News Update
May 29, 2013
Smithfield Confirms Agreement to Sell
to Chinese Firm for $7 Billion
Smithfield Foods and Shuanghui International Holdings Ltd. announced May 29 that they have entered into a definitive merger agreement that values Smithfield at approximately $7.1 billion, including the assumption of Smithfield’s net debt.
Shuanghui International is the majority shareholder of Henan Shuanghui Investment & Development Co., which is China’s largest meat processing enterprise and China’s largest publicly traded meat products company as measured by market capitalization.
Smithfield will become a private company. Current leadership and management will remain in place. The headquarters will remain in Smithfield, Va.
There will be no Smithfield plant closings as a result of the transaction, Smithfield President and CEO C. Larry Pope said on a conference call this morning. He also confirmed that he will remain in his current role.
“This is a great transaction for all Smithfield stakeholders, as well as for American farmers and U.S. agriculture,” said Pope in a news release. “We have established Smithfield as the world’s leading and most trusted vertically integrated pork processor and hog producer, and are excited that Shuanghui recognizes our best-in-class operations, our outstanding food-safety practices and our 46,000 hard-working and dedicated employees. It will be business as usual — only better — at Smithfield. We do not anticipate any changes in how we do business operationally in the United States and throughout the world. We will become part of an enterprise that shares our belief in global opportunities and our commitment to the highest standards of product safety and quality. With our shared expertise and leadership, we look forward to accelerating a global expansion strategy as part of Shuanghui."
The transaction is expected to close in the second half of 2013.
For more information, please visit Meatingplace.com here.
Conservation Stewardship Program Deadline
Extended to June 14
The USDA Natural Resources Conservation Service (NRCS) today announced an extension of the deadline for farmers and ranchers to apply for the Conservation Stewardship Program (CSP) until June 14. Secretary of Agriculture Tom Vilsack originally announced that applications for the fiscal year (FY) 2013 sign up of the CSP would be due by May 31, but a congressional delay resulted in today’s extension.
The NRCS will accept slightly more than 12 million acres into the program this year. In the first four enrollment years for CSP (2009-2012), more than 39,000 farmers and ranchers have enrolled over 50 million acres of farm and ranch land. Land that is now under five-year, renewable CSP conservation contracts is valued at $680 million a year, a figure that will increase once the additional 12 million acres is enrolled this year.
Interested farmers, ranchers and forestland owners must complete the brief initial application form by June 14 to compete for a spot in the 2013 enrollment class for the program. Later in the enrollment process, producers will work with NRCS to complete the Conservation Measurement Tool (CMT) that collects information about conservation on the farm and helps determine whether someone can be enrolled in the program and if so, what the level of conservation payments will be in their CSP contract. Completion of the CMT is then followed by an on-site visit to the farm to complete the enrollment process.
CSP is an innovative working lands conservation program that rewards farmers and ranchers for the conservation and environmental benefits they produce.
For more information about CSP, please visit the National Sustainable Agriculture Coalition’s CSP information page here.
Nearing Deadline for NJAA Ambassador Applications
The National Junior Angus Association (NJAA) established the Angus Ambassador program to help prepare youth for a future in the beef industry. Each year, the NJAA selects an individual to serve a one-year term representing the Angus breed. The deadline to apply for the 2013 Angus Ambassador position is quickly approaching.
Junior members between the ages of 17 and 20 are encouraged to apply by submitting a cover letter, résumé and two essay responses by June 15.
“The Ambassador program has created opportunities for young leaders to jump-start their career in the cattle industry,” says Robin Ruff, American Angus Association director of junior activities. “The elected ambassador will have the chance to attend industry events and learn valuable knowledge they might not have learned in a classroom.”
The selected junior, to be announced July 25, will travel to important industry events, including an orientation in Saint Joseph, Mo., at Association headquarters; the National Angus Conference and Tour in New York; a Certified Angus Beef® (CAB®) Building Blocks Seminar in Wooster, Ohio; the National Cattlemen’s Beef Association Cattle Industry Annual Convention in Nashville, Tenn.; the Beef Improvement Federation Annual Research Symposium and Convention; and the Guiding Outstanding Angus Leaders Conference in Canada. Additional travel options vary on the selected ambassador’s schedule and availability.
All applications must be postmarked by June 15 and mailed to the Association’s Junior Activities Department, 3201 Frederick Ave., Saint Joseph, MO 64506. For more information, visit the NJAA website or call 816-383-5100.
Combustible Dust Workshops Offered
n order to increase safety awareness at grain elevators, feed mills and other grain processing facilities, the Kansas State University (K-State) Department of Grain Science and Industry is offering workshops in English and Spanish to address combustible dust hazards.
Project leader Kingsly Ambrose, assistant professor in grain science and industry, said the interactive workshops will create awareness regarding grain dust explosion hazards among workers and supervisors. The workshops, handouts and lecture materials are free.
“It is important to educate supervisors and managers on training their employees using best practices to curtail the risk of dust explosions,” said Dirk Maier, head of the Department of Grain Science and Industry at K-State. “This workshop will communicate practical risk information on dust hazards to mitigate fatalities and loss in grain handling and processing facilities.”
Ambrose noted that grain dust explosions are caused by five factors: powder-fine grain dust, confinement of dust in an enclosed space, dust dispersion, an ignition source and oxygen. Reducing combustible dust, keeping it out of the air and controlling ignition sources significantly reduce the probability of a grain-dust explosion occurring.
Through delivery by faculty from K-State, hands-on activities and an explosion demonstration, the four-hour workshop will provide the awareness, understanding and motivation to reduce the number of explosions and their impact.
“The long-term goal of this team is to continue this effort of raising awareness about grain dust explosion hazards through training activities,” Ambrose said. “We are collaborating with GEAPS (Grain Elevator and Processing Society) to offer a distance education course on grain dust explosions starting Fall 2013.”
For more information and workshop dates, please visit the Angus Journal’s Virtual Library calendar of upcoming events here.
NCBA Statement on OIE Vote to Upgrade U.S.
to ‘Negligible’ Risk for BSE
National Cattlemen’s Beef Association (NCBA) President-elect Bob McCan, a cattleman from Victoria, Texas, made the following statement about the vote by the Scientific Commission for the World Organization for Animal Health (OIE) to upgrade the United States’ risk classification for bovine spongiform encephalopathy (BSE) to negligible risk status:
“This announcement by OIE’s Scientific Commission is very positive news for U.S. cattle producers. The U.S. being classified as negligible risk for BSE by the OIE further solidifies the fact that the safety and health of our cattle and our beef is a top priority for American cattlemen and women. With the implementation of multiple interlocking safeguards by the U.S. beef industry and our partners, we have successfully been able to prevent BSE from becoming a threat to the U.S. beef supply, which remains the safest in the world. The vote by the OIE, an internationally recognized, standard-setting body, is proof that the science-based mitigation measures in place in the United States effectively protect our public and animal health.
“This announcement is an important step forward in increasing export opportunities for U.S. cattle producers. This is a significant achievement for the United States, our beef producers and federal and state partners who have successfully collaborated on this issue.”
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