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can threaten the very survival of the organization." He says that in the wake of
a security-related incident customers will judge a company on how well it manages the crisis.
The Deloitte study suggests a new approach to traditional risk management,
which too often focuses on responses to a specific operational risk such as threats
to a vessel at sea. Instead a company would build a portfolio of scenarios allowing
it the strategic flexibility to address potential security breaches. To get started, companies need to assess advances in technology that can help them prepare; identify
potential perpetrators and define scenarios regarding how an attack might occur; and
formulate a strategy to deal with the threat in each scenario.
Governments should assume a greater role in offering incentives to the private
sector to invest in security, the study says. Governments also need to ease ill conceived regulations that hinder global trade and impede private security initiatives.
Sharing information is essential, and both sides must overcome long-standing mistrust to make it work. Several public-private partnerships are under way to improve
food safety and security. In Australia, for example, a joint venture tracks individual
animals from birth to slaughter.
"Businesses have the opportunity to turn compliance with new security regulations into business value," says Leamon. "Government can be a facilitator by providing incentives to invest in security and, wherever possible, working to ensure that
multinationals are not forced to comply with incompatible country-specific security
requirements."

E.R.S. raises meat production
forecast
WASHINGTON, D.C. - Total U.S. meat production forecasts for 2004 and 2005
have been raised by the U.S. Dept. of Agriculture's Economic Research Service
in its latest World Agricultural Supply and Demand Estimates report. Meat production forecasts for 2004 are slightly higher because of expected increases
in pork and broiler meat output. Meat production in 2005 is raised 715 million
pounds because of higher pork production as well as expected gains in beef
and broiler meat.
The pork production forecast for 2005 has been raised because the Sept. 24
Quarterly Hogs and Pigs report showed a larger pig crop for the third quarter
of 2004 and also indicated that producers intend to farrow more sows through
February 2005. Favorable forage conditions are expected to lead to more grazing of cattle and larger placements in 2005.
Coupled with heavier cattle weights, beef production in 2005 is forecast higher than last month. Continued strong hatchery data indicate higher expected
broiler meat output in the first quarter of 2005.
Broiler exports in 2004 have also been increased because declining
broiler prices have boosted purchases by markets that had curtailed buying
when prices rose sharply earlier this year, according to W.A.S.D.E. Turkey
and mature chicken export forecasts have been increased because shipments have been stronger than expected. The U.S. will see more beef imports during 2004 and 2005 as lower cow slaughter attracts more manufacturing grade beef.
Hog price forecasts for 2004 and 2005 have been increased by W.A.S.D.E.
Demand for pork is expected to remain strong, causing prices to remain relatively high despite increased production.

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Gold Kist transitions to
publicly traded status
ATLANTA - In an effort to pay down millions in
debt and even the playing field with its competitors, Gold Kist, Inc., moved forward with plans
to publicly sell common
stock of its wholly owned
subsidiary, Gold Kist
Holdings, Inc. (GKIS).
This past month the company offered 12 million
shares initially at $11 per
share and the stock increased 0.4 percent in its
first day of trading, closing at $11.35 a share. Net proceeds from the
offering of approximately $120 million, together with approximately $45.8 million of cash on
hand, will be used to pay down debts and enable
the company to redeem outstanding equity.
Gold Kist originally planned to sell 18 million
shares, at about $15 per share according to filings with the Securities and Exchange Commission. But after the deal failed to price, the company cut the size of the offering to 12 million
shares at $11 per share.
Prior to the closing of the offering, Atlantabased Gold Kist, Inc. will merge into Gold Kist
Holdings and Gold Kist Holdings will succeed to
the business operations of Gold Kist, Inc. This
past year, Gold Kist officials announced plans to
convert from a cooperative association to a forprofit corporation.

Swift announces
feedlot transition
GREELEY, COLO. - Swift & Co. announced this
past month that its parent, Swift Foods Co., has
reached an agreement with ConAgra Foods,
Inc., for the return of its affiliated cattle feedlot
business, Monfort Finance Co., Inc., to ConAgra.
Monfort Finance is the operator of three cattle
feedlots in Colorado and one in Idaho under the
ConAgra Cattle Feeding name.
The feedlot business was security for approximately $300 million in financing provided
by ConAgra as part of ConAgra's sale of the
red meat business in 2002. As part of the agreement, ConAgra has agreed to continue supplying
cattle to Swift & Co. on a transitional basis.

OCTOBER 2004

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Meat + Poultry - October 2004

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