Meat + Poultry - March 2006 - 25

Squeezed
Smaller companies address
big-time challenges

D

uring the past year, Austin,
Texas-based Lone Star Foodservice's fuel costs have increased more than 43 percent. Rick's
Garden Spot Meats, a very small plant
in southern Illinois with two workers,
is facing a mounting insurance bill
of about $4,000 annually. At Johnson
Brothers Wholesale Meats, Panama
City, Fla., rising diesel fuel costs are
threatening the company's bottom
line. The president of SiouxPreme
Pork Products, Sioux City, Iowa, cannot always find the size of equipment
he needs because most suppliers today
are tailoring their products to the large
meat and poultry processors rather than
smaller operations like his.
A lot is written about the challenges
small and medium-size meat and poultry processors face as they struggle to
comply with new regulations cranked
out by federal, state and local government authorities and agencies. But
these companies also are dealing with
26

I

MEAT&POULTRY

I

March 2006

I

the business challenges every small
business must cope with to ensure their
bottom line is in the black. These challenges include, but aren't limited to,
the increasing costs of fuel and insurance as well as many other problems
that come across the small business
operator's desk.
Diesel prices soar
Franklin Hall, C.E.O. of Lone Star
Foodservice, a family owned, portion
control steak processor, will vouch for
the challenges facing small and medium-sized meat and poultry businesses.
During the past year, a major concern
has been the spiraling price of diesel
fuel for his delivery
trucks.
"We are a steakcutting company,
and most of our products go to regional restaurant chains and independent
steak houses, as well as clubs, hotels
and caterers," Hall says. "Our refrig-

www.MEATPOULTRY.com

By Bernard Shire
meat&poultry@sosland.com

erated trucks operate with diesel fuel,
and during the past year, our diesel
costs rose by more than 43 percent. Obviously, this has increased our costs to
operate on a daily basis tremendously.
"When something like this happens,
we look at several possibilities," he
continues. "Should we raise our prices? We may have to do that. Sometimes
we end up looking at our customers on
the margins, and consider whether we
should keep them or not. Are we only
doing a small amount of business with
them, not selling much product? We
have to consider that. We're always
looking for ways to save."
Paul Johnson, one of two brothers
who own and operate Johnson Brothers
Wholesale Meats, a Certified Angus
Beef wholesale distributor, notes that
in running a small plant, "you end up
wearing a lot of hats. You learn about
a lot of things, and
you carry them
out. There's no
one else to do it.
It's hands on, and you have to know
what's going on all the time.
"My brother David deals with the insurance, which increases constantly, but



