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March 12, 2012
Poultry Times New name selected for co-located tradeshows TUCKER, Ga. — The International Production & Processing Expo (IPPE) will serve as the umbrella name for the new U.S. Poultry & Egg Association, American Feed Industry Association and American Meat Institute 2013 Expo in Atlanta. The new show is the result of the co-location of the International Poultry Expo, International Feed Expo and AMI’s International Meat Expo. The three shows will operate under one structure, creating one of the 50 largest tradeshows in the U.S. The entire tradeshow is
expected to include more than 1,000 exhibitors and close to 400,000 net square feet of exhibit space. All three associations will continue to operate independently, serving their respective constituents and will offer targeted education and networking opportunities that meet the customer needs and compliment the Expo. AMI’s existing priority system will be equitably worked into the tenure seniority system for exhibitors at IPPE. This will facilitate placement of exhibitors on the show floor, as well as as-
Volume 59, Number 6 www.poultrytimes.net
Member of the Year
sist in prioritizing hotel seniority, a key benefit of the seniority system to secure hotels most convenient to the Georgia World Congress Center. Show hours for the 2013 International Production & Processing Expo are: Tuesday, Jan. 29, 11 a.m.-6 p.m.; Wednesday, Jan. 30, 9 a.m.-5 p.m.; and Thursday, Jan. 31, 9 a.m.-3 p.m. There will be a reception on the show floor from 4-6 p.m. on Tuesday, Jan. 29. An announcement of the anticipated educational programs
See Name, Page 8
Steve Willardsen named chairman of National Turkey Federation TAMPA, Fla. — The National Turkey Federation’s board of directors has elected Steve Willardsen to serve as the federation’s 2012 chairman. Willardsen is president of Cargill Value Added Meats Retail in Wichita, Kan. “It makes me proud to be part of an industry that pulls togethWillardsen er and works in unison to manage challenges,” Willardsen said during his acceptance speech. “It will be an honor to lead an organization that is so effective in successfully resolving challenges by turning them into opportunities.” Willardsen mentioned issues such as food safety practices, renewable fuels, the environment and animal care practices as areas NTF and its members will address in the year ahead. Willardsen noted
March 12, 2012
that a key in managing challenges is NTF’s ability to maintain a progressive, innovative outlook when problems arise. Speaking about the future of the turkey industry, Willardsen said, “The industry will only get better as we manage challenges and work to balance them with proactive opportunities.” The board of directors also elected John Burkel, director, Northern Pride Inc., as vice chairman; and Gary Cooper, vice president and chief operating officer, Cooper Farms, as secretary-treasurer. Richard Huisinga, executive vice president of Willmar Poultry Co., assumes the position of immediate past chairman. At Cargill Value Added Meats, Willardsen is responsible for U.S. turkey operations and the cooked meats business. Cargill Value Added Meats is an integrated grower and processor of live turkeys, producer of ready-to-cook and further-pro-
See Willardsen, Page 8
Member of the Year: Lee Wilson, left, of Pilgrim’s Pride Corp., received the Member of the Year award from the National Poultry & Food Distributors Association during the group’s annual convention. Al Acunto, NPFDA president, presented the award. Wilson joined Pilgrim’s Pride in the mid 1980s, first as a sales manager for the Dallas plant, and later as director of Fast Food Sales. In 1998 he was appointed director of Retail/Deli Sales. Wilson has also served on the NPFDA board of directors for many years.
Iowa law targets undercover videos of animal abuse The Associated Press
March 2. He signed the measure in a private ceremony and issued no statement about his decision. The legislation had passed the Iowa Senate and House on Feb. 28 and sent to the governor, who had three days to decide whether to sign it. The bill passed the Senate 40-
DES MOINES — Iowa has become the first state to pass legislation that criminalizes the act of surreptitiously getting into a farming operation to videotape animal abuse, setting a precedent for others considering similar measures. Gov. Terry Branstad signed the legislation into law on See Law, Page 9
POULTRY TIMES, March 12, 2012
NTF presents T.O.M. awards to fast food chains TAMPA, Fla. — The National Turkey Federation has named Carl’s Jr.® and Hardee’s® as the recipient of its 10th Annual “Turkey on the Menu” (T.O.M.) Award in the “fast food category.” The award honors the chains for introducing a variety of charbroiled turkey burgers on their menu that offers healthier options to consumers. The T.O.M. Award was presented during NTF’s annual convention. John Koncki, director of research and development for CKE Restaurants Inc., accepted the award on behalf of CKE Restaurants Inc., the parent company of Carl’s Jr. and Hardee’s, which has 3,219 franchised, licensed or company-operated restaurants in 42 states and in 23 coun-
tries, including 1,292 Carl’s Jr. restaurants and 1,917 Hardee’s restaurants. “Consumers today are looking for burger options that are better for them and taste great,” said Koncki. “That’s why we teamed up with Men’s Health Magazine and “Eat This, Not That!” to develop a line of delicious charbroiled turkey burgers that are indulgent and don’t skimp on taste.” To create the burgers, CKE Restaurants Inc. partnered with Matt Gould, co-author of the “Eat This, Not That!” book se-
ries, and Men’s Health Magazine to produce five varieties of turkey burgers: traditional, teriyaki, guacamole, mushroom Swiss and BBQ ranch. The line of charbroiled turkey burgers launched in March 2011 as a permanent menu item at Carl’s Jr.and Hardee’s locations in the U.S., as well as in select international units. CKE Restaurants Inc. is the first national fast food chain to add turkey burgers to its permanent menu. AdvancePierre Foods, creator and supplier of the turkey patty, nominated the burger chains for NTF’s prestigious award. Dick Elmore, vice president of strategic accounts for AdvancePierre Foods, presented the T.O.M. Award to CKE Restaurants during the awards presentation. “It is an honor to be here to-
day recognizing CKE Restaurants for their commitment to healthy menu alternatives,” said Elmore. “The patties from AdvancePierre Foods are a combination of ground dark and white turkey meat and the product specifications allow the turkey burgers to remain moist after going through the charbroiler. Guests were able to get the same ‘backyard barbeque’ charbroiled flavor they have come to expect at Carl’s Jr.and Hardee’s with a much leaner, lower calorie alternative.” Advertising and marketing campaigns helped bring awareness of the lower-fat, healthy menu option. An integrated marketing campaign included national television advertising, radio and billboards. Digital marketing included Facebook and
Twitter integration with products giveaways and direct interaction with fans and guests. Publicity for the Carl’s Jr. and Hardee’s turkey burgers resulted in 188 million earned media impressions and advertising reached hundreds of millions. T.O.M. Award winners in other categories are: Ram’s Horn Restaurants — winner in the “mid-scale/casual dining category,” Ram’s Horn Restaurants draws loyal crowds with their delicious food, great service and friendly, comfortable atmosphere. Nominated by Sara Lee Food and Beverage, this foodservice operation was chosen for its application of turkey products in a variety of meals throughout the day.
See NTF, Page 9
NTF honors Lifetime Achievement WASHINGTON — The National Turkey Federation has honored Vance Larson of S&K Turkeys, who served as NTF chairman in 1986, with the NTF Lifetime Achievement Award. Presented during the NTF annual convention, Larson received the award for being a leader and innovator in the turkey industry. Larson started in the turkey business when he was about 14 years old in Sergeant, Minn. His familyowned turkey business began to grow and prosper and in 1965 the Larson family purchased the grain elevator in Sergeant, making it part of their operations. In 1986, when he was elected NTF chairman, his operation was raising more than a quarter of a million turkeys annually, along with 5,000 hogs and 1,700 acres of corn. He also served as president of Midwest Poultry Federation in 1983 and was a longtime force within the Minnesota
Achievement Award program at its 1946 annual convention. Since that time, 67 recipients have been recognized with this honor. turkey industry. Pete Hermanson, a past NTF chairman and past Lifetime Achievement recipient, presented Larson with the award. “It was at NTF that Vance created his most lasting legacy in the industry . . . he had a passion for making NTF and the turkey industry the best organization possible,” Hermanson said. “Vance’s commitment to the turkey industry didn’t end when his term as chairman was over or when he left the Executive Committee, he remained active in the federation serving through 2011 as a member of the board of directors.” NTF initiated the Lifetime
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POULTRY TIMES, March 12, 2012
Price determines buying options
Lifetime Achievement: Jim Sumner, center, president of the USA Poultry & Egg Export Council, was presented the Lifetime Achievement Award from the National Poultry & Food Distributors Association at the recent NPFDA convention. The award is given annually to a poultry industry leader who has played a major role in the growth of the poultry industry. Joining in the presentation were Chris Sharp, left, of Kelly’s Foods, NPFDA immediate past president, and NPFDA President Al Acunto of Preferred Freezer Services.
