Feedstuffs is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Merck Animal Health sales increase

Merck Animal Health sales increase

FINANCIAL REPORT -- Merck reported that its animal health business had increased sales for the 2012 fourth quarter and full year ended Dec. 31, 2012.

Merck Animal Health had sales of $898 million for the quarter and $3.399 billion for the year, compared with $868 million and $3.253 billion in 2011.

Merck said sales grew across all major species, especially cattle and poultry.

Volume:85 Issue:06

Stock market summary, 2/25/13

Stock market summary, 2/25/13

 

Feb. 20  

Feb. 13

Year ago

Feedstuffs-Moskow Stock Indexes

Agribusiness

448.10

443.60

377.50

Baking

170.80

173.20

136.20

Fertilizer

N/A

571.00

612.30

Meat

N/A

445.40

346.10

Poultry

N/A

676.30

199.90

Packaged Foods

N/A

184.50

190.20

Dow Jones Ind.

13,928.00

13,983.00

12,939.00

NASDAQ

3,164.41

3,196.88

2,933.17

S&P 500

1,512.00

1,520.30

1,357.70

 

 

-2012-13-

Feb. 20

Feb. 13

 

Highs

Lows*

Close

Close

Andersons, The

51.01

35.63

48.97

47.88

ADM

33.50

24.48

32.50

31.16

Balchem

38.84

26.60

37.43

38.67

Bunge Ltd.

79.92

57.83

74.08

73.41

Cagle's

3.45

0.04

N/A

N/A

Cal-Maine Foods

46.31

34.57

40.62

41.82

Church & Dwight

60.43

47.28

60.09

59.62

ConAgra

33.78

23.81

33.65

33.48

Corn Product

70.28

45.59

66.20

65.09

CSX

23.39

19.01

22.82

22.87

Digital Angel

0.13

0.03

0.07

0.07

DuPont

53.80

41.95

46.54

47.58

Hormel

36.54

27.48

36.12

35.84

IGI

1.34

0.94

1.11

1.12

Internatl Flavors

74.17

53.33

72.44

74.17

KC Southern

99.08

62.54

97.54

97.36

Kraft Foods

42.52

25.11

27.03

27.75

Lilly

54.32

38.64

54.29

53.44

Merck

47.96

37.18

42.66

41.15

Monsanto Co.

103.62

69.89

98.66

102.81

Mosaic

63.22

45.62

58.51

62.20

MWI Vet. Supply

126.23

80.84

124.06

125.64

Neogen

48.78

33.78

47.33

47.12

Novartis

69.81

51.48

69.81

68.59

Omega Protein

9.01

6.01

7.70

7.76

Pfizer

27.71

21.03

27.57

27.00

Philip Morris

36.16

29.62

34.89

34.78

Pilgrims Pride

9.29

4.28

8.89

9.13

Potash Corp.

47.29

37.28

40.38

42.12

Sanderson Farms

55.01

36.50

52.02

52.54

Sara Lee

111.60

24.46

32.57

32.22

Seaboard

2,850.00

1,828.65

2,795.00

2,793.99

Smithfield Foods

24.05

17.82

22.34

23.67

Strategic Diag.

2.10

0.93

1.25

1.24

Tejon Ranch

31.26

25.29

29.91

30.48

Tyson Foods

24.22

14.17

23.56

23.86

YUM! Brands

74.47

61.95

64.56

64.41

Feedstuffs’ Stock Summary indexes and stock quotes are provided by Credit Suisse First Boston (CSFB), New York, N.Y.

Moskow Stock Indexes are developed exclusively for Feedstuffs by Rob Moskow at CSFB. E-mail Moskow at [email protected]

*Highs and lows are as of Feb. 20.

 

Volume:85 Issue:08

Hillshire investing in innovation, promotion

Hillshire investing in innovation, promotion

THE Hillshire Brands Co. has reported decreased earnings for its fiscal 2013 second quarter and six months, noting that it is making investments in advertising, marketing and promotion and in an innovative and robust new product pipeline.

