it will be the largest deal in CMA CGM’s history and a significant strategic milestone for the company’s logistics activities.
Equipment & Technology
Buhler
Buhler Industries, listed on the TSX as BUI, has reported its first – quarter earnings for 2023. The company’s revenue for the quarter was $56.0 million, a slight increase from the same quarter last year. Net income for the quarter was $4.1 million, significantly higher than the $0.4 million reported in the previous year’s first qua rter. The increase in profit was attributed to a gain on the disposal of assets held for sale. However, there were offsetting factors such as a reduction in income from operations, increased interest expense, decreased gain from foreign exchange, and highe r spending on research and development. The company anticipates increased sales in 2023 as it addresses supply chain challenges and continues to experience strong demand for agricultural machinery and equipment. Buhler Industries also mentioned the upcoming recognition of results from the sale of its Vegreville facility and the sale – leaseback of its Woodstock facility in the second quarter. The company cautions that forward – looking statements involve risks, uncertainties, and assumptions, and its actual results may differ from those anticipated.
CNH Industrial
CNH Industrial, the parent company of Case and New Holland construction equipment and Case IH agriculture equipment, has announced the divestment of its business activities in Russia. This move comes 13 months after the company suspended all shipments to Russia following the country’s invasion of Ukraine. The divestment is valued at approximately $60 million. CNH had a corporate office in the Moscow region through which it managed import, distribution, and financing of its products. The sale will not have a significant impact on the company, as Russia accounted for 2% of CNH’s consolidated revenue in 2021. CNH had previously donated $500,0 00 to assist those affected by the Ukraine crisis and established an employee donation fund. The company will record additional pre – tax charges of approximately $20 million related to the divestment.
GEA
GEA, an engineering and equipment manufacturer, has provided Viscofan with a new evaporation plant at its facility in Caséda, Spain. The upgrade was made possible by GEA’s Mechanical Vapor Recompression – Technology (MVR) to increase evaporation capacity, reduce energy consumption, and lower the CO2 footprint. The investment costs are expected to be recovered within a year due to the project’s efficiency. Viscofan, a leading supplier of casings for meat products, chose this energy conversion as part of its commitment to sustainability. GEA used a combination of materials suitable for the acidic product, including graphite, Hastelloy, and reinforced plastic. The MVR solution can reduce energy consumption costs by up to 90% compared to the previous steam – heated system. GEA offers tailored evaporation systems using Mechanical Vapor Recompression and Thermal Vapor Recompression technologies based on individual customer needs.
Tuesday
15 May 2023
Headline
JBS burns $6.1bn in cash as losses pile up
Trending
Hylife Foods files for bankruptcy
Meat, Dairy & Seafood Company News
Hutson Agro
Hatsun Agro, a Chennai – based dairy company, reported a 16% drop in net profit to ? 25 crore for the fourth quarter of the fiscal year ending March 31, 2023, compared to ? 30 crore in the same quarter of the previous year. However, revenue saw a 10% increase to ? 1,791 crore. The cost of materials consumed during the quarter rose by 18% to ? 1,298 crore. For the full fiscal year, the company’s net profit declined by 24% to ? 166 crore, while revenue increased by 13% to ? 7,257 crore. The company’s share price on the Bombay Stock Exchange closed at ? 870.35, up by ? 7.5.
Kepak
The Kepak Farm in Co. Meath, Ireland, is undertaking research to reduce the carbon footprint associated with its beef – finishing operation without compromising meat yield and quality. In collaboration with Meat Technology Ireland (MTI), the farm is working on a project led by Prof. Donagh Berry of Teagasc to develop breeding strategies. The research aims to explore the genetic link between animals and methane production, fitness to slaughter at a younger age, yield, and kill out percentage. Ultrasound scanning and Greenfeed technology are being used to collect data and measure muscle and fat development in cattle. The project’s findings will contribute to the Lifecycle Carbon Footprint analysis of the national beef herd and help farmers select breeding bulls predicted to have lower emissions. The research is expected to be published this year and will be included in national inventory models to defend methane emission values.
Land O’Frost
Land O’Frost, a meat product manufacturer, has introduced the Premium Mega Pack to its Premium Meat line. The new packaging offers an extra six ounces of meat, providing customers with greater value for their money. The 22 – ounce packages, featuring products like Honey Ham and Bl ack Forest Ham, will be available nationwide. Land O’Frost aims to cater to cost – conscious families seeking affordable meal options amid rising inflation and offers a budget – friendly choice with the Mega Pack.
