These results include an income tax benefit of $102.4 mln related to a net operating loss carryforward, and a net charge of $32.7 mln related to the company's reorganization. For the comparable quarter a year earlier, the company reported a net loss of $228.8 mln on total sales of nearly $1.9 bln.

"Our financial results have improved dramatically over the past year as we work to create a market-driven company clearly focused on delivering the highest levels of service, selection and value to our customers as efficiently as possible," said Don Jackson, Pilgrim's Pride president and CEO. "While we are pleased with the progress we have made, we recognize that there is much more work to be done in positioning Pilgrim's Pride for sustained, profitable growth. We will continue to focus on opportunities for improving our product mix, expanding our customer base and operating more efficiently."

Market pricing for chicken
Market pricing for chicken products during the quarter was mixed. The average market price for breast meat rose 8% and for wings increased by 37% versus the same period a year earlier. The average market price for leg quarters, however, declined 10% and Georgia Dock dropped about 5%. Pilgrim's Pride said its total US feed-ingredient costs in the quarter declined approx. $120 mln, or 20%, when compared to the same period a year ago.

Operating figures
The company reported an overall operating profit of $7.6 mln for the quarter, an improvement of $185.8 mln from a year earlier. Operating income was driven by higher gross profit and a $16 mln reduction - or nearly 17% drop - in Selling, General and Administrative (SG&A) expenses in the company's US operations as the company continued to benefit from expense reduction efforts during its reorganization.

"Today our business strategy is clear," said Dr. Jackson. "We are squarely focused on being a market-driven company that produces to the needs of our customers and the market. We have reduced our production of commodity chicken and are targeting higher-margin products. Our core retail and foodservice demand is driving supply. Our supply chain is focused on optimizing production, while our operations group is driving performance through safety, quality, productivity and cost efficiency."

 

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About 20 per cent of Pakistan, a country the size of England, has been devastated by weeks of flooding. It is estimated that about 17 million acres or upwards of 30 per cent of the Pakistan’s cultivated farmland and about 20 per cent of Pakistan’s total agricultural production has been affected or damaged by recent flooding. However surveys are still out for a final estimate on total crop and livestock losses. Millions of head of livestock (i.e. cattle, sheep, buffalo, goats, donkeys, chickens, etc.) have been killed or threatened due to the flooding. Thousands of farmers have been forced to leave their livestock fleeing for their own lives. Additionally, Pakistan has suffered significant damage to its infrastructure (i.e. roads, bridges, agricultural irrigation systems, etc.).

Flooding has devastated the provinces of Sindh, Punjab, and Khyber Pakhtunkhwa. Sindh and Punjab are the country’s main agricultural provinces. Agriculture is the backbone of Pakistan with about 66 per cent of the country’s citizens employed by the agricultural sector (1.5 million jobs in poultry). In Pakistan livestock is not only a source of meat and milk but it is a source of cash flow in hard times. Livestock makes up half of the agricultural GDP. In 2010, Pakistan was projected to see a GDP of 4.5 per cent, however due to recent flooding and insurmountable losses Pakistan is expected to have a growth rate of 0 per cent. The country had an economic growth rate of 4.1 per cent in 2009.

The United Nations Foreign Agricultural Organization has asked for $5.7 million USD in emergency aid for feed and medicine relief for livestock. FAO has mobilized about $1.4 million USD for feedstuffs and will be asking for more in the future. The country is still surveying its feed availability in order to determine its position and its needs. From there Pakistan will then need to assess its transportation issues. About thirty countries have responded offering up $700 million USD in relief with the Asian Development Bank offering Pakistan $2 billion USD in emergency loans.

Pakistan’s commercial poultry industry began in 1964 in cities such as Karachi, Lahore, Faislabad, Rawalpandi, and Hyderabad. According to the PPA, poultry meat production makes up about 19 per cent of Pakistan’s total meat production and has an annual growth rate of 8-10 per cent annually. Due to various government supports over the years (i.e. total or partial import duty exemptions, sales tax, income tax holidays, and approval to export at subsidized rates for table eggs, day old chicks, and broilers) the industry had prospered year to year. However Pakistan has experienced setbacks such as changes in government policies, low economic returns or products, substandard and costly feeds, an inefficient marketing system, a costly and inefficient distribution system, disease (i.e. Avian Influenza 1994, 2003, 2004, 2008), and other natural causes. On a side note, Pakistan’s breeder population is considered to be among the top 10 poultry industries worldwide.

