Meat Preparation

Brazilian poultry reaches record production levels in 2011

noreply@blogger.com (Chocolate Intelligence) — Mon, 16 Jan 2012 19:07:00 +0000

Brazil's poultry industry set new records in 2011 for production, consumption and exports, and saw Brazilians' per capita consumption of poultry surpass Americans' for the first time, according to year-end figures released Monday by Brazil's poultry processors and exporters association, Ubabef, during a press conference in Sao Paulo. Brazil produced 13.058 million metric tons of poultry in 2011, up 6.77 percent from 2010, placing Brazil third in global production. Seventy percent of Brazil's poultry was sold domestically in 2011, the rest exported. “With this 2011 performance, Brazil has further closed the gap that separates us from China, the No. 2 producer behind the U.S.,” said Francisco Turra, Ubabef president. The association believes Brazil can surpass China in poultry production in 2012. Poultry exports totaled 3.943 million metric tons by volume, up 3.2 percent from 2010, while sales receipts reached US$8.2 billion in 2011, up 21.2 percent from 2010 export revenue. Slight growth in 2012 Ubabef has forecasted a conservative 2 percent growth rate for poultry exports by volume for 2012, due in part to uncertainties with the European economy and a poor return from the first of Brazil's two corn harvests. Exports could grow more rapidly this year if Russia reopens its borders to more Brazilian processors, and if China's sanitation authority approves more Brazilian plants for export. Brazil's second annual corn crop also has a history of outperforming the first, Turra said. Infrastructure investment at ports along Brazil's southern coast, as well as improving highways and railways to those ports, will be key points in 2012 where Ubabef and the poultry industry try to apply pressure for public investment. The association delivered a petition with 70 infrastructure proposals to Brazil's president and Congressional leaders in 2011. Export growth is fairly limited for poultry at the industry's main ports, like Santa Catarina's Port of Itajai (Brazil's main port for frozen poultry exports), which currently has no railway points and dilapidated highway connections. Ubabef officials said the poultry industry doesn't have the financial means to build its own transport solutions, but believes they're getting through to Brasilia on the necessity of port growth for meat exporters. Source: www.meatingplace.com - January 10, 2012

Arla, Denmark & Molvest Group, Russia: New agreement paves the way for cheese production in Russia

noreply@blogger.com (Chocolate Intelligence) — Mon, 16 Jan 2012 18:44:00 +0000

By agreeing on the terms for a joint production of yellow cheese with Molvest Group, Russia’s third largest dairy company, Arla is taking another significant strategic step into the Russian market. The agreement is in keeping with Arla’s ambitions to become one of Russia’s leading dairy companies within yellow cheese. Following several years of growing exports to the Russian market, Arla now intends to set up local production in Russia for the first time. Production will be centered on the city of Kalacheevsky in south-west Russia where Arla’s Russian subsidiary – Arla Foods Artis – in partnership with the Molvest Group will be converting one of Molvest’s existing dairies to yellow cheese production. The two parties have agreed on terms for joint production at the dairy. The terms and conditions are subject to approval from the Russian Federal Antimonopoly Service (FAS). Molvest will be responsible for collecting the milk from farms in the area as well as weighing-in and processing the milk at the dairy. Arla will subsequently buy the milk and with its experience and expertise from its Scandinavian operations will be responsible for the production of yellow cheese at the dairy. The finished products will be distributed and sold by Arla. For Arla, the conversion of the dairy represents an investment of DKK 25 million. Prospects of doubling turnover Arla and Molvest anticipate joint production will begin in early 2013. Initially, the aim is to produce approx. 6,000 tons in 2014, with a subsequent annual volume increase of 10 per cent. ”As Russia is one of our strategic growth markets this agreement is important because it provides us with the opportunity to combine our export business to Russia with local production,” says Arla’s CEO Peder Tuborgh. “This is unlikely to be our final expansion into the Russian market but this agreement alone is expected to double our turnover in Russia before the end of 2015.” Export benefits Arla’s Russian business grew by approx. 30 per cent in 2011 to approx. DKK 500 million: growth that was largely driven by exports of Lurpak butter, Castello speciality cheese and cream cheese under the Arla Natura brand. These brands are expected to benefit further from Arla’s new production in Russia. ”The new venture in Russia means that we can offer a broader range and supply larger volumes,” explains Senior Vice President Hans Christensen, who is responsible for Arla’s operations in Russia, Poland and North America. This, in turn, will strengthen our position vis-a-vis the Russian retail sector and grow our exports from Scandinavia to Russia. We’ve already seen similar effects in other markets such as USA, Germany and Canada.” ”Russia is an attractive market for us because of the many consumers willing to pay for good quality,” he adds. “Our ambition is to become one of the leading players within the yellow cheese category in Russia. Combined with our Scandinavian expertise in making high quality cheese, we have strong opportunities for establishing a long-term presence in this rapidly growing market.” FACTS: Molvest Group: - Holding company with Headquarters in Voronezh, Russia. - Annual turnover is approx. 250 million USD. - Production at nine dairy sites, one of which is situated in Ukraine. - Produce and sell dairy products for everyday use, such as liquid milk, butter, fermented milk drinks and cheese. - Considered Russia’s third largest dairy company within traditional dairy products. Arla in Russia: - Russia is regarded as a strategic growth market in Arla’s current Strategy 2015 – along with USA, China, Middle East & Northern Africa, and Poland. - Annual turnover is approx. 500 million DKK. - In 2007 Arla Foods acquired 75 per cent of Artis Distribution and cemented its Russian business under the name Arla Foods Artis. The business is focused on selling cheese and butter from Denmark and Sweden. - Arla’s strategy in Russia is to build strong positions with high quality branded cheese and butter products, focusing on cities with more than 500.000 inhabitants, and to pursue opportunities for local production through partnerships or acquisitions. - Among the products sold by Arla in Russia are Lurpak butter, Castello speciality cheese and cream cheese under the Arla Natura brand. Source: www.arla.com - January 16, 2012

BHJ Group, Denmark prepares for acquisitions

noreply@blogger.com (Chocolate Intelligence) — Sun, 15 Jan 2012 07:29:00 +0000

Meat groups with international headquarters in Graasten, Denmark prepares for growth and change in management. The international meat group BHJ Group are now getting ready for growth. - The company must grow over the next five years. Revenue and earnings to be up. On the earnings we go after doubling over the next five years, says 60-year-old William Hald-Christensen, who has just left the post of CEO of BHJ Group A / S after 22 years in Gråsten to Exchange. Vilhelm Hald-Christensen instead become European business development director in Luxembourg for the Group's U.S. owner, The Lauridsen Group Inc., Iowa, USA, and has also taken over the post of chairman of BHJ Group. And plans for BHJ Group's growth is clear. - We would like to buy up. The good acquisition targets are not on the trees, and initially it is a requirement that they fit into what we are dealing with in advance, says Vilhelm Hald-Christensen and interprets the strategy as follows: - Better to grow a little slower through organic growth than running out and implement what later turns out to be faulty acquisitions. And we must constantly make sure that the acquisitions carried out at the right price, so we know that the return on investment is in order. With William Hald-Christensen's departure split leadership up, so 43-year-old Asger S. Jacobsen is the new director of the ingredients, while the 46-year-old Torben T. Matzen is Director of the meat and byproducts. Source: www.food-supply.dk - January 13, 2012