ORLANDO, Fla. —The impact of the economy and higher prices for meat and poultry products are making a significant difference for consumers at the meat case. Price has taken on an ever-greater role in the meat purchasing decision process, as price per pound ranks number-one as the most important decision factor for consumers. Total package cost is now the second most important decision factor, surpassing product appearance, according to the seventh annual Power of Meat study. The study, conducted by 210 Analytics, was commissioned jointly by the American Meat Institute and the Food Marketing Institute with sponsorship by Sealed Air’s Cryovac Food Packaging Division. The report details the findings of a national online poll of 1,340 consumers conducted in November 2011. Among the study findings were:
Money-saving actions For the first time this year, the share of shoppers simply opting to buy less (and thus spend less) equaled the share using lists, coupons and other saving measures. In terms of meat and poultry, dollar sales increased by 2.5 percent, but volume sales decreased by 5.3 percent as a result of inflation across proteins. A growing share of shoppers engage in pre-trip research and planning meals around promotions. However, an even greater share compares prices while in the store. The end result is greater shopper flexibility to adjust purchases to spend less. Special
Honorary Lifetime Member: The National Poultry & Food Distributors Association named Tarry Winfrey, center, executive vice president of Lehar Sales Co. in Oakland, Calif., as its Honorary Lifetime Member Award recipient, one of only two people to have ever been selected for the award. Presenting the award are Chris Sharp, left, Kelly’s Foods, NPFDA immediate past president, and Al Acunto, Preferred Freezer Services, NPFDA president. Winfrey is a past president of NPFDA, has served on the NPFDA board of directors and been chairman of several committees. He was selected as NPFDA’s 1998 Member of the Year.
Purchasing patterns Full-service supermarkets continue to be a stronghold for fresh meat and poultry, with high retention rates and a pick-up of shoppers from other channels, especially supercenters. Private-brand meat and poultry remains popular. However, rather than an outright preference, it is better defined as a greater willing-
ness to purchase private brands. This led to an increase in the share of “switchers” — shoppers who do not have a preference for national or private brand, but choose based on other factors, predominantly price. Meanwhile, shoppers’ reduced interest in volume-based discounts, such as bulk and buy-one-get-one free, as measured last year, did not rebound any this year. Despite economic pressures, natural and organic meat and poultry experienced an uptick in the number of buyers over the past year to 24 percent of shoppers. Additionally, 90 percent of shoppers predict they will buy about the same (70 percent) or more (20 percent) next year.
Meat’s role Meat and poultry play an important role at the American dinner table, with chicken and beef making up the largest share of purchases. The fresh category continues to be much larger than the heat-and-eat and ready-to-eat categories, but the latter continue to show signs of strength for the convenience-oriented shopper. Another area of growth is marinated meat and poultry, with an increasing share of shoppers preparing their own mixes or purchasing marinades or spice mixes
along with the meat/poultry. Meat and poultry preparation techniques have changed quite a bit over the past five years. Frying (pan fry and deep fry) experienced a 22 percentage-point decline in use, whereas more people are using the oven and crock pot/ slow cooker (up 12 percentage points).
Preparation knowledge Despite the popularity of meat and poultry, shoppers’ knowledge and preparation skills leave much to be desired. Shoppers mostly rate their skills relative to preparation, nutrition knowledge, meal planning, etc. as “just okay” versus “great.” Interest in a “here’show-it’s-done” type service in the meat department is moderately high, providing suppliers and retailers with an excellent opportunity to connect with shoppers in new ways. Innovations Shoppers are definitely open to a variety of packaging innovations, especially leak-proof packaging and concepts that aim at the reduction of food waste. On the other hand, environmentallyfriendly packaging only does well if no price premium is charged.
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POULTRY TIMES, March 12, 2012
Viewpoint Compiled by Barbara Olejnik, Associate Editor 770-718-3440 firstname.lastname@example.org
Georgia Ports Authority:
Thinking about tomorrow, acting on it today By GPA Trade Development
Special to Poultry Times
SAVANNAH, Ga. — Planning — detailed, long-term planning — has become part of the culture at the Georgia Ports Authority (GPA). But underneath the annual economic analysis of emerging markets, trends, demographic growth, shifting sourcing patterns and developing free trade agreements are two basic questions: What will customers need and when will they need it? In 1996, port officials studied the impact of the Panama Canal expansion and determined ocean carriers will need a deeper channel leading in to the Port of Savannah and expanded facilities at the Port itself. In preparation for Panama Canal expansion, an approximate $625 million Savannah Harbor Expansion Project (SHEP) is anticipated to begin construction in the latter part of 2012 to deepen the Savannah channel to enable more efficient access. Currently the existing water depth at mean low tide is 42 feet (12.8 meters), but when dredging is finished that will go up to 48
feet (14.6 meters) — a move that improves the ability of Savannah to handle larger vessels. The planning also spotlighted the fact that because larger vessels bring more containers through the port, the GPA needed to expand and improve existing facilities in order to meet customer needs. One example is how the port handles refrig-
ated containers. As in every specialized industry there are challenges that had to be met, and in Savannah that is exactly what was achieved in the refrigerated container segment. Refrigerated containers need storage space at their ports, along with sufficient electrical power supplied to ensure cargo is kept at the required temperatures. During 2005-2006, Savannah’s refrigerated container volumes stood at 52,750 Twentyfoot Equivalent Units (TEUs) per year. By 2008, that figure had reached 100,000 TEUs and the latest volume projections indicate that Savannah will move close to 130,000 TEUs of reefer cargo this year. As a result of this tremendous jump in volumes, GPA developed the innovative idea of installing refrigerated container racks (known in the trade as reefer racks). Such racks enable easier and more efficient access to stacked refrigerated containers as well as a safe and easy way to plug them into electrical power.
The Port of Savannah’s Garden City Terminal has become the number one reefer container export terminal on the East Coast for poultry.
” erated cargo. With its strategic Southeast location, Savannah is ideally situated close to the “Poultry Belt” of the U.S. The Port of Savannah’s Garden City Terminal has become the number one reefer container export terminal on the East Coast for poultry. But to grow that trade even more, the port had to find a way to efficiently increase its capacity for handling refriger-
Across Savannah’s Garden City Terminal, the port now has 44 reefer racks, each capable of holding 24 containers, bringing an additional stacking capacity of a massive 1,056 containers. In the first quarter of 2012, 20 additional reefer racks with an additional capacity of 480 containers will become operational Even more reefer racks are planned later in 2012 and beyond.
One of the key advantages of these reefer racks, when compared to the previous on-dock operation, is that it provides a savings of 2.4 million gallons of diesel fuel per year, a large yearly cost savings. The Port has thus quickly increased its refrigerated container handling capacity and is ready for the expected future growth in volume for refrigerated containers. In short, this innovative idea has provided the port with the ability to better handle ever increasing volumes in the same
amount of terminal space. Not surprisingly, Savannah’s number one export market for refrigerated containers is China, and it is there that GPA will see its biggest future volume growth. Based on that market, there is increasing demand for more container services to cover the U.S. East Coast-Asia route via both the Suez and Panama Canals. Thus, the Panama Canal expansion that will be completed in 2014 will enable even more vol-
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POULTRY TIMES, March 12, 2012
College student program focus is academics to industry ATLANTA — As keynote speaker at the College Student Career Program, Dr. Don McIntyre, poultry technical manager, Adisseo, addressed 325 students from 25 universities about “Progressing from Academics to Industry.” The annual program, held in conjunction with the International Poultry Expo, is sponsored by the U.S. Poultry &
Egg Association. McIntyre is an alumnus of the College Student Career Program. He attended the program while he was a junior at North Carolina State University. He reflected on seeing the Expo floor for the first time and being excited about the abundance of opportunities in the industry. “I grew up with beef cattle and
IARW lists largest cold storage companies WASHINGTON — The International Association of Refrigerated Warehouses (IARW) annually compiles listings of public refrigerated warehouses with the greatest capacity of space — both for North America and globally. In information compiled for 2011, IARW lists the top 25 refrigerated warehouses as the following:
North America 1. AmeriCold Logistics LLC, 878,079,061 cubic feet. 2. Millard Refrigerated Services, 293,700,000 cubic feet. 3. United States Cold Storage, 186,189,862 cubic feet. 4. Preferred Freezer Services, 170,250,625 cubic feet. 5. Versacold, 127,486,198 cubic feet. 6. Castle & Cooke Cold Storage, 111,867,380 cubic feet. 7. Interstate Warehousing Inc., 73,120,368 cubic feet. 8. Burris Refrigerated Logistics, 62,329,576 cubic feet. 9. Nordic Cold Storage LLC, 59,529,000 cubic feet. 10. Cloverleaf Cold Storage Co., 59,457,489 cubic feet. 11. Columbia Colstor Inc., 50,610,000 cubic feet. 12. Total Logistics Control LLC, 47,480,066 cubic feet. 13. Richmond Cold Storage Co.., 44,657,281 cubic feet. 14. Henningsen Cold Storage Co., 41,785,309 cubic feet. 15. Frialsa Frigorificos S.A. de C.V., 39,646,965 cubic feet. 16. Hanson Logistics, 42,847,343 cubic feet. 17. Conestoga Cold Storage, 30,620,000 cubic feet. 18. Congébec Logistics Inc., 26,650,000 cubic feet. 19. Confederation Freezers, 26,450,000 cubic feet. 20. Terminal Freezers Inc., 24,430,906 cubic feet. 21. Zero Mountain Inc., 23,644,000 cubic feet. 22. Trenton Cold Storage Inc., 22,835,972 cubic feet. 23. Interstate Cold Storage Inc., 21,403,000 cubic feet.
