Chicken

Veterinarian Becomes Disease Detective: Nichols Connects Animal Disease and Human Health

Tue, 07 Oct 2025 19:24:04 GMT

Growing up on a New Mexico ranch, veterinarian and public health leader Megin Nichols says she learned early the health of animals, humans and the environment are deeply connected.

Initially planning to practice small animal medicine, she says her plans began to pivot when she met a Centers for Disease Control and Prevention (CDC) epidemic intelligence service officer who sparked her interest in public health. That realization led her to pursue a master’s degree in public health at the University of Minnesota, with a focus on food safety and biosecurity. Her career has included roles in local, state and federal health departments, investigating foodborne illness outbreaks and developing strategies to prevent them.

“Life has a way of taking you in places you never anticipated,” she shared during the 2025 Henry C. Gardiner Global Food Systems Lecture Oct. 6 at Kansas State University.

Today, as the CDC’s director in the division of foodborne, waterborne and environmental diseases, she lends her expertise to efforts involving disease investigation, food safety, antimicrobial resistance and agriculture literacy.

Megin Nichols has more than 15 years of zoonotic disease experience and has served at the federal and state levels. She has served as the lead of the Enteric Zoonoses Team investigating multistate outbreaks of Salmonella and E. coli. Prior to joining CDC, Nichols worked as the Principal Investigator of the Active Bacterial Core Surveillance Program at the New Mexico Department of Health for five years.

(Angie Stump Denton)

One Health: Connecting Animal Disease and Human Health

Nichols’ work focuses on the One Health concept.

“One Health is recognizing the health and well-being of humans, of animals and our environment are all interconnected,” she explains. “One Health is something that many of us do every single day and are very, very aware of, especially if you have ties to agriculture and the land. But One Health as a concept oftentimes is difficult to fully understand.”

Nichols says One Health is:

Ongoing relationships with animal agencies.
Understand the culture of agriculture.
Having access to integrated human and animal surveillance.
Protocols for conducting joint response investigations.
Agreements for sharing biological samples and lab results.
Established lines of communication with agriculture and animal industry.
Plans for unified communication messaging.
Need to build linkages and trust before and outbreak.

“What happens in one area can significantly impact others — whether it’s a wildfire, a disease outbreak or environmental changes,” Nichols summarizes.

Pandemic and Disease Response Insights

Nichols was a leader in investigating and finding unique solutions for the livestock industry and specifically meat packing industry related to COVID-19.

“In April 2020, I got a call from my supervisor saying there are some meat, poultry packing plants that are going down because of labor shortages and illness,” she explains.

She selected and lead a team to figure out how to get the plants opened back up safely and to find unique solution to deal with the related animal welfare issues.

Summarizing the experiences, Nichols reports the estimated economic cost of COVID-19 is $14 trillion. Along with supply chain disruptions the industry experienced changes in consumer behavior, labor shortage and complex operations challenges. On a positive note, she says the industry did experience a lot of innovation and uptake of technology due to the pandemic, which resulted in innovative approaches to workplace safety and communication.

“We saw innovative strategies where if one person got sick, they looked around that worker and said, ‘OK, who do we need to monitor quickly for symptoms?’” she says.

Nichols also discussed the increase in salmonella outbreaks during the pandemic. She links the rise to the increase in backyard poultry ownership and the improper handling of backyard chickens.

“Many new chicken owners were unaware of disease transmission risks,” she explains.

Nichols also shared insights to H5N1 influenza and emphasized the complexity of tracking and preventing. She highlights the need for integrated, cross-species surveillance and communication strategies.

She also touched on emerging threats, including New World screwworm (NWS) . Her message emphasized the importance of prevention, control and preparedness.

She shares these five key strategies related to NWS:

Surveillance. Early dection through wound inspections and reporting in livestock.
Sterile Insect Technique (SIT). Ongoing release of serile male flies to prevent reproduction.
Biosecurity. Movement control of imported animals and monitoring at entry points.
Public Awareness. Education for doctors, ranchers, veterinarians and travelers.
Rapid Response Planning. Multi-agency coordination to contain outbreaks swiftly and deploy sterile flies.

Agricultural Literacy, Communication is Key

“Growing up in the middle of nowhere, I also came to understand that not everyone appreciates — or even understands — where their food comes from,” Nichols says.

She shared a 1993 study that revealed significant gaps in public knowledge about agriculture. She summarizes understanding food systems involves knowing:

Where food comes from.
How it’s produced.
Its impact on economy, environment and technology.

Throughout her lecture she shared the importance of transforming complex scientific concepts into engaging, accessible insights that resonate with students, farmers, ranchers and public health professionals alike.

“It doesn’t matter how much information we have if we don’t get it out to the people,” Nichols says.

She stresses the importance of agricultural communication specialists in translating scientific information and engaging audiences.

“Don’t leave the communications to the scientists,” she says.

Nichols emphasizes that agricultural literacy and effective communication are crucial for bridging knowledge gaps and building public understanding of food systems.

She shares this advice for agricultural advocates:

Bring agricultural perspective to discussions by speaking up and sharing lived experiences.
Challenge misconceptions with personal stories by focusing on storytelling rather than technical details.
Understand your audience and use relatable language and provide context.

Nichols stresses the importance of preparedness and collaboration. She explains the importance of local-level discussions and community preparedness, suggesting that some of the most effective emergency preparedness conversations happen “at the coffee house” or during casual community gatherings.

How Much Meat Will the U.S. Eat in 2025 and 2026?

Fri, 22 Aug 2025 15:48:45 GMT

Domestic availability of red meat, poultry and eggs is projected to increase in 2025, driven by gains in chicken and pork availability, and is expected to rise further in 2026, reports the USDA Economic Research Service (ERS). This increase stems from USDA’s forecast of per capita supply available for use on the domestic market.

How are these numbers determined? ERS says availability, also known as disappearance, serves as a proxy for consumption and includes fresh and processed meat and eggs sold through grocery stores and used in restaurants.

“The latest USDA data indicate 226 lb. of red meat and poultry and about 22 dozen eggs are available per U.S. consumer in 2025. By 2026, per capita availability is forecast to increase to 227 lb. for red meat and poultry and to 23 dozen eggs,” ERS reports.

Data for 2025 and 2026 are forecasts. Per capita meat availability serves as a proxy for consumption and does not reflect indirect uses, such as pet food or food waste.

(Data: USDA)

Chicken Projected to Be Most Consumed Animal Product
For chicken, per capita availability of broiler meat has been growing for many years and is projected to reach 102.7 lb. in 2025 and 102.8 lb. in 2026, ERS says. This will make it the most consumed animal product in the U.S.

However, availability of turkey has been falling in recent years and is projected to reach a low of 13.0 lb.per person in 2025 but increase to 13.6 lb. in 2026.

Per capita table egg availability for 2025 is projected at 21.5 dozen and is projected to increase to 22.9 dozen per person in 2026.

Pork and Beef Projections
ERS reports that pork availability per capita is projected at 49.7 lb. in 2025 and 50.9 lb. in 2026, up from 49.9 lb. in 2024.