Lantm?nnen
Swedish agricultural cooperative Lantm?nnen has invested SEK 800 million in a new biorefinery in Norrk?ping, Sweden, to extract wheat protein (gluten) and meet the growing demand for this ingredient. The facility will significantly increase production, and Lantm?nnen has hired 30 new employees for the project. The cooperative, owned by over 19,000 Swedish farmers, aims to maintain the quality of the material and production capacity by sourcing raw wheat directly from arable land without intermediaries. Lantm?nnen recently expanded its PrOtein line with two new products for premium meat analogs and enhancing protein content in various applications. The cooperative has also collaborated with mycelium – based protein food tech company Mycorena to develop fungi – based protein sources and ingredients. This investment aligns with Lantm?nnen’s strategy to strengthen Swedish food production, increase export opportunities, and add value from Swedish arable land.
Marine Harvest
Several high – profile executives, including former Marine Harvest (now Mowi) CEO Hans den Bieman, have left Singapore – based barramundi farming group Barramundi Group. This comes after a CEO change and a series of poor financial results. The company has reported steep losses for the past t wo years, including a loss of SGD$19.7 million in 2022 and SGD$24.9 million the previous year. The company attributed the poor results in part to a viral outbreak at a Singapore growout site. Barramundi Group’s revenues in 2022 reached SGD$35.2 million. The company’s stock has declined by over 50% in the past year.
Marubeni
Marubeni Corporation and Secom Co. have announced plans to jointly launch a tender offer to acquire Arteria Networks Corporation. The intention is to take Arteria Networks private. The details of the negotiations and the potential price offer are mentioned, suggesting that the price might be considered low. However, it is acknowledged that blocking the tender offer may pose a challenge.
Olymel
The closure of Olymels’ pork processing plant in Vallée – Jonction, Quebec, has been met with resistance from the local unions, who have refused to fight against the closure. The plant’s closure will result in the loss of a thousand jobs and have a devastating impact on the region. However, the unions have focused on job – search assistance rather than organizing worker resistance. The closure is seen as a punishment for the Vallée – Jonction workers’ previous strike against management demands for concessions.
Marlow Foods
Marlow Foods, the parent company of Quorn, is making its mycoprotein available to food and beverage manufacturers, potentially impacting the dairy alternatives market. With the growing demand for plant – based alternatives and the projected expansion of the animal – free dairy segment, mycoprotein could enhance the nutritional value and functionality of dairy alternatives. Marlow Foods has conducted successful trials using mycoprotein in yogurt and cheese alternatives, highlighting its potential in the alt dairy space.
Rastelli Foods
Rastelli Foods Group, a prominent supplier of organic, grass – fed beef, has acquired Greensbury Market, a New York – based company known for its premium grass – fed products. This acquisition aims to provide consumers with a convenient shopping experience for high – quality proteins. Greensbury’s range of organic products, including grass – fed beef, bison, poultry, lamb, pork, and sustainable seafood, will now be exclusively available on Rastelli’s direct – to – consumer website, Rastellis.com. The merger allows Rastelli Foods Group to offer a comprehensive selection of organic and grass – fed options in one location.
Salmar
SalMar, the second – largest producer of Atlantic salmon, has reported a 49% increase in operational profit (EBIT) for the first quarter of 2023 compared to the previous year. The company attributes the strong performance to limited supply growth of Atlantic salmon, high prices, and strong demand for healthy food. The acquisition of NTS group, owners of Norway Royal Salmon, also contributed to the positive results. SalMar’s financial results from Scottish Sea Farms, in which it ow ns a 50% stake, have improved compared to the previous quarter, with a positive operational EBIT. However, the Scottish side of the business still recorded an accounting loss before tax.
Retail & Food Services
Pizza Hut
Pizza Hut Malaysia experienced a 14% increase in orders after launching a dynamic campaign targeting gamers during the FIFA World Cup. The campaign involved integrating unique codes into popular mobile football games, which users could tap on to order limited edition pizza combos named after players and pizza toppings. The campaign, created by Dentsu Creative Malaysia and Carat Media, successfully engaged 1.2 million act ive gamers and generated 8.4 million media impressions. Pizza Hut Malaysia plans to continue engaging gamers in their own gaming worlds in the future to attract new customers.
Subway
Subway, the global sandwich chain, experienced a decline in its US restaurant count to the lowest level since 2005, with the closure of 571 stores in 2022. The number of Subway locations in the US dropped to 20,576, representing a decrease of almost a quar ter of its total store count since 2016. However, Subway stated that the rate of closures last year was the lowest in six years. The company attributed the closures to its transformation journey, optimizing its footprint by strategically assessing location, image, and format of restaurants. Subway plans to increase new openings across North America by approximately 35% in 2023 as part of its goal for smart growth. Additionally, Subway’s shareholders are exploring the possibility of selling the company, with a valuation expected to exceed $10 billion. The late co – founder, Peter Buck, also bequeathed half of the ownership of the chain to The Peter and Carmen Lucia Buck Foundation, where his two sons serve on the board of directors.