See List, Page 11
quarter horses,” said McIntyre. “I went to school to pursue a career as a large animal veterinarian. I never applied to vet school, because I was intrigued by the genetic aspects of poultry science. I love puzzles. I love figuring out how things work. Each of you needs to find your own individual talent or gift.” “The poultry industry is like a fraternity and the opportunities are limitless,” he added. “Find a mentor at your job, someone you can look up to and go to for advice, someone who can help you and keep you on track with your goals. Find the gift that makes you special; make it your calling, not just your career.” The College Student Career Program affords undergraduate and graduate students from colleges and universities across the nation, in multiple disciplines, with the opportunity to interview for jobs and internships with industry and allied companies. These students can also visit the exhibit floor to complement their studies, by seeing the latest technology and newest innovations in today’s poultry and egg production and processing operations. The program also includes student competitions for College Student Career Program Student of the Year, Club of the Year, and Scrapbook of the Year. McIntyre presented the annual Frank Perdue Scholarship Student of the Year Award to Terik Jones, University of Arkansas. The scholarship is named for Frank Perdue, noted for his dedication to aspiring young people studying for careers in the poultry industry. University of Arkansas also took home top honors for Club of the Year and Scrapbook of the Year.
Student of the Year: Terik Jones, center, a student at the University of Arkansas, was the recipient of this year’s Frank Perdue Scholarship Student of the Year award. Presenting Jones the award during the International Poultry Expo’s College Student Career Program were, left to right, Dr. Michael Kidd, department head with the University of Arkansas’ Poultry Science Center of Excellence; and Dr. Don McIntyre, poultry technical manager with Adisseo, and program keynote speaker.
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POULTRY TIMES, March 12, 2012
Business Compiled by David B. Strickland, Editor 770-718-3442 email@example.com
Pilgrim’s reports quarterly results GREELEY, Colo. — Pilgrim’s Pride Corp. has reported sales of $1.83 billion for the fourth quarter of 2011, compared with $1.81 billion in the same period for 2010. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) for the quarter was $22.6 million, and operating cash flows were positive for the same period. The company recognized a net loss of $85.4 million for the fourth quarter, resulting in a 40 cents loss per share. “While 2011 was an extremely challenging year, it was also transformational with respect to Pilgrim’s operating model,” said Bill Lovette, Pilgrim’s Pride CEO. Lovette identified some of the challenges Pilgrim’s faced in 2011, including the impact of extreme grain volatility and increased cost inputs. “The industry had burdensome levels of finished goods inventories and overproduction in the first half of the year. Additionally, very weak chicken prices relative to costs continued throughout the year,” he said. “The company’s operating model changes include realignment of strategy and management structure becoming a lean and agile team focused on operational excellence, joint value creation with key customers, growth of value added exports and driving ownership and accountability deeper in the organization,” Lovette added. “This transformation brings forth a goal of more effective working capital management, an improved cost structure and a more profitable sales mix. Pilgrim’s also changes its pricing strategy creating less dependence on one-year fixed price contracts and more reflective of markets.” External impacts on the full year results stemmed from the company’s focused inventory reduction efforts in the first half, as well as non-cash write offs of fixed assets, and impairments related to breeder stock during the first three quarters. Year over year net sales increased 9.5 percent to $7.5 billion in 2011, with net income for the year resulting in a loss of $496.8 million.
Rights offering Pilgrim’s Pride has also announced that the subscription period of
See Pilgrim’s, Page 7
In other Business news:
Cooper Farms installs wind power turbines VAN WERT, Ohio — Cooper Farms Cooked Meats is now utilizing wind power, having recently installed two 1.5 megawatt wind turbines. The turbines will provide more than 50 percent of the Van Wert plant’s power needs, and save valuable natural resources, the company noted. Though these only add to the multitude of turbines that are now a part of the Van Wert county skyline, the decision was made through careful research and planning, said company owners Jim and Gary Cooper. “We created a team of individuals whose job it was to explore the possibilities of using wind turbines here at our Van Wert location,” said Jim Cooper, CEO of Cooper Farms. “Their finding was that it did make economic and sustainability sense to use wind energy for a portion of our electrical needs. The two turbines should produce about 60 percent of our electrical needs at the Cooked Meats plant.” Construction work for the two towers began in mid-September of 2011, with work on the foundations. The turbines were delivered by November and installation was complete by Dec. 30, 2011. During the month of January the equipment has been under testing. Full output was expected as of the middle of February. Cooper Farms has always maintained a commitment to the environment and sustainable practices, making the switch to wind energy, lessening the company’s environmental impact, a natural decision, the company noted. “This investment was a part of an overall sustainability goal,” said Gary Cooper, COO of Cooper Farms. “We have been investing in a wide variety of projects over the years. All of which help to improve
our local environment by reducing our overall use of national resources and becoming more efficient in our use of utilities. Our large investment in these two turbines is just another example of our sustainability initiatives.” Each tower has a total height of 421 feet. Components of the turbines were made in both the U.S. and China. Cooper Farms has also utilized a variety of local contractors during the construction of the two wind turbines. One Energy of Findlay, Ohio, was commissioned to head the project while local contractors fulfilled needs for stone driveways, concrete, field tile repair, turbine installation and electrical work. While no other wind turbines are planned for Cooper Farms at the moment, both Coopers acknowledge that it is not out of the question. “We will be studying the effectiveness of the two turbines we now have over the next few years. If they do work as our studies have predicted, then there may be other areas in our company that would benefit from wind energy,” said Jim Cooper. More information about Cooper Farms can be obtained at http:// www.cooperfarms.com.
Valley of the Moon acquires Talley Farms OSCEOLA, Iowa — Valley of the Moon Commercial Poults Inc. has announced that it has completed the acquisition of the Talley Farms facilities in Anson County, N.C. A total of 1.25 million square feet of farming space was acquired including brooding farms, four dark out farms, six laying farms and two stud barns. Also included are a field office, egg storage facility, maintenance shop and a wood shaving storage facility. In addition a long-term contract was signed with High Ridge Farms to produce eggs. VOMCP will own
the birds placed at High Ridge Farms and will implement its own quality control programs. “These farms will allow us to produce about 26 million eggs per year in Anson County and provide a solid foundation for quality egg production,” said David Kenyon, VOMCP president. “The farms are isolated with concrete floors and shower facilities and we will implement our strict biosecurity and quality control procedures. High Ridge Farm is also in Anson County so it was important to sign this contract to manage bird movement and production in the area as much as possible. We are very excited about this acquisition and our shareholders’ commitment to the turkey industry and to the growth of VOMCP.” “We thank all our customers for the support they have shown us in the last several months,” he added. “We began delivering an option for highly selected, quality Nicholas eggs and poults in January of this year and this further demonstrates our commitment to provide choice.” Valley of the Moon Commercial Poults notes that it supplies highly selected, quality commercial poults and eggs to the turkey industry. A new single-stage hatchery with capacity to set up to 50 million eggs was completed in November 2011 and began hatching poults in January 2012. VOMCP is a subsidiary of Aviagen Holdings Inc.
Butterball LLC receives business award in Ark. OZARK, Ark. — The Butterball LLC Ozark facility was presented the “Large Business of the Year” award for its community involvement during the 65th Annual Ozark Area Chamber of Commerce banquet, held on Feb. 4, at St. Mary’s Lawrence Hall in Ozark, Ark. An estimated 300 community members were in attendance. (Continued on next page)
POULTRY TIMES, March 12, 2012 (Continued from previous page)
“Butterball supports the communities it serves through active involvement, volunteering and charitable contributions,” said Rod Brenneman, president and CEO of Butterball LLC. “This recognition reinforces Butterball’s ongoing commitment to serving as a strong corporate citizen in the many communities where we operate, in Ozark and nationally.” Butterball’s Ozark facility was recognized for several initiatives and programs implemented during 2011 including the support of area youth through a “Shop Til’ You Drop” Christmas program, the facility’s overall support of “Christmas Spirit” and donations of ice and meals given to tornado victims during the area’s 2011 storms. Additionally, on Dec. 21, the company donated nearly 10,000 pounds of turkey products in coordination with the Fort Smith, Ark., Food Bank to help provide tornado victims in the area with safe and nutritious holiday meals. Nominations for the award were submitted by community members and voted upon by more than 165 members of the Ozark Area Chamber of Commerce.
CHS & Cargill expand grain export operations MINNEAPOLIS, Minn. — Cargill and CHS Inc. have announced that the two agribusiness companies are expanding the scope of their TEMCO LLC grain export terminal joint venture to include other Pacific Northwest export assets owned by the companies. TEMCO, which operates an export facility in Tacoma, Wash., is a 50-50 joint venture between CHS and Cargill. The expanded joint venture will include the Tacoma facility along with an export terminal in Kalama, Wash., and the Cargill Irving Elevator at Portland, Ore. The expanded joint venture
company will export feed grains, oilseeds and wheat to Asia-Pacific markets. Cargill and CHS both noted that they are confident the long-term expansion will result in the assets, infrastructure and volume necessary to meet their global demand. Country elevators and producers will benefit from the global connections and logistical and distribution expertise, the companies added. More information can be obtained at http://www.chsinc.com; and http://www.cargill.com.
