Meat + Poultry - February 2006 - 3

February 2006

THE FRONT PAGE
Poultry companies cite A.I.
as financial hurdle
ATLANTA - Executives with Gold Kist,
Inc., Cagle's, Inc., and Springdale, Ark.based Tyson Foods, Inc. all mentioned the
affect of avian influenza on their companies' bottom lines during their respective
earnings statements this past month. Less
demand for U.S. poultry exports internationally is being attributed to A.I. and
creating a surplus domestically, which is
driving poultry prices lower.
Citing lower average broiler prices,
Gold Kist reported net income for the
first fiscal quarter of 2006, ended Dec.
31, was $2,543,000 million, equal to 5c
per share on the common stock, down
from net income of $4,193,000, or 8c per
share, for the quarter ended Jan. 1, 2005.
Net sales for the first quarter of fiscal
2006 were $545,360,000 million, com-

ConAgra puts meat
brands on the block
OMAHA - Earlier this month,
ConAgra Foods, Inc., announced
plans to divest most of its refrigerated meats businesses, including the Armour, Butterball, and Eckrich brands.
The combined annual sales for the
businesses being offered for sale are
about $1.9 billion. Luis Nieto, president of Packaged Meats and Deli, will
continue leading the meats businesses
during the sale process, which is expected to take 10 to 12 months.
The company also announced
changes designed to streamline its operating structure, including moving its
Grocery Foods headquarters from Irvine, Calif., to Naperville, Ill., and further centralizing its shared services.

"Concerns in
the export

pared with net sales of $551,958,000 for
the first quarter of 2005.
"Given the downturn in the market during the quarter compounded by
higher energy costs, results for the first
quarter of 2006 were disappointing, but
not completely unexpected," said John
Bekkers, president and C.E.O. "Sales
for the quarter were down slightly from
the first quarter of fiscal 2005 due to a
1.8 percent decrease in average broiler prices. Concerns in the export markets about avian influenza reduced consumption in those markets, which decreased export volume, particularly to
Russia, and contributed to greater domestic supply and lower prices."
Gold Kist's disappointing results
Continued on Page 4

markets about
avian influenza reduced
consumption in those
markets, which decreased
export volume, particularly
to Russia, and contributed
to greater domestic
supply and lower prices."
- John Bekkers,
president/C.E.O. of Gold Kist, Inc.

I.P.C. campaign targets A.I.'s international impact
ATLANTA - The International Poultry
Council announced that it would redouble its efforts to fight the decline in poultry consumption around the world caused
by fear of avian influenza. During a meeting at last month's International Poultry
Exposition, I.P.C. members discussed
strategies for overcoming consumer concerns about A.I., which has caused a disturbing decline in the consumption of
poultry internationally and has disrupted
the export business of the large poultry
companies in the United States.
"In most cases, consumers are being blanketed with news and information about highly pathogenic avian influenza," says James Sumner, president of
I.P.C. "And much of the information consumers see, hear or read is incomplete at

best and inaccurate at worst."
The group's main strategy will be to
send a message to consumers that poultry is safe to eat if properly handled and
cooked, said Sumner, who is also president of Atlanta-based USA Poultry &
Egg Export Council. IPC also plans to
put out information that is consistent
with organizations such as the World
Health Organization.
The would not be unlike safe handling
and proper cooking information that the
industries major poultry producing nations embrace and endorse, said Tage
Lysgaard, I.P.C. vice president and director general of Denmark-based A.V.E.C.,
the European Union poultry processors
association. "It's the same thing: poultry
is safe to eat, just cook it," he says.

www.MEATPOULTRY.com

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February 2006

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Meat + Poultry - February 2006

Table of Contents for the Digital Edition of Meat + Poultry - February 2006

Contents
Meat + Poultry - February 2006 - 1
Meat + Poultry - February 2006 - 2
Meat + Poultry - February 2006 - 3
Meat + Poultry - February 2006 - Contents
Meat + Poultry - February 2006 - 5
Meat + Poultry - February 2006 - 6
Meat + Poultry - February 2006 - 7
Meat + Poultry - February 2006 - 8
Meat + Poultry - February 2006 - 9
Meat + Poultry - February 2006 - 10
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Meat + Poultry - February 2006 - 14
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Meat + Poultry - February 2006 - 65
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