3-16 news: Sanderson CEO still neutral on Russia
Speaking at the Reuters Food and Agriculture Summit, Sanderson said that this issue was different from previous problems, which were eventually resolved.
"(Vladimir) Putin himself made a comment about the Russian standards and the U.S. having to meet Russian standards. Now, if the chicken industry gets the attention of Putin, that's a little different ballgame," he said. "I remain neutral about it."
Earlier on Monday, Russia's lead negotiator in the dispute held out the possibility that the country would reopen its market to U.S. poultry, citing "evident and stunning" progress in talks between the countries.
To appease Russia, Sanderson has been testing a nonchlorine wash, but does not know yet if it is acceptable to Moscow. If Russia remains closed, Sanderson told Reuters Insider, the dark-meat chicken that it usually buys will be shipped elsewhere, likely to Vietnam, Hong Kong, Mexico, and Africa.
Sanderson also said that his company has appealed the antidumping duties applied by China on U.S. chicken imports, but there has been no response yet. Domestically, Sanderson said he expected the foodservice sector to remain slow in 2010, except for sports bars, which has had strong sales for chicken wings.
NAMP adds new director of membershipThe North American Meat Processors Association has named Jim Goldberg its new director of membership. Goldberg is a former vice president at the Marketing & Technology Group, where he served for 17 years in sales of advertising and sponsorships, marketing, and education event development.
Goldberg will help lead NAMP’s membership program, including a new member initiative. He brings added value to NAMP. While Goldberg’s primary focus will be on membership, NAMP has an added resource in his knowledge and skills in education event program development and marketing.
Goldberg is an industry veteran, with more than 22 years experience in the meat and poultry industries. This appointment caps a search inside and outside the meat industry since the September Board meeting when the Board approved the new position.
U.S. Foodservice expands Topeka warehouseU.S. Foodservice-Kansas City today completed a 50,000-square-foot expansion project at its distribution facility in Topeka which will allow the warehouse to stock nearly 13,000 food and food service products.
The expansion increased the facility’s cooler space by more than one-third, nearly doubled its freezer space and tripled its available dock space for loading and unloading. Work, which began in June 2009, also included some remodeling that allowed existing office space to expand. The total square footage of the facility is now just under 355,000 square-feet.
Gary Myers, president of U.S. Foodservice-Kansas City, said the expansion is enabled by the division’s highly productive workforce.
“The new space will make it easier for us to continue to provide our customers with “Beyond the plate” services while we continue to expand our product offering,” Myers said. “The expansion also provided us with a variety of energy-efficient options.”
These options include:
· Energy-efficient lighting – All warehouse and dock fixtures use high-efficiency fluorescent bulbs. There are also fluorescent fixtures throughout the office space. All areas are equipped with motion-sensing controls.
· Draft elimination – Vertical levelers were added to dock doors to ensure a tight seal when they are closed. Together with a fourth-side draft seal, air will be sealed out, resulting in an estimated $800-$1,000 savings per dock position, per year.
· Reduced heat island effect – A white thermoplastic polyolefin (TPO) roofing membrane and concrete paving were installed to reduce the facility’s heat island impact. Heat island effect results from summer warming trends which keep solid surfaces extremely warm from sunlight exposure and absorption. (Dark materials absorb more heat from the sun than lighter-colored ones.)
· Recycling/reuse – Material from demolishing the covered truck yard – except for roofing insulation – was salvaged for reuse or recycling by Bahm Demolition of Silver Lake, Kan. All rack materials for the dry storage area were salvaged from other USF projects across the country.
Source: U.S. Foodservice
January meat exports show mixed resultsThe pace of U.S. beef and pork exports cooled somewhat in January, according to statistics released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Muscle cut exports held up fairly well in January, but total exports were held down by a very sluggish market for variety meat.
Beef plus beef variety meat exports were 9 percent higher in volume and 6 percent higher in value than in January 2009. Beef muscle cuts fared even better, rising 16 percent in volume and 15 percent in value. However, these totals represented a decline from December 2009 and were also lower than the 2009 monthly average. Beef variety meat exports were down only 4 percent in volume but plummeted 26 percent in value compared to January 2009.
Pork plus pork variety meat exports were 8 percent lower in both volume and value than in January 2009, but variety meat also weighed heavily on these results. Muscle cuts fell only 4 percent in volume and 5 percent in value, while variety meat exports declined 18 percent in both categories.
January beef/beef variety meat exports totaled 72,596 metric tons (160 million pounds) valued at just under $248 million. This compares favorably to the 66,457 metric tons (146.5 million pounds) valued at $233 million exported in January 2009. However, volume was down 6 percent from December and 3 percent below the 2009 monthly average. Value was down 5 percent from December and 3 percent below the monthly 2009 average. Export value per steer and heifer slaughtered totaled just under $119, with exports accounting for 10 percent of beef/beef variety meat production.
