In this file:
· Swine fever takes toll on profit at Chinese pork giant WH Group
WH Group on Tuesday reported a 16.9% fall in first-half profit as higher meat prices due to a devastating hog disease hurt margins at the world’s top pork processor...
· WH Group looks for markets to import pork amid epidemic
… the world's largest pork company, is looking for newer markets to source pork even as its U.S. subsidiary is faced with a surplus of livestock and raw meat…
· Media Release: Smithfield Foods Launches Plant-Based Protein Portfolio Under Pure Farmland™ Brand
· Missouri Hog Farm Supplies Renewable Natural Gas to City of Milan
Swine fever takes toll on profit at Chinese pork giant WH Group
by Dominique Patton, Reuters
August 13, 2019
BEIJING, Aug 13 (Reuters) - China’s WH Group on Tuesday reported a 16.9% fall in first-half profit as higher meat prices due to a devastating hog disease hurt margins at the world’s top pork processor.
Profit attributable to owners of the company, before biological fair value adjustments, came to $463 million compared with $557 million a year earlier, while operating profit fell 11.8% to $765 million.
African swine fever, which has swept across China over the past year, is fatal to pigs but does not harm people. China’s pig herd - the world’s largest - shrank 25.8% in June compared with the same month a year earlier due to the disease, while the sow herd shrank 26.7%, according to official data. Many believe losses are more than twice that number, however.
“We anticipate the greatest challenge in China is the continuously soaring hog prices as a result of growing supply shortages, which will push down our packaged meats margin,” the company said in a statement.
Live pig prices have climbed strongly since mid-June and in some areas, such as populous Guangdong province in the south, they have doubled since April JCI-HOG-GDONG to almost 28 yuan ($3.96)a kg.
WH Group said that sales of packaged meats in China were flat as the consumer market slowed and the firm raised prices.
But operating profits from the segment declined substantially as pork and chicken costs rose, and the company spent more on marketing.
In Europe, higher costs also reduced the benefit from stronger sales but a push to higher value products in the United States saw a strong gain in profits…
WH Group looks for markets to import pork amid epidemic
Company posts decline in first-half profit amid swine flu and trade war
Benny Kung & Lopamudra Bhattacharya, Nikkei Asian Review
August 13, 2019
HONG KONG (Nikkei Markets) -- With the Sino-American trade war in its way, WH Group, the world's largest pork company, is looking for newer markets to source pork even as its U.S. subsidiary is faced with a surplus of livestock and raw meat.
The problem facing the company is unique. In China, the world's largest market for pork, an outbreak of the African swine fever has over the past year affected the population of hogs and raw meat availability at WH Group's facilities. In the U.S., the second-largest market, there is a surplus of livestock and meat but not enough demand. While WH Group has been importing pork from its American unit Smithfield Foods, the tariff war between the world's two largest economies has made an expansion of that trade difficult.
Company officials told reporters at a news conference on Tuesday that WH Group is looking to buy pork from markets other than the U.S. for processing in China, to benefit from an increase in market prices amid a gap in hog population. Europe, South America and Canada are among the potential markets for sourcing pork. The company is also looking to cut costs and improve the product mix to shore up profitability, while making efforts to prevent a further spread of the disease, they said.
"We are trying to increase the pork imports into China," Chairman and Chief Executive Wan Long said in Hong Kong. "We are under some impact from the trade war, but now we have come up with measures to control the impact, as well as the impact brought by African Swine Fever."
More than a million pigs have reportedly been culled in China since swine fever was first detected in China's Liaoning Province in August last year, before swiftly spreading nationwide. While the epidemic initially depressed demand for pork, prices have recovered over the past several months. For WH Group, which makes more money on processed products than on raw meat, the price increase of raw meat, alongside a shortfall in supply, has squeezed profit margins.
Earlier in the day, the company reported a 16.9% drop in first-half net profit to $463 million as costs increased while revenue fell marginally to $11.13 billion. Operating profit from the company's packaged meats segment, which accounted for 52.9% of the group's revenue, dropped 3.4% on rising raw material costs in China.
WH Group imports around 100,000 tons of pork a year into China from the U.S., according to company officials. The meat is mostly used for processing packaged meats.
Total pork production in China declined 5.5% in the first half, mainly because of the "overlay effect of the cyclical factor and the outbreak of African swine fever," the company said.
Hong Kong-headquartered WH Group, which began its journey about five decades ago in China as Luohe Cold Storage, adopted its current name in 2014 following its Smithfield acquisition.
In the six months ended June, the company earned about 57.9% of its revenue from the U.S. and 33.7% from China, with Europe contributing the rest. Operations in the mainland were more profitable, bringing in more than 55% of its operating profit, while U.S. operations contributed 38.4%.
While WH Group has raised the prices of finished product by a total of around 10% in the first half of this year, company officials said they will be circumspect in lifting prices any further in the second half...
Smithfield Foods Launches Plant-Based Protein Portfolio Under Pure Farmland™ Brand
New Meat-Alternative Products Hitting Shelves in September
Source: Smithfield Foods
via Globe Newswire - August 12, 2019
SMITHFIELD, Va., Aug. 12, 2019 (GLOBE NEWSWIRE) -- Smithfield Foods, Inc. today announced that it is launching a plant-based protein portfolio under the company’s Pure Farmland™ brand. The new line comes in a variety of breakfast patties, meatballs, burger patties, and pre-seasoned protein starters to help consumers grow their plant-based protein options for all meal occasions, including breakfast, lunch, dinner, and appetizers.