Norwegian seafood industry

noreply@blogger.com (Chocolate Intelligence) — Mon, 09 Jan 2012 19:34:00 +0000

Norwegian seafood exports was in 2011 at 53 billion NOK. It was exported 2.3 million tonnes of seafood, which is a decrease of 339 thousand tons compared with 2010, according to figures from the Norwegian Sjømatråd. Historical - 2011 was a historic year for the traditional fishing industry with an export value of 22 billion. This is an increase of 1.7 billion NOK. Never before has it been exported seafood from this part of the industry, says managing director Terje E. Martinussen Norway Sjømatråd. - The aquaculture industry exported seafood for 31 billion, a decline of 2.3 billion NOK compared with 2010. The decline is due to a fall in the second half of 2011. Net income is still high in historical context, and surpassed only by the record year 2010. - In the light of the international competition, Norwegian seafood industry as a whole is, well pleased with seafood exports for 2011. Decrease in the EU Exports to the EU was of 30.5 billion NOK, a decline of 366 million. EU seafood industry's main market area and constitute 57.5 percent of total exports. Exports to Russia were up by 5.2 billion NOK. This places Russia's most important market in 2011, while France retains a clear second place with an export value of 5.1 billion NOK. Japan is the market that increased the most in 2011. The growth was of 404 million NOK, or 16 percent. USA had the largest decline in export value and export to the United States totaled 1.7 billion, a decrease of 1.04 billion NOK. Aquaculture is still the greatest As a result of a sharp decline in salmon prices midway in 2011 was Norwegian exports of seafood from aquaculture reduced by 2.3 billion NOK to 31 billion NOK. Aquaculture is thus 58.5 per cent of total seafood exports in 2011. The export of salmon to a value of 29.2 billion NOK, while exports of trout amounted to 1.4 billion NOK. Export to other species from aquaculture is 400 million NOK. - After a period of extremely high salmon prices last half of 2010 and first half of 2011 has now salmon prices stabilized at the same level as the years before 2010. - This makes the fish more competitive and we now see that salmon consumption increases in several key markets, says Terje E. Martinussen. Record year for fisheries Based in one of the best management regimes in world exports of the traditional Norwegian fisheries sector for a record 22 billion NOK. This is an increase of 1.7 billion NOK compared with 2010. Species haddock, pollock, herring and mackerel can write a record for 2011. Export Value (All values in NOK) • Exports of cod increased by 431 million to 6.1 billion. • Exports of herring increased by 500 million to 4.2 billion. • Exports of mackerel increased by NOK 487 million to 3.5 billion. • Exports of saithe increased by 59 million to 2.2 billion. • Exports of dried fish for cod increased by 135 million to 2.1 billion. • Exports of haddock increased by 206 million to 1.5 billion. • Exports of dried fish from saithe increased by 58 million to $ 1.3 billion. • Exports of salted cod increased by 110 million to 891 million. • Exports of whole dried fish increased by 33 million to 644 million. Source: www.matindustrien.no - January 4, 2012

May Invest Equity becomes part owner of Vega Sea A / S

noreply@blogger.com (Chocolate Intelligence) — Wed, 04 Jan 2012 21:51:00 +0000

May Invest Equity has signed an agreement with the current owners of Vega Sea A / S to acquire a 45% shareholding in the company. Vega Sea Group is one of Europe's leading manufacturers of highly processed salmon products and an annual turnover of around ½ billion DKK An ambitious growth strategy to double turnover to 1 billion DKK in the next 4-5 years. "We are undergoing a significant expansion and include by constructing a new modern factory in Flensburg on 11,000 square meters, which will help to ensure a strong and competitive platform for our growth plans. We see a large international growth potential for Vega Sea's products both new and existing markets. To support this development, we therefore wanted to have a solid and experienced partner in shareholders, "says Vega Sea's CEO and co-owner, Kent Jensen. In May Invest Equity looks Managing Partner Erik Holm good opportunities to Vega Sea can realize its ambitious growth plan: "The food industry has a stable underlying growth and is only slightly affected by fluctuations in the global economy. Vega Sea has potential to become market-leading manufacturer of high value-added salmon products in selected markets. Vega Sea will primarily grow through aggressive organic growth plan that will probably be supplemented by acquisitions. To achieve this goal may include May Invest contribute with experience, networks and capital resources, "he says. "It's a challenge to bring Vega Sea to the next step in its growth phase. We've been through a long and valuable dialogue with May Invest Equity and is completely aware that they are the right partner for us and that we can realize its full potential, "says Roald Vedelgart, COO and co-owner of Vega Sea . In May Invest Equity Managing Partner Erik Holm great expectations for the investment in Vega Sea, "Vega Sea is an incredibly exciting and expansive future. The founders have done a fantastic job of building the company to its current level and created a good platform to take the next step. We are pleased to have the opportunity to invest in this team who have already proven that they can deliver strong results. " The share sale is awaiting final approval from competition authorities and expected to be completed end January 2012. The parties have agreed not to disclose the purchase price. About Vega Sea A / S Vega Sea Group was established in 2010 as a merger between Vega Salmon (Roald Vedelgart) and Seamore (Kent Jensen). The main activity consists of processing and processing of smoked and fresh salmon, most of which are exported to the European market. The Group has in average approx. 200 employees in three locations in Denmark and one in Sweden. For further information see www.vegasalmon.dk About May Invest Equity (formerly LD Invest Equity) With a total capital commitment of approximately 8.5 billion DKK, more than 30 portfolio companies and 20 investment staff is May Invest Equity, a leading private equity player in Denmark. May Invest Equity has roots in LD, as in his many years in private equity has created the foundations for May Invest Equity's strategy is focused on business development and responsible ownership. Source: www.majinvest.com - January 3, 2011

Maj Invest Equity bliver medejer af Vega Sea A/S

noreply@blogger.com (Chocolate Intelligence) — Wed, 04 Jan 2012 21:18:00 +0000

Maj Invest Equity bliver medejer af Vega Sea A/S 03. januar 2012 Maj Invest Equity har indgået aftale med de nuværende ejere af Vega Sea A/S om køb af en aktiepost på 45 % i selskabet. Vega Sea Gruppen er en af Europas førende producenter af højt forædlede lakseprodukter og omsætter årligt for omkring ½ mia. kr. En ambitiøs vækststrategi skal fordoble omsætningen til 1 mia. kr. i løbet af de næste 4-5 år. ”Vi er i gang med en markant ekspansion og er bl.a. ved at opføre en ny topmoderne fabrik ved Flensborg på 11.000 kvadratmeter, der skal være med til at sikre en stærk og konkurrencedygtig platform for vores vækstplaner. Vi ser et stort internationalt vækstpotentiale for Vega Sea’s produkter på både nye og eksisterende markeder. Til støtte for denne udvikling har vi derfor ønsket at få en solid og erfaren partner med i aktionærkredsen,” siger Vega Sea’s administrerende direktør og medejer, Kent Jensen. Hos Maj Invest Equity ser Managing Partner Erik Holm gode muligheder for at Vega Sea kan realisere sin ambitiøse vækstplan: ”Fødevarebranchen har en stabil underliggende vækst og er kun i mindre grad påvirket af udsving i verdensøkonomien. Vega Sea har potentiale til at blive markedsledende producent af højt forædlede lakseprodukter på udvalgte markeder. Vega Sea skal først og fremmest vokse gennem en aggressiv organisk vækstplan, der sandsynligvis vil blive suppleret med opkøb. Til at nå det mål kan Maj Invest bl.a. bidrage med erfaring, netværk og kapitalberedskab,” siger han. ”Det er en udfordring at bringe Vega Sea til næste trin i virksomhedens vækstfase. Vi har været igennem en lang og værdifuld dialog med Maj Invest Equity og er helt overbevidste om, at de er den rigtige partner for os, og at vi i fællesskab kan realisere virksomhedens fulde potentiale,” siger Roald Vedelgart, COO og medejer af Vega Sea. Hos Maj Invest Equity har Managing Partner Erik Holm store forventninger til investeringen i Vega Sea: ”Vega Sea går en utrolig spændende og ekspansiv fremtid i møde. Grundlæggerne har gjort et fantastisk stykke arbejde med at opbygge virksomheden til det nuværende niveau og skabt en god platform for at tage det næste skridt. Vi er glade for at have fået muligheden for at investere i dette team, som allerede har bevist, at de kan levere stærke resultater.” Aktiesalget afventer endelig godkendelse fra konkurrencemyndighederne og forventes gennemført ultimo januar 2012. Parterne har besluttet ikke at oplyse købesummen. Om Vega Sea A/S Vega Sea koncernen blev etableret i 2010 som en fusion mellem Vega Salmon (Roald Vedelgart) og Seamore (Kent Jensen). Hovedaktiviteten består af forarbejdning og forædling af røget og fersk laks, hvoraf hovedparten eksporteres til det europæiske marked. Koncernen har i gns. ca. 200 medarbejdere, fordelt på tre lokaliteter i Danmark og en i Sverige. For yderligere information se www.vegasalmon.dk Om Maj Invest Equity (tidligere LD Invest Equity) Med et samlet kapitaltilsagn på omkring 8,5 mia. kr., mere end 30 porteføljevirksomheder og 20 investeringsmedarbejdere er Maj Invest Equity en ledende private equity aktør i Danmark. Maj Invest Equity har rødder i LD, som i sit mangeårige virke indenfor unoterede aktier har skabt grundstenene til Maj Invest Equity's strategi, som er fokuseret på virksomhedernes udvikling og ansvarligt ejerskab. Source:www.majinvest.com - January 3, 2011

