Meat + Poultry - August 2007 - 14

BUSINESS NOTES

JBS moves to make Swift more profitable

Greeley, Colo., beef processing plant
to full slaughter capacity as soon as
possible. The announcement signaled
its intent to keep Swift's pork business
and grow it if possible.
JBS's actions reveal its focus on returning Swift Beef to being the lowcost producer in beef processing, say
observers. To bring the Greeley plant
back to full capacity, it will need 2,000
more cattle per day than the plant currently processes. It has already been
talking to cattle feeders about supplying more cattle, it says. JBS-Swift will
also need to hire 1,000 more workers
to bring the plant to full slaughter and
fabrication capacity, say company officials. The company hopes to reach full
daily capacity of 5,800 head by next
January. The move means the plant will
produce 40 percent more boxed beef
than it currently does, they say.
The action is the best possible news
for cattle feeders in northeast Colorado/western Nebraska and for the city
of Greeley, say observers. Swift's former owner reduced slaughter at Greeley to one enhanced slaughter shift in
December 2004. The plant has recently
been slaughtering about 3,700 head per
day. The downsizing reduced the plant's
workforce, which was then also impacted by the federal immigration raids
last December. The news is a dramatic turnaround for Greeley. Only a few
months ago, it appeared a possibility
14

MEAT&POULTRY

August 2007

that the plant and Swift's corporate office would close. The Greeley economy
has been struggling, in part because of
the cost of the ICE raids on Swift (put
overall at $50 million) and other factors.
Now, the Swift office remains and the
plant's future is more secure than ever,
say observers.
The job eliminations also revealed
JBS's intention to be more competitive
and efficient by cutting costs, say observers. Most of the 25 positions were
in senior and middle management. The
downsizing was a decision of strategy,
to have less layers of management, says
JBS-Swift CEO Wesley Batista. Among
those who left the company were Ted
Miller, executive vice president of its
North American red meat operations;
Kevin Yost, executive vice president of
customers and supply chain; and Don
Wiseman, senior vice president and
general counsel. Miller will receive a

www.MEATPOULTRY.com

$637,500 severance bonus and Wiseman
a $480,375 bonus according to a plan
put in place by Swift in May.
JBS also confirmed it intends to keep
Swift Pork and even grow the business if the opportunity arises. Dennis
Henley, who ran Swift Pork for some
years and has been chief operating officer of Swift North America, will retire
Sept. 18. He will continue to be an adviser to the company. Martin Dooley,
currently Swift's executive vice president of margin management, will head
Swift Pork.
Swift Australia CEO John Keir will
retire August 17 and be succeeded by
Englishman Iain Mars. He is currently
JBS's director of international relations
and has had 30 years working in the
industry in Europe, Australia and South
America. As in the United States, JBS
also laid off at least five senior managers in Australia.

Photo courtesy of Swift & Co.

JBS SA, the new owner of Swift & Co.,
has moved to make the company, particularly its U.S. beef business, more
profitable. Its first move after completing its $1.5 billion acquisition of Swift,
on July 12 was to eliminate 25 jobs at
Swift's corporate headquarters in Greeley, Colo. The action meant several top
Swift executives left the company. JBS
also announced it was returning its

http://www.MEATPOULTRY.com

Meat + Poultry - August 2007

Table of Contents for the Digital Edition of Meat + Poultry - August 2007