CSX offering info on rail-ready sites JACKSONVILLE, Fla. — CSX has introduced a new program, CSX Select Sites, offering customers a way to access certified railready properties for a variety of industrial uses. The company notes that the web site contains search features that
7 show high-resolution views of topography, rail and road layouts and other significant characteristics of each parcel. The site can be obtained at http:// www.csx.com, and choose “Select Sites.” The CSX Select Sites designation indicates “green light” properties along the CSX network where projects can move forward rapidly because risk factors have been identified and potential issues resolved, the company said. “Ultimately, these sites will represent many of the best manufacturing properties along CSX’s rail network in the Eastern U.S.,” said Clark Robertson, CSX assistant vice president-regional development. “The Select Site designation promotes shorter decision timelines, increased speed to market and lower up-front development risk for companies seeking industrial property to place their manufacturing operations.”
•Pilgrim’s (Continued from page 6)
its previously announced rights offering expired at 5 p.m. (EST) on Feb. 29, 2012. The company will issue a total of approximately 44,444,444 shares of the company’s common stock (subject to adjustment for fractional shares) to stockholders that exercised their subscription rights. In connection with the rights offering, Pilgrim’s majority stockholder, JBS USA Holdings Inc., exercised its basic and over-subscription rights in full, the company said. Subscription rights that were not exercised by 5 p.m. (EST) on Feb. 29, 2012, have expired. The company expects the subscription agent for the rights offering, Computershare Trust Co. N.A., to finish calculating the results of the rights offering, including the allocation of shares pursuant to the exercise of the over-subscription right, on or about March 6, 2012. The company said that, “We will endeavor to issue the shares to stockholders who validly and timely exercised their basic subscription and oversubscription rights as soon as practicable.” Pilgrim’s will receive $200 million of gross proceeds in connection with the exercise of the subscription rights by its stockholders. Pilgrim’s will use the net proceeds for additional working capital to improve its capital position and for general corporate purposes, the company noted. Pilgrim’s employs approximately 39,500 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. More information can be obtained at http://www.pilgrims.com.
Business “All of the data suggest manufacturers prefer certainty in their selection of new plant locations,” Robertson added. “We intend to assist communities across the network to identify sites that can provide certainty and compete effectively for these new investments and jobs.” The company notes that to receive this designation the sites — from 100 to 1,000 acres — had to meet a list of key criteria, including infrastructure and utility availability, environmental reviews, appropriate zoning and entitlement, air quality, permitting, rail serviceability, proximity to highways and interstates and other attributes. CSX has partnered with the Austin Co., a site selection and certification consulting company, to screen candi-
date sites and assist communities with the application and certification process. “The web site’s simple navigation and stable of pre-qualified rail ready sites make this the new gold standard in certified site programs,” said Don Schjeldahl, vice president of the Austin Co. “The program certifies rail ready and development ready properties of various sizes and features them on a web site that is refreshing in its simplicity and a competitive leader in delivering information.” CSX also notes that it welcomes candidate sites from industrial property owners and economic development organizations.
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Norfolk Southern fleet to use renewable diesel NORFOLK, Va. — Dynamic Fuels LLC and Mansfield Oil Co. have signed an agreement to supply renewable diesel to Norfolk Southern Corp., one of the nation’s largest transporters of coal and industrial products. Norfolk Southern has primarily been using a 100 percent pure Dynamic Fuels renewable diesel at its Meridian, Miss., rail yard since early January. Dynamic Fuels, a 50/50 venture owned by Tyson Foods Inc. and Syntroleum Corp., recently signed commercial off-take and strategic alliance agreements with Mansfield to market renewable diesel to fleet customers. Dynamic Fuels, operator of the first commercial advanced
biofuels plant in the U.S., produces next-generation renewable and synthetic fuels from animal fats and greases. The company’s Geismar, La., plant produces renewable diesel as “drop in” fuel that can replace 100 percent of petroleum diesel in a diesel engine without engine modification. “Norfolk Southern is pleased to be the first fleet user of renewable diesel in the United States,” said Gerhard Thelen, Norfolk Southern vice president operations planning and support. “Our locomotive engines are completely compatible with the pure renewable diesel provided by Dynamic Fuels and Mansfield. Together, they have
provided seamless integration of renewable diesel supply into our Meridian, Miss., yard. Norfolk Southern has been at the forefront of the railroad industry in evaluating synthetic and renewable diesel fuels for many years. This effort exemplifies Norfolk Southern’s commitment to reducing carbon and other emissions, while further integrating sustainability throughout the operations of the company.” “The contract with Norfolk Southern is the first manifestation of Dynamic Fuels’ partnership with Mansfield,” said Ron
Stinebaugh, senior vice president of Syntroleum Corp. “We look forward to working with Norfolk Southern to lower their emissions and increase the renewable content of the fuel they burn. Renewable diesel is a sustainable, ultra clean burning, high cetane fuel that reduces carbon emissions and significantly reduces particulates and NOx when combusted in existing diesel engines. Supplying a prestigious company like Norfolk Southern validates our belief that customers are looking for renewable options that increase sustainabil-
Congratulates Tarry Winfrey for receiving the NPFDA Honorary Lifetime Member Award and 50+ years of exceptional service.
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See Diesel, Page 9
•Willardsen (Continued from page 1)
Lehar Sales Company
ity and lower emissions without sacrificing fuel quality.” Doug Haugh, president of Mansfield Oil Co., added, “Mansfield and Norfolk Southern have had a strong relationship on the refined products side and we’re excited to supply them with a next-generation fuel like renewable diesel. We believe Dynamic Fuels is a leader in renewable diesel production and our partnership affords us the opportunity to further diversify our portfolio of transportation fuels for
cessed turkey products and producer of cooked and ready-to-eat beef, pork and poultry products. The company employs more than 6,000 people who work at the company’s four turkey processing facilities, five cooked/processed meat facilities, three breeder/hatcheries, five feed mills, two distribution centers and corporate headquarters. Cargill Value Added Meats sells product to retail grocery chains and club stores, major food service distributors, convenience stores, the top 200 restaurant chains and food processors. The business produces more than 1 billion pounds of finished goods annually. Branded products include Honeysuckle White turkey, Shady Brook Farms, Schweigert, Plantation and Charter Reserve. Prior to his role at Cargill, he was chief operat-
ing officer for Rocco Enterprises Inc., where he was responsible for their turkey and chicken businesses in Virginia and North Carolina. He also held the position as complex general manager for Cargill’s California, Mo., plant. During the convention, the board also reelected Jihad Douglas, Aviagen Turkeys; Yubert Envia, Foster Farms; Jim Leighton, Perdue Farms Inc.; Walter Pelletier, Butterball LLC; Ron Prestage, Prestage Farms; John Reicks, Sara Lee Food and Beverage; and Carl Wittenburg, Protein Alliance Inc.; to the Executive Committee. The board elected Glenn Leitch, Jennie-O Turkey Store, and Ron Kardel, West Liberty Foods, to their first terms as EC members. The elected EC members appointed Matt Cook, Norbest Inc., and Jeff Sveen, Dakota Provisions, to the Executive Committee as at-large members.
•Name (Continued from page 1)
will be released in June. U.S. Poultry & Egg Association, founded in 1947, represents the complete spectrum of the poultry industry, serving member companies through research, education, communication and technical assistance. AFIA represents the business, legislative and regulatory interests of the U.S. animal feed industry and its suppliers. Member-companies are livestock feed and pet food manufacturers, integrators,
pharmaceutical companies, ingredient suppliers, equipment manufacturers and companies which supply other products, services and supplies to feed manufacturers. AMI members produce 95 percent of the beef, pork, lamb and veal products and 70 percent of the turkey products in the U.S. The institute provides legislative, regulatory, public relations, technical, scientific and educational services to the meat and poultry packing and processing industry.
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POULTRY TIMES, March 12, 2012
•Diesel (Continued from page 8)
our customers.” Norfolk Southern Corp. is one of the U.S. top transportation companies. Its Norfolk Southern Railway subsidiary operates approximately 20,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern U.S., and provides connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal and industrial products. Founded in 1957, Mansfield Oil Co. has achieved doubledigit growth for three decades by focusing on optimizing and controlling fuel-related costs for its customers using innovation, technology and high touch service. It has been ranked as one of
the Top 50 privately held companies in America by Forbes magazine and a multiple category finalist in the 2009, 2010 and 2011 Platts Global Energy Awards, Tyson Foods Inc., founded in 1935 with headquarters in Springdale, Ark., is one of the world’s largest processors and marketers of chicken, beef and pork, the second-largest food production company in the Fortune 500 and a member of the S&P 500. The company produces a wide variety of protein-based and prepared food products and is a recognized market leader in the retail and foodservice markets it serves. Tyson provides products and services to customers throughout the U.S. and more than 130 countries. Syntroleum Corp. owns the Syntroleum® Process for Fischer-Tropsch (FT) conversion of
synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks into liquid hydrocarbons, the Synfining® Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the BioSynfining® technology for converting animal fat and vegetable oil feedstocks into middle distillate products such as renewable diesel and jet fuel using inedible fats and greases as feedstock. The 50/50 venture — known as Dynamic Fuels — was formed to construct and operate multiple renewable synthetic fuels facilities, with production on the first site beginning in 2010. The company plans to use its portfolio of technologies to develop and participate in synthetic and renewable fuel projects.