Middleby Corporation, USA Announces Acquisition of Armor Inox, France

noreply@blogger.com (Chocolate Intelligence) — Wed, 28 Dec 2011 15:19:00 +0000

The Middleby Corporation (NASDAQ: MIDD) today announced that it has acquired Armor Inox. Armor Inox is a leading manufacturer of thermal processing systems for the food processing industry with approximate annual revenues of $25 million. The addition of this brand complements and further enhances Middleby’s food processing equipment platform. Armor Inox is recognized by the leading global food processors for its unique cooking process. The Armor Inox Thermix cooking system utilizes water to provide for a highly efficient transfer of heat, rapid cook times, and the highest cooking yields. The Thermix cooking system ensures precise control of the cooking cycle resulting in superior product quality and consistency. “In the last eighteen months, Middleby has significantly expanded its food processing equipment platform completing the acquisitions of Armor Inox, Auto-Bake, Cozzini, Danfotech, Drake, and Maurer-Atmos, which adds to the existing portfolio of brands including Alkar, MP Equipment and RapidPak. We have assembled a very strong lineup of globally recognized brands and a portfolio of complementary industry leading technologies. These highly synergistic acquisitions will allow us to provide our customers a uniquely integrated and efficient equipment solution, providing for reduced operating costs and the highest standards of quality. As we complete the integration of these newly acquired brands, we also see significant opportunity to realize operational efficiencies amongst our expanded Food Processing Equipment Group,” commented Selim A. Bassoul, Chairman and CEO. About The Middleby Corporation The Middleby Corporation is a global leader in the foodservice equipment industry. The company develops, manufactures, markets and services a broad line of equipment used for commercial food cooking, preparation and processing. The company's leading equipment brands serving the commercial foodservice industry include Anets®, Blodgett®, Blodgett Combi®, Beech®, Bloomfield®, Britannia®, Carter Hoffmann®, CookTek®, CTX®, Doyon®, FriFri®, Giga®, Holman®, Houno®, IMC®, Jade®, Lang®, Lincat®, MagiKitch'n®, Middleby Marshall®, Nu-Vu®, PerfectFry®, Pitco Frialator®, Southbend®, Star®, Toastmaster® Turbochef® and Wells®. The company’s leading equipment brands serving the food processing industry include Alkar®, Armor Inox®, Auto-Bake®, Cozzini®, Danfotech®, Drake®, MP Equipment®, and RapidPak®. The Middleby Corporation has been recognized by Forbes Magazine as one of the Best Small Companies in 2008, 2009 and 2010. For further information about Armor Inox, visit www.armorinox.net For further information about Middleby, visit www.middleby.com . Source: http://businesswire.com - December 21,2011

Middleby Corporation, USA Acquires Danfotech Inc.

noreply@blogger.com (Chocolate Intelligence) — Wed, 28 Dec 2011 14:03:00 +0000

The Middleby Corporation (NASDAQ:MIDD) today announced the acquisition of Danfotech Inc. (“Danfotech”), a subsidiary of SFK systems A/S. Danfotech is a leading manufacturer of equipment for the food processing industry with annual sales of approximately $5 million. Danfotech products include meat tenderizers, tumblers, presses and defrosting systems. With this acquisition, Middleby continues to add to its portfolio of leading brands and expand its food processing platform. Selim A. Bassoul, Middleby Chairman and Chief Executive Officer, said, “With this acquisition, we further broaden our innovative product offering to our food processing customers. The Danfotech line of products complements our existing portfolio of products under the Alkar, Cozzini, MP Equipment and Rapidpak brands. This acquisition further extends our ability to offer unique processing solutions that improve the efficiency and reduce costs of our customers' processing operations. We believe there are opportunities to significantly increase revenues of Danfotech products by leveraging the strength of our existing sales infrastructure and strong customer relationships.” Statements in this press release or otherwise attributable to Middleby regarding its business which are not historical fact are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Middleby cautions investors that such statements are estimates of future performance and are highly dependent upon a variety of important factors that could cause actual results to differ materially from such statements. These risks are detailed from time-to-time in Middleby's SEC filings. The Middleby Corporation is a global leader in the foodservice equipment industry. The company develops, manufactures, markets and services a broad line of equipment used for commercial food cooking, preparation and processing. The company's leading equipment brands serving the commercial foodservice industry include Anets®, Beech®, Blodgett®, Blodgett Combi®, Blodgett Range®, Bloomfield®, Britannia®, Carter Hoffman®, CookTek®, CTX®, Doyon®, frifri®, Giga®, Holman®, Houno®, IMC®, Jade®, Lang®, Lincat®, MagiKitch'n®, Middleby Marshall®, Nu-Vu®, Perfectfry®, Pitco Frialator®, Southbend®, Star®, Toastmaster®, Turbochef®, and Wells®. The company’s leading equipment brands serving the food processing industry include Alkar®, Cozzini®, Danfotech®, MP Equipment®, and RapidPak®. Please visit www.Middleby.com for more information about the Middleby Corporation and the company brands. Source: www.businesswire.com - July 6, 2012