Chief executive officer and president Sean Connolly said the company is pleased with its progress since being spun off by Sara Lee Corp. into an independent, publicly traded company last year (Feedstuffs, July 9, 2012).

Hillshire's results are shown in the Tables.

For its retail business, Hillshire said its results were a consequence of improved product mix and volumes, with good performances by Aidells sausages, Hillshire Farm lunchmeat and Jimmy Dean sandwiches. The company said it plans to roll out packaging and quality improvements for Hillshire Farm Lunchmeat in the third quarter.

For its foodservice segment, Hillshire said its results were due to volume gains in meat products, although bakery products volume fell but showed signs of stabilization.

Hillshire, headquartered in Chicago, Ill., is a leader in meat-centric foods, with brands that include Ball Park, Hillshire Farm, Jimmy Dean and State Fair, as well as Sara Lee desserts and Chef Pierre pies. The company is projected to have first-year sales totaling $4 billion.

 

1. Hillshire Brands earnings and sales*

 

-Second quarter-

-Six months-

 

2013

2012

2013

2012

Sales (billion $)

1.060

1.035

2.034

1.988

Earnings (million $)

65

469

118

249

Earnings per share ($)

0.53

3.94

0.96

2.10

 

2. Hillshire Brands operating results (million $)*

 

-Second quarter-

-Six months-

 

2013

2012

2013

2012

Retail sales

777

761

1,496

1,459

Foodservice sales

283

294

538

587

Retail income

112

85

198

129

Foodservice income

28

29

53

54

*For the quarters ended Dec. 29, 2012, and Dec. 31, 2011.

 

Volume:85 Issue:06

Nutreco earnings up 13.2%

Nutreco earnings up 13.2%

GLOBAL animal nutrition company Nutreco posted full-year revenue of 5.23 billion euros (approximately $6.89 billion) for 2012, up 10.8% from 2011.

According to the company's 2012 results, released Feb. 7, roughly 1.8% of that increase was organic volume growth.

Full-year earnings from continuing operations increased 13.2% to 262.1 million euros (Table), with basic earnings per share up 26.2% to 4.53 euros.

Based on what Nutreco chief executive officer Knut Nesse described as a "record year," the company will propose a 1:2 share split to shareholders at its annual general meeting on March 28.

"In challenging economic times, we have continued to support our customers through innovative and sustainable feed solutions that contribute to their productivity and profitability," he said. "I'm pleased that we realized the strongest operational results in our growth segments: Fish Feed and Premix & Feed Specialties."

Last year was a significant year for the company as it embarked on a multiyear strategy focused on "driving sustainable growth." The so-called "Ambition 2016" strategy is Nutreco's roadmap to achieving a 2016 target of 400 million euros for earnings before interest, takes and amortization (EBITA).

To support that roadmap, Nesse said the company issued a $250 million private financing placement in July 2012 and, in September, amended its 500 million euros revolving credit facility from 2014 to 2017 while improving the conditions of the facility.

Nutreco said its activities in 2012 focused on strengthening its presence in Brazil, opening a new production plant in Russia and acquiring 75% ownership of Gisis, a leading shrimp and tilapia feed producer in Ecuador.

Animal Nutrition remains the company's leading division, accounting for 149.1 million euros of total EBITA, up 4.7% from 142.4 million euros in 2011. Fish Feed, however, nearly caught up, comprising 142.0 million euros of the total EBITA, a 19.6% increase from 118.7 million euros in 2011.

The company said its Premix & Feed Specialties segment recorded strong operating margins in each of the past two quarters, reaching the guidance of 7% due to performance in growth geographies, including China and Indonesia.

Acquisitions and investments were a big part of Nutreco's efforts in 2012, and the firm committed several-million euros to research and development in addition to direct investments in production capabilities. The company opened an upgraded swine research facility in the Netherlands as well as a new shrimp research unit in China.

