ConAgra's Monfort shifts to Refrigerated Foods division
At his own behest, Dick Monfort has left Greeley, Colo.-based ConAgra Red Meat Cos.
He becomes executive vice president of ConAgra Refrigerated Foods Division. He will also be temporarily responsible for the following divisions: Monfort Food Distribution Co., Foodservice, Young's Specialty Foods, Portion Control, Finance Cos., Cattle Feeding, Feedlot Operations and Transportation.
"We have been discussing his desire to explore other opportunities in the ConAgra Refrigerated Foods group for some time," Lee Lochmann, president and chief operating officer of ConAgra Refrigerated Foods, said of Monfort.
Kevin LaFleur has been promoted to president of the Monfort Beef and Lamb Division. His duties will include overseeing the procurement, operation and sales of beef and lamb."
Monfort served as head of the red meat organization for more than six years.
"The beef business is a tough business and one that I have spent my entire life in," Monfort said. "I think our business needs to be re-energized with a single focus, [and] I am ready for new challenges.
"These changes better position [ConAgra] for growth," he added. "It addresses my need to explore opportunities, and it strengthens the already solid foundation we have built in the red meat division."
In related Monfort personnel moves:
-- Gerry Wachter has been promoted to vice president of Monfort Pork Division.
-- Bernie Proczak has been named vice president and general manager of the Monfort pork plant in Marshalltown, Iowa.
-- Edward Bick has been promoted to vice president of boning operations.
-- Harry Siegelman has been named president of Monfort's Lamb Division.
-- Dennis McDougall has been named vice president of cattle procurement.
Smithfield's Luter cedes some duties to meat industry veteran
Joseph W. Luter III relinquished part of his job as head of Smithfield, Va.-based Smithfield Foods Inc.
He will remain CEO and chairman of the board.
But John Nielson, 64, has assumed the duties of president and chief operating officer. Nelson is the former president and COO of John Morrell & Co.
"Mr. Nielson will take care of the day-to-day operations," noted Aaron Trub, Smithfield vice president. "Mr. Luter intends to remain [chairman and CEO] until doomsday, as far as I am concerned."
A native of Denmark, Nielson grew up in a family meatpacking business. He began his career in 1952 working for Canada Packers Ltd. He was also previously president and COO of Burns Foods Ltd.
In 1978, he served a one-year term as president of Meat Packers Council of Canada, an organization similar to AMI.
Luter said Smithfield needed someone with Nielson's experience.
"We have built our company with a very lean management team that, for the most part, is still quite young," he stressed. "I believe that as COO, [Nielson] will be a steadying influence and an experienced hand."
Trub said the growth over the past five years of the hog producing and pork processing company prompted Luter to vacate the presidency.
"Essentially, he felt he could use some help on a day-to-day basis," Trub said.
Smithfield's sales for fiscal year 1995, which ended April 30, were $1.5 billion, compared to $1.4 billion for fiscal year 1994.
But Luter acknowledged that fiscal year 1996 could be difficult for both the hog industry and Smithfield because of continued pressure on margins from large supplies of competing meats.
Condition connected to E. coli takes life of girl, 2, in Ohio
As USDA and the industry grapple and argue over how to rewrite the regulation that will reform meat inspection, E. coli 0157:H7 linked to ground beef continues to leave its mark.
-- In Ohio, Elizabeth Paige Hall, 2, died from hemolytic-uremic syndrome, a condition linked to E. coli 0157:H7.
Elizabeth's mother, Barbara DeWitt, told the (Cleveland) Plain Dealer that the family suspects she got sick from a cookout where she ate a hot dog from a plate that had not been washed thoroughly after contact with raw hamburger meat.
Randy Hertzer, a spokesman for the Ohio Department of Health, told Meat Marketing & Technology that Elizabeth's death appeared to be an isolated case.
-- Near the Nebraska-Iowa border, seven cases of E. coli 0157:H7 were reported to the states' health departments, affecting people from ages 3 to 59.
The affected people ate ground beef prior to developing symptoms, but no common source has linked the cases. A spokesman for the Douglas County (Neb.) Health Department told MM&T that several meat samples are being tested.