Alkar-RapidPak, Inc., USA

noreply@blogger.com (Chocolate Intelligence) — Wed, 28 Dec 2011 12:06:00 +0000

Company Overview Alkar-RapidPak, Inc. develops, manufactures, markets, and services equipment for cooking and food preparation in commercial and institutional kitchens, restaurants, and food preparation companies in the United States and internationally. The company’s products include batch ovens, chillers, roasting and smoking ovens, liquid brine chillers, and serpentine chub chillers; process control, post-packaging pasteurization, and surface pasteurization products; and belt ovens for roasting. It also offers parts, including test equipment, instrument and motor control panel parts, gas burners, oven door hardware, air handling equipment, cleaning and exhaust system components, smoke generator parts, and... Alkar-RapidPak, Inc. develops, manufactures, markets, and services equipment for cooking and food preparation in commercial and institutional kitchens, restaurants, and food preparation companies in the United States and internationally. The company’s products include batch ovens, chillers, roasting and smoking ovens, liquid brine chillers, and serpentine chub chillers; process control, post-packaging pasteurization, and surface pasteurization products; and belt ovens for roasting. It also offers parts, including test equipment, instrument and motor control panel parts, gas burners, oven door hardware, air handling equipment, cleaning and exhaust system components, smoke generator parts, and brine chiller and continuous line parts, as well as trees, trucks, cages, and components. The company was incorporated as Alkar, Inc. in 2001 and changed its name to Alkar-RapidPak, Inc. in January 2002. The company is based in Lodi, Wisconsin. It has sales locations in Lodi, Wisconsin; Grand Haven, Michigan; and Watertown, Canada. As of December 6, 2005, Alkar-RapidPak, Inc. operates as a subsidiary of Middleby Marshall, Inc Mr. John Jurkowski, President Mr. Soren Albertsen, Director of International Sales Source: http://investing.businessweek.com - December 28, 2011

Tulip expanding in the UK

noreply@blogger.com (Chocolate Intelligence) — Tue, 27 Dec 2011 15:10:00 +0000

Tulip Ltd strengthens its position as the leading UK supplier of processed meat products following the acquisition of Parkam Foods. A perfect match for Tulip Ltd’s product portfolio. That is probably the most fitting description of Tulip Ltd’s acquisition of Parkam Foods, the UK-based manufacturer of a range of premium products for the UK retail and food-service sectors. Tulip Ltd is hereby strengthening its position in the market by adding new products to its portfolio, while at the same time further increasing its sales to the biggest UK retail chains. In addition to cooked meats, sandwiches and sausages, Parkam Foods also produces a number of high-quality products based on beef, turkey and chicken. This will add a new and valuable dimension to Tulip’s business. The great challenge will be exploiting the synergies arising from the acquisition of Parkam to boost the value of the company’s products, says Steve Murrells, CEO of Tulip Ltd. Parkam Foods consists of four companies: Parkam Foods, Tranfoods, Trophy Foods and Freshway. The companies have a total of 750 employees, with expected revenue for the current financial year in the region of GBP 100-115 million. Parkam Foods is a strong player within the premium segment, and Steve Murrells believes that this is what makes the company a perfect match for Tulip. Tulip is already a strong supplier of high-quality products, but perhaps not necessarily with a sufficiently strong presence in the premium segment. This gap will now be filled by the acquisition of Parkam Foods, says Steve Murrells.

Tulip Food Company is returning its second-best results ever

noreply@blogger.com (Chocolate Intelligence) — Tue, 27 Dec 2011 13:11:00 +0000

Tulip’s owners are pleased with the second-best results in the company’s history in the form of primary earnings (EBIT) of approx. DKK 260 million. There is no doubt that the past year has been characterised by extremely difficult conditions which have put our organisation under considerable pressure. Therefore, I am pleased with the results even though sky-rocketing commodity prices have meant that they are slightly below last year’s record earnings, says CEO Flemming N. Enevoldsen Tulip has been faced with increasing costs of, for example, raw materials and packaging. One by one, competitors in the meat-processing industry have downgraded their outlooks in a year where the ingredients for producing, for example, sausages, bacon and cold cuts reached unseen heights. At the end of the financial year, Flemming N. Enevoldsen stresses that the challenging times are far from being over. Unfortunately, the world market is still in the throes of the economic crisis and characterised by increasing unpredictability. I therefore expect FY 2011/12 to be another difficult year, says the CEO. Adjusting to market conditionsTulip is currently operating in a market where both shops and food companies throughout Europe are struggling to get used to the changing conditions. Many of the commodity price increases are here to stay. This is due, among other things, to increasing demand, especially in China, for the raw ingredients which Tulip uses in large quantities, and this means that we simply have to adjust to new price levels, says Flemming N. Enevoldsen. On the other hand, he is pleased that the company’s growth targets have been met. We have realised our target for organic growth. This is clear evidence that Tulip’s products are still very much in demand worldwide. At the same time, we have focused strongly on streamlining the organisation and cutting costs, and as a result Tulip is now a far more efficient company, explains Flemming N. Enevoldsen. However, the focus on lower costs must be combined with looking at the opportunities offered by the current market conditions. The best strategy is to invest in recessionary times if company finances permit, and if the company deserves the confidence of its owners. We must therefore make the most of the challenges facing every company in the business to further strengthen Tulip’s position, says Flemming N. Enevoldsen. New form of incorporationIn the course of the financial year, the partnership company Tulip Food Company became a limited company (A/S). This has had considerable finance cost and tax implications, so drawing comparisons with last year’s net profit is therefore not easy. The net effect of this step is approx. DKK 53.3 million for the financial year.

MULTIVAC acquires Trimaster Oy, Finland

noreply@blogger.com (Chocolate Intelligence) — Tue, 27 Dec 2011 09:48:00 +0000

With the acquisition of the Finnish company Trimaster Oy, MULTIVAC is making a significant expansion in its product portfolio of line automation, robotics and palletising systems. With this move the packaging specialist, which operates throughout the world, can now offer complete end-to-end packaging lines right through to final pal-letisation. At the same time MULTIVAC is strengthening its presence in Scandinavia. Trimaster Oy was acquired by MULTIVAC Finland through the purchase contract of 9. December 2011. Trimaster Oy, which was founded in 1998, specialises in palletising systems and robotic cells as well as monitoring and conveying systems. Trimaster Oy currently employs around 20 staff members, who will be integrated into MULTIVAC's Finnish sales and service business. "We are delighted at the acquisition by this market leader, and we are also glad to be able to contribute our expertise in robotics and automation within the MULTIVAC Group and to be able to develop it sustainably", emphasizes Leo Johansson, the company owner to date of Trimaster Oy. He adds, "Trimaster Oy has a good market position in Finland and Sweden. Our customers benefit from the local presence and our quick reaction times". The experience of MULTIVAC and Trimaster in the development of robotic solutions offers the opportunity of being able to offer automation for the widest range of requirements in the food processing sector. "Our customers are increasingly faced with handling challenges, for example with loading of product into packs or with the converging of packs after packaging. With the acquisition of Trimaster Oy we are extending in particular our range of ABB robots and monitoring systems," adds Esa Harju, Managing Director of MULTIVAC Finland. Trimaster Oy is a 'preferred partner' of the Swedish company ABB Robotics and will intensify this partnership, particularly in the sector of palletising systems. ABB is one of the leading suppliers of industrial robots, modular manufacturing cells and service. Source: www.multivac.com - December 19, 2011

Brasil Foods to invest nearly $1 billion

noreply@blogger.com (Chocolate Intelligence) — Tue, 05 Apr 2011 06:47:00 +0000

Even though it's still waiting on a ruling about its future by Brazil's anti-trust body (CADE), BRF Brasil Foods S.A. will invest BRL1.5 billion (US$933 million) in its national operations this year, according to a top company official.

“Of course we will not jeopardize (investment) before knowing the opinion of CADE, but we have a plan,” said Jose Antonio do Prado Fay, company president, who spoke to industry analysts last week while presenting 2010 financial results in Sao Paulo.

The plan is for Brasil Foods to pursue new synergies with production units, modernization in existing factories and productivity gains. The investments should ensure production growth of 6% to 7%, and a boost of 10% to 12% in company revenue over the next two years, Fay said.