Meanwhile, per capita beef availability for 2025 is projected to be slightly lower than 2024 at 58.5 lb., but is projected to decrease further to 56.9 lb. per person in 2026.

More Funding Going to Tackle HPAI H5N1, Egg Imports are Now Underway to Stabilize Supply

Thu, 20 Mar 2025 18:57:13 GMT

On Thursday morning, USDA Secretary Brooke Rollins gave an update on progress the Trump administration is making on the five-prong strategy it unveiled Feb. 26 to combat avian influenza virus type A (H5N1).

Speaking to industry stakeholders, media and offices of elected officials, Rollins focused on the administration’s work to lower egg prices and improve supply, while also emphasizing the importance of biosecurity in protecting U.S. poultry flocks from the virus.

Regarding egg prices, she said wholesale prices are down nearly 50% from their peak in late February from $8.53 then to $4.08 currently.

However, Rollins said she realizes that wholesale prices don’t automatically show up as reductions in retail prices.

“I know for some of us who are shopping that we’ve seen egg prices drop immediately, which has been true for me. But then we’ll hear from people in other parts of the country where they have yet to see that reduction on their grocery store shelf.”

With Easter just a few weeks away, she acknowledged that egg demand is always “unusually high during the season,” and that egg prices could potentially move back up.

To help address the egg shortage, Rollins noted that shell egg exports have declined by 8%, “keeping more eggs in the U.S. and lowering prices.”

In addition, the Trump administration is allowing egg imports as a temporary measure to stabilize prices and supply. Rollins’ chief of staff Kailee Buller said this measure would likely be discontinued once those measures were achieved.

USDA Focuses On Biosecurity For Poultry Operations
Rollins said biosecurity in poultry flocks will continue to be a major part of the Trump administration’s plan to address H5N1, moving forward.

“Our pilot programs have proven that biosecurity is the most important thing our farmers can do to protect our flocks against the disease, at least right now,” she said.

The USDA is working closely, she said, with its federal partners including the U.S. Department of Health and Human Services (HHS), Centers for Disease Control (CDC), National Institutes of Health (NIH), and the Food and Drug Administration (FDA) to “combat avian flu as a unified federal family.”

On Wednesday, USDA announced it is expanding the availability of its biosecurity assessments to commercial poultry producers.

“These assessments, which were previously available on a limited basis have been extremely successful in improving biosecurity on individual premises and preventing the introduction or spread of avian influenza,” Rollins said.

While USDA is exploring the viability of vaccinating poultry for H5N1, she said the use of any vaccine for poultry or any animal species has not been authorized at this time.

“I know there has been some misreporting on that,” Rollins said. “The day we rolled out the plan, I actually talked about the fact that we’re not ready to vaccinate. We need to do some more research, and so that has not changed, but I do look forward to this next process of learning more about getting more research done and perhaps seeing what makes sense for the country moving forward, once that is concluded.”

Dairy Is Not Part Of USDA’s Primary H5N1 Focus
No information was offered during the conference call to address the issue of H5N1 in dairy cattle or other livestock or animal species.

Mike Watson, administrator of USDA-APHIS, said right now USDA is focused on the poultry vaccine.

“We’re looking for a vaccine that has sterilizing immunity but also an opportunity for us to have different introduction methods for the vaccine right now, as injections are the only possibility,” he said. “We need new tools, whether it’s water based, aerosol based, those kind of things. We’re looking for manufacturers to really look at what those options might be, to really provide us with a vaccine that matches the current strain but also is highly effective. And again, this is really focused on poultry.”

Buller said there is already quite a bit of research at USDA on the topic in dairy.

“Please rest assured, we are thinking of you all (in dairy). We know you all are impacted. But for this particular strategy, we have been hyper-focused on the poultry side. USDA has separate work streams as we’re working through this on the cattle and dairy side.”

One of the media asked whether Sec. Rollins had talked further with HHS Sec. Robert F. Kennedy Jr. regarding his idea of letting H5N1 burn through poultry flocks to identify birds that might have immunity or show resistance to the virus.

Buller answered the question, as Rollins had stepped away from the call. “I have not been engaged specifically with those conversations with the Secretary and Secretary Kennedy,” she said. “They are talking very regularly and you are aligned on the approach, but in terms of that specific topic, there’s no further light I can shed on that at this time.”

Assessments Available To Poultry Operations
USDA is offering two different, free, voluntary biosecurity assessments for poultry operations not currently affected by HPAI.

The first is a wildlife biosecurity assessment. The second is a general biosecurity assessment. Poultry producers can request one or both of these free assessments.

Per the wildlife biosecurity assessment, Rollins said USDA will conduct on-farm assessments at poultry facilities and provide recommendations to producers for facility repairs and wildlife management techniques. The assessments include a series of regular engagements, including wildlife hazard identification surveys, wildlife abundance surveys and wildlife management on the premises.

“USDA has assessed approximately 130 facilities to date (in 2025), and plans on doing significantly more moving forward and expanding that program,” she said.

For the general biosecurity assessment, USDA will work with poultry producers to review biosecurity plans and physical measures.

“This is a proactive resource for premises that are outside of avian flu control areas to identify and mitigate potential biosecurity gaps,” she said.

Funding Is Ramped Up To Address HPAI In Poultry
The USDA announced on Thursday that up to $100 million in funding will be available to support projects on avian influenza, prevention, therapeutics, vaccines and research.

“USDA will invest up to $100 million in these projects, which will identify and foster innovative solutions to fight avian flu and directly support American producers,” Rollins said during the conference call.

Funding is available through a competitive process to for-profit organizations, including manufacturers of vaccines, biologics and therapeutics, as well as states, universities, livestock producer organizations and other eligible entities, she noted.

USDA will prioritize one or more of the following. First, it will support the development of novel therapeutics to address HPAI in poultry. Second, it will support research to further understand the risk pathways of avian influenza for producers and to inform improved biosecurity and response strategies.

“Let me just say, as a quick aside, I’ve had multiples and multiples and multiples of conversations with some of our chicken farmers across the country —many of them have been highly successful at not having the bird flu infect their populations,” Rollins said. “Better understanding of risk pathways and realizing what best practices are is a big part of (this work).”

The third focus is on the development of novel vaccines to protect poultry from H5N1 while promoting biosecurity.

“That will all be part of the research funding opportunity that we announced about an hour and a half ago,” Rollins said.

USDA will test the efficacy of therapeutic interventions to prevent the virus and treat infected flocks.

“USDA, in consultation with HHS, has already had multiple conversations with Secretary Kennedy and leaders in the NIH and CDC, but will also be exploring prevention strategies to promote biosecurity in agriculture and in humans, to ensure limited impact on American farmers,” Rollins noted.

USDA is offering a webinar to assist interested applicants in learning more about the funding opportunity and how to submit a proposal on Tuesday, April 1 at 12 p.m. Eastern. No details on how to participate in the webinar have been communicated yet.

“As we try to do everything under this president and here at USDA, we will be as fast and efficient and effective as we can possibly be, working around the clock,” Rollins said.