-- In Smyrna, Tenn., a Kroger store removed all ground beef from its fresh meat case after a USDA inspector found traces of E. coli 0157:H7 in a sample.
At the behest of the Tennessee Health Department, Kroger removed the ground beef from its shelves and initiated a product recall. The store also replaced the meat department's grinder.
Later, however, a second sample was negative for E. coli 0157:H7. A spokesman for the health department said no illnesses were reported from the Kroger incident.
Meanwhile, Rhode Island became the first state to adopt a food-borne illness regulation. The measure raises the temperature in which foodservice institutions must cook beef, fish, pork and eggs to 155 degrees F.
The regulation prohibits establishments from serving undercooked meat to anyone under age 12. Adults can order raw or rare food-only if the health risks are posted.
OSHA puts rules designed to improve ergonomics in limbo
With Republicans controlling Congress, the Clinton administration has decided not to issue new rules to cover repetitive stress injuries.
Joseph Dear, administrator of the Occupational Safety and Health Administration, said that because of political pressures, now is not the time to issue new regulations to force workplaces to improve ergonomic conditions.
"We are continuing to work on a standard," he said in a statement. "It is likely to be a narrower proposal on a slower timetable."
That might mean the rules would not be introduced until President Clinton's second term-assuming there is a second term.
At an AMI worker safety conference earlier this year, Dear all but admitted that the GOP takeover of Capitol Hill has made his life more difficult. Some Republican congressional members have called for the abolition of OSHA.
"Some of the actions taken by Congress may delay or prevent necessary improvements in occupational safety and health," he said. "Right now, [OSHA's] principal challenge is to convince our many audiences-including Congress-that OSHA serves a vital purpose."
In March, the agency issued a watered-down version of rules it proposed in 1994. The newer proposal would affect only 2.6 million workplaces instead of the 6.1 million affected by the earlier proposal.
Clinton campaigned in 1992 to reduce repetitive-stress injuries, and both Dear and Labor Secretary Robert Reich have told Meat Marketing & Technology within the past two years that it was a major priority of the administration. But it appears that politics has altered that priority.
Compounding Dear's problems, Barbara Silverstein, special assistant for ergonomics, resigned.
An OSHA spokesman told MM&T that Silverstein was frustrated by the intent of Congress to weaken and stop ergonomic rule-making.
In his speech to AMI, Dear noted that the meat industry has made progress in reducing cumulative trauma disorder, a major repetitive stress injury.
In 1991, there were 1,493 cases of cumulative trauma disorder per 10,000 workers in meatpacking plants, according to the Bureau of Labor Statistics. By 1993, the figure was reduced to 1,298 cases per 10,000 workers. The total number of cases was reduced from 20,700 to 18,800.
"[The meat industry] shows that working with OSHA can move an industry to take a positive step and aggressive approach to solving the safety and health problems of its workplaces," Dear said.
Meanwhile, Rep. Cass Ballenger (R-N.C.) has become the fourth member of Congress to introduce an OSHA reform legislation bill in this congressional term.
The bill would remold OSHA, shifting half of its funding for enforcement to other areas. The bill would also place new emphasis on consultation and training programs, would require that risk assessment and cost benefit analyses be industry-specific, and would attempt to take the "quota mentality" out of the penalty system.
"I believe that [OSHA] has become fundamentally misdirected," Ballenger said in a statement. "Instead of promoting and encouraging workplace safety and health, OSHA has become known for issuing nonsensical regulations, and is preoccupied with issuing fines on unsuspecting employers."
Reich fired back in a statement, saying Ballenger's bill would be a "wrecking ball" for OSHA.
One other OSHA reform bill has been introduced in the House, and two have been introduced in the Senate.
AMI, dairy organizations joining to establish mega-trade show
Three major food trade associations have announced that they will co-locate conventions and trade exhibitions beginning in 1997.
AMI, the International Dairy Foods Associations, and Dairy and Food Industries Supply Association hope to create a premier international trade event for the food industry. The first event will be held in McCormick Place in Chicago in autumn 1997.
According to the new agreement, AMI will hosts its biennial meat industry convention and exposition concurrently with the newly created International Food and Dairy Show, a joint venture between the two dairy organizations.