Officials made a point to emphasize that the investment isn't set in stone, and will depend on CADE's ruling on the merger of brands Perdigão and Sadia that began two years ago. Approval of the merger has moved slowly through Brazil's Senate, and Brazilian officials involved in the approval vote have spoken often of requiring Brasil Foods to maintain competitive balance in the industry. That could include keeping the major brand names alive and separate for five years, and selling off smaller brands that may otherwise be closed in the future.

Brasil Foods says the merger between Perdigão and Sadia generated net synergies of BRL74 million (US$46 million) last year. Net revenues in 2010 were announced as BRL22.6 billion (US$14 billion), with BRL13.5 billion (US$8.3 billion) made in the domestic market, up 11% compared to 2009. Foreign market sales reached BRL9.166 billion (US$5.6 billion) in 2010, up 4% from the year prior.

Despite domestic and export sales growth, officials say they remain wary of rising grain prices. Brazil's corn and soybean crops should produce above forecasted levels this year, but increasing demand from Asia will keep stocks low. Rising grain prices led Brasil Foods to boost its retail prices an average of 3.6% in the second half of 2010.

Along with domestic investment, Brasil Foods will eye invest abroad. The company already has operations in Europe (Food Plus), and plans to acquire another company outside Brazil, officials say. The target markets are Africa, the Middle East and Latin America, and officials say they prefer to buy existing brands rather than start from scratch.

Dairy products will be the focus of a special “company project” over the next three years, with research planned for how Brasil Foods can utilize the advantages of its existing beef infrastructure to compete in the dairy sector.

Brasil Foods will be Brazil's second largest beef, pork and poultry processor after its merger is formally approved by the government later this year. It is the third largest poultry processor in Latin America, one of the 10 largest pork processors in the world, and produces more than 1,500 products that are exported to more than 110 countries.

Source: http://www.meatingplace.com - April 4, 2010

Bel Sells Czech Based Jaromericka Mlekarna, a.s

noreply@blogger.com (Chocolate Intelligence) — Fri, 04 Mar 2011 20:31:00 +0000

Bel's acquisition of Jaromericka did not meet the sales and production goals initially anticipated. The recession in Europe and its impact on the local market left the Group with overcapacity in the Central European region.

In order to tackle this situation, and in line with the Group’s international strategy, Bel Eastern Europe decided to refocus on its strong national brands Želetava®, Smetanito® and Matador®, and its international brands The Laughing Cow®, Leerdammer®, Kiri®, and Babybel®.

Accordingly, Bel announced today that it has sold the Jaromericka business, its two production units and associated brands, including Faun, Fénix and others, as announced earlier this year.
The sale was realized via a management buyout.

"Selling Jaromericka with its full production capacity was the best solution for the company," said Pascal Bigot, General Manager of Bel Sýry Cesko, Bel's subsidiary in the Czech Republic. "Jaromericka's new management team now has new prospects for the business thanks to the skills of its employees, excellent milk quality and the industrial investments already made. Furthermore, the deal maintains the existing conditions with the milk producers."

Bel will remain active in the Czech Republic through its Bel Sýry Cesko subsidiary.

Source: www.groupe-bel.com - November 22, 2010

Unimerco vil aldrig have underskud igen

noreply@blogger.com (Chocolate Intelligence) — Sun, 20 Feb 2011 20:00:00 +0000

2009/2010 bød atter på sorte tal på bundlinjen hos Unimerco, og står det til ledelsen, så bliver 2008/2009-underskuddet en enlig svale.

Efter et hårdt 2008/2009 ser tingene meget lysere ud hos Unimerco i 2009/2010. Godt nok faldt omsætningen med 1,8 % til 536 mio. kr., men situationen i de enkelte kvartaler har været vidt forskellig.

- Den kvartalsvise udvikling set i forhold til foregående regnskabsår viser dog, at et fald gennem regnskabsårets første og andet kvartal på henholdsvis 28,3 % og 8,8 %, blev afløst af stigninger i tredje og fjerde kvartal på henholdsvis 11,3 % og 30,9 %. Det var en uventet stærk omsætningsvækst, som dog også var præget af store enkeltordrer, skriver Unimerco i sit regnskab.

Atter sorte tal
Samtidig har Unimerco gennemført omfattende rationaliseringer, der har betydet årlige besparelser på 98 mio. kr. Alene personaleomkostningerne er faldet med 23 % over de seneste to år, blandt andet som følge af en markant reduktion af medarbejderstaben fra 652 i 2007/2008 til 528 ved udgangen af 2009/2010.

Og det målrettede arbejde med omkostningerne har givet gevinst. På trods af den beskedne omsætningsnedgang lykkedes det nemlig Unimerco at hente et overskud før skat på 39 mio. kr., hvilket var markant bedre end 2008/2009-underskuddet på 54 mio. kr.

- Unimercos indtjening, konkurrenceevne og forretningsgrundlag er styrket på en række væsentlige områder. Salget er effektiviseret, og der er sket en betydelig opstramning på målstyring af aktiviteter og markedssegmenter, skriver Unimerco i regnskabet.

Højere indtjening i 2011
Og koncernens ledelse ser lyst på fremtiden. De vurderer, at Unimerco har vundet markedsandele under krisen, og at man derfor kommer styrket ud på den anden side. Samtidig har krisen været lærerig på mange måder, og det kommer til at præge Unimerco i fremtiden.

- Underskuddet i 2008/2009 var det første i virksomhedens historie. I ledelsen og den samlede organisation er der en ufravigelig holdning om, at underskud ikke igen må forekomme i koncernen. Denne holdning vil afgørende komme til at præge koncernens ledelse og styring fremover, også i koncernens enkeltselskaber, skriver Unimerco.

I 2010/2011 satser man på at øge omsætningen til minimum 600 mio. kr. Samtidig skal indtjeningsgraden forbedres til 10 %, hvilket kræver fortsatte effektiviseringer og stram omkostningsstyring. Koncernen forventer dog først at være tilbage på før-kriseniveau i 2012/2013.

Source: www.metal-supply.dk - February 18, 2011

Warren Buffett Buys Into Brasil Foods

noreply@blogger.com (Chocolate Intelligence) — Sun, 20 Feb 2011 19:30:00 +0000

Brasil Foods S.A. (NYSE: BRFS) may not be a household name in America. The company is in production and the sale of poultry, pork, beef, milk, dairy products, and processed food products in Brazil and internationally. It looks as though it now has the most famous investor in the world as a shareholder. Reports are out in Brazil that Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK-B) is taking a stake in the company.

As report from Valor Online noted, “The investor Warren Buffett arrived in Brazil. Executives of BRF-Brazil Foods told investors during a meeting sponsored by BTG Pactual that managers of Berkshire Hathaway, an investment company of billionaire American, visited the country and have been in business units. After becoming aware of the company, formed by the union of Sadia and Perdigão, began buying shares in the stock market.”

Perdigao SA and Sadia SA merged in 2009 to form Brasil Foods. Its ADRs are up up 3.9% at $18.14 and the 52-week trading range is $11.25 to $18.28. This one trades roughly 1.2 million shares a day in New York. If you look at how many stocks Buffett recently sold, it seems as though Berkshire Hathaway has plenty of share acquisition cash available.

This does not appear to be any attempt to take control of the company. Buffett often invests in companies and most of the time it is rather passive. He also has a more recent tendency to look for better growth outside of the United States. Brazil and food, what more could could Warren Buffett want?

