Meat + Poultry - April 2005 - 4

Cargill buys Canada's
Better Beef

Tyson investing $95 million in H.Q.

WINNEPEG, MANITOBA - Cargill
Ltd., a Canadian subsidiary of Cargill,
Minneapolis, has announced plans to
purchase Better Beef Ltd., a Guelph,
Ont.-based beef processing firm that has
operated in Canada since 1972.
"This combination has broad benefits
and is a natural
fit," said Bennie
deJonge, founder
and president of
Better Beef Ltd.
"We see this as
an opportunity to further strengthen the
Ontario and Canadian beef supply chain
in these challenging times."
Executives say the partnership allows the companies to leverage their
combined experience and strengths to
provide more value to suppliers and
customers.
"As a company that has developed
deep roots in Canada over the past 80
years, Cargill is committed to ongoing
investment and a strengthening of the
Canadian beef sector," said Bill Buckner, Cargill's corporate vice president
and president of Cargill Meat Solutions.
"This new development illustrates our
commitment to not only enhancing our
operations, but also solidifies our vision
for value-added creation for our customers and producers."

ConAgra closing Alabama
beef patty plant
OMAHA - Citing unreasonable renovation costs, officials announced the
closure of its ground beef patty plant
in Montgomery, Ala., effective May 6.
With approximately 365 employees, the
plant produced patties for restaurants in
the Southeast. Executives say the age of
the building makes continued investments in the facility unreasonable.
ConAgra and SSI Food Services purchased the plant in 1995. It was previously a beef slaughter plant owned and
operated by John Morrell, which closed
it in 1991. ConAgra and SSI ran the
slaughtering and processing operations,
known as S&C Beef Processors, but discontinued slaughtering in 1999.
4

MEAT&POULTRY

April 2005

SPRINGDALE, ARK. - Tyson Foods, Inc. will reportedly spend up to $95 million
over the next two years to nearly double the space at its headquarters in Springdale. Part of the project includes a research, development and training complex. This
past year, plans to build a research and development facility, called the "Discovery
Center," were announced.
Officials say Tyson has added a four-story office building as part of the project,
adding 174,000 square feet of office space. The combined projects will add 285,000
square feet of space to Tyson's corporate campus, which now spans about 300,000
square feet of mostly office space. Ground has been broken and work is under way
at the site, where the office building is slated for completion in fall 2006. The company plans to consolidate its marketing and training departments in the new office
building, officials say. Tyson will also consolidate other offices from around northwest Arkansas and across the country into the new building.
The research and development center will open in early 2007.

Foodborne illnesses continue decline
ATLANTA - According to data released earlier this month by the Centers for
Disease Control and Prevention, foodborne illnesses in the United States are
on a "continued and sustained decline," from the baseline years 1996-1998.
C.D.C. officials report a 42 percent drop in illnesses from E. coli O157:H7, a
40 percent drop in listeriosis, 31 percent drop in campylobacteriosis and an 8
percent drop in salmonellosis.
At a press conference announcing the findings, Dr. Robert Tauxe, spokesman
for C.D.C., called the reduction "important progress" in the fight against pathogens. He pointed out that for the first time, E. coli O157:H7- related illness reductions have surpassed the Healthy People 2010 projected goal.
Dr. Merle Pierson, the U.S. Dept. of Agriculture's acting under secretary for
food safety, said the meat industry deserves credit for its ability to change its
practices to produce safer products. "The industry has been very responsive in
taking aggressive steps" to reduce the incidences of foodborne illnesses, and
especially in reducing E.coli O157:H7 in ground beef.

National Beef reports second quarter losses
KANSAS CITY, MO. - National Beef Packing Co. L.L.C. reported losses of $13
million for its fiscal 2005 second quarter ending Feb. 26, compared to a profit of
$1.8 million during the same quarter last year. The latest loss for National Beef is
its second consecutive losing quarter, which its executives attribute to the continued
U.S. ban on Canadian cattle.
During the latest quarter, sales increased 10 percent to $1.03 billion due to a 5.5
percent increase in cattle slaughtered and a 3.1 percent increase in beef prices. However, John Miller, the firm's C.E.O., said the higher sales, slaughter numbers and beef
prices aren't enough to compensate for continued high prices for live cattle.
"There's certainly pressure on the industry and it will continue until the opening
of the border," Miller said at a press conference announcing National Beef's quarterly financial performance. He went on to warn that Canadian cattle may not be
available until next year.
While the border remains closed to live Canadian cattle, Miller says federal officials have exacerbated the problem by allowing the import of processed beef from
Canada, keeping domestic beef prices unnecessarily low.
The industry is also still waiting to be allowed back into Japan, its largest foreign
customer, which banned U.S. beef last year over B.S.E. concerns. Japanese officials
have said they will allow meat from animals 30 months and younger, but the trade officials are still working out the details. "We look forward to some relief this summer,
when we believe some of these import markets will open back up," Miller said.

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Meat + Poultry - April 2005

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