Buller added that Sec. Rollins and her staff will continue to host update calls regularly.

“It’s very important to Sec. Rollins that we are showing progress on this five-prong plan and being honest and open with the public about what we’re up to and the progress and potential challenges that we have ahead,” Buller said. “We have an open door here, and we remain open to having conversations and hearing from stakeholders.”

Hemp Seed Livestock Meal Receives Green Lights On Way to Federal Approval

Fri, 27 Sep 2024 18:07:07 GMT

After years of work and regulatory paperwork, the The Hemp Feed Coalition announces Hemp Seed Meal for laying hens has been recommended by FDA-Center for Veterinary Medicine and voted by AAFCO into their Ingredient Definition Committee for the final step in the approval pathway.

The definition allows hemp seed meal up to 20% into feed mixes for laying hens. This marks the first hemp feed ingredient to get federal recommendation and uptake by AAFCO.

Wendy Mosher, CEO at New West Genetics and vice president of Hemp Feed Coalition, says this is something that has been in the works for at least four years.

“There’s a lengthy process for any new crop to get ingredient approval, but it’s worth it, you can’t have commodity crop without a feed opportunity for that crop,” Mosher says. “Federal approval gives us a leg up into adoption and scale.”

Mosher says before deregulation in 2014, hemp acres were zero, then by 2020, climbed to a peak of around 400,000 acres. Today, total U.S. hemp acres are reported around 55,000.

“I think this is a positive thing—it shows with the right incentives crops can be expanded rapidly, and that those participants with long term vision are still here, and are building the markets in a sustainable fashion. Hemp is a great opportunity for the crop rotation as well as soil health” Mosher says. “Hempseed meal as a feed ingredient contributes to the risk mitigation of planting the crop—it’s another place for the crop to go.”

As a feed ingredient, the coalition cites hemp grain providing essential vitamins, minerals, healthy oils, and a complete protein profile. For egg production, this can lead to a value-added product with higher omega 3 content. It has been verified that any potential cannabinoid contaminants do not transfer into the egg product.

With the regulatory obstacles starting to be removed, Mosher is optimistic about the educational opportunities for the market to increase in size.

“Hemp can serve the same basic protein and oil markets that currently use soybeans or canola,” she says. “Feed manufacturers are seeing success, including Wenger Feeds in Pennsylvania who make hemp feed for Kreider Farms’ eggs. In the next year we hope to get some additional adoption by some larger players.”

Mosher highlights her company, New West Genetics, has been developing improved hemp varieties to double grain yield.

“We’ve got momentum in hemp as we are providing high yielding and adapted genetics for hemp production in the U.S., and the industry is also near the finish line on this feed approval,” she says. “It’s a moment we’ve been waiting on for 10 years. In the not so distant future, we hope to see hemp on the million acre scale.”

Bonehead Lawsuit and Other Signs of the Looming Apocalypse

Thu, 23 Mar 2023 20:58:08 GMT

It’s becoming harder to know just what we should be worried about. Each day, it seems, we’re presented with an event some believe will either crush the economy, endanger our health or turn us into full-throated vegetarians.

In December, for instance, we learned about an enterprising young man who lost about $32 Billion in a matter of days. Sam Bankman-Fried, now known as the notorious former CEO of crypto exchange FTX, was arrested by the Feds and charged with a laundry list of crimes that included wire fraud and money laundering.

I’m not sure which is more dizzying, attempting to understand cryptocurrency, a digital currency, which is an alternative form of payment created using encryption algorithms, or the fact Bankman-Fried coaxed people to invest billions in his… ummm…. enterprise. And if that doesn’t make your spurs rattle, consider that Bankman-Fried allegedly directed tens of millions of dollars to be sent illegally to BOTH the Democratic and Republican election committees. Maybe those donations fall under the CYA category.

Before we move on from the crypto world, there’s news that German and US authorities, supported by Europol, are investigating ChipMixer, an unlicensed cryptocurrency mixer that is apparently a major player in the cybercriminal world. Before this morning, I couldn’t have distinguished between Chex Mix and ChipMixer, but that’s where we are.

The Department of Justice called ChipMixer a “darknet cryptocurrency ‘mixing’ service responsible for laundering more than $3 billion worth of cryptocurrency” to support their activities of “ransomware, darknet market, fraud, cryptocurrency heists and other hacking schemes.” The DOJ seized two domains and more than $46 million in cryptocurrency.

The crime, according to the DOJ, was that ChipMixer specialized in mixing or cutting trails of virtual currency assets. ChipMixer’s software blocked the blockchain trail of funds, making it attractive for cybercriminals seeking to launder illegal proceeds from criminal activities such as drugs or ransomware attacks.

Tales of these modern cybercriminals makes one long for simpler times when we could just make fun of folks for making a public display of their stupidity. Wait…we still have plenty of instances of old-fashioned dimwitted decisions.

First, I call your attention to Van Leeuwen’s new Hidden Valley Ranch ice cream. Yep, they have mixed the flavor of ranch dressing with ice cream. Most of us probably like ranch dressing and ice cream, but together?

Van Leeuwens is banking on the idea some folks will like this mixture (the ingredients include onion powder and garlic powder) and a press release encourages customers to “top your scoops with crushed pretzels or potato chips for a perfect salty crunch.” Your cholesterol be damned, I suppose.

But the prize for most boneheaded activity of the week – and a clear sign that the apocalypse may be closer than we think – is a new lawsuit targeting Buffalo Wild Wings, the popular casual dining restaurant and bar with nearly 1,300 locations.

A Chicago man sued the restaurant chain last week for false advertising, claiming the boneless wings are overpriced since they are just “slices of chicken breast meat deep-fried like wings,” and that diners would either pay less for the boneless wings or not purchase them at all if they knew what the product was made of.

Never mind that this Chicago man is apparently the only one in America unable to deduce that these diced, batter-fried morsels of yard bird are, in fact, not wings. His clever lawyer submitted to the court: “This clear-cut case of false advertising should not be permitted, as consumers should be able to rely on the plain meaning of a product’s name and receive what they are promised.”

Not to be outdone, Buffalo Wild Wings has cleverly responded.

“It’s true,” the restaurant chain tweeted on Monday. “Our boneless wings are all white meat chicken. Our hamburgers contain no ham. Our buffalo wings are 0% buffalo.”

It’s true.
Our boneless wings are all white meat chicken.
Our hamburgers contain no ham.
Our buffalo wings are 0% buffalo.
— Buffalo Wild Wings (@BWWings) March 13, 2023

FDA Approves Lab-Grown Chicken for the First Time

Fri, 18 Nov 2022 20:57:22 GMT

The FDA approved lab-grown chicken for the first time, greenlighting products from startup Upside Foods for human consumption. If Upside gets USDA approval next, the company said it could start pumping out 50,000 pounds of “no-kill” meat products every year.

The news follows Upside’s April announcement that it had secured $400 million in Series C funding, moving the company “from R&D to commercialization,” according to CEO Uma Valeti.

