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WRAPUP 1-Pricier US chicken coming to a store near you
Reuters: [2008-05-15 23:18:00]
By Bob Burgdorfer
CHICAGO, May 15 (Reuters) - U.S. consumers can add chicken to the list of foods that will cost more this year.
Prices on everything from soup to nuts have moved higher as food companies pass on to consumers sharply higher costs for grain, meat, and fuel.
Chief executives at the two largest U.S. chicken companies said on Thursday that chicken prices must go higher to offset the industry's higher production costs.
A swift rise in the price of corn, a major feed stock, has been particularly troublesome.
Chicken companies have been unable to raise chicken prices fast enough to offset the higher feed costs, Richard Bond, chief executive at Tyson Foods Inc <TSN.N>, said on Thursday.
"We have attained some (higher) pricing but not at the same pace as our inputs have increased, especially in chicken. The lag of higher priced corn is just now coming through the products that we are taking to market," Bond said during his webcast presentation at the BMO Capital Markets agriculture and protein conference in New York City.
Tyson is the largest U.S. meat company and the second largest U.S. chicken producer. Feed costs for the company should be $600 million higher this fiscal year than the previous year, said Bond.
Corn prices have soared to a record $6.50 per bushel this year amid strong demand from exporters, livestock and chicken producers, and the makers of the biofuel ethanol.
SUPPLY REDUCED, CONTRACTS CHANGED
In order to raise chicken prices enough to offset these higher costs, Pilgrim's Pride Corp <PPC.N>, the largest U.S. chicken producer, has cut production 5 percent and shortened contract terms with customers.
"Prices of grain have escalated so quickly this last fall and into the first part of the year that we have been unable to efficiently pass those prices along as quickly as they have gone up," Pilgrim's Chief Executive Clint Rivers told the BMO conference.
To more quickly pass on the higher costs, Pilgrims just recently shortened contract terms with customers to 90 to 180 days from previous year-long terms.
While Pilgrim's has reduced production 5 percent, Rivers said the industry, as a whole, needs to cut production 3 to 4 percent to generate the higher prices needed to cover costs.
Recently the industry has reduced by 2 to 3 percent the number of eggs and young chicks placed in the production cycle, but it will be early this summer before that reduced supply reaches grocery stores.
"In the summertime we usually have our strongest demand for chicken, so typically you would not expect to be seeing egg sets drop this time of year. So I think it is pretty significant," said Rivers.
"We should begin to see some supply affected by this (drop in egg sets) in June," he said. (Reporting by Bob Burgdorfer; editing by Jim Marshall) ((bob.burgdorfer@ thomsonreuters.com ; +1 312 408 8723; Reuters Messaging: bob.burgdorfer.reuters.com@reuters.net )) Keywords: FOOD USA/CHICKEN
UPDATE 1-Cargill sees new sweetener on market in '08
Reuters: [2008-05-15 17:36:00]
(Adds details, comment from Coca-Cola, background, byline)
By Martinne Geller
NEW YORK, May 15 (Reuters) - Agribusiness and commodity trading group Cargill Inc [CARG.UL] said on Thursday that it expects its no-calorie sweetener made from a South American shrub to be on the U.S. market by the end of the year.
In an interview, Marcelo Montero, president of Cargill's Health and Nutrition unit, said the product, called rebiana, will be available this year as a tabletop sweetener.
Rebiana, which will be sold under the name Truvia, is made from the leaves of a shrub called stevia that is native to Paraguay and will provide a natural alternative to chemical sweeteners including Sweet'N Low and Equal.
Stevia is not approved as a food additive by health regulators in the United States or the European Union, though it can be sold as a dietary supplement. It is approved in a dozen countries, including Japan, China and Brazil.
Privately-held Cargill, which is handling the growing of the plants and the regulatory process, said it has notified the U.S. Food and Drug Association that Truvia is safe, based on scientific studies being published on Thursday in the journal "Food and Chemical Toxicology."
The company said FDA approval typically takes anywhere from two to six months.
Montero said Cargill is working with a number of companies on projects involving the sweetener, but declined to give a timeline for the launch of other rebiana-sweetened food products.
A spokesman for Coca-Cola Co <KO.N>, which co-developed the product with Cargill and has exclusive rights to use it in beverages, also declined to offer a schedule.
