News Update

News Update
Jan. 27, 2008

Tyson Cuts 1,500 Jobs at Emporia Location

Tyson Foods Inc. announced Jan. 25 that it will cease all beef harvest operations at its Emporia, Kan., facility during the next few weeks, cutting approximately 1,500 of the company’s 2,400 jobs.

Dick Bond, president and chief executive officer (CEO) of Tyson Foods, cited a sluggish U.S. fed cattle supply, and the rising price of grain and its subsequent increasing land and feed costs as reasons for the decision to halt slaughter operations.

“There continues to be far more beef slaughter capacity than available cattle, and we believe this problem will continue to afflict the industry for the foreseeable future,” Bond said. “We estimate the current slaughter overcapacity in the industry to be between 10,000 and 14,000 head of cattle per day.”

Emporia’s location, according to Tyson, also played a significant role in the decision.

“Cattle production has moved from eastern to western Kansas over the past 20 to 30 years, and the Emporia plant is no longer centrally located in relationship to where most of the cattle it slaughters are raised,” Bond stated.

With little relief in sight, Tyson officials believe the move will divert more cattle to its other facilities and improve their capacity utilization, said Jim Lochner, senior group vice president of Tyson Fresh Meats.

Although more than half of workers at the Emporia location will be searching for new jobs, the facility will continue to be used as a cold storage and distribution warehouse and will process ground beef.

Texas Angus Auxiliary Scholarships Offered

The Texas Angus Auxiliary will award two $1,000 scholarships and one $500 scholarship to Texas Junior Angus graduating seniors.

The deadline for Texas Angus Auxiliary scholarships is April 1.

Applicants should have the application and letters of recommendation postmarked on or before April 1. To be eligible for the scholarship, applicants must be a graduating senior, member of the Texas Junior Angus Association for a minimum of two years prior to the application year and a current member of the National Junior Angus Association (NJAA). Also, the parent/guardian of the applicant must have been a dues-paying member of the Texas Angus Auxiliary for a minimum of two calendar years prior to the application year.

Texas Angus Auxiliary will select a girl and boy winner to each receive a $1,000 scholarship to the college, university or accredited technical program of their choice. A $500 scholarship will be given to the next-highest ranking application. The top boy and girl winners will each be forwarded to the American Angus Auxiliary for competition for national scholarships. For information on the scholarship or for an information packet, including an electronic copy of the application and requirements, please contact Erin Worrell at erin@theranchersresource.com.

Diamond V® Plans Second Manufacturing Plant

Diamond V® recently announced plans to build a new $12-million manufacturing facility in Cedar Rapids, Iowa. Construction on the new 28,000-square-foot (sq. ft.) facility will begin this summer and it will become operational in 2009.

Diamond V officials investigated manufacturing sites around the globe before selecting a location in Cedar Rapids, where its corporate headquarters, technical research and innovation center, and existing plant are located. The company’s use of DiaMatrix Technology™, an exclusive proprietary fermentation process used to manufacture its products, requires specialized raw materials that are available in the area. Access to these specialized raw materials, desire to maintain control of manufacturing trade secrets and existing infrastructure heavily influenced the decision. The company’s existing plant will remain operational.

Most Americans Enjoy Burgers

Eighty-five percent of Americans say they eat burgers once a month or more, according to a new survey, the American Meat Institute (AMI) reports.

These and numerous other findings are detailed in two new reports from foodservice consultancy Technomic — one that examines key consumer trends in burger consumption, and another that takes a closer look at the Top-25 chain operators in the burger segment.

According to AMI, significant differences were found in burger preferences and consumption behavior based on gender, age, region, ethnicity, and income. For example, Northeastern consumers are the lightest burger users, and Asian consumers are more likely to find themed burgers appealing than other ethnic groups.

Heavy burger users, those who eat burgers once a week or more, make up the largest burger user category (44%); this group skews toward young consumers and those in the South and Midwest.

Within the nearly $59-billion burger category, the Top 25 limited-service burger chains held roughly 97% of the market — and the Top 3 (McDonald’s, Burger King and Wendy’s) accounted for nearly 75% of limited-service burger chain sales

For more information on either report, go to www.foodpubs.com.

— Adapted from a release provided by AMI.

— compiled by Crystal Albers, associate editor, Angus Productions Inc.