“Our team...continues to overcome seemingly insurmountable challenges in our mission to make our favorite food a force for good,” said Valeti.

Upside, with 140 employees, has now garnered over $600 million in funding from names like Bill Gates and meat companies Tyson and Cargill.

Brian Sikes, Cargill COO, stresses his team’s commitment to meatless meat:

“Our continued support for UPSIDE’s innovative work underscores Cargill’s commitment to an inclusive approach to wholesome, sustainable protein that will meet customer and consumer needs now and in the future.”

Meanwhile, Beyond Meat announced it would lay off 19% of staff last month, and retail sales in the plant-based meat industry overall have dropped 10% in the past year.

More on lab-grown meat :

Beyond Meat Faces Lawsuit Over False Protein Content and Quality Claims
Hoxton Farms Raises $22 Million for Cultivated Animal Fat

Tyson Ventures Invests in Food Safety Testing Firm Clear Labs

Thu, 22 Sep 2022 04:17:20 GMT

Tyson Ventures has already made splashes buying stakes in alternative protein companies. Now, the venture capital arm of giant Tyson Foods Inc. is betting the meat industry will beef up its food-safety platforms.

The unit is investing in Clear Labs Inc., a food safety testing company that uses a robotic platform to detect pathogens like salmonella. The technology shortens turnaround times of current methods to 24 hours from three-to-five days. It’s Tyson’s first investment in the food-safety space, and likely not the last, said Reese Schroeder, managing director at Tyson Ventures.

Companies like Tyson use microbiology labs to test large volumes of raw-meat samples and other foods from processing plants along with equipment to ensure nothing contains food-upoisoning culprits like E. coli before entering commerce.

“If all goes as planned, this will be in lab settings and help us do that better, faster and more accurately,” Schroeder said. “We worked closely with our microbiology lab in evaluating companies, and this was a good first choice for a first investment in food safety.”

Tyson Ventures is looking to make investments in areas including innovative protein products, disruptive delivery channels, emerging brands and categories, and operations enhancements including food safety and sustainability, Schroeder said.

The venture capital fund made headlines as one of the first meat companies to invest in alternative proteins. It has stakes in plant-based burger firm Beyond Meat, and cultured meat companies Memphis Meats and Future Meat Technologies.

The terms of the deal aren’t being disclosed.

“Not Guilty” – Chicken Price-Fixing Trial Ends

Fri, 08 Jul 2022 15:41:45 GMT

The verdict is in and the five chicken industry executives on trial for conspiracy and bid rigging from 2012 to 2019 were acquitted by a jury in Denver federal court, Bloomberg reports . The verdict comes after two mistrials were declared when previous juries could not reach a decision. The decision was announced Thursday after more than a day of deliberations.

The verdict is considered a stinging defeat for Department of Justice prosecutors who moved forward with the case despite the two previous failures by narrowing their focus from 10 individuals to five. Acquitted in the case were former Pilgrim’s Pride Corp. chief executive officers Jayson Penn and William Lovette; Roger Austin, a former Pilgrim’s vice president; Mikell Fries, president of Claxton Poultry; and Scott Brady, a Claxton vice president.

Each defendant faced the possibility of a 10-year prison sentence and million-dollar fines if convicted.

When the DOJ announced it would pursue a third trial, US District Judge Philip Brimmer summoned Jonathan Kanter, the head of DOJ’s Antitrust Division, to Denver in April to explain why, after two hung juries, the government believed it could still win convictions.

“We know that the evidence couldn’t persuade 12 people,” a skeptical Brimmer told Kanter at the time. “We’ve seen it happen twice.”

“This case should never have been brought,” Bloomberg quoted Penn’s attorney, Michael Tubach, as saying after Thursday’s verdict.

The Justice Department issued a statement calling the verdict “disappointing,” but said “we will continue to vigorously enforce the antitrust laws, especially when it comes to price-fixing schemes that affect core staples. We will not be deterred from continuing to vigilantly pursue cases to protect the American people and our markets.”

Charges were first filed in the summer of 2021 after a years-long federal investigation that targeted the biggest producers in the $95 billion chicken market. Tyson said in 2020 it was cooperating with the investigation and cited a government policy that grants leniency to companies that are the first to disclose illegal price-fixing.

Longtime Pilgrim’s Pride employee Robert Bryant testified at all three trials for the government, claiming an industry-wide agreement to share price and bid information to inflate profits or limit losses, given specific market conditions.

Testifying under a grant of immunity from prosecution, Bryant admitted on cross-examination that he had lied to the FBI “multiple times” on matters unrelated to the price-fixing investigation.

Related stories:

Pilgrim’s Pride Agrees To $110 Million Price-Fixing Fine

Second Mistrial In Poultry Price-Fixing Case

Tyson Cooperating With DOJ In Broiler Probe

Second Mistrial In Poultry Price-Fixing Case

Thu, 31 Mar 2022 19:37:42 GMT

The U.S. Justice Department has tried and failed twice in its efforts to prove price-fixing among chicken industry executives.

A federal judge in Denver has declared a second mistrial after a jury deadlocked over whether 10 chicken company executives had conspired to fix prices. The first trial ended in December 2021.

U.S. District Judge Philip Brimmer ended the case on March 29 after jurors said they were unable to reach a verdict after four days of deliberations. The 10 executives had worked for Pilgrim’s Pride Corp., Perdue Farms LLC, Claxton Poultry, Tyson Foods Inc., Koch Foods Inc., Case Farms and George’s Inc.

The DOJ alleged the executives engaged “…in a continuing combination and conspiracy to suppress and eliminate competition by rigging bids and fixing prices and other price-related terms for broiler chicken products sold in the United States.”

Should the government seek a third trial as they have indicated, Judge Brimmer is demanding an explanation from the head of the DOJ’s Antitrust Division, Assistant Attorney General Jonathan Kanter.

“I am going to order that the head of the antitrust division come in here within the next week and look me in the eye and explain to me why the government is going to retry this case,” Brimmer said Tuesday according to a Bloomberg report.

“If the government thinks that the 10 defendants and their attorneys and my staff and another group of jurors should spend six weeks retrying this case after the government has failed in two attempts to convict even one defendant, then certainly Mr. Kanter has the time to come to Denver and explain to me why the Department of Justice thinks that that is an appropriate thing to do,” Brimmer said.

The DOJ had alleged an eight-year conspiracy to fix prices, but the two mistrials suggest the difficulty in government efforts to police competition in food markets. The men had faced up to 10 years in prison and $1 million fines if convicted.

Jurors in both trials heard from Robert Bryant, a longtime Pilgrim’s Pride employee who’s currently on leave. As the government’s star witness, Bryant testified an industry-wide agreement existed to share price and bid information to inflate profits or limit losses, depending on the market.

Undermining Bryant’s testimony was the fact he appeared under grant of immunity from prosecution as he admitted that he had lied to the FBI “multiple times” on matters unrelated to the price-fixing probe.

Another prosecution witness was Tyson sales manager Carl Pepper, who told jurors about coordinating prices among the competitors.