"We'll certainly explore the different applications," said Coke spokesman Kelly Brooks.
Most full-calorie soft drinks sold in the United States are sweetened with high-fructose corn syrup, a cheap alternative to cane sugar. But corn syrup has been criticized for contributing to obesity and has soared in price due to climbing demand for ethanol, which is also made from corn.
Lower-calorie sodas are now made with artificial sweeteners such as saccharin, aspartame and sucralose, which are sold under the respective brand names of Sweet'N Low, NutraSweet and Equal, and Splenda, which is made by Tate & Lyle Plc <TATE.L>.
Drinks sweetened with rebiana would likely appeal to health-conscious consumers and natural grocers, such as Whole Foods Market Inc <WFMI.O>, that tend to carry products made from natural ingredients.
One of Cargill's rebiana suppliers, GLG Life Tech Corp <GLG.TO>, said earlier this month that it started building a 500-metric-ton stevia processing facility in Qingdao, China. (Editing by Brian Moss)
((martinne.geller@thomsonreuters.com, +1 646 223 6023; Reuters Messaging: martinne.geller.reuters.com@reuters.net)) See http://blogs.reuters.com/category/themes/shop-talk/ for "Shop Talk" -- Reuters' retail and consumer blog. Keywords: CARGILL/
UPDATE 1-Tyson sees less, but more expensive, chicken
Reuters: [2008-05-15 15:15:00]
(Adds details)
CHICAGO, May 15 (Reuters) - U.S. meat company Tyson Foods Inc <TSN.N> said Thursday there will be less, but more expensive, chicken on supermarket shelves this summer as higher feed prices are passed onto consumers.
During a webcast presentation at the BMO Capital Markets agriculture and protein conference, Tyson Chief Executive Richard Bond said the chicken industry has reduced production in reaction to higher feed prices.
"The lag of higher priced corn is just now coming through the products that we are taking to market," said Bond.
Tyson is the largest U.S. meat company and produces beef, pork and chicken.
Feed prices have skyrocketed this year due in part to more corn, a popular feed, being used to make the biofuel ethanol. The diversion of corn to fuel production from food production has angered meat companies like Tyson, which have seen production costs soar.
Tyson raises the chickens it processes into meat and it has said feed costs for those chickens will be about $600 million more this fiscal year than the previous year.
Corn prices have exceeded $6 per bushel this year, the highest ever.
Based on recent government crop data, Bond said this year "almost a billion bushels of corn will be shifted from food production to ethanol production."
Bond also criticized the proposed five-year U.S. Farm Bill, which was passed on Wednesday by the U.S. House of Representatives and is now before the Senate, because it would extend by two years a tariff on imported ethanol.
"I think overall the Farm Bill is good, but that particular segment is not something we are very appreciative of," he said.
U.S. ethanol producers are aided by a tariff on imported ethanol and by a tax credit for blending ethanol with gasoline.
It takes about 1.2 pounds (0.55 kg) of corn to produce one pound of chicken on a live weight basis. As a result, at $4 per bushel it takes 8.57 cents worth of corn for each pound of chicken and at $6 per bushel it takes 12.86 cents worth of corn, according to industry statistics. (Reporting by Bob Burgdorfer; Editing by John Picinich) ((bob.burgdorfer@thomsonreuters.com; +1 312 408 8723; Reuters messaging: bob.burgdorfer.reuters.com@reuters.net)) Keywords: TYSON PRICES
Tyson Foods sees less. more expensive chicken
Reuters: [2008-05-15 14:34:00]
CHICAGO, May 15 (Reuters) - U.S. meat company Tyson Foods Inc. <TSN.N> said Thursday there will be less, but more expensive, chicken on supermarket shelves this summer as higher feed prices are passed onto consumers.
During a webcast presentation at the BMO Capital Markets agriculture and protein conference, Tyson Chief Executive Richard Bond said the chicken industry has reduced production in reaction to higher feed prices.
"The lag of higher priced corn is just now coming through the products that we are taking to market," said Bond.
Tyson is the largest U.S. meat company and produces beef, pork and chicken. (Reporting by Bob Burgdorfer; Editing by John Picinich) ((bob.burgdorfer@thomsonreuters.com; +1 312 408 8723; Reuters messaging: bob.burgdorfer.reuters.com@reuters.net)) Keywords: TYSON PRICES
DIARY - Greece to June 12, 2008
Reuters: [2008-05-15 10:52:00]
This diary is updated daily and new listings or amendments
are marked "*". All times are provisional and in GMT; +3 to get
Greek time.