•Law (Continued from page 1)
10 and then was approved by the House, 69-28. The measure was changed from an earlier version that included language to make undercover videotaping at farms or other animal operations illegal. The U.S. Supreme Court has ruled such language is protected by the Constitution, and the Iowa attorney general’s office recommended that it be removed from the bill, said the bill’s sponsor and veterinarian Joe Seng (D-Davenport). Seng said the bill strikes a balance by discouraging animal activists from sneaking into livestock facilities but doesn’t prohibit someone who legitimately works there to report animal abuse. The penalty for lying on a job application to get access to a farm facility increases to a serious misdemeanor in the bill, and a second conviction makes it an aggravated misdemeanor. A serious misdemeanor carries a fine of up to $1,500 and imprisonment up to one year. An aggravated misdemeanor can be punished by a fine of up to $5,000 and imprisonment of up to two years. “I feel that we did something that was needed. It more than anything sends a message,” Seng said.
“But I didn’t think it was real egregious to the animal welfare people.” He said the livestock industry has legitimate concerns about unauthorized people infiltrating their facilities because they could track in disease or let mice or other unwanted vermin in. “If you have millions invested in a private business, you should be given those safeguards that your business is not injured by somebody,” Seng said. Iowa is the nation’s leading pork and egg producer. Its farms typically have more than 19 million hogs and 54 million egg-laying chickens in barns and confinement buildings. Opponents of the bill said they are pleased it’s been watered down, but they still think it is overreaching. Animal groups had called on Branstad to veto the bill, saying it ignores strong public sentiment that favors proper treatment of animals and methods of oversight that ensure safe food. Legislatures in seven states — Illinois, Indiana, Minnesota, Missouri, Nebraska, New York and Utah — have considered laws that would enhance penalties against those who secretly record video of livestock, though the efforts have stalled in some states.
ATA: Truck tonnage index notes largest annual gain in 13 years ARLINGTON, Va. — The American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index jumped 6.8 percent in December after rising 0.3 percent in November 2011. The latest gain put the SA index at 124.5 (2000=100) in December, up from the November level of 116.6. For all of 2011, tonnage rose 5.9 percent more than the previous year — the largest annual increase since 1998, ATA said. Tonnage for the last month of the year was 10.5 percent higher than December 2010, the largest year-over-year gain since July 1998. November tonnage was up 6.1 percent from the same month last year. The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 116.4 in December, which was 0.8 percent above the previous month, the group noted. “While I’m not surprised that tonnage increased in December, I am surprised at the magnitude of the gain,” ATA Chief Economist Bob Costello said. Costello noted that it was the largest month-to-month increase since January 2005. “Not only did truck tonnage increase due to solid manufacturing output in December, but also from some likely
See Tonnage, Page 16
•NTF (Continued from page 2)
Capriotti’s Sandwich Shop — winner in the “quick casual category,” Capriotti’s Sandwich Shop was chosen for its variety of slow-roasted turkey menu items, including the long-standing customer favorite: The Bobbie®. This foodservice chain was nominated by Butterball LLC. “On behalf of NTF, it’s a privilege to recognize these foodservice operations with our annual T.O.M. Award in recognition of their variety of turkey menu options,” said Sherrie Rosenblatt, NTF’s vice president of marketing and com-
munications. NTF members nominated the foodservice chains that exemplify the criteria of the T.O.M. Award. Entrant applications address questions regarding turkey menu applications, the items’ consumer appeal, how the chain promotes the menu items through marketing and turkey’s food cost percentage. A panel of foodservice professionals rates the entries on consumer appeal, versatility, taste, value and how the turkey applications benefits the chain operation. The winner receiving the most overall points from the judges received the award at NTF’s annual convention.
POULTRY TIMES, March 12, 2012
Nuggets Compiled by Barbara Olejnik, Associate Editor 770-718-3440 firstname.lastname@example.org
GEORGIA Feed Mill seminar focus is technology TUCKER, — The 2012 Feed Mill Management Seminar, to be held March 21-22 at the Doubletree Hotel in Nashville, Tenn., will provide the latest information and technology for the industry. The seminar is sponsored by the U.S. Poultry & Egg Association. “Remaining current with changing government feed mill regulations and new developments in equipment and technology is critical to ensuring food safety, feed quality and managing costs in both poultry and egg
production. The Feed Mill Management Seminar program will engage managers, so they are provided with the most up-todate information available,” said program committee chairman Marc Shockley, Perdue Farms. The seminar was developed by an industry committee of industry mill managers, university faculty and a nutritionist. Program topics include: Economics of Feed Milling . . . What Is the Industry Facing?; Pellet Quality; An Effective Biosecurity/HACCP Plan for Feed Mills; Boiler Efficiency and Safety; Fleet Safety — Cameras and GPS; Dust Control Technology — New and Retrofit; and The Future of Tractor Engine Design. The program will also include a regulatory update, review new feed mill technology and feature a safety
motivational speaker. Seminar committee members included Brian Franklin, Wayne Farms; Dr. William Dozier, Auburn University; Dr. Casey Ritz, University of Georgia; and Dr. Carla Price, Sanderson Farms. Registration and more information can be obtained at http://www.uspoultry.org/educationprograms/index.cfm#fmms.
FRANCE Int’l. Poultry Council sets spring meeting
PARIS — The spring meeting of the International Poultry Council will be held here March 28-30 at the Hilton Arc de Triomphe hotel with representatives from poultry organizations around the world. More than 25 countries are represented in the IPC’s membership. Representatives of the World Organization for Animal Health (OIE), the Food and Agriculture Organization of the UN (FAO)
and the Codex Alimentarius Commission will give presentations at the meeting. IPC member countries will also present status updates on the poultry industries in their home countries. The OIE, FAO and Codex have officially recognized the IPC as the organization representing the global industry. Registration and hotel information is available on the IPC web site at http://www.internationalpoultrycouncil.org. More information can be obtained by contacting IPC Executive Secretary George Winn at gaw@ ellijay.com.
NEBRASKA American Agri-Women plan midyear meeting OMAHA, Neb. — The 2012 American Agri-Women Midyear Meeting will be in Nebraska City, Neb., on March 29 through April 1, at the Lied Lodge. The meeting focus will be to discuss current policies and posi-
tions under the direction of Anna Morrison, AAW StART (Strategic Action Response Team) coordinator. Speakers, who will address vital issues facing the agricultural industry, include Dr. Gary E. Sides, cattle nutritionist, Pfizer Animal Health, and Melissa Keyes, Nebraska Agricultural Youth Council, University of Nebraska-Lincoln. There will be a panel discussion on animal rights moderated by Mindy Paterson, AAW Horse Welfare chairwoman. StART Committee meetings and the AAW Executive Board will meet on March 29, and the AAW board of directors and AAW Resource Center meetings will be held March 30. Registration is available at http://www.americanagriwomen.org or by contacting Peggy Clark, 937-604-2026, treasurer@ americanagriwomen.org. More information can be obtained by contacting Karen Yost at email@example.com, 406-794-0888 or at http:// www.americanagriwomen.org.
Freight railroads invest in infrastructure WASHINGTON — The Association of American Railroads (AAR) has announced that the nation’s major freight railroads are projected to invest a record $13 billion in capital expenditures in 2012 to expand, upgrade and enhance the nation’s freight rail network. The freight railroads are also expected to hire more than 15,000 employees this year, replacing retiring workers and adding new positions nationwide, the group noted. “Unlike trucks, barges or airlines, America’s freight railroads operate on infrastructure they own, build and maintain themselves so taxpayers don’t have to. And this year they are investing
at a record rate to meet the demands of the recovering economy,” said Edward R. Hamberger, AAR president and CEO. “These investments help businesses get their goods to market more efficiently and affordably, so they too can innovate, invest and hire. That’s how freight rail spurs the American economy and supports jobs all across the country.” With hundreds of infrastructure projects underway nationwide, privately owned freight rail networks are maintained through continued investments that have reached record levels in the past three years, the group said, adding that these investments include expendi-
tures such as intermodal terminals that facilitate truck to train freight transport; new track, bridges and tunnels; modernized safety equipment; new locomotives and rail cars and other components. In recent years, railroads have been spending roughly 17 percent of their annual revenue on capital expenditures, compared with the average U.S. manufacturer that spends roughly 3 percent of revenue on capital expenditures, AAR noted. “As the demand to move more freight by rail increases and a significant percentage of the rail workforce hits retirement age, freight railroads are continu-
ing to add and fill jobs nationwide,” Hamberger said. “These jobs are well paying, highly skilled careers that cannot be offshored.” Rail employee compensation averages roughly $100,000 per year, with jobs ranging from engineers and dispatchers, to law enforcement, to information technology and industrial development, AAR said, also noting that freight railroads have roughly 175,000 employees nationwide, many of whom are veterans and reservists. Approximately one in five of recent new railroad hires are veterans. More information can be obtained from the Association of American Railroads at http://www.aar.org.
POULTRY TIMES, March 12, 2012
•List (Continued from page 5)
24. Allied Frozen Storage Inc., 21,246,747 cubic feet. 25. Hall’s Warehouse Corp., 20,625,304 cubic feet. Total for top 25 North America: 2,499,273,648 cubic feet.