“The good news is beef exports are off to a better start to 2010 than they were last year, when the economic climate was just brutal,” said USMEF President and CEO Philip Seng. “But in coming weeks, our focus is on reclaiming the momentum we had established late in the year with our holiday marketing campaigns and other beef promotions.”
Exports are on the rise to Canada, the second-largest market (after Mexico) for U.S. beef. January exports were 11,064 metric tons (24.4 million pounds) valued at $47.6 million. This was a 21 percent increase in volume and 29 percent increase in value over January 2009.
Key Asian markets also continued to perform extremely well compared to a year ago, including Japan, Hong Kong, Taiwan and South Korea.
“The turnaround in our beef exports to Korea continues to solidify,” Seng said. “We are very pleased with the results of our recent imaging campaign, which definitely has captured the attention of our competitors in this critical market.”
Beef exports to the Middle East continued their positive momentum in January, led by strong sales in Egypt and a growing presence in the United Arab Emirates (UAE) and Saudi Arabia. Exports to the European Union are also growing, but January EU import data – considered a more reliable measure for this unique market - are not yet available.
The trend for beef exports to Mexico is positive, with January volume up 28 percent and value up 8 percent versus the previous month. While Mexico is still the largest destination for U.S. beef, exports were down 24 percent in volume and 32 percent in value compared to January 2009. Mexico’s economy is showing signs of improvement and the peso has reclaimed some of the value it shed last year, but its purchasing power is still well below 2008 levels, when U.S. beef exports to Mexico set an all-time record.
The only other major market showing a decline from last year was Vietnam, where beef/beef variety meat exports fell 22 percent in volume and 29 percent in value from January 2009. However, weekly USDA/FAS export data for February show higher volumes destined for Vietnam.
January pork plus pork variety meat exports totaled 144,180 metric tons (317.9 million pounds) valued at just over $333 million. Exports were 8 percent lower in both volume and value than in January 2009, but were impacted heavily by a nearly 20 percent decline in variety meat exports. For muscle cuts only, exports were down 4 percent in volume and 5 percent in value. Exports accounted for 22 percent of total pork/pork variety meat production (consistent with 2009), while export value per head slaughtered amounted to $37.37 - up about $.80 per head over a year ago.
Not surprisingly, exports to China and Russia were well below last year’s levels, as China remains closed from the H1N1-related ban imposed in mid-2009 and exports to Russia were heavily impacted by a lack of eligible U.S. plants. Efforts continue to restore access to both these markets, with notable progress being made with Russia. Agreement has been reached on a new export certificate, several U.S. plants have regained eligibility to export to Russia, and more are expected to receive approval in the near future.
The most significant jolt to January’s results was the nearly one-third decline in exports to Japan, which is by far the largest value market for U.S. pork. Exports to Japan totaled 27,936 metric tons (61.6 million pounds) valued at $108 million. While these are still strong results, exports were down 34 percent in volume and 27 percent in value from the torrid pace of January 2009.
“The United States is still the market leader in Japan, and this market is still performing at a very high level,” Seng said. “But Japan had a notable increase in its domestic pork production in 2009, which created a backlog in its pork inventories and lowered domestic prices significantly. We are definitely feeling some impact from that, though we don’t expect that production trend to continue this year.
“U.S. pork is extremely well-positioned in Japan, with our chilled products gaining wide acceptance in both the retail and foodservice sectors,” he continued. “U.S. back ribs are also gaining traction in Japan, and our processed items and sausages are also performing very well. Despite taking a step back in January, our prospects remain bright in Japan.”
Mexico solidified its position as the largest volume market for U.S. pork/pork variety meat, setting a new monthly record of 54,458 metric tons (120.1 million pounds) valued at $93.5 million. This was an increase of 12 percent in volume and 27 percent in value over January 2009, and surpassed the previous record (from December 2009) by 5 percent in volume and 4 percent in value.
“The gains U.S. pork has achieved in Mexico are quite remarkable,” Seng said. “USMEF worked very hard to rebuild pork demand and consumer confidence during last year’s H1N1 crisis, and those efforts have really taken hold. Demand has not only recovered, but has actually risen to new heights.”
Other markets performing extremely well compared to January 2009 included Hong Kong, Dominican Republic, Canada, Central/South America, Philippines and Taiwan.
Besides Japan, Russia and China, markets showing a decline from year-ago levels included South Korea, Australia and New Zealand. Like Japan, Korea’s domestic pork inventories have swelled, creating a much less favorable price environment for imported product.
While Seng is pleased to be making progress with Russia and anxious to restore access soon to mainland China, he explained that these markets are not likely to immediately rebound to the record levels of 2008. That’s why it is critically important to develop other key markets in Asia and to build on the positive momentum pork exports have achieved in Mexico and other Latin American nations.
“There is no question that Russia and China are still key targets for U.S. pork, and getting back into these markets is critically important,” he said. “But it’s also important to understand that these countries are determined to bolster their own production and to reduce their reliance on imported products. We must be prepared for continued challenges in these markets, and work diligently to grow our pork exports across the entire globe.”