Earlier in 2010, Pakistan’s chicken meat prices were starting to decline as industry was finally showing signs of recovery from the negative impacts suffered from avian influenza in 2008. Pakistan lost about 40 per cent of its poultry industry due to decreased chicken sales and high feed prices resulting from the 2008 outbreaks. Representatives from Pakistan’s poultry industry are worried about supplies and fulfilling consumer needs during this holy month of Ramadan (i.e. 10 August - 9 September 2010) when chicken demand is at one of its strongest points. Chicken meat prices are expected to rise due to expected supply shortages resulting from the recent flooding.

Prior to the flooding, Pakistan was looking at ways to become more competitive in the export marketplace, especially in the Halal marketplace to countries in the Middle East. Pakistan had been seeking Malaysia’s expertise and technology in slaughtering, processing, and commercial marketing. However Pakistan needs to make some significant improvements in efficiency and modernization of its technology, marketing, and transportation systems.

On side note, the Competition Commission of Pakistan (CCP) issued a Show Cause Notice to the Pakistan Poultry Association (PPA) in July 2010. After being prompted by numerous consumer complaints the CCP conducted a raid of the Pakistan poultry Association’s (PPA) offices in Islamabad, Lahore, and Karachi. Upon investigation of impounded documents and other information the CCP found that the PPA had been serving as a hub for the various sectors (i.e. hatcheries, feed manufacturers, breeders, broiler farms, layer farms, etc.) helping to control production levels and fix prices. The CCP found the PPA in violation with Section 4 of the Competition Ordinance 2010. As a result of these findings, the PPA was issued a penalty of $50 million Rupees ($577,861 USD) for operating like a cartel in August 2010.

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Independent MEP Marian Harkin made the claim when highlighting what she described as the threat posed to the €500 million poultry and pig industries by the measures.

According to IrishExaminer.com, she said the present derogation which permits the spreading of organic poultry and pig fertiliser takes full account of environmental requirements and as such must be maintained.

The additional demands of ministers Brendan Smith and John Gormley will do nothing for the environment but could sound the economic death-knell of the poultry and pig industries in Cavan, Monaghan and Longford.

"If there was an environmental imperative to meet the requirements of the Water Framework Directive, the argument of producers would be considerably weaker.

"However, there is clear evidence of improvement of Ireland’s ground and surface waters and indeed the proof exists the major problems in this regard derive from municipal discharges as evidenced in the publication of the country’s River Basin programmes," she said.

Ms Harkin called on Minister Smith to rise to the challenge of defending the poultry and pig sectors and the 14,000 jobs involved.

"The Government continuously stresses the value of the ‘smart’ economy and if this is to apply to the food producing sector, ‘smart’ action is urgently needed by taking Teagasc advice and continue the present system of manure spreading.

"A further four-year derogation will provide the time necessary to research and conclude a long term protocol which will provide the security necessary for this €500m business," she said.

The following blight warning has been issued by Met Éireann: Weather conducive to the spread of potato blight will continue over the next few days.

 

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Independent.ie reports that the Rose Energy plant at Glenavy, Co Antrim is backed by a consortium of three agri-food companies, Moy Park Ltd, O'Kane Poultry and Glenfarm Holdings.

The power plant, which will generate 30mw of electricity per year and up to one-third of Northern Ireland's sustainable energy obligations, was given the green light by Minister Edwin Poots on Thursday.

However, the development could have serious implications for poultry growers and processors in the south, industry players have warned.

Vincent Carton, managing director of Cavan-based Carton Brothers said the Rose Energy plant was a state-subsidised method of poultry litter disposal.

"Farmers in the North will have very little cost compared to our farmers down here who have to bear all of the litter disposal cost," he insisted.

Mr Carton was speaking following an IFA-organised meeting with the Minister for Agriculture, Brendan Smith, on Wednesday night.

The Manor Farm boss joined farmer representatives and industry leaders from the Cavan/Monaghan region to discuss the Nitrates Directive review.

"The removal of the derogation for pig and poultry farmers would be a huge cost addition to bear for both farmers and processors," he said.

"However I believe in protecting the environment," he added. "And the pollution issue has improved under the Nitrates Directive.

"We need to put the right infrastructure in place to deal with poultry litter," he insisted.

"We need storage on the tillage farms so that it can be used immediately as it is needed."

Cavan IFA county chairman Jim O'Rourke urged the Minister for Agriculture to show farmers he was serious about the 50pc increase in pig production proposed in the Food Harvest 2020 report.

The north Leinster/Ulster vice president John Waters added that water quality had stabilised and improved since the introduction of the Nitrate Directive and during the derogation period.

"On that basis, the derogation for pig and poultry farmers is not a risk to water quality," he maintained.

Andrew McCarren, managing director of McCarren Meats in Cavan, who slaughter up to 5,000 pigs per week, was also a member of the delegation.

 

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The suspension was lifted last week after Singapore's Agri-Food & Veterinary Authority found the eggs safe for consumption.