_____________________________________________________________
DATE GMT/LOCAL INDICATOR PERIOD F/CAST PRIOR
-------------------------------------------------------------
15/05 NA GDP (est.) Q1 3.6%
22/05 NA Cbank C/A Mar -1.843b
29/05 NA PPI Apr
30/05 NA Retail Sales Mar
THURSDAY, MAY 15
GENERAL/ECONOMIC EVENTS
GREECE - Employees at OTE <OTEr.AT>, Piraeus Port <OLPr.AT>
and Thessaloniki Port <OLTr.AT> hold 24hour strike, employees at
Public Power Corp. <DEHr.AT>, Hellenic Post, Olympic Airlines
and Athens Water <EYDr.AT> hold 3hour work stoppage, while
public sector workers hold work stoppage from 0800 GMT till the
end of the working day to protest against the government's
privatisation agenda and social security reforms. Bank employees
hold 24-hour nationwide strike to demand the signing of the
collective wage deal.
EQUITIES
Date GMT Company Name RIC Event
15/05 1400 Persefs <PRSr.AT> AGM
15/05 0930 Metka <MTKr.AT> AGM
15/05 1400 Marfin Popular <MRBr.AT> AGM
15/05 1200 Teletypos <TELr.AT> AGM
15/05 1000 National Bank <NBGr.AT> RGM
FRIDAY, MAY 16
GENERAL/ECONOMIC EVENTS
ATHENS - Economist Conferences organises Defence and
Security Summit on "The outlook for stability in SE Europe and
the Middle East", at Sofitel hotel.
EQUITIES
Date GMT Company Name RIC Event
16/05 0900 FHL Mermeren <FHL.AT> AGM
16/05 0900 Bank of Attica <BOAr.AT> EGM
16/05 1200 Post Savings Bank<GPSr.AT> RGM
SUNDAY, MAY 18
EQUITIES
Date GMT Company Name RIC Event
18/05 0700 ANEK Lines <ANKr.AT> AGM
MONDAY, MAY 19
EQUITIES
Date GMT Company Name RIC Event
19/05 1400 Plaisio <PLAr.AT> AGM
19/05 1100 Euromedica <EMDr.AT> AGM
19/05 1400 Blue Star Ferries<STR.AT> AGM
19/05 1300 Axon Holdings <AXOr.AT> AGM
19/05 1300 Benrubis <BENr.AT> RGM
TUESDAY, MAY 20
GENERAL/ECONOMIC EVENTS
BULGARIA - Prime Minister Costas Karamanlis pays two-day
visit, to attend South East Europe Cooperation Process summit.
EQUITIES
Date GMT Company Name RIC Event
20/05 1200 Nireus Aqua <NIRr.AT> AGM
20/05 0600 Petzetakis <PETr.AT> AGM
20/05 1400 Sarantis <SRSr.AT> AGM
20/05 1300 Infoquest <IQTr.AT> AGM
20/05 1000 Titan <TTNr.AT> AGM
20/05 NA Jumbo <BABr.AT> 9-month results
WEDNESDAY, MAY 21
GENERAL/ECONOMIC EVENTS
ATHENS - Yalco <YAL.AT> holds company presentation, at the
Institutional Investors Association.
EQUITIES
Date GMT Company Name RIC Event
21/05 1100 Logismos <MCLr.AT> AGM
21/05 1400 Active <ACTr.AT> AGM
21/05 0600 Frigoglass <FRIr.AT> Q1 results
THURSDAY, MAY 22
GENERAL/ECONOMIC EVENTS
*ATHENS - Association of Greek Tourism Enterprises holds its
annual meeting, at the Athens Music Hall. Prime Minister Costas
Karamanlis to deliver keynote speech, at 1430 GMT.
EQUITIES
Date GMT Company Name RIC Event
22/05 1100 Kego <KEGr.AT> AGM
22/05 0900 Reds <CAMr.AT> AGM
22/05 0730 Microland <MCRr.AT> AGM
22/05 0900 Lambrakis <DOLr.AT> AGM
22/05 1000 Lamda Developm. <LMDr.AT> AGM
22/05 0630 Singularlogic <LDSr.AT> RGM
FRIDAY, MAY 23
GENERAL/ECONOMIC EVENTS
ATHENS - Alpha Grissin <CSSr.AT> holds company presentation,
at the Institutional Investors Association.
