Assorted News Briefs - February 1996

By Steve Delmont, 31 January, 1996

Seaboard opens Oklahoma pork plant

Poultry leader Seaboard Farms Inc. has opened a 437,000-square-foot pork processing facility in Guymon, Okla. The plant began operations last month.

The new plant-and its hog nurseries and growing farms established in Oklahoma's panhandle-has made available hundreds of new jobs and has attracted a number of other businesses to the Guymon area.

At its full two-shift capacity, the plant is expected to process about 4 million hogs a year and employ about 1,160 hourly and salaried employees. Each of its two shifts will employ 544 hourly employees, and there will be 70 salaried employees.

No firm date was released when Seaboard Farms will reach full production with its one shift. "It's a little bit slower of a start up than we initially planned," noted Debra Hurst, company relations coordinator for Shawnee Mission, Mo.-based Seaboard Corp.

The plant consists of 300,000 square feet of new construction added to the original 60,000-square-foot plant. There is about 77,000 square feet of stockyards which can hold about 6,000 hogs.

In addition to the processing plant, Seaboard Farms eventually will employ another 950 employees who will be involved with its live production operations. Seaboard Farms plans to have more than 158 farms involved in hog production when its operations reach full production by next year.

Beef, pork unite to battle poultry

The National Pork Producers Council and the National Cattlemen's Association, in a seldom-seen show of unity, have joined forces in an effort to achieve economic balance between red meat and poultry, the two groups said.

Beef and pork industry leaders formed a working group to prepare a plan of action to achieve equity between red meat and poultry inspection and food-safety issues that will result in an improved food-safety process, a more level playing field, and better information for consumers," according to an NCA-NPPC statement.

Among the issues the group will examine: Water weight gain allowances for poultry but not red meat; rules that allow processed poultry products to contain 60 percent less poultry in the final product than comparable processed beef and pork products; proposed inspection rules that allow poultry carcasses to be re-processed by washing fecal contamination off with chlorinated water; the fact that poultry is allowed uninspected slaughter; that equipment does not have to be sanitized between each bird; and that water temperature is not regulated.

U.S. beef exports outpace imports in '95

For the first time since World War II, the United States exported more beef than it imported. Fourth-quarter and year-end beef exports would be slightly greater than imports, USDA said. That followed a September in which exports surpassed imports for the first month in nearly 50 years.

Beef exports in 1995 grew 15 percent compared to 1994, according to USDA. Of the 25 billion pounds of beef produced in the United States, 1.85 billion pounds were exported.

While exports represented only 7.4 percent of production, 1995 marked the first time that exports have been more than 6 percent of the industry.

USDA predicted another 15 percent growth in exports for 1996. Markets in the Pacific Rim, including leading importer Japan and the growing importer South Korea, were expected to continue as the focus for beef exports. "Growth has clearly been in the high-quality muscle cuts," said Derrell Peel, Oklahoma State University extension economist. "The U.S. and Canada are the only places to produce grain-fed meat."

Hormel to renovate ex-Jimmy Dean plant

Austin, Minn.-based Hormel Foods Corp. expects to begin a $50 million renovation and expansion of a former Jimmy Dean sausage plant sometime this year. Hormel purchased the Asocial, Iowa, plant in October. Terms were not disclosed.

A new subsidiary, Osceola Foods Corp., will produce bacon and hams in the 132,000-square-foot plant. Hormel expects to produce an estimated 115 million pounds of smoked meats a year. There will be no slaughtering at the plant, but a refrigerated storage area will be a component.

Meanwhile, the company has also made a personnel move.

Ronald W. Fielding has been named president of Hormel Foods International Corp., which operates the company's overseas operations. He has been with Hormel for nearly two years, and has more than 19 years of experience. He replaces Ronald E. Plath, who retired in December after a 35-year career.

Swift buys Indiana plant

Swift "amp; Co, has signed a letter of intent to buy a pork processing plant in Worthington, Ind., from Masillon, Ohio-based Freshmark Inc.

Swift, a subsidiary of ConAgra Inc., gave no financial details, but said the proposed transaction is subject to a definitive agreement.

Swift will produce fresh pork under the Freshmark label, and offer the product to Freshmark's customers, according to Swift officials, adding that the Greeley, Colo.-based company will purchase some of the hogs from producers who now supply the plant. Swift currently processes hogs at three pork plants.

'Spa'am' character coming to a theater

A federal appeals court, upholding a lower court ruling, has cleared the way for Jim Henson Productions to use a character named "Spa'am" in its upcoming "Muppet Treasure Island" movie.

Austin, Minn.-based Hormel Foods Corp., makers of Spam, argued that the character violated the luncheon meat's trademark, and that the puppet calls into question the purity and high quality of the meat product. Hormel also feared potential ridicule. But the Second Circuit Court of Appeals ruled there is no trademark infringement, and found no evidence that Spa'am is unhygenic.

In the movie, Spa'am is the high priest of a tribe of wild boars that worships Miss Piggy as its Queen Sha Ka La Ka La.

"Although the name Spa'am is mentioned only once in the entire movie, Henson hopes to poke a little fun at Hormel's famous luncheon meat by associating its processed, gelatinous block with a humorously wild beast," the three-member panel said. "However, the executives at Hormel are not amused. They worry that sales of Spam will drop off if it is linked with 'evil in porcine form.' Spa'am, however, is not the boarish Beelzebub that Hormel seems to fear."

