Meat + Poultry - August 2007 - 5

THE FRONT PAGE

PITTSBURG, TEXAS - Strong demand
along with improved pricing driven by
production cuts helped Pilgrim's Pride
Corp. post a profit for the third quarter
ended June 30.
Net income for the quarter was
$62,641,000, equal to $0.94 per share
on the common stock, compared with
a loss of $20,473,000 during the same
quarter of the previous year.
The demand for feed grains, however, has tempered the company's outlook for the foreseeable future.
Sales for t he quar ter were
$2,118,386,000, up 65 percent compared
with sales of $1,287,646,000 during the
same quarter of the previous year.
"Our return to profitability is a direct
result of improved pricing driven by industry-wide production cuts implemented earlier this year coupled with strong
demand for our products," said O.B.
Goolsby Jr., president and CEO, in a conference call with financial analysts on
July 31. "Pricing for wings and leg quarters has been especially strong. Wings
peaked at $1.36 during the quarter, a 68
percent increased from the highs of the
same quarter a year ago.

ISO introduces
food traceability
standard
GENEVA - The International Organization for Standardization has introduced ISO 22005 for the traceability
of food and feed. The new standard
establishes basic requirements for the
design and implementation of a traceability system, including the ability to
trace the flow of materials, identify the
necessary documentation and tracking
for each stage of production, ensure
coordination between all parties involved in the process, and it requires
that each party be informed of the
other suppliers involved.

FMD identified in the U.K.
LONDON - Animal health officials with England's Department for Environment
Food and Rural Affairs (DEFRA) discovered the presence of foot-and-mouth disease in cattle tested Aug. 3. During an investigation of vesicular disease, lab results
confirmed the presence of the FMD virus in cattle at a farm in Surrey, England.
Thirty-eight cattle at three affiliated production facilities suspected of being
infected were culled as part of the government's emergency response, which
also included setting up protection and surveillance zones and prohibiting the
movement of ruminants and pigs throughout Great Britain. Debby Reynolds,
DEFRA's chief veterinary
officer, expanded the
zones as the investigation continued and the
virus was identified at a
second farm.
Prime Minister Gordon
Brown convened a crisis
panel to limit the impact
of the disease.
"Our top priority is to
prevent the spread of this
disease in order to protect
farmers' stocks," he said.
According to a statement from DEFRA, the FMD strain discovered is thought
to be most like those developed in laboratories for research and vaccine production. Investigators said the strain is not one found recently in animals and is
similar to the strain isolated in the 1967 outbreak of FMD in the U.K. Reynolds
has announced the protection zone includes two nearby labs that are part of
the Institute for Animal Health Pirbright Laboratory, where the isolated strain is
known to exist for research and vaccination development.
An investigation conducted by Great Britain's Health and Safety Executive
confirmed that the strain of FMD was being worked on at the two laboratories.
Release by human movement is considered a likely possibility as a source for the
initial contamination, according to the HSE's initial report.

Higher sales, cost cutting drive
Tyson's earnings
SPRINGDALE, ARK. - Higher average sales for chicken, beef, pork and
prepared foods, coupled with a cost-cutting initiative that is exceeding expectations, helped drive an earnings rebound at Tyson Foods, Inc. Net income
in the third quarter ended June 30 was
$111 million, equal to $0.32 per share
on the common stock, up sharply from
a loss of $52 million during the same
quarter of 2006.
Sales for the third quarter were $6,958 million, up 9 percent from net
sales of $6,383 million during the same quarter of the previous year.
www.MEATPOULTRY.com

August 2007

MEAT&POULTRY

Photo courtesy of Associated Press

Product pricing,
exports boost
Pilgrim's Pride

http://www.MEATPOULTRY.com

Meat + Poultry - August 2007

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