Source: http://247wallst.com - February 18, 2011

MARITIM FOOD AS PLANNING TO IMPROVE PRODUCTION EFFICIENCY IN NORWAY

noreply@blogger.com (Chocolate Intelligence) — Sun, 20 Feb 2011 19:22:00 +0000

Maritim Food AS, a Lännen Tehtaat Plc subsidiary, makes minced fish products, dressings and smoked fish products at two plants in Fredrikstad, Norway. The company is planning measures to improve its production efficiency and to concentrate all production at a single plant in Fredrikstad. With concentration of production, the Fredrikstad plant would produce minced fish products and dressings, while smoked fish production would be discontinued.

The annual performance improvement from concentrating production is estimated to be some EUR 0.5 million. Non-recurring costs from the reorganisation of production and the shutdown of one production plant are estimated at not more than about EUR 1.5 million. If Maritim Food goes ahead with its plan, the changes would take place during the year 2011.

In addition to the plants in Fredrikstad, the Maritim Food Group has a plant in Gjerdsvika in western Norway that produces canned products, fishcakes and fishballs, and a plant in Dingle in southwest Sweden, which produces shellfish in brine.

The Group companies’ products are sold in Norway and Sweden under their own brands, namely Maritim, Fader Martin and Sunnmöre, and under retailers’ private labels. Shellfish in brine are also imported to Finland and sold under the Apetit Maritim label.

The net sales of Maritim Food Group in 2010 totalled approximately EUR 32 million and it had a personnel of 110.

Source: www.lannen.fi - 17 February 2011

noreply@blogger.com (Chocolate Intelligence) — Sat, 19 Feb 2011 22:29:00 +0000

Apetit Kala Oy processes fish and fish products for wholesale and retail customers in Finland. It offers various products, including roe and fresh, frozen, hot smoked, cold smoked, grilled, and ready to cook fish. Apetit Kala Oy was founded in 1992 as Kuopion Kalatukku Oy and changed its name to Apetit Kala Oy in June 2004. The company is based in Kuopio, Finland. As of May 13, 2004, Apetit Kala Oy is a subsidiary of Lannen Tehtaat Oyj.

Apetit Kala Oy Announces Executive Changes
Apetit Kala Oy announced Erkki Lepistö, Managing Director will withdraw from his post for personal reasons. Matti Karppinen, CEO of Lännen Tehtaat, has been appointed to the post. Karppinen has been the executive responsible for Lännen Tehtaat Group's Seafood business since 2009. Tehtaat will continue as Lännen Tehtaat plc's chief executive officer.

Source: http://investing.businessweek.com

noreply@blogger.com (Chocolate Intelligence) — Sun, 16 Jan 2011 13:47:00 +0000

Zhongpin Inc., a leading meat and food processing company in the People's Republic of China, today announced that it would build a new production, research & development, test, and training complex in its home city of Changge in Henan province of China.

The new facility will add 100,000 metric tons of capacity for prepared pork products, including Chinese-style, western-style, half-cooked, and easy-to-cook pork products. Adjacent to the production facility will be a new center for advanced research & development, test, training, and other support functions.

Mr. Xianfu Zhu, Chairman and Chief Executive Officer of Zhongpin Inc., said, "This expansion will add capacity for our higher-margin downstream products and will serve our central China market and adjacent markets. It will substantially enhance our R&D and further support our expanding market share in the growth regions of China. This new facility proves that we remain committed to doing everything possible -- using the most advanced technologies and processes -- to continue delivering new product innovations that will be desired by China's citizens, delivering food at the highest standards of product quality and safety to every customer, and delivering strong long-term returns to our shareholders."

Zhongpin plans to invest $58.5 million on the construction, excluding the land use rights that Zhongpin already owns. More than 80% of the production equipment will be internationally sourced. Zhongpin consistently selects the best and most advanced equipment, processes, and integrated information systems for its plants. The company's advanced cold-chain logistics system will support the expanding capacity. The payback period for the project is expected to be about 5.75 years.

Construction for the first phase of 50,000 metric tons for prepared pork products is scheduled to start in the first quarter 2011 and be completed by the third quarter 2011, and the second phase, also with an annual capacity of 50,000 metric tons for prepared pork products, is expected to be completed in the fourth quarter 2012. The R&D, test, and training center is also expected to open by the fourth quarter 2012.

About Zhongpin

Zhongpin Inc. is a meat and food processing company that specializes in pork and pork products, vegetables, and fruits in China. Its distribution network in China covers 20 provinces plus Beijing, Shanghai, Tianjin, and Chongqing and includes more than 3,285 retail outlets. Zhongpin's export markets include the European Union, Russia, Hong Kong, South Africa, and Southeast Asia. For more information about Zhongpin, please visit Zhongpin's website at http://www.zpfood.com.

Source: Dec. 13, 2010 - PRNewswire-FirstCall

Sara Lee buyout could pave way for JBS deal

noreply@blogger.com (Chocolate Intelligence) — Sun, 16 Jan 2011 12:23:00 +0000

* Funds could buy all of Sara Lee, then break it up

* Break-up could allow JBS to bid for Sara Lee meat unit

* Analysis sees greater returns from leveraged buyout

* Reports of funds-led bid sprung in recent days

A leveraged buyout of Sara Lee Corp could pave the way for Brazilian beef processor JBS SA to buy the U.S. company's meat division, analysts at Bank of America Merrill Lynch said in a report on Thursday.

The return on a potential LBO of Sara Lee could rise significantly if buyout firms bought the entire company and then sold its meat business to a strategic investor, as recently speculated in the media, the analysts said. JBS could pay about $4 billion for Sara Lee's meat division, they added.

Private equity firms have pursued Sao Paulo-based JBS, the world's biggest beef processor by revenue, since reports about a potential bid for Sara Lee arose late last year, a source with knowledge of the situation told Reuters on Tuesday.

"We think if this were to happen, JBS could bid for Sara Lee's meat division, as such an acquisition would be more feasible in size ... and they would presumably not need to sell the coffee business afterward," wrote Merrill Lynch analysts Fernando Ferreira and Isabella Simonato in the report.

Ferreira and Simonato's remarks come after DealReporter said on Wednesday that a group of buyout firms led by Apollo Global Management could bid for Sara Lee as early as this week, with a price in the range of $18.75 to $19 a share.

Spokespeople for JBS and Apollo declined to comment when sought out by Reuters. Sara Lee shares were up 10 cents to $18.28 in afternoon New York Stock Exchange dealings.

Integrating JBS's U.S. unit and Sara Lee's coffee and meat processing business could create value by providing a home for the trimmings of JBS's cattle and pig slaughtering operations.

The deal could also help JBS boost its presence in processed foods, making profit margins more stable. JBS could further gain by reducing its reliance on commodities and turning into a key supplier of meats to rival food processors.

Sara Lee, which has a range of businesses that include beverages, coffee and retail units, is valued around $12.5 billion by a number of analysts.

Bank of America Merrill Lynch analysts Bryan Spillane and Mariya Goub said in a separate report that if a group of buyout firms were able to acquire all of Sara Lee and then "simultaneously sell the meat assets to a strategic buyer, the cash proceeds could potentially enable a private equity buyer to quickly recoup a portion" of the money used for the purchase.

Investors reckon that whether Sara Lee ends up in Brazilian hands comes down to two potential deal-killers: funding and time.

JBS is significantly leveraged following more than a dozen takeovers since 2007. The purchases have catapulted the company into the big leagues as the world's top beef producer, but left it relatively short of cash.

The source told Reuters that funding would not necessarily drag down the deal. But Ferreira and Simonato warned that financing would be a key part of any bid and that funding from Brazil's state development bank BNDES remains a "wildcard."

Both analysts also said JBS shares, which fell about one-third in the past year, should remain under pressure because of the potential deal.