Lawyers for the defendants argued that both men had lied to avoid prison. The defense argued that it’s not illegal simply to share pricing information and that the government can’t prove that the defendants all agreed to participate in a single, overarching conspiracy.

Related stories:

Judge Declares Mistrial In Chicken Antitrust Case

2019 Meat Production and Consumption

Thu, 28 Oct 2021 17:37:53 GMT

Total 2019 meat production in the U.S. is currently projected to reach another record level of 103.3 billion pounds, up 1.3 percent year over year. However, per capita meat consumption may decrease slightly to 217.3 pounds from the 2018 level of 218.6 pounds. The decrease in per capita meat consumption reflects improved meat trade with projected decreases in meat imports and increased meat exports along with normal population growth. Total 2019 meat imports are projected to decrease to 4.3 billion pounds, the lowest since 2013, with record meat exports of 17.4 billion pounds. Total meat includes beef, pork, broiler, turkey, other chicken, veal and lamb.

Record per capita meat consumption occurred in 2004 at 221.9 pounds. At that time lower population, higher meat imports, and meat exports less than half of today’s level were sufficient to increase per capita consumption despite lower total meat production in 2004 which, at 85.1 billion pounds, was 17.6 percent smaller than today.

Beef production in 2019 is projected to increase to another record at 27.2 billion pounds, up about 1.1 percent over last year. Weather impacts are holding carcass weights well below year ago levels so far this year and annual average carcass weights are projected to only increase slightly year over year. Cattle slaughter is projected to increase about one percent year over year. With beef imports projected to decrease and beef exports expected to increase again in 2019, per capita beef consumption is expected to decrease to 56.8 pounds (retail basis), down from 57.1 pounds one year ago.

The March Hogs and Pigs report from USDA-NASS showed continued growth in the U.S. pork industry with year over year increases in all hog, breeding hog and market hog inventories. Pork production in 2019 is projected to increase about 2.9 percent to 27.1 billion pounds. Per capita pork consumption is expected to increase slightly from last year to 51.0 pounds per capita. An improved pork trade balance is projected with year over year decreases in pork imports and significant increases in pork exports. Higher projected pork exports are partly due to anticipated increases in pork imports in China as a result of losses in Chinese pork production due to African Swine Fever.

Broiler production estimates have been trimmed from earlier expectations with current projections of a 1.1 percent increase in broiler production in 2019 to 42.6 billion pounds. Per capita broiler consumption is projected to decrease fractionally year over year to 92.0 pounds in 2019 with increased broiler exports taking up most of the increase in production. Turkey production and consumption are both projected to decrease in 2019. Total poultry, including broiler, turkey and other chicken production is projected to be fractionally higher in 2019.

These projections reflect estimates and analysis by the Livestock Marketing Information Center and me. Of course, the estimates are likely to change as market conditions change and new information becomes available. Many factors may impact meat production and consumption this year including weather, disease, trade, U.S. and global macroeconomic conditions, feed markets and others.

Tyson Foods Raises Prices, Scrambles to Keep Up with Inflation

Mon, 09 Aug 2021 18:04:00 GMT

Tyson Foods Inc cannot increase prices for chicken and prepared foods fast enough to keep pace with rising costs for raw materials like grain, Chief Executive Donnie King said on Monday, after the company reported higher-than-expected quarterly earnings.

The meat company lifted its 2021 revenue forecast due to strong beef demand as sales of steaks and burgers from U.S. restaurants and hotels recovered following the easing of COVID-19 restrictions. U.S. beef exports are also robust.

But costs are also increasing, a potential drag on future earnings.

Tyson has increased prices for restaurant customers to offset inflation and plans to raise retail prices on Sept. 5, King said on a conference call with analysts. More increases are planned, he said.

“Costs are hitting us faster than we can get pricing at this point,” King said.

Branded and value-added products are particularly affected by inflation, which reached 14% in the quarter ended on July 3, he said.

“We’ve seen unprecedented and accelerating inflation, and we’re trying to catch up with that,” King told reporters.

Tyson increased its average price for pork by 39.3% in the last quarter, while it raised beef and chicken prices 11.6% and 15.6% respectively. Sales volumes also increased.

Total quarterly sales climbed to $12.48 billion from $10.02 billion a year earlier, topping analysts’ estimates for $11.49 billion.

Net income attributable to Tyson increased to $2.05 per share from $1.44 a year earlier. On an adjusted basis, Tyson earned $2.70 per share, crushing estimates of $1.62, according to IBES data from Refinitiv.

The Jimmy Dean hotdogs maker said it expects total sales of about $46 billion to $47 billion for fiscal 2021, compared with an earlier forecast of $44 billion to $46 billion.

The company, which is mandating COVID-19 vaccinations for U.S. employees, said rising coronavirus cases have made it harder to find workers. “We were on a good trajectory and then the Delta variant showed up,” King said.

(Reporting by Praveen Paramasivam in Bengaluru and Tom Polansek in Chicago, Editing by Sherry Jacob-Phillips, Chizu Nomiyama and Steve Orlofsky)

Pilgrim's Proposes $75 Million Chicken Price-Fixing Settlement

Mon, 11 Jan 2021 17:31:14 GMT

Pilgrim’s Pride Corp., the nation’s second-largest U.S. chicken processor, said it has reached a settlement to pay $75 million to a group of poultry buyers in a price-fixing lawsuit. The announcement was made in a filing with the Securities & Exchange Commission Monday (Jan. 11, 2021).

The proposed settlement, which must be approved by the court, would be the largest in a four-year legal battle over alleged collusion among the major chicken companies that dominate the $65 billion U.S. chicken industry. In October, Pilgrim’s agreed to pay a $110.5 million penalty in the Justice Department’s criminal price-fixing case. Lawsuits filed individually by major supermarket and restaurant chains remain outstanding, the company said.

Last year the U.S. Department of Justice filed criminal price-fixing and bid-rigging charges against 10 poultry-industry executives, including two former chief executives of Pilgrim’s. The defendants have pleaded not guilty. Other price-fixing allegations have been made in lawsuits involving the beef and pork processing industries.

“While Pilgrim’s does not admit any liability for the claims alleged in the ‘Broiler Antitrust Civil Litigation,’ it believes a settlement was in the best interests of the company and its shareholders,” the company said in a news release.

Chicken buyers, through their attorneys, have alleged that Pilgrim’s, Tyson Foods, Inc., Sanderson Farms, Inc., and perdue Farms, Inc., all kept tabs on each other’s operations through an industry benchmarking service and coordinated submissions to a chicken pricing index in an effort to keep chicken prices artificially high. The companies deny the allegations, arguing higher grain costs and growing demand for chicken led to the higher prices.

In the criminal complaint, the Justice Department has alleged that senior chicken-industry executives exchanged details of prices they planned to submit to major fast-food chains, sharing details on competitor’s activity through text messages and phone calls.

Pilgrim’s Pride, which produces 20% of U.S. chicken, is headquartered in Greeley, Colo., has 37,000 employees and reported $10.7 billion in 2017 revenue. JBS USA Holdings owns 78% of Pilgrim’s Pride.