The Farm said sales reached 70% this week, up from 10 to 20% in the week when the suspension was lifted.

It added that previous problems with the eggs could be due to the chicken feed. And to this end, the Farm has hired veterinarians to manage the poultry and what they eat

 

 

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In total over 100 people attended the two sessions, mainly representatives from Ross broiler growers and feed mills across the two countries. The key speaker at both events was Nigel Joice, a long-standing Ross broiler grower in the UK, who shared his experiences in the UK, providing practical tips and advice, as well as offering an update on the EU Broiler Welfare Directive and its implication on day-to-day management.

Other presenters included Neil Clark, Area Technical Manager, who demonstrated the use of thermal imaging as a tool for assessing house environment and Barrie Fleming, Vet Consultant, who talked about cleaning and disinfection procedures and their importance for successful broiler management

Neil Clark said: “Sharing experience is something we believe is extremely important at Aviagen. These events brought together customers from the Czech Republic and Slovakia, who enjoyed the opportunity to come together to share their expertise and experience and listen to Nigel Joice who, as well as being a very successful poultry farmer is also Vice Chairman of the UK National Farmers Union Poultry Board. Nigel also sits on the Technical Advisory Committee to the Assured Chicken Production so he is extremely knowledgeable and is able to speak as an industry professional and an understanding farmer.”

 

 

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New Castle Disease virus and the bacteria Erysipelotrix rhusiopathiae and Salmonella Gallinarum have been isolated from red mite.

Practically speaking, a farm with a Salmonella Gallinarum contaminated flock and co- presence of red mite can cause that the Salmonella bacteria stay in the barn after rotation of flocks and will in turn infect the new birds coming in. This means that more measures should be investigated to eradicate red mite in poultry production systems.

Dermanyssus gallinae, also known as red mite, is an ectoparasite of poultry and birds in general. The mites are blood feeders and attack resting birds at night. After feeding, they hide in cracks and crevices away from daylight, where they mate and lay eggs.

Under favourable conditions the life cycle of the mite can be completed within seven days, so populations can grow rapidly, causing anaemia in badly affected flocks of poultry. The poultry red mite is an important emerging parasite problem in production premises for layers which is responsible for large financial losses.

 

 

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The company attributed its plans to the existing restrictions to export beef from its Argentine plants and also to the falling cattle stocks. However, JBS didn't unveil the exact plants that it could sell. The company has a total of six units in Argentina.

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Thanks to an increase of 18.4 per cent in the average price in US dollars, however, the overall value of the month's sales was 7.7 per cent higher at US$108.2 million.

Compared to the same period of 2009, pork exports for the year to July are down 8.5 per cent in volume to 313,468 tons, while the value of those sales is up 12.6 per cent at $769.5 million. The average selling prices is up 23.0 per cent at $2,455 per ton.

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Federal Territories and Urban Wellbeing Minister Datuk Raja Nong Chik Raja Zainal Abidin said the project, which would be privatised, could not be implemented earlier due to allocation problem, reports Bernama.

"The privatisation of the project is the best move as it will offer more room for the experts to manage it themselves," he told reporters after attending a 'Khatam Al-Quran Perdana' (completion of Quran reading) event at the Saidina Abu Bakar Mosque in Bangsar. He said a suitable site in Selayang had been identified for the project but the land acquisition process would probably take some time.

On the issue of halal meat and pork being sold under one roof at the Chow Kit Market, he said Kuala Lumpur City Hall would be asked to take immediate action to separate the selling areas.

 

 

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US companies reported on 3 September that the first shiploads of poultry bound for Russian ports have departed or are being readied for shipment this week, according to NWA Online.

The shipments are the first delivering US processed chicken and other poultry to Russia since January. Russia essentially barred US chicken in January by slashing the allowable amount of chlorine producers can use to disinfect the meat.

Springdale-based Tyson Foods Inc. spokesman, Gary Mickelson, said that the first shipment of poultry bound for Russia was loaded on 2 September. The company has five plants that are eligible to export to the Russia and is working to qualify more plants.

In a press release, Pilgrim's Pride Corporation said it was to resume export shipments to Russia on 4 September after the Food Safety Inspection Service (FSIS) finalised certificates that must accompany the shipments.

Pilgrim's has four Russia-approved processing plants that are currently packing product for Russia. Those plants are located in Boaz, and Russellville in Alabama, Athens in Georgia and Dallas, Texas. The company said it expected shipments to Russia to begin loading at US ports on 4 September.

Don Jackson, Pilgrim's president and chief executive, commented: "Demand from Russia is very strong. We have sold out our entire Russian-approved production for the next 30 days and prices have continued to strengthen. Russia is an important export market for US chicken and the re-opening of the borders will be a significant benefit to our company and industry."

 

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