Nesse said Nutreco's research and development budget now tops 25 million euros annually to support a growing demand for "more sustainable, high-added-value nutritional solutions."

 

Nutreco financial statement, million euros

 

2012

2011

% change

Revenue

5,229.1

4,721.1

10.8

EBITDA before exceptional items from continuing operations

320.2

285.5

12.1

EBITA by segment

Animal Nutrition

149.1

142.4

4.7

Fish Feed

142.0

118.7

19.6

Corporate

-29.0

-29.5

-1.7

Total segment EBITA

262.1

231.6

13.2

Total result for the period

177.6

131.2

35.4

Earnings per share (euros)

4.53

3.59

26.2

Dividend per ordinary share (euros)

2.05

1.80

13.9

 

Volume:85 Issue:08

Dean concludes 'strong year'

Dean concludes 'strong year'

DEAN Foods Co. has reported significantly improved income for its fourth quarter and full year in 2012, reflecting the company's initial public offering of its WhiteWave division and the sale of its Morningstar division.

The fourth quarter "marked the successful conclusion of a strong year," chief executive officer Gregg Tanner said.

He said the company's now primary business -- fluid milk -- despite a highly inflationary commodity cost environment, significantly outperformed expectations, reflecting the successful pass-through of commodity prices.

Dean's financial results are shown in the Table.

 

Breaking paradigm

For its fluid milk operations, which are organized as Fresh Dairy Direct, Dean said commodity costs rose in the second half of the year, especially in the fourth quarter, due to higher prices for raw milk, but the fourth-quarter gross profit per gallon was improved from the third quarter and the year-before period.

Dean noted that the fourth-quarter Class I Mover, a measure of what the company paid for raw milk, was $20.22/cwt., 23% higher than in the third quarter and 8% more than in the fourth quarter of 2011.

Nevertheless, the company's fluid milk volume declined just 0.8% in 2012 versus 2011, compared with an industry-wide decline of 0.9%, based on agriculture department and company estimates, and fourth-quarter operating income in 2012 matched fourth-quarter income in 2011.

Tanner said this demonstrates the benefits of Dean's newly "focused agenda" following the WhiteWave and Morningstar events and starts "to break the old paradigm" that fluid milk relies on favorable prices for raw milk in order to perform successfully.

Dean, through Fresh Dairy Direct, is the largest milk processor and marketer in the U.S., distributing milk directly to stores under more than 50 local and regional brands and private labels. It also distributes cultured dairy products, ice cream, juices, teas and bottled water.

 

Momentum

Tanner said Dean is entering 2013 with "considerable momentum" but also with challenges, including the loss of a portion of milk sales to an important customer that will begin to show up in the 2013 second-quarter results.

In response, he said the company will be focused on cost reductions this year, including actions that will close 10-15% of the company's plants and that will eliminate "a significant number" of distribution routes.

Dean noted that its WhiteWave offering involved selling a minority stake in the division, which was offered out as The WhiteWave Foods Co. and is trading on the New York Stock Exchange as "WWAV" (Feedstuffs, Oct. 29, 2012).

Dean continues to hold 86.7% of WhiteWave common stock but confirmed its plans to spin off a majority stake in May, retaining 19.9% of the stock that will be monetized or distributed at a later date.

WhiteWave includes plant-based beverages and foods such as the Silk line, premium dairy milk and other products under the Horizon Organic brand and coffee creamers. It also includes plant-based beverages and products in Europe.

Dean additionally noted that it sold its Morningstar division to Saputo Inc. for $1.45 billion in January (Feedstuffs, Jan. 14), and proceeds from the sale have been used to repay debt.

Dean has headquarters in Dallas, Texas.

 

Dean Foods earnings and sales*

 

-Fourth quarter-

-Full year-

 

2012

2011

2012

2011

Sales (billion $)

3.041

2.929

3.418

3.296

Earnings (million $)

37.009

(9.874)

74.367

(50.633)

Earnings per share (cents)

20

(5)

40

27

*For the quarters ended Dec. 31, 2012, and Dec. 31, 2011.