Shares of JBS were down 1 percent to 7.05 reais in Sao Paulo near the close of day on Thursday, compared with a drop of 1.1 percent in the Bovespa stock index

STEFANO TOSELLI AND TER BEKE TO CREATE A JOINT VENTURE FOR LASAGNE AND PASTA MEALS IN CENTRAL AND EASTERN EUROPE

noreply@blogger.com (Chocolate Intelligence) — Sun, 10 Oct 2010 09:18:00 +0000

Ter Beke and the shareholders of Stefano Toselli, both major players in the Western
European chilled lasagne markets, announce that they have signed on 30 September
2010 an agreement to investigate the creation of a joint venture. This joint venture is
to commercialise lasagne and pasta meals in Central and Eastern Europe.
French based Stefano Toselli and the Belgian Euronext listed Ter Beke announce that they
will investigate the opportunity to commercialise chilled lasagne and pasta meals jointly in
Central and Eastern Europe. The business plan may also comprise the construction of an
automated production plant in Central Europe exclusively dedicated to the Central and East
European markets. The completion of the study and the clearance of all conditions precedent
are scheduled for spring 2011.
The agreement anticipates the creation of a 50/50 joint venture between YHS Holdings
(“YHS”), the holding company controlling Stefano Toselli, and FreshMeals, Ter Beke’s ready
meals division. The joint venture agreement shall grant Ter Beke a call option both on YHS’s
share in the joint venture and on the shares of Stefano Toselli. The valuation formulas of the
call options, which are scheduled to be executed in 2018, are based on cash flow and
generally applied market multiples.
Doug Hamer, President of Stefano Toselli and of YHS, stresses the importance of this
transaction for the accelerated development of his company: “For long we are an important
player in the Western European chilled lasagne markets. We are convinced that the
consumer developments in Central and Eastern Europe create the environment for the roll
out of our price/quality concept into those markets. The co-operation with Ter Beke provides
us with the possibility to accelerate our growth ambitions shortly after our recent
management buy out”.
Marc Hofman, Managing Director of Ter Beke, is very pleased with this major breakthrough
for the ready meals division: “This joint venture means an accelerated implementation of our
geographical strategy for two of our core products: chilled lasagne and pasta meals. For a
decade we have been following the evolution in these emerging markets and we believe the
time is now right to move forward. I am convinced that joining the industrial competency of
Stefano Toselli with Ter Beke’s marketing and product development strengths will be very
effective”.

Source: http://www.terbeke.com - October 1, 2010

Danish Crown acquires German pig slaughterhouse

noreply@blogger.com (Chocolate Intelligence) — Sun, 10 Oct 2010 09:16:00 +0000

Danish Crown has signed a contract to acquire the German slaughterhouse D&S Fleisch. The agreement is, among other things, conditional upon approval by the competition authorities, but both parties expect this approval to be obtained shortly.

Slaughtering 3.5 million animals a year, D&S Fleisch is the fourth-biggest slaughterhouse in Germany, and with the acquisition Danish Crown is reaching another milestone in its plan DC Future.

- In recent years, the German market and the operating economies for German slaughterhouses have represented a significant challenge for Danish Crown. Therefore, as far back as 18 months ago we were already realising that we could achieve significant impact by being active in the German raw materials market, and now we have found the optimum solution, says Kjeld Johannesen, CEO of Danish Crown.

Germany is already an important market for Danish Crown, and a German slaughterhouse for German pigs will offer access to the market, which will benefit the entire group. With this acquisition, Danish Crown is gaining a presence in the German market and also strengthening its international sales.

- Today we have a successful business with fresh meat in Sweden, the UK and Poland, and Germany is the next obvious step. As in the other countries where we have slaughterhouse activities, the idea is to slaughter local, German pigs. This also means that the acquisition will not have any immediate impact on Danish workplaces, says Kjeld Johannesen.

D&S Fleisch is situated in Essen (Oldenburg) close to a number of Danish Crown’s other departments in northern Germany. In addition to the slaughterhouse facilities in Essen (Oldenburg), Danish Crown is also taking over D&S Fleisch’s other slaughtering unit in Cappeln. Danish Crown not only plans to continue operations in Essen, but expects to expand capacity and create more jobs in future.

So far, D&S Fleisch has been a privately owned company.
- We have for some time been looking for the right buyer for our slaughterhouse, and Danish Crown was chosen because, with their door to the global market, they are a good match for the business which D&S Fleisch has built up over the years, says Herbert Dreckmann, one of the owners of D&S Fleisch.

D&S Fleisch has seen strong growth in recent years. The slaughterhouse supplies the retail trade and the processing industry as well as export markets, and the pig deliveries are based on contracts which Danish Crown is taking over in conjunction with the acquisition.

Fleisch Krone Feinkost, the convenience business, is not included in the transaction but will still be managed by the existing owners.

Source: http://www.danishcrown.com - October 7, 2010

Yurun Food Group: Pork billionaire Zhu Yicai has a play on food anxiety in China

noreply@blogger.com (Chocolate Intelligence) — Mon, 06 Sep 2010 19:34:00 +0000

China's food safety nightmares go on: 70 people in February became sick with headaches and diarrhea after eating fresh pork from a market in Guangzhou. Government media said the suspected cause was banned chemicals given to pigs just before slaughter to reduce fat. A month after that inspectors in the same province stopped a truckload of pigs that had been fed a carcinogen that boosts body weight.

No one died, but these stories share an eerie familiarity with last year's milk-safety scandal. China has too many small suppliers, which makes it hard to enforce wholesomeness rules. Whereas the five biggest pork slaughterhouses in the U.S. account for half of the pigs consumed there, China's top five don't account for even 5%. Corporate management that arguably bolsters safety in the U.S food chain lags in China, where the pig is commonplace.

But authorities have a plan: consolidation. The government wants to bring the number of hog slaughterhouses down to 5,000 in a decade from as many as 20,000 today. Then it wants the larger survivors to help police the pork supply.

Last August Beijing announced new sanctions aimed at smaller, less sanitary plants. And rather than cover up the Guangzhou episodes, the illnesses were publicized and police made arrests.

That is generally good news for Zhu Yicai. The main owner and chairman of China Yurun Food Group in Nanjing has built the nation's second-biggest slaughtering and meat-processing operations. He is a billionaire on our 2009 list, making him the world's richest butcher.

Zhu is happy to oblige the official roll-up push. "The best industry to invest in in China today" is meat, he says.

FORBES ASIA caught up with him in Hong Kong, where Yurun was hosting an earnings conference for investment fund managers. Zhu looked more like one of his investors than a 45-year-old hog processor. No surprise, perhaps, because he's never raised a pig himself.

Domestic media report that after part-time business classes and a profitable swing at shellfish exporting, the once poor lad from Anhui Province turned to meat processing in 1993. What would be Yurun moved to Nanjing a year later. (Zhu didn't speak much about himself, and Yurun provides few personal details about him.)

Yurun has smartly targeted the rising middle class in eastern cities, where consumers will pay more for convenience and reliability. Last year 41% of its processed pork went to supermarkets under Yurun-affiliated brands, a growing slice. About 10% of its trade is with restaurant chains.

Reflecting that movement up the food chain, Yurun profits last year increased by 32% to $146 million on sales of $1.3 billion, almost all in China. The country's biggest meat producer, Henan Shuanghui, had a smaller net despite three times the revenues.

Yurun's headquarters play up a safety image. "Quality people sell quality products," says a motivational slogan on the wall of the headquarters plant. Yurun also boasts of its feed, breeds and vaccinations. Ads call on consumers to "relax" as a family is shown eating Yurun pork.

