Milling & Baking News Corporate Profiles - October 2011 - (Page 48)

Meat and Poultry and soybean meal increased 19% when compared with the nine months ended July 31, 2010. The Rabobank report said the U.S. broiler industry is suffering some of its worst losses in history. “The industry has expanded at a time when demand has been softening due to the weak economy,” Rabobank said. “As breast meat is mainly a domestic product, low breast meat prices are the primary culprit in this debacle.” With breast meat inventories hitting record levels this past summer, the season when demand typically peaks and cold storage inventories typically decline, Rabobank predicted that poultry processors will have to make larger production cuts in order to return to profitability. “Barring further market dislocation, we believe that the industry can return to profitability some time next spring, but only if the more aggressive cutbacks we expect actually take place,” Rabobank said. “Perversely, the industry needs to expect losses to continue in order to get them to stop.” Pork finds a middle ground While the beef and chicken businesses But Rabobank sees trouble on the horizon. “The deterioration in U.S. corn crop conditions, which has led to higher corn unit sales by brand bran nd prices, has caused deterioration in the Jimmy Dean ean 78,392,200 (pork) outlook,” Rabobank said. “This Bob Evans 30,896,600 ans 30 896 600 a in turn has led to an increase in sow Johnsonville 28,018,070 ille slaughter, a sign of herd liquidation and 18,747,590 Farmer John potentially reduced pork output. “While this needs to be set against Tennessee Pride ride id 16,6 16,612,520 61 continued productivity gains, we believe Eckrich Smok-Y-Links nks k 6,670,03 6,67 6,670,033 that pork production will remain subdued Taylor’s or’s 4,72 4,723,133 and show modest declines in the course 4,673,044 Jennie-O Turkey Store of 2012.” Owens ens 4,39 4,390,616 9 Adding to domestic pressure will be Private label 36,667,100 the prospects for the export of U.S. pork. Source: SymphonyIRI Third-quarter U.S. pork exports were Private label 652,695,200 projected to be 1.2 billion lbs, more are struggling with their respective than 26% above a year ago, according to supply situations, pork processors the U.S.D.A. Fourth-quarter exports are find themselves in a relatively strong forecast at 1.3 billion lbs, an increase position. In the third quarter of 2011 of more than 13% over fourth quarter pork production is expected to be nearly 2010. Total exports this year are expected 5.5 billion lbs, about 1% higher than to reach 4.95 billion lbs. Total exports in 2012 are forecast at the previous year, according to the E.R.S. Fourth-quarter pork production is 5.135 billion lbs, an increase of almost projected to be 6.1 billion lbs, 1% below 4%. Although still robust, the growth rate the same period last year. For the first two of 2012 exports is expected to moderate quarters of calendar 2012, the U.S.D.A. compared with 2011 as Asian pork is forecasting production to be 5.7 billion supplies rebound from production declines due to disease problems, the E.R.S. said. CP lbs and 5.4 billion lbs, respectively. Leading refrigerated breakfast sausage/ham g / LEADING REFRIGERATED BREAKFAST sausage/ham vendors Dollar sales Sara Lee Food & Beverage $275,249,500 Bob Evans Farms, Inc. $121,432,200 Johnsonville Sausage L.L.C. $93,110,260 Odom’s Tennessee Pride Sausage, Inc. $53,158,160 Clougherty Packaging Co, Inc. $28,700,000 Armour-Eckrich Meats L.L.C. $18,778,440 Jennie-O Turkey Store $17,867,110 Taylor Provisions Co. $16,950,780 Hatfield Quality Meats, Inc. $16,844,880 Private label $99,648,950 Total $995,958,800 LEADING REFRIGERATED BREAKFAST % change from year ago 12.8% -1.0% 20.8% 6.0% 9.2% 2.3% 8.0% -10.0% 2.4% 20.8% 8.6% sausage/ham brands Jimmy Dean Bob Evans Johnsonville Tennessee Pride Farmer John Jennie-O Turkey Store Eckrich Smok-Y-Links Taylor’s Owens Private label Total Dollar sales $268,215,300 $115,029,400 $93,110,260 $51,960,410 $28,700,000 $17,865,970 $17,220,690 $16,912,090 $16,751,150 $99,648,950 $995,958,800 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 % change from year ago 13.5% -0.8% 20.8% 6.0% 9.2% 8.0% -4.8% -10.1% -15.8% 20.8% 8.6% Data for 52 weeks ended Aug. 7, 2011 Total U.S. - Supermarkets, Drugstores and Mass Merchandisers excluding Wal-Mart Source: SymphonyIRI 48 \ October 2011 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry Corporate Proﬁles

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Milling & Baking News Corporate Profiles - October 2011