Global 1. AmeriCold Logistics LLC (Argentina, Australia, Canada, New Zealand, U.S.), 942,487,821 cubic feet. 2. Millard Refrigerated Services (Canada, U.S.), 293,700,000 cubic feet. 3. Swire Cold Storage (Australia, Vietnam); and United States Cold Storage (U.S.), 259,538,279 cubic feet. 4. Preferred Freezer Services (U.S., China, Vietnam), 205,250,625 cubic feet. 5. Nichirei Logistics Group Inc. (Japan, Netherlands, Poland), 161,351,864 cubic feet. 6. Versacold (Canada), 127,486,198 cubic feet. 7. Castle & Cooke Cold Storage (U.S.), 111,867,380 cubic feet. 8. Interstate Warehousing Inc. (U.S.), 73,120,368 cubic feet. 9. Burris Refrigerated Logistics (U.S.), 62,329,576 cubic feet. 10. MUK Logistik GmbH (Germany), 60,758,989 cubic feet. 11. Nordic Cold Storage LLC (U.S.), 59,529,000 cubic feet. 12. Cloverleaf Cold Storage Co. ( U.S.), 59,457,489 cubic feet. 13. Gruppo Marconi Logistica Integrata (Italy), 55,090,931 cubic feet. 14. Columbia Colstor Inc. (U.S.), 50,610,000 cubic feet. 15. Partner Logistics Europe B.V. (Netherlands), 49,440,534 cubic feet. 16. Total Logistic Control LLC (U.S.), 47,480,066 cubic feet. 17. Richmond Cold Storage Co. (U.S.), 44,657,281 cubic feet. 18. Bring Frigoscandia (Denmark, Finland, Norway, Sweden), 42,847,343 cubic feet. 19. Henningsen Cold Storage Co. (U.S.), 41,785,309 cubic feet. 20. Frialsa Frigorificos S.A. de C.V. (Mexico), 39,646,965 cubic feet. 21. Hanson Logistics (U.S.), 35,178,539 cubic feet. 22. AB Oxford Cold Storage Pty. Ltd. (Australia), 34,943,549 cubic feet. 23. Conestoga Cold Storage (Canada), 30,620,000 cubic feet. 24. Congébec Logistics Inc. (Canada), 26,650,000 cubic feet. 25. Confederation Freezers (Canada), 26,450,000 cubic feet. Total for top 25 Global: 2,942,278,106 cubic feet. More information from the International Association of Refrigerated Warehouses can be obtained at http://www.iarw.org.
Calendar Compiled by Barbara Olejnik, Associate Editor 770-718-3440 firstname.lastname@example.org
MAR 12 — CPF WINTER BOARD MTNG., Doubletree Hotel, Modesto, Calif. Contact: California Poultry Federation, 4640 Spyres Way, Suite 4, Modesto, Calif. 95356. Ph: 209-576-6355; email@example.com; http://www.cpif.org. MAR 12-14 — AFIA SPRING COMMITTEE MTNGS./PURCHASING & INGREDIENT SUPPLIERS CONF., Omni Orlando Resort at Champions Gate, Orlando, Fla. Contact: American Feed Industry Association, 2101 Wilson Blvd., Suite 916. Arlington, Va. 22201. Ph: 703-524-0810; firstname.lastname@example.org; http:// www.afia.org. MAR 13-15 - MPF ANNUAL CONV., Saint Paul RiverCentre, St. Paul, Minn. Contact: Midwest Poultry Federation, 108 Marty Drive, Buffalo, Minn. 55313. Ph: 763-6825546l email@example.com; http://www.midwestpoultry.com. MAR 13-14 — GROUND MEAT
PRODUCTION WKSHP., Westin Crown Center, Kansas City, Mo. Contact: American Meat Institute Foundation, 1150 Connecticut Ave., N.W., 12th Floor, Washington, D.C. 20036; 202-587-4200; http://www.meatami.com. MAR 14 — BEAM ANNUAL MTNG., Saint Paul RiverCentre, St. Paul, Minn. Contact: Broiler & Egg Association of Minnesota, 108 Marty Drive, Buffalo, Minn. 55313. Ph: 763-682-5546l steve@ midwestpoultry.com; http://www.midwestpoultry.com. MAR 14 — MTGA ANNUAL MTNG., Saint Paul RiverCentre, St. Paul, Minn. Contact: Minnesota Turkey Growers Association, 108 Marty Drive, Buffalo, Minn. 55313. Ph: 763-682-5546l steve@ midwestpoultry.com; http://www.midwestpoultry.com. MAR 15-16 — PHTQA ‘TRAIN THE TRAINER’ MTNG., Saint Paul
RiverCentre, St. Paul, Minn. Contact: Dr. Eva Waller-Pendleton, Poultry Handling & Transportation Quality Assurance coordinator, 100 Orchard Road, Animal Diagnostic Laboratory, Pennsylvania State University, University Park, Pa. 16802; 814-8630837; eaw10psu.edu; Registration: firstname.lastname@example.org, http:// www.midwestpoultry.com, or http:// www.poultryhandling.org MAR 18-20 —NGFA ANNUAL CONV., Charleston Place Hotel, Charleston, S.C. Contact: National Grain & Feed Association, 1250 I St., N.W., Suite 1003, Washington, D.C. 20005. Ph: 202-289-0873; email@example.com; http:// www.ngfa.org. MAR 21-22 — FEED MILL MANAGEMENT SMNR., Doubletree Hotel, Nashville, Tenn. Contact: U.S. Poultry & Egg Association, 1530 Cooledge Road, Tucker, Ga. 30084-7303, Ph: 770493-9401; firstname.lastname@example.org; http:// www.uspoultry.org, MAR 24-25 — AMIF WORKER SAFETY CONF., Westin Crown Center, Kansas City, Mo. Contact: Rosie Levine, American Meat Institute Foundation, Attn.: Worker Safety, Human Resources and the Environment, 1150 Connecticut Ave., N.W., 12th Floor, Washington, D.C. 20036.Ph: 202-587-4242; email@example.com; http://www.meatami.com.
POULTRY TIMES, March 12, 2012
Union Pacific Railroad celebrates 150th anniversary in 2012 OMAHA, Neb. — When President Abraham Lincoln signed the Pacific Railway Act on July 1, 1862, creating the original Union Pacific, his vision for the transcontinental railroad was to connect a nation from east to west. While Lincoln did not live to see the completion of the transcontinental railroad, his vision was fulfilled, officials noted, adding that along the way, more than 7,000 cities and towns began as Union Pacific depots and water stops. “Abraham Lincoln’s expectations were high,” said Jim Young, Union Pacific chairman and CEO. “What he thought would be a means to settle the West and build
commerce has become the infrastructure that moves the American economy and virtually everything that touches us in our daily lives. Not even Lincoln could have envisioned the railroad we have today, but he would be proud.” As Union Pacific celebrates its 150th anniversary in 2012, the company says it continues to connect America to the global economy. Nearly 40 percent of Union Pacific’s freight originates or terminates outside the U.S. In 2012, Union Pacific notes that it plans to invest a record $3.6 billion, adding to the more than $31 billion it spent from 2000 to 2011.
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Depending on the economy, the company also says that it expects to hire 4,000 to 4,500 employees this year. “We are investing in America’s transportation infrastructure so taxpayers don’t have to,” Young said. “Looking to the future, our railroad will continue helping this country improve its competitive position globally by investing billion in capital, creating well-paying jobs and providing safe, environmentally responsible transportation.” More information about Union Pacific’s 150th anniversary can be obtained at http://www.up150.com.
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POULTRY TIMES, March 12, 2012
Six farms honored with Environmental Excellence Awards ATLANTA — Six farms across the U.S. were honored with the Family Farm Environmental Excellence Award during the recent 2012 International Poultry Expo.
The U.S. Poultry & Egg Association sponsors the annual awards in recognition of exemplary environmental stewardship by family farmers engaged in poultry and egg
production. The farms selected were: l Cooley Farms, Roberta, Ga. — Owned and operated by Larry Cooley. The farm is comprised of
590 acres in which chickens and cattle are raised and hay is grown. The farm has 18 poultry houses with a total capacity of 450,000 birds. The farm operates broiler
Environmental farm winners: Six Family Farm winners were recognized at the International Poultry Expo. The award is given by the U.S. Poultry & Egg Association in acknowledgment of exemplary environmental stewardship by family farmers engaged in poultry and egg production. Shown with the winners is Mark Waller, left, Ingram Farms, the newly elected USPOULTRY chairman.
houses for Perdue. l Flintrock Farms, Lititz, Pa. — Operated by Daniel and Jen Heller. The farm is comprised of 80 acres in which chickens are raised, row crops are grown and horses are boarded and trained. The farm has 12 poultry houses with a total capacity of 330,000 birds. The farm operates broiler houses for Tyson Foods. l Hack Farms, Turlock, Calif. — Owned and operated by Will and Linda Hack. The fourth generation farm is comprised of 80 acres in which turkeys are raised and nuts are grown. The farm has eight barns (three brooding and five growout) and produces approximately 182,000 turkeys annually.