EQUITIES
Date GMT Company Name RIC Event
23/05 1400 Proton Bank <PRBr.AT> AGM
23/05 1200 Hellenic Fabric <HFAr.AT> AGM
23/05 0530 Pouliadis <POUr.AT> RGM
SATURDAY, MAY 24
EQUITIES
Date GMT Company Name RIC Event
24/05 0800 Karatzi <KRTr.AT> AGM
24/05 0600 Vardas <VRDr.AT> AGM
MONDAY, MAY 26
EQUITIES
Date GMT Company Name RIC Event
26/05 1400 MIG <MRFr.AT> AGM
26/05 1400 ATEbank <AGBr.AT> Q1 results
26/05 NA OPAP <OPAr.AT> Q1 results
TUESDAY, MAY 27
EQUITIES
Date GMT Company Name RIC Event
27/05 NA Folli Follie <FOLr.AT> Q1 results
27/05 NA Fourlis <FRLr.AT> Q1 results
WEDNESDAY, MAY 28
GENERAL/ECONOMIC EVENTS
ATHENS - Profile <PRFr.AT> holds company presentation, at
the Institutional Investors Association.
EQUITIES
Date GMT Company Name RIC Event
28/05 1200 Omega <ASRr.AT> AGM
28/05 NA Bank of Cyprus <BOCr.AT> Q1 results
THURSDAY, MAY 29
EQUITIES
Date GMT Company Name RIC Event
29/05 1100 Autohellas <AUTr.AT> AGM
29/05 1300 Nexans <ALCr.AT> AGM
29/05 0930 Motor Oil <MORr.AT> AGM
29/05 0900 Fashion Box <BOXr.AT> AGM
29/05 NA OTE <OTEr.AT> Q1 results
FRIDAY, MAY 30
EQUITIES
Date GMT Company Name RIC Event
30/05 0700 Maxim-Pertsinidis<MAXIM.AT> AGM
30/05 0900 Reds <CAMr.AT> AGM
30/05 0900 HDFS <HDFr.AT> AGM
30/05 0730 Microland <MCRr.AT> AGM
30/05 1100 Mytilineos <MYTr.AT> EGM
30/05 0700 Motodynamics <MTDr.AT> AGM
MONDAY, JUNE 2
EQUITIES
Date GMT Company Name RIC Event
02/06 0800 Athens Water <EYDr.AT> AGM
02/06 0600 Elve <ELBr.AT> AGM
02/06 0900 Euroconsultants <ERCr.AT> AGM
TUESDAY, JUNE 3
EQUITIES
Date GMT Company Name RIC Event
03/06 1130 Alfa-Beta Vassil.<ABVr.AT> AGM
THURSDAY, JUNE 5
EQUITIES
Date GMT Company Name RIC Event
05/06 1000 C.Rokas <ARCr.AT> AGM
05/06 1200 Global <GEFr.AT> AGM
FRIDAY, JUNE 6
EQUITIES
Date GMT Company Name RIC Event
06/06 0900 GEKE <GKE.AT> AGM
06/06 0800 Alumil <ALMr.AT> AGM
06/06 0800 Frigoglass <FRIr.AT> AGM
GOVERNMENT DEBT ISSUES
Date GMT City Event
06/06 NA Athens PDMA announces amount for 5-year
bond auction
TUESDAY, JUNE 10
GOVERNMENT DEBT ISSUES
Date GMT City Event
10/06 NA Athens PDMA re-opens 5-year bond
EQUITIES
Date GMT Company Name RIC Event
10/06 0700 Keramia-Allatini <KEAr.AT> EGM
THURSDAY, JUNE 12
EQUITIES
Date GMT Company Name RIC Event
12/06 0800 Public Power Corp<DEHr.AT> AGM
12/06 1100 Sidma <SDMr.AT> AGM
((Athens Newsroom +30 210 3311813, fax +30 210 3311829,
athens.newsroom@news.reuters.com, tatiana.fragou@reuters.com))
* NOTE: The inclusion of diary items does not necessarily
mean that Reuters will file a story based on the event.
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