 

Volume:85 Issue:08

Names in the News, 2/25/13

Names in the News, 2/25/13

AMERICAN SEED TRADE ASSN., Alexandria, Va. -- Dr. Bernice Slutsky has been promoted to senior vice president, domestic and international policy. Slutsky will work with the domestic and international policy team on an integrated and proactive approach to advocacy efforts for the U.S. seed industry on key domestic regulatory and policy issues. She was most recently vice president, science and international affairs.

IOWA STATE UNIVERSITY, Ames, Iowa -- Patrick Gunn has been named cow/calf specialist for the Iowa Beef Center. Gunn will help develop extension programming, and his research will focus on nutrition and reproduction.

LALLEMAND ANIMAL NUTRITION, Milwaukee, Wis. -- Dr. Kerry Barling has joined the company as technical services-beef. Barling will be responsible for supporting the direct-fed microbial product line. He was previously with Novartis.

Dr. Ernest Keith has joined the company as monogastric product manager.

Bill Needham has joined the company as territory manager in the Northeast U.S. Needham was previously with American Protein Corp.

Lindsay Reyes has joined the company as territory manager in the Southwest U.S.

PAS REFORM, Zeddam, Netherlands -- Jacques le Comte has been appointed procurement and supply chain manager. Le Comte will be responsible for strategic procurement and the day-to-day management of an international team.

Volume:85 Issue:08

DHS awards contract for construction of NBAF plant

The Kansas federal congressional delegation and the Governor of Kansas announced Feb. 22 the Department of Homeland Security awarded the contract for construction of the Central Utilities Plant (CUP), a critical step forward in construction of the National Bio and Agro-Defense Facility (NBAF) in Manhattan, Kansas.

The action by the Department of Homeland Security (DHS) awards $40 million in Fiscal Year 2011 appropriations to be spent on construction of the CUP without further delay. The CUP will be a free standing 87,000 sq. ft. building built on the NBAF site on the Kansas State University campus in Manhattan. Construction of the CUP is expected to be completed in two and a half years.

The decision for a facility in Kansas has been controversial because of its proximity, risk assessment and soaring costs. Kansas Gov. Sam Brownback said the contract confirms DHS' commitment to moving forward with the construction of the laboratory itself.

Sen. Pat Roberts (R., Kan.) said the step moves the process further down the construction timeline and he will work to sure "NBAF remains a top national security priority."

Rep. Lynn Jenkins (R., Kan.) said, “The contract approval by DHS is further evidence that even while our nation looks for significant budget savings, we can still find funds for mission critical projects, such as those to be undertaken at the NBAF. This facility is key to the fundamental responsibility of the federal government to protect its citizens, and I am committed to continuing to do everything I can to help move this project forward.”

Groups ask Supreme Court to hear case on E15

The Grocery Manufacturers Association (GMA), as part of a coalition of food, farm and oil industry groups, filed a petition with the U.S. Supreme Court asking that it reverse the DC Circuit Court’s August 2012 decision to dismiss its challenge to the Environmental Protection Agency’s (EPA) decision to allow gasoline containing 15% ethanol (“E15”) to be sold for cars manufactured in the 2007 model year or later. 

The original suit objected to the EPA’s decision on the grounds that granting a “partial waiver” of the Clean Air Act allowing E15 to be used only in cars built after model year 2006 is not within the agency’s legal authority. The petitioners argued that under the Clean Air Act the EPA administrator may only grant a waiver for a new fuel additive if it “will not cause or contribute to a failure of any emission control device or system.” 

Last August, the DC Circuit dismissed the case on the grounds that none of the 17 petitioners had standing to challenge the E15 waivers.