Yet no one is fully safe. Yurun, too, got caught in April selling pork tainted with one of the same chemicals flagged in Guangzhou. Zhu had to recall more than a hundred boxes of meat, and the bad publicity knocked 10% off its stock price. "It doesn't affect the long-term story," says Heather Hsu, a consumer analyst at clsa brokerage, who argues that other listed producers have survived worse news and that this hitch, like the so-called swine flu scare that dented pork prices, would be fleeting.

Surely, brand integrity is key for Zhu. If Yurun can sell processed wares, its margins are double those from slaughtering.

When Zhu, along with his wife, got into pork output, consumer expectations about food safety were lower. "In the 1990s when people had something to eat, they'd want to feel full; that would be enough," he recalls. Yet he worried even then that "the biggest risk to the food industry was food safety." He coined what has become one of Yurun's core philosophies: "Food is a moral industry." A banner bearing the slogan hangs over the road in front of headquarters. Zhu backed it up by making Yurun the first Chinese meat company to obtain foreign-product-quality certification.

The company went public in 2005. Its market capitalization of $2 billion today compares with $4 billion for American meat giant Hormel Foods ( HRL - news - people )(see box) and exceeds that of Smithfield Foods ( SFD - news - people ) in the U.S. The Zhus have 44%. (His $1.5 billion fortune also includes smaller meat businesses that he holds himself and a mix of what he says are passive nonfood stakes.)

Goldman Sachs ( GS - news - people ), which with co-investors owns a majority stake in Yurun's bigger rival Shuanghui, also has 3% of Zhu's company, and a managing director of Goldman Sachs' Asia, Sun Yanjun, sits on Yurun's board. Sun couldn't be reached, but the firm is said to want a big piece of consumer-related industries in China in the new few years, hence the unusual doubling-up.

Beijing's bent toward reining in the little pig producers is likely to be Zhu's biggest boost, and the reason is more supply than sanitation. The abattoir end of its business has also figured in holding China Yurun stock to a 10% gain on the Hong Kong exchange this year (versus the index's 20% rise). As Zhu has poured money into modern plants, Yurun's utilization rates have stayed relatively low--58% last year. Yet the nature of pork production calls for processing near where the hogs are raised, so it's difficult to consolidate. "Underutilization of assets [is] a serious issue," wrote Macquarie Securities analyst Jake Lynch, who follows the company from Hong Kong.

For all the big plans, officials showing hesitancy to shut small slaughterhouses--and increase rural unemployment--during this period of slow economic growth may leave around tough, low-margin competition for Yurun longer than was expected.

The U.S. Department of Agriculture projects that China's pork consumption will increase by 5% this year. That alone won't eat up much excess capacity. Still Zhu hopes to reach 70% utilization in two years.

"The pork industry today is like the real estate industry in 2000," he says. "It's still in an early stage. Only 10% to 20% [of the producers] have any scale."

Source: Forbes Magazine dated May 25, 2009

Thai CP Foods' Strategy Shift Pays Dividends

noreply@blogger.com (Chocolate Intelligence) — Mon, 02 Aug 2010 13:25:00 +0000

Charoen Pokphand Foods, Thailand's largest agribusiness company, expects record profit this year as it benefits from a shift to high-margin products and an overseas expansion, which should mean higher dividends.

A strategic move away from farming to ready-to-eat products, a higher-growth business, has increased the company's margin, President Adirek Sripratak told Reuters in an interview.

"This year should be quite a remarkable year for us in terms of profit and revenue," Adirek said.

"Since the bird flu crisis in 2004, experience tells us that earnings from feed and farming can be very volatile, and in order to be the 'kitchen of the world', we can't rely on just one market."

With the new strategy, revenue from foreign operations would be higher than sales in Thailand in five years' time, he said.

CP Foods ranks among the 2010 Forbes Global 2000 List of the world's biggest companies with $3.4 billion in assets and a market value of $2.8 billion.

It has operations in nine countries including Russia, India, Turkey, Taiwan, Malaysia and China, and counts Britain's Tesco plus Costco in the United States among its big buyers.

It expected net profit this year to grow at least 20 percent from a 2009 record, Adirek said, while sales are set to reach 180 billion baht ($5.6 billion), the highest since it went public in 1987 and up from 168 billion in 2009.

Nine analysts polled by Thomson Reuters I/B/E/S forecast a net profit of 13.3 billion baht this year compared with 10.2 billion in 2009. Revenue was seen up 13 percent at 191 billion.

HIGHER DIVIDEND

CP Foods is expected to report stronger second-quarter results next week, buoyed by a rise in meat prices and record-high shrimp exports, industry analysts said.

It paid a 0.23 baht dividend in the first half of 2009.

Asked if strong earnings in the second quarter would mean an increase in its dividend payout, Adirek said: "If we make more profit, definitely. It's our policy to deliver higher returns to shareholders."

Its dividend policy is to pay out about 50 percent of post-tax profit.

The company's net profit quadrupled in the first quarter, beating market forecasts, thanks to better cost management and higher operating results in its overseas businesses, especially in Turkey, India and Malaysia.

CP Foods, 47.9 percent owned by CP Group, one of Asia's largest agribusiness conglomerates, runs agro-industrial and integrated food businesses divided into livestock and aquaculture segments. Its products range from animal feed to processed foods and ready-made meals under the CP brand.

Unlisted CP Group, part of the empire of Dhanin Chearavanont, one of the wealthiest men in Asia, holds stakes in True Corp, Thailand's third-largest telecom operator, CP All, the country's top convenience store operator through its 7-Eleven shops, and chemical firm Vinythai.

It is looking to buy a chicken business next year in Kenya, where "growth potential is immense" due to its large population and few competitors.

Sitting on at least 15 billion baht in cash and a relatively low debt-to-equity ratio of 0.6, CP Foods is looking to buy stakes in other overseas and local companies, Adirek added.

Its shares have risen 112 percent this year, more than six times the 17.6 percent climb in the broad index.

But analysts said its valuations remained attractive compared with those of regional rivals. It trades at 12 times 2010 earnings, against Indonesia's PT Indofood Sukses Makmur Tbk's 16.2 times and the Asia ex-Japan food product sector's 15.6 times, according to Thomson Reuters StarMine.

The shares were up 0.4 percent at 24.20 baht at the midday break, while the overall market was 0.97 percent higher.

Source: Reuters - 02/08/2010

Haarslev-ledelse tilfreds trods underskud

noreply@blogger.com (Chocolate Intelligence) — Thu, 29 Jul 2010 11:51:00 +0000

Haarslev Industries kunne ikke leve op til rekordåret 2008. I 2009 blev omsætningen reduceret med mere end en tredjedel fra 921,9 mio. kr. til 606,2 mio. kr.

Omsætningsnedgangen kunne også mærkes på bundlinjen, hvor resultat før skat endte med et underskud på 2,7 mio. kr. mod et rekordoverskud på 71,1 mio. kr. i 2008.

Forventer fremgang i 2010
- Det reducerede resultat skyldes nedgang i omsætningen grundet den internationale finansielle krise. Under hensyntagen til den internationale finansielle krise anses resultatet for tilfredsstillende, skriver Haarslev Industries i sit årsregnskab.

I 2010 forventer Haarslevs ledelse et bedre resultat, men man betragter stadig fremtiden som usikker på grund af den generelle økonomiske situation.

Haarslev-koncernen er leverandør af procesløsninger og udstyr til afvanding og oparbejdning af råvarer inde for fødevareindustrien.

www.metal-supply.dk July 7, 2010