Pilgrim’s Pride Agrees To $110 Million Price-Fixing Fine

Fri, 20 Nov 2020 05:57:18 GMT

In a statement issued Oct. 14, Pilgrim’s Pride Corp. says it has agreed to pay a $110 million fine in a plea agreement with the U.S. Department of Justice (DOJ) Antitrust Division.

The plea agreement was made regarding the DOJ’s investigation into the sales of broiler chicken products in the U.S. and is subject to approval of the U.S. District Court of Colorado. The statement said, “Pilgrim’s and the Antitrust Division agreed to a fine of $110,524,140 for restraint of competition that affected three contracts for the sale of chicken products to one customer in the United States.”

The agreement ends the investigation into Pilgrim’s Pride for its role in alleged wide-ranging schemes to fix prices in the broiler market that has ensnarled several companies in multiple lawsuits. The agreement also does not recommend a monitor, any restitution or probationary period, and provides the DOJ will not bring additional charges against Pilgrim’s Pride in this matte, all contingent upon the company complying with the terms and provisions of the agreement.

“Pilgrim’s is committed to fair and honest competition in compliance with U.S. antitrust laws,” said Fabio Sandri, Pilgrim’s CEO. “We are encouraged that today’s agreement concludes the Antitrust Division’s investigation into Pilgrim’s, providing certainty regarding this matter to our team members, suppliers, customers and shareholders.”

Previously, the DOJ has announced indictments against 10 chicken company executives alleging price-fixing and bid-rigging for broiler chicken products. Included in those indictments were Pilgrim’s Pride CEO Jayson Penn, former CEO William Lovette, and former Pilgrim’s Pride vice president Roger Austin.

On September 23, 2020, Pilgrim’s Pride announced the appointment of Fabio Sandri as CEO, replacing Jayson Penn.

Pilgrim’s Pride, which produces 20% of U.S. chicken, is headquartered in Greeley, Colo., has 37,000 employees and reported $10.7 billion in 2017 revenue. JBS USA Holdings owns 78% of Pilgrim’s Pride.

Related stories:

New Indictments In DOJ Chicken Price-Fixing Probe

DOJ Alleges Price Fixing Conspiracy

Tyson Foods on the Hunt for Acquisitions

Fri, 20 Nov 2020 05:49:14 GMT

(Bloomberg) -- Tyson Foods Inc. is hungry for more deals.

The largest U.S. meatpacker is looking to acquire companies that would boost its food brands and geographic reach, Chief Executive Officer Tom Hayes said in an interview at the World Economic Forum’s annual meeting in Davos, Switzerland, last week. It also has an eye on expanding its international footprint by adding operations and increasing U.S. exports.

“If we can find those that are bolt-on to our current system that gives us more capacity in a growing category, that’s great,” Hayes said. However, valuations have been “very high,” forcing Tyson to take a cautious approach, he said.

While Tyson remains among the largest domestic processors of chicken, pork and beef, its recent acquisitions have been centered on prepared foods. Hayes, who’s been at the helm for about year, wants to continue the trend with a goal of transforming the commodity giant primarily linked with chicken into a “modern food company,” he said.

U.S. mergers and acquisitions may hit a record high this year amid the recent tax reform, according to a recent report from Bank of America Merrill Lynch. Hayes said the tax changes are “very positive” for Tyson and may save the company more than $300 million, some of which it will use to boost capital expenditures.

Last year, Tyson purchased sandwich maker AdvancePierre Foods Holdings Inc. for about $4 billion, its largest acquisition since the 2014 takeover of Hillshire Brands Co., and also bought Original Philly Cheesesteak Co. for an undisclosed sum. Tyson also recently boosted its stake in Beyond Meat, a plant-based burger manufacturer.

Hayes cited a recent surge in U.S. meat production as one of the challenges for the year ahead, as the larger supply suppresses prices. American output of red meat and poultry is expected to reach a record in 2018, topping 100 billion pounds for the first time ever, government estimates show. It’s also getting tougher to attract workers, and Tyson has boosted wages and is looking at more ways to use automation and robotics in its plants.

“The labor market will get tighter,” Hayes said. “That’s exactly the reason we need to be spending more money on innovation. Technology is going to play a critical role.”

Meanwhile, Tyson Foods Inc. is boosting its bet on meat that comes from the lab instead of the slaughterhouse.

The company’s venture capital arm has invested in Memphis Meats Inc., a company that produces cultured meat without raising livestock or poultry, Tyson said in a statement on Monday. It didn’t announce the terms of the deal.

Springdale, Arkansas-based Tyson has already put money into Beyond Meat, a U.S. company known for its plant-based burgers, part of strategic shift for Tyson, which is the country’s largest meat processor.

©2018 Bloomberg L.P.

Brazil's Tainted-Meat Probe Leaves World Hungry for Chicken

Fri, 20 Nov 2020 05:48:23 GMT

Where’s the chicken? That’s the question a number of the world’s biggest poultry importers could find themselves asking after slapping bans on shipments from Brazil, the world’s No. 1 supplier.

A food-safety probe against some of the biggest Brazilian meat companies has prompted countries from China to South Africa to Mexico to place restrictions on shipments from the South American nation. That may leave a major hole in the world chicken trade since Brazil accounts for about 40 percent of global exports.

What’s worse, Brazil’s meat scandal is coming at a time when avian influenza has surfaced in the U.S., the second-biggest exporter of broiler chicken-meat. With nations including South Korea placing limits on American imports, the world could be left hungry for chicken if competitors can’t fill the void.

“It’s hard to say which country could fully replace a giant as Brazil in the world chicken market with the U.S. affected by bird flu,” Jose Vicente Ferraz, a director at Informa Economics Group-FNP in Brazil, said in a telephone interview from Sao Paulo. “I would venture to say there’s no country able to do that at the moment.”

Brazil was expected to increase its share of the global trade this year. Untouched by bird flu, demand for its products surged after outbreaks of the virus in Asia, Europe and the U.S. China was expected to be the leading growth market, the U.S. Department of Agriculture said in October. Instead, the tainted-meat scandal could mean damage to the country’s image as a premier meat supplier, Brazil’s Trade Minister Marcos Pereira said.

Weak Flesh

The so-called Weak Flesh probe launched by Brazilian police last week to investigate alleged bribing of federal inspection agents to approve sales and exports even when the meat was spoiled has embroiled food giants BRF SA and JBS SA, the world’s largest meat producer. Shares of both companies, which denied the accusations, have fallen about 10 percent since the probe came out on March 17.

The investigation quickly triggered importing nations to set limits on supplies. China, which combined with Hong Kong is the biggest destination for Brazilian chicken, has suspended meat purchases from the South American country. Saudi Arabia, the No. 2 buyer, ordered new inspections of meat shipments, while the European Union and Japan have also set restrictions. Brazil’s meat exports plunged to $74,000 on Tuesday, compared with the daily average of $63 million, according to trade ministry data, a drop of 99.9 percent.