The brand-new Pure Farmland soy-based line features eight fresh, versatile, juicy, and flavorful products. Proudly crafted in the USA, all items are made with natural flavors, are gluten and dairy free, and serve as a good source of protein. Given that soy is a complete protein, it provides levels of all essential amino acids that many other plant proteins do not provide.
Pure Farmland products cater to those who choose a “flexitarian” eating style, in which they are actively trying to consume less meat in their diets. In the past, consumers have had to compromise on taste when choosing meat alternatives, but, with Pure Farmland, consumers can enjoy plant-based protein that fits easily into their favorite dishes, without sacrificing flavor.
The new Pure Farmland items include:
· Simply Seasoned Plant-Based Burger Patties
· Plant-Based Burger Patties with Dairy Free Cheddar Alternative
· Homestyle Plant-Based Meatballs
· Italian Style Plant-Based Meatballs with Dairy Free Parmesan Alternative
· Savory Original Plant-Based Breakfast Patties
· Maple Plant-Based Breakfast Patties
· Simply Seasoned Plant-Based Protein Starters
· Mild Italian Style Plant-Based Protein Starters
“We’re thrilled to announce the launch of this new product portfolio under our Pure Farmland brand. We’ve been exploring the alternative protein space, and have taken our time to get it right,” said John Pauley, Chief Commercial Officer for Smithfield Foods. “With this launch, we are bringing together our expertise in creating market-leading food products, our organizational commitment to sustainability, and our deep understanding of ‘flexitarian’ consumers, to deliver a broad variety of flavorful plant-based protein choices that consumers want and can afford at a great value.”
Offered in sustainable packaging with trays made from more than 50% recycled material, Pure Farmland has committed to empower local farmers and farms by partnering with the American Farmland Trust. With every package sold, the brand pledges to donate the cost of protecting one square foot of farmland. These donations will help the American Farmland Trust continue to further its mission of not only protecting the nation’s farm and ranch land, but also promoting sound farming practices and supporting farmers.
Pure Farmland plant-based protein products will be available in the fresh, refrigerated sections of grocery retailers nationwide in mid-September. For more information, visit www.Pure-Farmland.com.
About Pure Farmland™
Pure Farmland™ is a maker of high-quality, plant-based protein products, such as breakfast patties, burger patties, meatballs, and pre-seasoned protein starters and serves retail customers. Pure Farmland products are proudly crafted in the USA with soy protein, coconut oil, natural flavors, are gluten and dairy free, and serve as a good source of protein. To learn more about Pure Farmland, please visit www.Pure-Farmland.com, and connect with us on Facebook, Instagram and Pinterest. Pure Farmland is a brand of Smithfield Foods.
About Smithfield Foods
Smithfield Foods is a $15 billion global food company and the world's largest pork processor and hog producer. In the United States, the company is also the leader in numerous packaged meats categories with popular brands including Smithfield®, Eckrich®, Nathan’s Famous®, Farmland®, Armour®, Farmer John®, Kretschmar®, John Morrell®, Cook’s®, Gwaltney®, Carando®, Margherita®, Curly’s®, Healthy Ones®, Morliny®, Krakus®, and Berlinki®. Smithfield Foods is committed to providing good food in a responsible way and maintains robust animal care, community involvement, employee safety, environmental, and food safety and quality programs. For more information, visit www.smithfieldfoods.com, and connect with us on Facebook, Twitter, LinkedIn, and Instagram.
About American Farmland Trust
American Farmland Trust is the only national organization that takes a holistic approach to agriculture, focusing on the land itself, the agricultural practices used on that land, and the farmers and ranchers who do the work. AFT launched the conservation agriculture movement and continues to raise public awareness through our No Farms, No Food message. Since our founding in 1980, AFT has helped permanently protect over 6.5 million acres of agricultural lands, advanced environmentally-sound farming practices on millions of additional acres and supported thousands of farm families. Learn more at www.farmland.org.
HUNTER on behalf of Pure Farmland
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/812ae9cf-c782-410a-8d09-1dd049a59885
Missouri Hog Farm Supplies Renewable Natural Gas to City of Milan
A Smithfield “manure-to-energy” project in Missouri
Jennifer Shike, FarmJournal's Pork
August 12, 2019
A low-pressure natural gas transmission line connecting a Smithfield hog farm located in northern Missouri with the city of Milan’s natural gas pipeline is now complete, Smithfield Foods announced. Renewable natural gas produced at the hog farm will be directly injected into the natural gas transmission line flowing into Milan’s natural gas distribution system prior to delivery.
“As we work to expand our ‘manure-to-energy’ projects nationwide, it is inspiring to witness the fruition of our renewable energy efforts in Missouri,” said Kraig Westerbeek, senior director of Smithfield Renewables and Hog Production Environmental Affairs. “We are proud that these efforts allow the locations we call home to contribute to a sustainable energy future while curbing our carbon footprint.”
This project is part of the Monarch Bioenergy joint venture...