See Farms, Page 15
•Ports (Continued from page 4)
ume from Savannah. This will have an impact not only on Savannah’s poultry exports; but also on Florida’s citrus exports, where once again Savannah’s strategic location puts it close to Florida’s citrus exporters. GPA’s strength in the refrigerated container trade is not in exports alone. Indeed Savannah has a robust and growing refrigerated import trade as well. Underscoring the overall growth of refrigerated container imports in the last two to three years is a remarkable jump in Savannah’s imports of shellfish, particularly from Southeast Asia and Canada. For these markets such as Thailand, Suez services offer the fastest transit times. The growing two-way trade makes it more profitable for ocean carriers to assign reefer containers that are in demand around the globe to GPA customers. Indeed Savannah boasts more container services than any other port in the U.S. Southeast. While it remains the dominant hub for
the regions services to Asia, its diversified portfolio offers multiple options for services to the Middle East, Europe, Latin America and Africa. “Shippers have a choice here and that’s what’s important,” said Curtis Foltz, executive director of the Georgia Ports Authority. And that is important for GPA’s broad geographic reach. “Our ports are important to the state, of course, but it’s not just about Georgia. We’ve become the U.S. Southeast’s primary gateway for about 44 percent of the U.S. population,” Foltz said. “It’s all part of our focus and goal to be the logistics center of the Southeast. If you combine Hartsfield Airfield with the GPA, which has the fourth busiest container port in the country, it amounts to an economic engine for the entire Southeast.” The U.S. Southeast is the fastest growing part of the country in terms of population and investment, making Savannah’s location vital for both shipping lines and cargo owners. Cargo owners are increasingly developing a four-corner geographical strategy,
covering the Northeast, Northwest, Southeast and Southwest. Savannah has become the natural Southeast “corner.” This is especially evident when looking at placement of distribution centers. Savannah is known as “Port Retail,” given the presence of over 20 distribution centers within a few miles of Garden City Terminal’s gates and 200 more within a four-hour-drive. Those advantages haven’t gone unnoticed: Savannah has been the fastest growing port on the East Coast for a decade with an annual compound growth rate of 11.5 percent. Although the GPA has made huge strides in reaching the major goals of its first long-term plan, port officials haven’t stopped looking forward to what customers will need next or even several years down the road. “We are now working on our 2022 plan, because history has proven that planning for the future is critical to our success and the success of our customers,” Foltz said. “When you think about attracting customers to a port there are
things you have to do,” Foltz continues. “A company needs to know that there is infrastructure available so they can plan for growth beyond
a decade. That is precisely what we do — we think about our long-term needs and we act on them today.”
MICHAEL FOODS INC
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POULTRY TIMES, March 12, 2012
ings were light to moderate for the moderate to at times good demand. Light type fowl offerings were sufficient; demand was light.
Compiled by David B. Strickland, Editor 770-718-3442 email@example.com
National Egg Market:
was moderate to at times good. The total shell egg inventory was 6.8 percent higher than the previous week. Supplies ranged from light to instances heavy, mostly moderate for trade needs. Market activity was moderate. Breaking stock offer-
(Mar. 6): Regional and New York prices were steady. Retail demand was moderate and best where ads were in place. Foodservice demand
Georgia: The f.o.b. dock quoted prices on ice-pack parts based on truckload and pool truckload lots for the week of Mar. 7: line run tenders $1.91½; skinless/boneless breasts $1.56; whole breasts 95½¢; boneless/skinless thigh meat $1.31; thighs 71½¢; drumsticks 66¢; leg quarters 54½¢; and wings $1.84.
Fowl: Mar. 2: Live spent heavy fowl
Final prices at Farm Buyer Loading (per pound): range 8½¢-18¢
National Slaughter: Broiler: Estimated slaughter for week ending Mar. 10 is 151,968,000. Actual slaughter for the week ending Mar. 3 was 152,636,000. Heavy-type hen: Estimated slaughter for the week ending Mar. 10 is 1,474,000. Actual slaughter for the week ending Mar. 3 was 1,472,000. Light-type hen: Estimated slaughter for the week ending Mar. 10 is 1,824,000. Actual slaughter for the week ending Mar. 3 was 1,478,000. Total: Week of Mar. 10: 155,266,000. Week of Mar. 3: 155,586,000.
The following chart provides an annual high and a comparison of recent activity of major poultry company stocks.
USDA Shell Eggs
AMS weekly combined region shell egg prices Average prices on sales to volume buyers, Grade A or better, White eggs in cartons, delivered warehouse, cents per dozen.
Cal-Maine Campbell Soup ConAgra Hormel Pilgrim’s Pride Sanderson Farms Seaboard Tyson
39.99 35.66 27.34 30.50 7.85 53.22 2705.00 21.06
38.50 33.32 26.25 28.47 6.27 49.20 1913.12 18.91
39.86 32.74 26.09 28.38 6.35 50.61 1887.06 19.48
The estimated number of broilerfryers available for slaughter the week ending Mar. 10 is 151.4 million head, compared to 159.7 million head slaughtered the same week last year. The estimated U.S. slaughter for the week of Mar. 10 is 152.3 million head or 900,000 more than estimated available. For the week of Mar. 17, 2012, the estimated available is 151.2 million head, notes the USDA Agricultural Marketing Service Poultry Programs, Market News & Analysis in Washington, D.C.: http://www. ams.usda.gov.
Industry Stock Report
Extra Large Regions: Northeast 96.00 Southeast 96.50 Midwest 90.50 South Central 99.50 Combined 95.79
95.00 72.00 94.50 70.00 88.50 66.50 98.50 71.50 94.32 70.04
Computed from simple weekly averages weighted by regional area populations
Grain Prices OHIO COUNTRY ELEV. Feb. 21 Feb. 28 Mar. 6 No. 2 Yellow Corn/bu. $6.47 $6.53 $6.67 Soybeans/bu. $12.40 $12.74 $13.00 (Courtesy: Prospect Farmers Exchange, Prospect, Ohio)
(Courtesy: A.G. Edwards & Sons Inc.)
USDA Composite Weighted Average For week of: Mar. 5 92.33¢ For week of: Feb. 27 90.68¢ Chi.-Del.-Ga.-L.A.-Miss.-N.Y.--S.F.-South. States For delivery week of: Feb. 21 Mar. 5 Chicago majority 90--94¢ 90--94¢ Mississippi majority 83--87¢ 84--89¢ New York majority 89--92¢ 91--94¢ For delivery week of: Feb. 22 Mar. 7 Delmarva weighted average 71¢--$1.07 86¢--$1.12 Georgia f.o.b. dock offering 91.50¢ 92.50¢ Los Angeles majority price $1.00 $1.01 San Francisco majority price $1.00½ $1.01½ Southern States f.o.b. average 57.99¢ 61.92¢
Turkey Markets Weighted avg. prices for frozen whole young turkeys Weighted average (cents/lb.) F.O.B. shipper dock National
Broiler Eggs Set/Chicks Placed in 19 States EGGS SET (Thousands)
Del Fla Ga Ky La Md Miss Mo. N.C. Okla Pa S.C. Tex Va
19 States Total Prev. year % Prev. yr.
CHICKS PLACED (Thousands)
26,946 19,931 10,486 3,265 1,352 31,616 7,416 3,440 6,874 17,623 7,784 20,207 6,841 3,649 5,318 14,410 5,985
27,060 20,091 10,121 3,188 1,352 31,983 7,666 3,440 7,484 17,832 7,817 20,310 6,923 3,539 5,282 14,805 6,200
27,638 19,499 10,387 3,191 1,243 32,222 7,546 3,424 7,067 17,663 7,807 20,143 6,768 3,497 5,404 14,904 5,963
28,000 20,142 11,113 3,190 1,353 32,143 6,478 3,379 7,204 17,814 7,672 20,325 6,688 3,688 5,296 14,572 6,168
19,955 20,438 10,632 4,016 1,149 26,053 6,181 3,023 5,849 14,721 4,934 15,699 3,220 3,211 4,956 11,568 5,164
19,445 18,219 9,451 4,433 1,048 27,384 6,544 3,062 6,406 15,172 5,755 15,648 4,755 3,107 4,798 12,111 4,607
21,845 19,111 10,094 4,404 1,062 25,271 6,008 3,068 5,959 15,227 5,674 15,418 4,003 3,159 4,971 11,941 4,096
18,833 19,144 10,176 3,358 1,073 27,868 5,504 3,092 6,833 15,192 4,613 15,820 5,026 3,060 4,197 11,971 4,547
1/Current week as percent of same week last year.
Week ending Mar. 2 Hens (8-16 lbs.) Toms (16-24 lbs.) Week ending Feb. 24 Hens (8-16 lbs.) Toms (16-24 lbs.)