“The government is trying to show importers that this is an isolated episode, which affects a few plants,” Pereira said. “But, it’s possible that Brazilian meat loses value in world trade. We will work to make it as small as possible.”

In the U.S., several cases of bird flu have been reported this month including in Tennessee and Alabama, one of the largest chicken-producing states. The outbreak has prompted nations including Japan, the world’s No. 1 broiler-meat importer, to place restrictions on shipments from some areas. Together, Brazil and the U.S. make up two-thirds of the global chicken trade. The USDA had forecast exports would reach a record 11.4 million metric tons in 2017, with shipments from Brazil projected to reach 4.4 million tons.

Competing producers are hoping to help fill the void. Argentinean chicken producer Cresta Roja expects Brazil’s woes to help increase its shipments to export markets in Asia, Chief Executive Officer Santiago Perea said in a telephone interview. The boost could help the company reach its target of exporting 25 percent of production by June, up from 15 percent now, he said.

But, smaller exporters may have difficulty competing from a price and volume standpoint, according to Will Sawyer, an Atlanta-based vice president of animal protein at Rabobank International. Cresta Roja produces 260,000 chickens a day. By comparison, BRF slaughters 7 million chickens a day in Brazil. JBS has a processing capacity of 5.7 million chickens a day, according to a presentation on the company’s website.

Reversing Restrictions

The huge supply gap could force importers to lift some of their restrictions on Brazil, said Ferraz of Informa. That’s especially true for buyers where domestic production has dropped amid bird-flu infections, such as China, he said. South Korea has already lifted its restrictions on Brazil’s chicken imports after clarifying that allegations of tainted meat don’t affect the companies which export chicken to the Asian country.

Some importers “may be forced to regionalize bans because their options are narrowing considerably” to assure supplies, Heather Jones, an analyst at Vertical Group in Richmond, Virginia, said in a telephone interview. Countries such as China that imposed bans on all chicken from Brazil and the U.S. may have to create a patchwork of smaller exporters, she said.

There could be a similar squeeze in the global beef market, where Brazil is also the biggest exporter. Production in Australia, another major supplier, has been constrained by drought and ranchers in the country are still working to rebuild herds, while other countries also may not have the sheer volumes of the South American nation.

“We’re hopeful that some countries, particularly those without sufficient production domestically to feed their own people, will realize that their trade policies should be based on science and not politics,” James H. Sumner, president of the Stone Mountain, Georgia-based USA Poultry & Egg Export Council, said in an email. “If not, there could be a lot of hungry people out there.”

Beef or Chicken? Pilgrim’s Pride Weighs Its Next Move

Fri, 20 Nov 2020 05:42:59 GMT

Pilgrim’s Pride Corp. may be ready to strike a big deal, and it has the means to do it.

The U.S. chicken supplier controlled by Brazilian giant JBS SA could be due for its biggest acquisition yet, after dropping out of last year’s bidding war for sausage maker Hillshire Brands Co. The right transaction could help the company branch out as investors speculate the poultry market is hitting its peak, said BB&T Corp.’s Brett Hundley.

Pilgrim’s Pride could move into meat and pork by purchasing brands that Smithfield Foods Inc. may be willing to give up. Private-equity backed AdvancePierre Foods, whose burgers and chicken patties are eaten in school cafeterias, is another option. Or the $5.9 billion company could choose to double down on poultry by acquiring Sanderson Farms Inc.

As recently as February, Pilgrim’s Pride Chief Executive Officer Bill Lovette said the company’s interest in growing through acquisitions “remains very high, very strong.”

“They definitely want to be an acquirer and put some of their balance sheet to work,” Hundley, a Richmond, Virginia- based analyst, said in a phone interview. “The Street wants to see them diversify their platform -- moving into beef, pork, more value-added foods.”

Deal Resources

Sanderson is valued at $1.8 billion, and AdvancePierre is reported to be for sale for about that much. Pilgrim’s Pride has the wherewithal for a takeover of that size even after paying a $1.5 billion special dividend and buying Tyson Foods Inc.’s Mexico unit. Gimme Credit’s Vicki Bryan projects it will have $720 million of free cash flow available for acquisitions, with room to increase debt.

A representative for Greeley, Colorado-based Pilgrim’s Pride declined to comment on the company’s takeover plans.

While Pilgrim’s Pride says consumer demand for chicken will continue rising, some investors see the market topping out and eroding margins. Valued at just 3.9 times Ebitda, Pilgrim’s Pride shares are so cheap that they’re now in the company of beaten-down oil producers, according to data compiled by Bloomberg. Ebitda is an acronym for earnings before interest, taxes, depreciation and amortization.

Bets against the stock have climbed. About 14 percent of Pilgrim’s Pride shares outstanding are sold short, up from 2 percent in October, according to data compiled by Bloomberg and Markit. In a short sale, traders make money by selling borrowed stock and then buying it back after the price falls.

Valuation Gap

One competitor, Tyson, has been diversifying to help offset the cyclicality of chicken production. The Springdale, Arkansas- based company makes Jimmy Dean sausages, Sara Lee deli meats antopd Ball Park hot dogs. It’s valued at about 11 times Ebitda. Sanderson Farms, on the other hand, is still chicken-focused and trades for 3.3 times Ebitda -- even lower than Pilgrim’s Pride.

“To me it screams that you should diversify into more cash-flow stable businesses and more into consumer goods, instead of just being a pure-play in chicken,” Ken Shea, an analyst for Bloomberg Intelligence, said in a phone interview. “That’s why Tyson did what it did.”

Tyson gained those prepared-food brands through its $8.4 billion takeover of Hillshire last year. Pilgrim’s Pride -- with the help of parent JBS, the world’s largest meat producer -- was first to make an unsolicited bid for Hillshire, but Tyson stepped in with a higher offer and won. Pilgrim’s Pride and JBS are instead in the process of buying some Mexican and Brazilian assets from Tyson.

Takeover Candidates

If Pilgrim’s Pride wanted to gain scale in chicken, it could acquire Sanderson Farms. But if diversification is what investors are looking for, then there may be better candidates out there.

“Sanderson Farms is the one everyone’s pointing to because there are fewer and fewer targets left in the space,” Bryan, an analyst for Gimme Credit, said in a phone interview. “I’d like to see them incorporate something in the fresh or organic market niche.”

Hundley of BB&T said some of the Midwestern brands owned by Smithfield would be a good fit for Pilgrim’s Pride, such as John Morrell, Farmland and Armour-Eckrich. Smithfield was acquired in 2013 by Hong Kong-based WH Group Ltd., which could look to divest assets to pay down debt, he said.

There’s also AdvancePierre Foods. Its owner Oaktree Capital is preparing the sandwich supplier for a sale that could value it at more than $2 billion, including debt, according to a Reuters report in February.

“It’s an attractive asset, and it also has further margin improvement opportunities,” Hundley said. “We don’t think private equity has unlocked” the full potential.

Kraft Complications

While Oscar Mayer cold cuts are probably on Pilgrim’s Pride’s wish list, Kraft Foods Group Inc. is unlikely to sell that line because it’s “one of the few bright spots in Kraft’s portfolio,” he said. Kraft’s planned merger with H.J. Heinz, the ketchup maker controlled by 3G Capital and Warren Buffett’s Berkshire Hathaway Inc., could also complicate any deal.