Equipment & Technology
Marel
Reykj avik – based company Marel showcased its new salmon – filleting machine, the 2750, at Seafood Processing Global. The machine was described as the “jewelry of the crown” and generated significant buzz during the expo. It is fully connected to Marel’s internet of things program, SmartBase, and offers extensive sensor capabilities. The machine is efficient, compact, and capable of producing 25 fillets per minute with full de – trimming. It also saves a significant amount of water compared to competitors. Another hig hlighted product was the 3400 automatic slicer, which offers precision, classification, and the ability to work with multiple species by changing internal tools. Marel also showcased its digital platform for connectivity and data collection across its processing machines. The company is focused on providing constant value to its customers and adapting to trends in the seafood market.
Logistics Company News
Hapag-Lloyd
Hapag – Lloyd, a global shipping company, reported its Q1 2023 financial results, showing resilience in a weaker market. EBITDA reached USD 2.4 billion, while EBIT and group profit were lower compared to the previous year. Transport volumes and revenue declined due to local destocking and weaker global demand. Hapag – Lloyd remains focused on cost management and the development of its “Strategy 2030” with a focus on quality and sustainability. The company maintains its forecast for 2023, but risks such as geopolitical uncertainties and inflationary pressures could impact results.
Maersk
A.P. M?ller – M?rsk has launched Maersk Project Logistics after integrating Danish project logistics specialist Martin Bencher. The acquisition of Martin Bencher was completed earlier this year. Maersk Project Logistics consolidates t he shipping company’s existing project logistics activities and offers solutions for projects with logistical needs. The company aims to provide a comprehensive experience for customers through solutions design, special cargo transportation, and project management services. Maersk Project Logistics has been available to customers in select regions since February 2023.
Monday
14 May 2023
Headline
Why does Burger King keep closing restaurants?
Trending
Have the BRICS nations chosen a side?
Meat, Dairy & Seafood Company News
Agropur
Agropur, a cooperative dairy company in Canada and the US, has had its greenhouse gas (GHG) reduction targets approved by the Science Based Targets initiative (SBTi). The cooperative has committed to reducing 30% of the GHG emissions generated by its plants in Canada and the US by 2031 and reducing GHG emissions across its value chain by 24% per kg of milk processed by the same year. Agropur is also working with industry leaders to achieve net – zero emissions by 2050. To reach its science – based targets, the company will increase energy efficiency and the percentage of renewable energy sourced. In Canada, 54% of Agropur’s electricity consumed comes from renewable energy sources.
The strike of 185 union members at the Agropur plant in Beauceville, Quebec, continues as the workers affiliated with the Teamsters Union complain that the employer repeatedly refuses to negotiate. The union members are asking for a catch – up salary compared to their Agropur colleagues working in other regions, more job mobility within Agropur, as well as the preservation of acquired rights. Agropur, a cooperative that brings together more than 2,800 dairy producers and has 7,350 employees in several facilities, manufactures butter and cuts cheese at the Beauceville plant, which is intended for the Canadian market.
Americold
Americold, a cold storage provider, has raised its 2023 guidance despite a recent cyberattack impacting 30% of its facilities. The company reported increased food production and higher demand f or cold storage space, which is driving its financial results higher. In Q1 2023, warehouse revenue increased by 10% YoY to $595m, and occupancy for contractually committed space rose to an all – time high of 84%, driven by higher food production and an incr ease in fixed commitment storage contracts. Americold’s full – year adjusted funds from operations guidance is now $1.16 to $1.26, up 2 cents on each end of the range, and warehouse revenue is expected to increase by 4.5% to 8.5% on a same – store comparison, excluding currency fluctuations.
AZNCO
ANZCO Foods, one of New Zealand’s largest meat exporters, has reported a net profit before tax of $147.7 million for the 2022 financial year, almost double the $75m made in 2021, due to strong global demand for premium beef and lamb. The company’s annual turnover also rose to $1.9 billion, up from $1.64b. ANZCO Foods attributed its success to its focus on core business activities, strategic investments, and the hard work of its staff. However, the company faces challenges this year from adverse weather events, global volatility, and an uncertain economic outlook.
Beyond Meat
Shares of plant – based substitute meat seller Beyond Meat tumbled 18% to new lows after the company said it would sell up to $200m worth of new shares as it faces a shrinking cash pile. The El Segundo, California – based firm reported its fifth consecutive quarter of declining year – over – year revenue, and it said it expe cts improved sales growth in the second half of 2023. Beyond Meat also said it has entered an equity distribution agreement with Goldman Sachs to sell up $200m worth of its shares.