http://www.MEATPOULTRY.com

Meat + Poultry - March 2006

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

Contents
Meat + Poultry - March 2006 - 1
Meat + Poultry - March 2006 - 2
Meat + Poultry - March 2006 - 3
Meat + Poultry - March 2006 - Contents
Meat + Poultry - March 2006 - 5
Meat + Poultry - March 2006 - 6
Meat + Poultry - March 2006 - 7
Meat + Poultry - March 2006 - 8
Meat + Poultry - March 2006 - 9
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-november-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-october-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-september-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-august-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-july-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-june-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-may-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-april-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-march-2024
https://digital.meatpoultry.com/sosland/mp/special-supplement-bacon-trends-technology-march-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-february-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-january-2024
https://digital.meatpoultry.com/sosland/mp/meatpoultry-december-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-november-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-october-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-september-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-august-2023
https://digital.meatpoultry.com/sosland/mp/special-supplement-ground-meat-trends-technology-july-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-july-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-june-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-may-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-april-2023
https://digital.meatpoultry.com/sosland/mp/special-supplement-bacon-trends-technology-march-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-march-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-february-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-january-2023
https://digital.meatpoultry.com/sosland/mp/meatpoultry-december-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-november-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-october-2022
https://digital.meatpoultry.com/sosland/mp/special-supplement-ground-beef-trends-technology-september-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-september-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-august-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-july-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-june-2022
https://digital.meatpoultry.com/sosland/mp/special-supplement-meat-alternative-trends-and-technology-may-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-may-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-april-2022
https://digital.meatpoultry.com/sosland/mp/special-supplement-bacon-trends-technology-march-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-march-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-february-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-january-2022
https://digital.meatpoultry.com/sosland/mp/-meatpoultry-december-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-november-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-october-2021
https://digital.meatpoultry.com/sosland/mp/special-supplement-ground-meat-trends-technology-october-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-september-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-august-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-july-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-june-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-may-2021
https://digital.meatpoultry.com/sosland/mp/special-supplement-meat-alternatives-may-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-april-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-march-2021
https://digital.meatpoultry.com/sosland/mp/2021_02_01
https://digital.meatpoultry.com/sosland/mp/2021_01_01
https://digital.meatpoultry.com/sosland/mp/2020_12_01
https://digital.meatpoultry.com/sosland/mp/2020_11_01
https://digital.meatpoultry.com/sosland/mp/2020_10_01
https://digital.meatpoultry.com/sosland/mp/2020_09_01
https://digital.meatpoultry.com/sosland/mp/2020_08_01
https://digital.meatpoultry.com/sosland/mp/2020_07_01
https://digital.meatpoultry.com/sosland/mp/2020_06_01
https://digital.meatpoultry.com/sosland/mp/2020_05_01
https://digital.meatpoultry.com/sosland/mp/2020_04_01
https://digital.meatpoultry.com/sosland/mp/2020_03_01
https://digital.meatpoultry.com/sosland/mp/2020_02_01
https://digital.meatpoultry.com/sosland/mp/2020_01_01
https://digital.meatpoultry.com/sosland/mp/2019_12_01
https://digital.meatpoultry.com/sosland/mp/2019_11_01
https://digital.meatpoultry.com/sosland/mp/2019_10_01
https://digital.meatpoultry.com/sosland/mp/2019_09_01
https://digital.meatpoultry.com/sosland/mp/2019_08_01
https://digital.meatpoultry.com/sosland/mp/2019_07_11
https://digital.meatpoultry.com/sosland/mp/2019_06_01
https://digital.meatpoultry.com/sosland/mp/2019_05_01
https://digital.meatpoultry.com/sosland/mp/2019_04_01
https://digital.meatpoultry.com/sosland/mp/2019_03_01
https://digital.meatpoultry.com/sosland/mp/2019_02_01
https://digital.meatpoultry.com/sosland/mp/2019_01_01
http://digital.meatpoultry.com/sosland/mp/2018_12_01
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http://digital.meatpoultry.com/sosland/mp/2018_07_01
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http://digital.meatpoultry.com/sosland/mp/2018_05_01
http://digital.meatpoultry.com/sosland/mp/2018_04_01
http://digital.meatpoultry.com/sosland/mp/2018_03_01
https://www.nxtbook.com/sosland/mp/2018_02_01
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https://www.nxtbook.com/sosland/mp/2017_12_01
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https://www.nxtbook.com/sosland/mp/2017_01_01
https://www.nxtbook.com/sosland/mp/2016_12_01
https://www.nxtbook.com/sosland/mp/2016_11_01
https://www.nxtbook.com/sosland/mp/2016_10_01
https://www.nxtbook.com/sosland/mp/2016_09_01
https://www.nxtbook.com/sosland/mp/2016_08_01
https://www.nxtbook.com/sosland/mp/2016_07_01
https://www.nxtbook.com/sosland/mp/2016_06_01
https://www.nxtbook.com/sosland/mp/2016_05_01
https://www.nxtbook.com/sosland/mp/2016_04_01
https://www.nxtbook.com/sosland/mp/2016_03_01
https://www.nxtbook.com/sosland/mp/2016_02_01
https://www.nxtbook.com/sosland/mp/2016_01_01
https://www.nxtbook.com/sosland/mp/2015_12_01
https://www.nxtbook.com/sosland/mp/2015_11_01
https://www.nxtbook.com/sosland/mp/2015_10_01
https://www.nxtbook.com/sosland/mp/2015_09_01
https://www.nxtbook.com/sosland/mp/2015_08_01
https://www.nxtbook.com/sosland/mp/2015_07_01
https://www.nxtbook.com/sosland/mp/2015_06_01
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https://www.nxtbook.com/sosland/mp/2015_02_01
https://www.nxtbook.com/sosland/mp/2015_01_01_mp
https://www.nxtbook.com/sosland/mp/2014_12_01
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https://www.nxtbook.com/sosland/mp/2013_03_01
https://www.nxtbook.com/sosland/mp/2013_02_01
https://www.nxtbook.com/sosland/mp/2013_01_01
https://www.nxtbook.com/sosland/mp/2012_12_01
https://www.nxtbook.com/sosland/mp/2012_11_01
https://www.nxtbook.com/sosland/mp/2012_10_01
https://www.nxtbook.com/sosland/mp/2012_09_01
https://www.nxtbook.com/sosland/mp/2012_08_01
https://www.nxtbook.com/sosland/mp/2012_07_01
https://www.nxtbook.com/sosland/mp/2012_06_01
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https://www.nxtbook.com/sosland/mp/2012_04_01
https://www.nxtbook.com/sosland/mp/2012_03_01
https://www.nxtbook.com/sosland/mp/2012_02_01
https://www.nxtbook.com/sosland/mp/2012_01_01
https://www.nxtbook.com/sosland/mp/2011_12_01
https://www.nxtbook.com/sosland/mp/2011_11_01
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https://www.nxtbook.com/sosland/mp/2011_09_01
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https://www.nxtbook.com/sosland/mp/2010_12_01
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https://www.nxtbook.com/sosland/mp/2010_09_01
http://digital.meatpoultry.com/sosland/mp/2010_08_01
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http://digital.meatpoultry.com/sosland/mp/2010_02_01
http://digital.meatpoultry.com/sosland/mp/2010_01_01
http://digital.meatpoultry.com/sosland/mp/2009_12_01
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http://digital.meatpoultry.com/sosland/mp/2009_06_01
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http://digital.meatpoultry.com/sosland/mp/2009_04_01
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http://digital.meatpoultry.com/sosland/mp/2009_02_01
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http://digital.meatpoultry.com/sosland/mp/2008_02_01
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http://digital.meatpoultry.com/sosland/mp/2004_08_01
http://digital.meatpoultry.com/sosland/mp/2004_07_01
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