Meat&Poultry - February 2011 - 12

The MeatIndustry Software Experts

Business Notes
NCBA sets 2011 policy priorities
The National Cattlemen’s Beef Association announced its 2011 policy priorities during the 2011 Cattle Industry Convention and NCBA Tradeshow in Denver. Five major priorities were discussed at the annual gathering: trade; transportation; environment; competition; and healthy herd – cattle and consumers. The event’s theme was sustainability. “The days of allowing others to define sustainability for this industry are over,” said Colin Woodall, NCBA vice president of government affairs, NCBA’s policy staff in Washington. “We will discuss these five priorities at the upcoming convention and determine how we can develop policies that ultimately sustain the future of this industry for generations to come.” US beef exports were near record levels in 2010, a trend he said is likely to continue in 2011, Woodall said. He emphasized the importance of ratifying pending free-trade agreements. Woodall said NCBA is focused on making transportation more efficient for cattle producers by passing policy that makes weight limits the same in all states. Environmental issues will continue to be at the forefront of policy priorities, he added. Many regulations from the Environmental Protection Agency and, most recently, the Department of Interior (DOI), will regulate cattle producers out of business without sound scientific justification, he said. “The EPA has gone on a regulatory rampage,” he added. “The Department of Interior recently announced new rules that would threaten producers’ ability to graze their livestock on public lands. This practice, which is good for the land, wildlife and livestock is absolutely critical in the West.” Competition, Woodall said, is multifaceted but the timeliest component of this policy priority is the US Dept. of Agriculture’s Grain Inspection, Packers and Stockyards Administration’s proposed rule on livestock marketing that will be, according to Woodall, the most invasive example of government overreach in the history of the beef industry. ■

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Smithfield executives warn of higher prices
Pork prices will continue increasing, said George Richter, president and COO of Smithfield’s Pork Group Smithfield Foods Inc., on Jan. 18 before fi nancial analysts and shareholders at the company’s Investor Day event. Stating American consumers will have “to have to put up with higher prices,” he added he didn’t know how high pork prices may climb. Smithfield officials said the company’s push into packaged meats, restructuring of operations, reduction of debt and increase in marketing. “We think we have a competitive cost structure in all of the operating segments of this business,” said C. Larry Pope, the company’s president and CEO. “We think we have a very conservative balance sheet today.” Pope predicted the company’s stock price, which has hovered above $20 a share, would shoot up “like a rocket ship.” Executives pointed to Smithfield’s reach in the US and worldwide. They added it’s No. 1 in US market share for smoked hams and pork and No. 2 for bacon and deli meats. New products include Eckrich Angus Beef Smoked Sausage and Armour Cheese Pepperoni. ■

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Meat&Poultry - February 2011

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