With the backing of JBS and having just paid a large dividend, Pilgrim’s Pride can afford to be picky for the moment, Bryan of Gimme Credit said. After all, takeover targets within the industry may be pricey right now because of the high amount of food assets changing hands.

There were $69 billion of food acquisitions last year, preceded by a record $89 billion in 2013, data compiled by Bloomberg show. Of the major transactions, Tyson’s Hillshire purchase was one of the most expensive, at almost 19 times Ebitda.

“Pilgrim’s Pride has substantial capacity to make sizable acquisitions,” Bryan said. “But they’re not going to overpay. They’re smart.”

Big Birds Are So 2017. The Money Is Now in Smaller, Tender Chicken

Fri, 20 Nov 2020 05:22:17 GMT

Some chicken companies are doing well despite recent rock-bottom prices. Others are facing losses. A lot of it comes down to the size of the bird they’re hawking.

A decades-long trend of increasing chicken size has come to a halt, according to JPMorgan Chase & Co. Big birds -- of nine pounds or more -- are more often plagued by so-called woody breast, a big turn-off for chicken lovers because it makes meat unusually tough. Prices of breast meat from those animals fell to record lows late last year and have only just started to recover.

“Bird weights kind of hit a wall because of woody breast and also some customer concerns about weighing counts and boxes,” Sanderson Farms Inc. Chief Executive Officer Joe Sanderson Jr. said Tuesday. “You also have employee concerns about handling bigger chickens.”

In 2017, items like boneless chicken wings made from breast and jumbo wings were popular. Prices for breast soared to a multi-year high. Then in 2018, retailers and restaurants stopped featuring chicken, preferring beef and pork, and prices crashed.

Now, even the mid-sized bird -- four to six pounds -- are getting a lift. This is what consumers buy in grocery stores, also known as the tray-pack bird. Prices were up 1.4 percent over the prior year in the three months ended Jan. 31, according to Sanderson Farms.

Tray-pack birds are doing well because consumers got used to buying more chicken at grocery stores post-2008, during the recession, and never really looked back, Sanderson said in an interview. Americans “have more money now but they have not gone back to restaurants like they were prior to the recession.”

Meanwhile, small birds of around four pounds are destined for the fast-food business, and they’re hot commodities. Selling into this segment is helping chicken companies boost profits, Sanderson Farms Chief Financial Officer Michael Cockrell said.

The Laurel, Mississippi-based company has seven “big-bird deboning” plants and five tray-pack plants. Much of the industry is making a profit, with only a small slice losing money.

Pilgrim’s Pride Corp. said earlier this month that its diversity in bird sizes is what’s lifting them in a tough market. Sanderson Farms reported a quarterly net loss on Tuesday that was narrower than analyst expectations.

Chicken Slaughter Gets Makeover as Perdue Addresses Welfare

Fri, 13 Nov 2020 02:20:43 GMT

Perdue Farms Inc., known for its namesake chicken brand, is rolling out gentler slaughter practices as part of its efforts to reduce trauma and discomfort for birds.

The company will increase its use of gas stunning, according to the first annual progress report on animal care released by Perdue on Monday. The process exposes birds to a gas mixture that renders them insensible to pain or distress before slaughter.

It’s the latest step in the poultry industry’s campaign to respond to consumers, especially Millennials, who are increasingly concerned about animal welfare. The Salisbury, Maryland-based company, the fourth-largest U.S. chicken producer, is pushing for better poultry care, improved relationships with its contract farmers and transparency with consumers, according to Chairman Jim Perdue.

“There are a lot of reasons for us to move forward on better care,” Perdue, whose grandfather started the company in 1920, said in a telephone interview. “It’s good for the chicken, farmer and the meat.”

The company will introduce the gas stunning at a Delaware chicken plant in November and gradually implement it in all its facilities. The process is already used at its turkey plant in Indiana.

Animal Treatment

Discerning consumers are rapidly leaving their mark on U.S. agriculture, whether it’s through surging demand for organic products, increasing focus on food that’s considered sustainable, or greater attention on animal treatment. The poultry industry has come under fire after reports from activist groups in recent years highlighted poor conditions for both animals and employees. Last month, Tyson Foods Inc., the largest U.S. chicken producer, introduced a series of measures to make its operations more humane.

Perdue has made several other recent changes to address bird welfare, adding more space, daytime light, windows in chicken houses, dark resting time and physical activity. The company has introduced incentives for farmers who adopt the practices.

“Not only is it the right thing to do for the birds, but it’s the right thing to do for the business, given the certain direction of the market,” Leah Garces, the U.S. executive director of Compassion in World Farming, said in a statement. Perdue’s efforts will put pressure on other poultry producers to do the same, Josh Balk, vice president of farm animal protection at the Humane Society of the U.S., said in a a telephone interview.

Perdue is also continuing to study slower growing birds. The industry has been criticized for producing fast growing big birds with disproportionate top half for white meat. Some animal welfare groups have filmed birds that can’t walk under their weight because of faster growing.

While less than 1 percent of Perdue’s birds are breeds considered slower growing, the company has been studying them for five years, evaluating health, growth rate, feed efficiency and meat quality, according to Bruce Stewart-Brown, Perdue’s senior vice president of food safety, quality and live production. The so-called woody breast texture problem that’s appeared in some chicken meat doesn’t show up in slower-growing birds, and chefs say birds raised for longer offer enhanced flavor, particularly in broths, he said.

Iowa Experts Warn of Water Contamination

Fri, 13 Nov 2020 02:19:31 GMT

Fremont, Neb. area water utilities appear prepared to handle any contamination from a proposed Costco chicken plant, but water experts urge residents not to let their guard down.

The Omaha World-Herald reports Costco is looking to create a slaughterhouse in Fremont and develop a regional poultry farming network to provide chicken to its stores. The retail giant plans to contract with farms to raise around 17 million chickens at a time.

Opponents of the project have warned about possible resulting water contamination. They point to areas in southeastern United States with similar projects, where chicken manure gets into waterways, killing marine life and threatening businesses.

Des Moines Water Works CEO Bill Stowe says there should be a balance of economic growth and environmental issues “because the water is precious.”

Tyson Announces Plans for New Arkansas Facility

Fri, 13 Nov 2020 02:16:34 GMT

Tyson Foods Inc. has announced a proposal to build a new processing facility near its existing poultry plant in Green Forest, Ark.

The Springdale-based company says the $136 million project is contingent in part on the approval of incentives from Carroll County and the Arkansas Economic Development Commission. The company says the project would create about 85 jobs once it’s fully operational.

The existing Green Forest plant now makes partially cooked chicken products — such as chicken nuggets — and it employs more than 1,250 people. Tyson says the new facility would help the plant increase its capacity.

Tyson proposes to build the new facility across the street from the existing plant. Construction could begin as early as the summer for the project, which would be completed by late 2017.