The judges noted that Hormel should be accustomed to Spam jokes.

"Countless jokes have played off the public's unfounded suspicion that Spam is a product of less than savory ingredients," they said.

The court cited an expert in children's literature who found that Spa'am is a positive figure in the context of the movie as a whole.

The movie was expected to open this month. Henson Productions will also conduct a marketing, promotion and merchandising campaign involving the movie characters, including Spa'am.

Food safety leader enlisted by Cargill

An expert in food microbiology has joined Minneapolis-based Cargill Inc. as the company attempts to upgrade its food safety measures. William H. Sperber brings 31 years of experience in food microbiology to Cargill. He is a member of the National Advisory Committee on Microbiological Criteria for Foods.

"The depth of [Sperber's] experience will enable [Cargill] to move forward in food microbiology," said Austen Cargill, director of corporate food safety.

Trade War Looms

U.S. to take hormone argument to the WTO; European Union adamant in refusal to lift ban

The European Parliament is keeping the European Union's import ban on meat treated with hormones, escalating the possibility of a trade war between the United States and EU.

Parliament representatives voted to "steadfastly oppose the import of hormone-treated meat in the EU," posting a rare unanimity among the 366 members.

The United States announced it will file a dispute with the World Trade Organization after a telephone discussion between USDA Secretary Dan Glickman and EU Agriculture Commissioner Franz Fischler on Jan. 11 failed to resolve the situation.

"Commissioner Fischler outlined the current status [of the hormone ban] and indicated that the report of the scientific conference was now completed," Glickman said. "However, he was not able to indicate that steps would be taken to resolve the problem to our satisfaction in the near term."

Glickman was referring to a EU scientific conference held in November, which said that hormones used in U.S. beef are within safety limits.

The ban, which was instituted in 1989, has cost U.S. cattle producers about $100 million a year.

The EU is now talking about consumers, not about science.

EU Agriculture spokesman Gerry Kiely said that surveys showed that annual beef consumption could drop by at least 20 percent, or 1.6 million tons, if the ban was lifted. "Scientific factors are only one element," Kiely said. "Consumer reaction and market balance are also important."

In a speech to the Oxford (England) Farming Conference last month, Fischler stressed that farmers were receiving clear signals from consumers that they wanted a quality product, which was not produced with illegal substances. "Whatever the scientific arguments may be, consumers have made up their mind, and farmers better respond to that demand or they will find themselves with unsalable goods," he warned.

Fischler said the EU would "have to see how the United States reacts," but should be prepared to take a firm stance and "take on board the risk of a WTO procedure."

Glickman countered: "The evidence is overwhelming that proper use of these hormones poses no danger to human health."

USDA estimated that it would take at least 18 months for a WTO resolution.

Reaction around the meat and agriculture industries was supportive of USDA's actions.

"I agree that we need to take this issue to the WTO," said Dean Kleckner, president of the American Farm Bureau.

The National Cattlemen's Association, while "elated" that the issue will finally be taken to the WTO, hopes the EU responds by negotiating an agreement with the United States to allow U.S. beef into its countries, according to spokeswoman Kate Bram Orr. Bryant Wadsworth, U.S. Meat Export Federation executive vice president, noted: "To not pursue the European Union on this matter would broadcast a clear and damaging signal to our trading partners."

A spokesman for AMI said the organization was "very pleased" with the decision to take the issue to the WTO.

U.S. updates Dietary Guidelines

Nutrition and health professionals actively promote the Dietary Guidelines as a means of focusing the attention of Americans on a healthful diet.

The Dietary Guidelines for Americans, first released in 1980 and revised in 1985, 1990 and again in 1995, are published jointly by USDA and the Department of Health and Human Services.

They provide the basis for federal nutrition policy and nutrition education activities, presenting advice for healthy Americans ages 2 years and older about making choices that promote health and prevent disease.

The guidelines suggest two to three daily servings from the meat and beans group. They suggest six to 11 servings from the grain products group, and three to five servings of the vegetable group.

There is also support for a vegetarian diet.

The advisory committee and departmental reviewers concluded that the central messages of the seven Dietary Guidelines as presented in 1990 remain sound, and of major importance in choosing food for a healthful diet.

Some changes were made to the 1990 Guidelines, which are reflected in the 1995 update.

1990: Eat a variety of foods

1995: Eat a variety of foods

Reason for Change: No change

1990: Maintain health weight

1995: Balance the food you eat with physical activity; maintain or improve your component weight

Reason for Change: Increased focus on weight maintenance and physical activity as a key component of weight maintenance

1990: Choose a diet low in fat, saturated fat and cholesterol

1995: Choose a diet with plenty of grain products, vegetables and fruits*

Reason for Change: Consistency with placement on Food Guide Pyramid

1990: Choose a diet with plenty of grain products, vegetables and fruits

1995: Choose a diet low in fat, saturated fat and cholesterol*

Reason for Change: Consistency with placement on Food Guide Pyramid

1990: Use sugar only in moderation

1995: Choose a diet moderate in sugars

Reason for Change: Guidelines' focus on total diet

1990: Use salt and sodium in moderation

1995: Choose a diet moderate in salt and sodium

Reason for Change: Guidelines focus on total diet

1990: If you drink alcoholic beverages, do so in moderation

1995: If you drink alcoholic beverages, do so in moderation

Reason for Change: No change

* In the 1995 edition, the order of the third and fourth guidelines has been reversed from previous editions.

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