101.52 101.44 102.00 102.10
Last year 91.25 92.00 Feb. avg. 100.15 100.17
Egg Markets USDA quotations New York cartoned del. store-door: Feb. 29 Extra large, no change $1.02--$1.06 Large, no change $1.00--$1.04 Medium, no change 77--81¢ Southeast Regional del. warehouse: Feb. 29 Extra large, no change 93½¢--$1.01 Large, no change 92--99¢ Medium, no change 67½--75¢
Mar. 7 $1.02--$1.06 $1.00--$1.04 77--81¢ Mar. 7 93½¢--$1.01 92--99¢ 67½--75¢
POULTRY TIMES, March 12, 2012
AMERICAN EGG BOARD HOTLINE AEB Hotline appears regularly in Poultry Times and provides an update on programs and services provided for egg producers by the American Egg Board. Details on any item mentioned may be obtained by contacting AEB at 1460 Renaissance Dr., Park Ridge, Ill. 60068. Phone: 847296-7043. l Datassentials is an AEB research supplier that analyzes trends based upon a data base of menus from more than 6,000 U.S. restaurants. Following are year-end 2011 highlights from their recently released “Egg Menuing: Breakfast and Beyond” report. l Breakfast item penetration growth rate, the percent change in restaurants that offer breakfast, has increased across all restaurant segments during the past four years. In the Quick Service Restaurant (QSR) segment, the 4-Year Penetration Growth Rate has increased by 5 percent (from 2007 to 2011). l The percent of restaurants that offer breakfast in the QSR segment has increased by 3 percent in the last year. l With consideration for the number of units in chain restaurants, breakfast penetration in the QSR segment has increased by 45 percent from 33.3 in 2007 to 48.3 Year End 2011. l The QSR segment maintains the largest share of breakfast overall and this segment has shown a growth of 11 percent during the past four years from 76 percent in 2007 to 84 percent Year End 2011. In the last year alone, this number has increased
by 1 percentage point. l Over the past four years, the incidence of hot Breakfast Sandwiches at QSRs has increased by 13 percent from 16 percent in 2007 to 18 percent for Year End 2011. l Hot breakfast sandwiches are the top breakfast item menued at QSRs, comprising an 18 percent share of breakfast items in this segment. l Mid-December marked the launch of Egg Nutrition Center’s Teacher Exchange Program to teachers in the American Association and Family and Consumer Sciences. More than 330 educators from 30 states have joined the group. Three videos have been released on ENCTteacher.org/ENC__Teacher_Exchange.html. Experts appear in three videos on the site explain the program, discuss the obesity epidemic and highlight a school with a successful Fit-Nut program combining a nutrition and physical activity class to teach students more about nutrition. l Striving to extend the reach of its egg product educational resources, AEB continued the relationship with American Institute of Baking (AIB) started last year. During AIB’s 16-week Baking Science & Technology resident course, AEB staff presented “Eggs Can Do That, Too” and explained how eggs are produced and processed into egg products, egg product nutritional information, functional advantages and basic application formulas with the 29 students enrolled in the session.
Obituary Charley Kammerdiener
BOSSIER CITY, La.— Charley Joseph Kammerdiener Jr., former president and CEO of AK Mills Inc., later named Prescott Feed Mill Inc., and former vice president of Dal-Worth Olson Egg Farm, died Feb. 7 at age 80. Mr. Kammerdiener received a bachelor of arts degree in agriculture with a major in poultry science from Texas A&M University, where he was a member of the university’s National Champion Poultry Judging Team in 1953. Following graduation Mr. Kammerdiener worked in management positions in the poultry industry before incorporating, with three other investors, Nest-Fresh Inc., a commercial egg production and marketing company. He served as secretary and general manager until 1976 when his interest in the company was sold. In
•Farms (Continued from page 13)
The farm raises turkeys for Foster Farms. l Hesse Farm, Cole Camp, Mo. — Owned and operated by Tom and Gaylene Hesse. The farm is comprised of 290 acres in which turkey and cattle are raised and row crops are grown. The farm has three poultry houses that include one brooding and two growout barns. Flocks of 13,300 big toms are placed four times per year. The farm raises turkeys for Cargill Turkey Production. l Hillview Farms, Buckholts, Texas — Owned and operated by Wayne and Rebecca Hillman. The farm is comprised of 581 acres in which turkey and cattle are raised. The farm is a four-house turkey growout farm that produces 190,000 turkey hens per year. The farm raises turkeys for Cargill Turkey Products.
1972 he began producing his own eggs from an average of 170,000 laying hens and raised a herd of 400 beef cows at a farm at Emmet, Ark. Mr. Kammerdiener and two investors built A K Mills in 1979. He was president and CEO until the mill was sold in 1998. He was in charge of commercial egg production for Dal-Worth Olson Egg Farm from 1978 to 1985 at Hope, Ark., and Kilgore and Lulling, Texas. He served on the boards of directors of the United Egg Producers, Southern United Egg Producers, Arkansas Egg Council, Arkansas Poultry Federation, American Egg Board and the Arkansas State Plant Board. Mr. Kammerdiener is survived by his wife, Eloise; sisters Nancy Krahl, Gladys Anglin, Norma McNew and Polly Bevil; brother Bryan Kammerdiener; two children; five step-children; and several grandchildren and great-grandchildren.
l Pine Draft Farm, Augusta, W.Va. — Owned and operated by Brian and Kelli Eglinger. The third generation farm is comprised of 162 acres in which chickens and cows are raised and fruit is grown. The farm has one poultry house with a total capacity of 7,800 birds. The farm operates the broiler house for Pilgrim’s Corp. Applicants for the Environmental Excellence Award were rated in several categories, including dry litter or liquid manure management, nutrient management planning, community involvement, wildlife enhancement techniques, innovative nutrient management techniques and participation in education or outreach programs. Applications were reviewed and farm visits conducted by a team of environmental professionals from universities, regulatory agencies and state trade associations in selecting the winner from six regions.
Index of Advertisers
Agrifan, 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-236-7080; www.envirofan.com DSM, Cover III. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.unlimitednutrition-na.dsm.com FoodCraft, 8B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.foodcraft.net Global Food Innovations, 8D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.sonomagrillemeats.com; 310-645-0490 Lanier Cold Storage, Cover IV . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 770-869-7100; www.laniercoldstorage.com Lee Energy, 8C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.leeenergysolutions.com Lehar Sales, 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 650-873-0440 Lubing, 8A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423-709-1000; www.lubingusa.com Mar-Jac, 8B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 770-536-0561 McNeely, 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-433-8407 Michael Foods, 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402-287-5222 Mike's Loading Service, 8D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .956-292-2700; www.mikesloadingservice.com Pro-Tech, 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-438-1707; www.pro-techinc.com R&D Marketing, 8D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 662-620-2828 RMX Global, 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 888-824-7365; www.rmxglobal.com Star Labs, 8B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-894-5396; www.primalac.com US Cold Storage, Cover II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 856-354-8181; www.uscoldstorage.com Water Cannon, 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .800-333-9274; www.watercannon.com WeighTech, 8B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-457-3720; www.weightechinc.com
POULTRY TIMES, March 12, 2012
•Tonnage (Continued from page 9)
inventory restocking. Inventories, especially at the retail level, are exceedingly lean, and I suspect that tonnage was higher than expected as the supply chain did some restocking during the month.” he said.
January ATA’s index fell 4 percent in January after surging 6.4 percent in December 2011. The latest contraction put the SA index at 119.4 (2000=100), down from December’s record level of 124.4. ATA also recently revised the seasonally adjusted index back five years as part of its annual revision. For all of 2011, tonnage rose 5.8 percent, slightly lower than the 5.9 percent previously reported, and matched 2010’s gain of the same magnitude. The index increased 3.6 percent from January 2011.
The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 112.1 in January, which was 3.5 percent below the previous month. “Last month I said I was surprised by the size of the gain in December. Today, I’m not surprised that tonnage fell on a seasonally adjusted basis in January simply due to the fact that December was so strong,” Costello said. Costello also noted that December’s increase was the largest month-to-month gain since January 2005. “I’m still optimistic about truck tonnage going forward,” he said. “In fact, while many fleets said January was normal, they are also saying that February has been pretty good so far.” Each month, ATA asks its membership the amount of tonnage each carrier hauled, including all types of freight. The indexes are calculated based on
those responses. The sample includes an array of trucking companies, ranging from small fleets to multi-billion dollar carriers. When a company in the sample fails, ATA includes its final month of operation and zeroes it out for the following month, with the assumption that the remaining carriers pick up that freight. As a result, it is close to a net wash and does not end up in a false increase. Nevertheless, some carriers are picking up freight from failures and it may have boosted the index, the group said, adding that, due to its correction mentioned above, however; it should be limited. Trucking serves as a barometer of the U.S. economy, representing 67.2 percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, ATA said. Trucks hauled 9 billion tons of freight in 2010. Motor carriers collected $563.4 billion, or 81.2 percent
S N O I T A L U T A R G CON inners! To All Our W
Chris Sharp, Kelly’s Foods, NPFDA Immediate Past President; Jim Sumner, USAPEEC, 2012 Lifetime Achievement recipient; Lee Wilson, Pilgrim’s, 2011 Member of the Year; Tarry Winfrey, Lehar/Pac-Agri, Honorary Lifetime Member; and Al Acunto, Preferred Freezer Services, NPFDA 2012 President
of total revenue earned by all transport modes. ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. This is a preliminary figure and subject to change in the final report issued around the 10th day of the month. The report includes month-to-month and year-over-year results, relevant economic comparisons and key financial indicators. The American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of 50 affiliated state trucking associations and industry-related conferences and councils, ATA “is the voice of the industry America depends on most to move our nation’s freight,” the group notes. More information can be obtained from ATA at http://www.truckline.com.
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