Cagle’s Inc. reported a net loss of $2.2 million, or $0.46 per share, on net sales of $72.0 million for the third quarter ended January 1, 2011. For the comparable quarter a year ago the company reported a net loss of $0.3 million, or $0.08 per share, on net sales of $70.4 million.

Net sales for the third quarter were up 2.2% versus the prior year third quarter reflecting an 11.9% increase in pounds sold and a reduction in sales price per pound of 6.9 cents. Quoted market prices of products for the third quarter of fiscal 2011 versus the same period last year were mixed: boneless breast increased 4.8%, tenders decreased 4.5%, wings decreased 20.8%, drums decreased 22.8%, leg quarters increased 7.7%, and whole birds without giblets were quoted 26.2% higher. Discounting from these quoted markets was prevalent especially towards the end of the quarter, as our industry increased production in excess of 4% as reported by USDA increased egg sets and chick placements.

Cost of sales for the third quarter of fiscal 2011 of $71.2 million increased 6.3% as compared to prior year third quarter, reflecting an increase of pounds processed of 10.6% largely influenced by the gain in the bird size processed at Cagle’s Pine Mountain Valley facility. Feed ingredient prices for broilers processed in the third quarter of fiscal 2011, which represented 39% of the total cost of sales, increased 18.6% as compared to the third quarter of fiscal 2010.

“Feed ingredient prices continue to challenge our company and industry, as we experienced a 30% increase in the price of corn coupled with a 22% increase in the price of soybean meal since the start of our third quarter,” the company said in a statement. “The increases come as our farmers have delivered their third largest corn crop ever of which 40% is now being used to generate ethanol as mandated and subsidized by our government. Our farmers produced the second largest soybean crop in our history. As influenced by current fiscal policy, our dollar is worth less and less on the world market which is supportive of increasing exports of this critical feed ingredient resulting in the lowest stocks-to-use ratio of soybean since the mid-1960’s.

“Entering into our fourth quarter our industry has shown restraint with current egg sets now close to equal those of last year. Competing protein prices are heading to record highs as the consumer is beginning to feel the impact of higher feed cost. In our third quarter, Cagle’s began a 20% cut back in production at our deboning operation in an effort to balance supply and demand. We are optimistic that our industry will exhibit the production restraint necessary to support higher pricing for our products allowing for return to profitable margins.”

For the first thirty-nine weeks of fiscal 2011, the company reported net income of $4.4 million, or $0.96 per share, on net sales of $233.7 million. For the comparable period of fiscal 2010, which was a forty week period, the company reported net income of $1.6 million, or $0.35 per share, on net sales of $236.0 million.

Source: Cagle’s Inc.

Delmarva Poultry director warns of tough year for chicken industry

Bill Satterfield, the executive director of Delmarva Poultry Industries Inc., said during a meeting with Maryland officials that the poultry industry is dealing with record-high grain prices, high fuel prices, a dwindling export market and declining restaurant sales due to the struggling economy.

"This is going to be a tough year in the chicken industry, a real tough year of belt-tightening, because of a number of factors," he said, according to the Cecil (Md.) Whig. The latest concern is a possible ban on Roxarsone, an arsenic-based additive in feed that controls parasites and promotes growth. Concerns have been raised about whether it is linked to high cancer rates in areas where chicken manure is used as fertilizer.

He said banning the additive also would result in a higher occurrence of digestive parasites, which would lead to higher nutrient levels in manure.

"It does serve a legitimate poultry health purpose," he said. "It helps with the welfare of the birds and it is not harmful to the environment or to humans who eat the chickens."

Satterfield noted that several large poultry companies in the area, including Allen Family Foods, Perdue and Mountaire Farms, have invested in new buildings and expanded operations on the Delmarva Peninsula, though production has remained flat.

Source: Cecil Whig

Mislabled BBQ pork recalled

Simmons' Barbecue, Inc. a Guntersville, Ala., establishment is recalling approximately 4,680 pounds of barbecue pork products because they contain an undeclared allergen, whey, which is not declared on the label. Whey is a known allergen.

The products subject to recall include 5-pound vacuum-sealed packages of "Simmons' Barbecue Inc. Bar-be-cue Pork With Sauce" and “Simmons' Barbecue Inc. Bar-be-cue Pork With Thick Sauce” Each package bears the establishment number "19523" inside the USDA mark of inspection as well as a packaging date.

The products were packaged on Nov. 30, 2010 through Feb. 8, 2011, and shipped to wholesalers that distributed to restaurants in Ala., Ga., Miss., and Tenn. The problem was discovered by FSIS during a routine inspection, and may have occurred because of a change in ingredients at the establishment. FSIS and the company have received no reports of adverse reactions due to consumption of these products.

Source: FSIS

Koch's Turkey Farm introduces All Natural Turkey Burgers

Koch's Turkey Farm announced a new addition to it's Turkey Burger line, first introduced last year. The new All Natural Burgers were created to give customers another delicious option in selecting a healthy alternative to beef burgers.

Koch's Turkey Burgers are made with all-natural turkey and have no artificial ingredients. The burgers contain a minimal amount of fat and are delicately flavored with Rosemary. The Burgers go from the skillet to the plate in about 7 minutes, making them a quick healthy meal for families on the go.

"Turkey Burgers are quickly becoming America's Burger of Choice," said Duane L. Koch, president of Koch's Turkey Farm. "Our Turkey Burgers are low in sodium, low in calories and low in saturated fat, and they taste great."

Sold at Whole Foods and other fine natural foods stores, Koch's turkeys grow naturally without the use of hormones, stimulants or antibiotics. Each turkey is fed a special all-natural vegetarian diet and allowed free-range access, weather permitting.

Koch's Turkey Farm also features a full line of all-natural turkey products including all white meat turkey nuggets, nitrite-free smoked turkey breasts, turkey deli meats, marinated turkey fillets as well as its full line of fresh whole all natural and organic turkeys. All turkeys are raised humanely with Koch's receiving a near perfect score on the Turkey Welfare and Humane Practices independent audit conducted by Steritech, one of the premier providers of food safety and quality assurance services in North America.

Source: Koch’s Turkey Farm

Retailers continue to expand prepared food offerings, survey finds

Consumers are sourcing prepared meals from a wider range of retail foodservice operations than they were two years ago, many times at the expense of restaurants, according to a new survey conducted by leading foodservice research and consulting firm Technomic.

Traditional supermarkets, convenience stores and mass merchandisers have been able to grow their share of the food-away-from-home market as they expand their foodservice platforms and build upon consumer desire for convenience, quality and variety of offerings in retail locations, the survey found.

Other findings of the survey include:
* Health is an important factor in the retail meal solution (RMS) purchasing decision, and seems to be of greater importance for RMS occasions than for restaurant meals. About two in five consumers say that they usually consider nutrition when purchasing prepared foods, compared to only about a quarter who say they consider nutrition when ordering food at restaurants.
* Kid appeal stands out as the primary concept attribute that consumers think RMS programs are lacking. The attribute related to RMS’ appeal to children ranked among the bottom three for each type of retailer as compared to both limited- and full-service restaurants.
* Forty percent of consumers who visit mass merchandisers and convenience stores for RMS purchases, do so at least once a week from those locations.

Technomic’s Retailer Meal Solutions Consumer Trend Report is based on an online survey of 1,500 consumers. For more information, go to

Source: Technomic, AMI