Recognizing the enormous size and scope of major trade shows hosted outside the United States, including IFFA, Matic and Anuga, the three organizations determined that a large U.S.-based show would enhance the competitiveness of the North American food industry.
"This strategic alliance between our industries provides the opportunity for phenomenal international trade show growth in a competitive global economy," said AMI President J. Patrick Boyle. "It will allow us to provide the international food community with one-stop shopping for equipment, supplies and services for the meat, poultry and dairy industries."
The three organizations hope the event will improve the scope and value of educational programming.
Both shows will retain their separate identities on the trade floors. Organizers estimate that the combined impact of concurrent trade shows would attract 25,000 to 30,000 visitors.
Cargill, Tyson announce deal involving hog and broiler units
Minneapolis-based Cargill Inc. and Springdale, Ark.-based Tyson Foods Inc. have agreed in principle to a deal that calls for the sale of Cargill's U.S. broiler operations to Tyson for a hog operation and an undisclosed amount of money.
Tyson will make cash payments and transfer its pork processing operation in Marshall, Mo., to Cargill. The deal is expected to be complete by Sept. 1.
Cargill's U.S. broiler operations include four processing plants in Georgia and one in Florida. Tyson will also acquire feed mills and hatcheries. The broiler operation produces about 350 million pounds of poultry a week.
A Cargill spokesman said the company will continue to work aggressively to support and build its U.S. beef, pork, turkey and egg businesses, as well as its overseas beef, pork and poultry operations.
"This agreement will benefit both companies," noted William G. Fielding, president of the Cargill Meat Sector. "Tyson will add several broiler facilities and Cargill will gain an important new pork facility and cash resources.
Monfort plant closure delivers blow to sheep industry in Texas
The largest sheep producing state in the nation received a fierce blow earlier this year when Monfort Inc. closed its San Angelo, Texas, lamb processing plant. It was also a fierce blow to a sheep industry already suffering from a fledgling infrastructure.
Citing declining sheep numbers and decreasing lamb demand, Monfort closed the plant on June 1.
"We are disappointed we had to close the lamb plant," said Dan Godby, vice president of Monfort's lamb division. "It was just not economically viable to continue to operate it.
The San Angelo plant had a weekly slaughter rate of 9,000 to 10,000 lambs. Between 6,000 to 7,000 of the animals will be slaughtered at the Greeley, Colo., processing plant.
"It is not the end of the world to send lambs to Greeley, but we need a slaughter facility closer than Colorado," pointed out Chico Denis, a feeder and Monfort contractor.
Pierce Miller, president of the American Sheep Industry Association and a San Angelo lamb producer, lamented the closing.
"The plant closing is like having cold water thrown on us," he noted. "The additional freight cost to get to Greeley or any slaughter facility will be taken from producers' pockets."
Miller believes that if the sheep industry is to continue in west Texas, it must have some type of processing facility. He added that Monfort's plant closing will cause an overhang in the market and apply downward pressure on prices.
Government scientist joins AMI
Former FSIS scientist Michael J. Rose has joined AMI on a part-time basis as director of scientific affairs. He will work on plant sanitation, water certification and reuse, microbiology, and Hazard Analysis and Critical Control Point program issues.
Rose was at FSIS for 23 years. Most recently, he served as deputy director of the Facilities, Equipment and Sanitation Division, which oversees blueprint approval for new facilities and equipment, plant sanitation matter and research, and testing protocols.
Rose has previously worked for FDA, Bureau of Mines, Veteran Administration, as well as in other agencies of USDA.
USDA to make lunch, breakfast comply with dietary guidelines
USDA's final rule amending regulations governing the National School Lunch and Breakfast programs says the programs must comply with the Dietary Guides for Americans by the 1996-97 school year.
School lunches eligible for federal reimbursement must meet one-third and school breakfasts, one-fourth, of the Recommended Dietary Allowances for protein, vitamins A and C, iron, calcium and calories; contribute no more than 30 percent of calories from fat and no more than 10 percent calories from saturated fat; and reduce cholesterol and sodium levels.
Bar-S Foods to make bacon
in expanded Oklahoma plant
Bar-S Foods Co. has announced a major expansion of its Altus, Okla., facility that will more than double its weekly production of sliced bacon.