Butterball
Butterball has launched two low – fat turkey sausage options called Hearty Turkey Sausage in Old World Smoked and Polish style flavors. The sausages come in four – count packages and contain up to 70% less fat than their pork and beef smoked sausage counterparts. They are precooked, bun – length, gluten – free, and can be heated to serve using a microwave, grill or skillet. Butterball’s turkey sausages are available in select retailers in the US, with broader distribution expected this fall.
Cermaq
Despite production falling 50% over the past two years in Canada due to government decisions forcing closures, Cermaq Global CEO Steven Rafferty remains upbeat about the company’s growth over the next two years. The Canadian government has mandated a ban on netpen salmon farming in British Columbia, but Rafferty believes the company will continue to grow despite this transition away from traditional farming methods. The ban includes the Discovery Islands region, which produces around 24% of BC’s salmon farming and accounts for around 21,000 metric tons of salmon annually.
Cherkizovo
Russia’s largest poultry producer, Cherkizovo, has sent the first batch of poultry meat to China by rail, with plans to dispatch an average of three trains with chicken products to China per month from June. The company sold 40,000 tonnes of chicken and turkey products into China last year, and rail delivery is expected to account for roughly 10% of all shipments this year. However, Russian poultry farmers are concerned about the increase in imports from China, which may negatively impact the industry’s investment attractiveness and profitability.
Retail & Food Service Companies
Arby’s
Arby’s, one of the largest restaurant chains in the US, has opened its first branch in Riyadh, Saudi Arabia. The menu will feature 10 high – quality meat stacks made by hand at the restaurant every day, including US favorites and exclusive items not available anywhere else in the world. The restaurant plans further growth in Saudi Arabia and Southeast Mexico in the coming months.
Darden
Darden Restaurants, which owns Olive Garden, LongHorn Steakhouse, and other brands, has agreed to buy Ruth’s Hospitality Group, the owner of Ruth’s Chris Steakhouse, for $715 million. The purchase is a good fit with Darden’s existing portfolio, which includes LongHorn and The Capital Grille, and will provide enhanced buying power and further expansion opportunities. Darden’s acquisition strategy focuses on buying brands that work from a portfolio perspective, such as Cheddar’s, and avoiding those that don’t, such as Red Lobster. Investors should be pleased with the latest acquisition plan.
Feed & Nutrition Companies
Bunge
Bunge Limited has approved a 6% increase in its quarterly cash dividend on common shares. The dividend will be $0.6625 per share and will be payable on September 1, 2023, to shareholders of record on August 18, 2023.
CHS
CF Industries and CHS Inc. are collaborating to produce and distribute low – carbon nitrogen fertilizer as part of the US – UAE’s Agriculture Innovation Mission for Climate program. The aim is to accelerate greenhouse gas emission reductions in agriculture and food systems.
COFCO
China is diversifying its sources of grain for food security and has received its first significant shipment of corn from South Africa. The 53,000 – tonne cargo purchased by state – owned trader COFCO Group is expected to be sold to animal feed makers. More shipments are expected as South Africa, the continent’s top corn producer, exported 108,104 tonnes of yellow feed corn to China between March 25 and April 14 this year. COFCO is working to expand purchases and “normalize” bulk imports of corn from South Africa, according to Xinhua.
DSM
DSM and Firmenich have completed their merger to form a new company called DSM – Firmenich, which will have four business units: Animal Nutrition & Health, Health, Nutrition & Care, Taste, Texture & Health, and Perfumery & Beauty. The new brand represents the companies’ shared identity, reflecting their purpose and values to bring p rogress to life and make a positive change in the world. Dimitri de Vreeze will be the CEO of the new company, while Ralf Schmeitz will become the chief financial officer. The new company will have 30,000 employees worldwide. Geraldine Matchett has decided to leave the company.
Logistics Company News
CMA CGM
Air France KLM Cargo and CMA CGM Air Cargo have reiterated that their 10 – year air cargo partnership will not offer advantages to CMA’s logistics arm, Ceva Logistics, which is owned by CMA along with Gefco and Bolloré Logistics. Both companies have stated that they remain neutral and maintain good boundaries with their customers. They pointed to the trend of customers looking for solutions to supply chain challenges, which could combine ocean and air. Air France KLM Cargo also announced improvements to its online booking platform, myCargo.
Equipment & Technology
GEA
GEA has announced an investment of around€ 50m ($56m) in the modernisation of its German centrifuge production sites in Oelde and Niederahr by the end of 2024. The company plans to target further growth in the food, beverage, and pharmaceutical industries through sustainable production, digitalisation and automation. The investment will be based on four pillars: sustainability, digitalisation, automation and modern manufacturing technologies. By investing in these areas, GEA aims to strengthen the competitiveness of both its German sites, which produce centrifuges used in over 3,500 processes in a range of industries.