GMA executive vice president for government affairs Louis Finkel said, “The original suit filed argued that EPA had exceeded its authority and violated the law when approving the use of E15; but more importantly, it put consumers at risk of food insecurity. These facts have not changed. We continue to support this position and are now looking to the Supreme Court to overturn the decision of the lower court to ensure that GMA and the coalition’s arguments are heard.”

Smithfield positioned to deliver ractopamine-free pork

Smithfield Foods Inc., the largest hog producer and largest pork processor in the U.S., has reported that the company "is well positioned" to the meet the increasing demand for ractopamine-free pork in the wake of the announcements from China and Russia that their markets will be open only to ractopamine-free pork.  Importantly, the details for Russia and China are still to be determined.

Smithfield said it has been leveraging its integrated platform to supply customers with ractopamine-free pork for some time, noting that its plant in Clinton, N.C., has been 100% ractopamine-free since last year and that its plant in Tar Heel, N.C. -- the largest pork processing plant in the world -- will be fully ractopamine-free by March 1.

Combined, the two plants will handle 43,000 ractopamine-free hogs per day sourced from company-owned and contract farms and fed from company feed mills that are dedicated to ractopamine-free feeds, according to the announcement.

Smithfield chief executive officer and president C. Larry Pope said the company's integrated operations make it "uniquely qualified to deliver differentiated products" to customers, as exemplified in the current situation.

He said the company is "in close contact" with the U.S. government and with customers in China and Russia to encourage the U.S., Chinese and Russian governments to develop certification protocols.

Pope also emphasized that ractopamine is an effective and safe feed supplement that has been approved by the Food & Drug Administration and that has been used in hog production for many years to produce lean pork. He said Smithfield will continue to produce pork with and without this supplement to meet various customer specifications.

Smithfield, headquartered in Smithfield, Va., has sales totaling $13 billion.

Egg's footprint shrinks 50%

Egg's footprint shrinks 50%

THE egg industry's carbon footprint today is 50% less than the size of its step in 1960, if not less than that, according to Dr. Hongwei Xin, an agriculture and biosystems engineer at Iowa State University and chair of the environmental scientific advisory committee of the United Egg Producers (UEP).

"This is a story that needs to be told," he told an egg industry meeting at the International Production & Processing Expo in Atlanta, Ga., last month.

Xin led a life-cycle analysis (LCA) of the egg industry's footprint for UEP that compared egg production traits in 1960 and 2010 for hens housed in cages.

He noted that there were 239 million hens in the country's egg-laying flock in 1960 versus 282 million hens in the flock in 2010, while the U.S. population doubled over those 50 years. Accordingly, "we are feeding twice as many people today with just 18% more hens," he said.

An LCA is a cradle-to-gate examination of all direct and indirect inputs involved in, in this case, egg production, Xin explained. Since an egg operation needs feed, the LCA needs to consider corn production, and if it needs to consider corn production, it needs to consider fertilizer use and so on (indirect inputs).

If it has feed, it needs hens, and if it has hens, it needs egg processing plants and so on (more direct inputs).

The 1960 data were based on books, government publications and other published resources, and the 2010 data were based on producer surveys, Xin said.

He reported that the LCA found that pullets produced in 2010 consumed 48% less feed than in 1960, incurred 70% less mortality and weighed 30% less.

He said hens -- as measured by egg production per 100 hens per day -- laid 27% more eggs in 2010 than in 1960 and consumed 26% less feed, creating 42% better feed efficiency. There were 75% fewer discarded eggs and a 57% lower mortality rate, he said.

All measures of the 2010 footprint were lower than the 1960 footprint, Xin said. Indeed, to produce the number of eggs that are produced today, 1960 production would have required 27% more hens, 78% more acres of corn and 69% more acres of soybeans, he said.

Xin said the results of the study are preliminary, and he plans to deliver final numbers to the Egg Industry Issues Forum in St. Louis, Mo., April 16-17. Information about the forum is available at www.eggindustrycenter.org.

Additional information on improvements to agriculture's environmental sustainability is available at www.FeedstuffsFoodLink.com.

Volume:85 Issue:07