The Phoenix-based company will produce bacon for retail and foodservice establishments in the new operation, which will initially employ more than 150 people, said Tim Day, president and CEO of Bar-S Foods.
Completion is scheduled for spring 1996.
The Altus plant began operations more than two years ago and serves as Bar-S Foods' major hot dog processing facility, as well as its fully-computerized national distribution center.
"With consumer demand for Bar-S bacon products on the rise, we are planning for our future by moving this operation close to our national distribution center," Day noted.
Unified beef industry group
moves one step closer to reality
Members of a panel overseeing a proposed merger of several beef industry organizations have finalized their plan, including bylaws, to form the new organization.
The merged organization would consolidate the operations of the National Cattlemen's Association and Beef Industry Council of the National Live Stock and Meat Board, as well as fostering closer ties with the Cattlemen's Beef Promotion Board and providing for contractual agreements with the U.S. Meat Export Federation.
The Oversight Committee's final proposal allows the Beef Industry Council to participate as fully as possible with the new organization, yet allows it to remain a separate legal entity outside the organization in order to oversee the beef check-off program.
USMEF, because of its multi-species structure, will contract with the new organization's Center for International Marketing to conduct foreign marketing programs for beef.
The new organization will operate with a single industry plan, a unified staff structure, joint committees to develop policies and programs, and provisions for an annual stakeholders' congress instead of four separate annual meetings that occur under the present structure.
An interim executive committee has been selected. Provided the boards of directors approve the proposal, it will meet with the Oversight Committee and begin making preliminary operational decisions as early as next month.
Final approval is contingent on an affirmative vote by NCA's membership at its convention in January.
Hormel takes firm grip
on Chinese pork market
Austin, Minn.-based Hormel Foods Corp.'s international division will establish a joint venture with the Beijing Agriculture Industry and Commerce General Corp. to build and operate a pork processing plant.
Hormel Foods International Corp. will own 55 percent of the new company, and the plant, to be built in Beijing, will initially process more than 100,000 hogs a year into Hormel-branded products for retail and foodservice markets.
V. Allan Krejci, Hormel director of public relations, told MM&T that more details about the operation will be forthcoming by the end of the year.
In a separate development, Hormel has also signed a letter of intent to process an additional 100,000 hogs a year through a joint venture with Da-Chang Meat Co. of Shanghai. The operation, which is scheduled to being later this year, will process pork products for the Shanghai market.
House committee delivers victory for industry in inspection battle
The House Appropriations Committee voted 26-15 to bar USDA from proceeding with its plan to reform inspection until department officials engage in negotiated rule-making with meat and poultry processors.
It was a major victory for the meat industry and a major blow to USDA.
Under the bill, a panel established for negotiations would be expected to report back in nine months with recommendations.
Earlier, six meat industry associations led by the National Meat Association and American Association of Meat Processors filed a petition with USDA Secretary Dan Glickman asking that the current rule-making and comment period, which expired July 5, be changed to negotiated rule-making.
The sponsor of the amendment, Rep. James Walsh (R-N.Y.), told Meat Marketing & Technology that he became concerned that USDA's proposal was more "command and control" from Washington.
"I wanted to put a little faith back into the process," said Walsh, adding that he was approached by AMI to introduce the amendment.
Democrats said that the amendment comes at the expense of consumer protection.
"This could be one of the biggest mistakes this committee has ever made," said Rep. Norm Dicks (D-Wash.)
Michael R. Taylor, USDA acting undersecretary of Food Safety, warned that any delay in rule-making resulting from the committee's action could delay inspection reform by as many as two years.
But officials from AMI and the NMA said that the committee has sent a "clear message" to USDA to involve all interested parties in developing a new inspection system.
USDA's inspection proposal, introduced in January, would require Hazard Analysis and Critical Control Point programs in the nation's meat slaughtering and processing plants.
Targets would also be set for reducing the incidence of bacterial contamination of raw meat and poultry products.
The new proposal would also require sanitation plans, antimicrobial treatments and strict temperature controls for raw products.
The industry has criticized the proposal, estimated to cost more than $733 million over three years, on two major fronts: The fear that the cost could drive small processors out of business, and that it is just a new layer over the existing visual-based system.
The amendment goes to the House and Senate, and can be vetoed by President Clinton.