VOL. 3, NO. 4 • fall 2008

the newsmagazine for the food industry professional Cost of production – a very different scenario... The food industry moves to adapt to advancing food costs

Increasing costs are having a a fairly narrow range. This year has been While some major affect on our businesses and very different. Corn is a major input in marketers are are getting a special focus in this poultry, red and egg production. successfully issue of “Urner Barry’s Reporter.” Since the late 1990s corn normally traded carved out Throughout the newsmagazine in a range between $1.50-$3.50 per bushel. of niche you will find articles that directly This year corn reached a high of over $7.00 and branded address the challenge of increasing per bushel. The advance in corn has also markets, much of the protein industry is costs, explain why it’s happening, affected soy, wheat and other crops. At the still largely commodity-oriented, making and how it’s changing the industry. same time, most energy prices, including them extremely efficient and competitive. We’ve color-coded these articles natural gas, electricity, diesel and gasoline Initially when suppliers were confronted with a blue header so that you can have steadily increased. In Canada labor with higher costs, they absorbed them, easily locate them throughout the costs have increased at processing plants as not wanting to lose customers or market publication. the food industry there now competes with share. As the advances in cost become the growing oil industry for workers. Today, more widespread and lasting, the costs are For many years, the cost of production processors are contending with higher costs finding their way to the consumer and the in the protein industry has fallen within on virtually all fronts. Continued on page 44 The Maine way of life... L.L. Bean heir starts a new adventure: buying

Linda L. Bean, granddaughter and an Island off Rockland, Maine. She also heir of the Freeport outdoor clothing purchases from a “floating” company, does not sell outdoor apparel Vinalhaven buying station, owned by or equipment, but has embarked on a Peter Jones who does business under the different type of adventure—commercial name Harborside Lobster Co. Both Port lobster buying. Clyde and Vinalhaven are located in mid-coastal Knox County which typically In 2007, Bean purchased a lobster pound reports the largest landings of lobster of and wharf with two lobster buying stations any county in Maine. Bean’s combined in Port Clyde, Maine, and now owns the purchases from the two locations are former Little Bay Lobster wharf and buying station in Carver’s Harbor, on Vinalhaven Continued on page 58 Linda Bean with wharf manager VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 1 Jeff Falla at her dock in Port Clyde. 908-1747

2 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008

X ______Sign here for approval and fax to: 732-341-0891 Dated ______URNER BARRY’S REPORTER • VOL. 3, NO. 4 • fall 2008 Center of the plate Page 1 The food industry moves to adapt to J advancing food costs The spiraling effects of increasing costs is ason’s challenging to many industries, and has now worked its way through production and distribution right down to the consumer. This issue of the Reporter takes a closer look at just how this has happened. F L.L. Bean heir starts a new adventure: oods lobster buying Lobster, sustainability and Maine, all important aspects to Linda Bean, who is working very hard to get the lobstering men and women of Maine the recognition they deserve. Page 1 I nc. Special focus section: Main Ingredients The Challenges of Increasing Costs 30 By air, land or sea, transport issues challenge the food industry 32 Growing trade, international consumption creating greater need for cold storage space EAL ORK 34 Energy: Largest rate increases in decades V • P 36 Ethanol debate Page 30 38 Addressing costs in the supply chain for beef POULTRY • 41 Pressure behind fertilizer costs 40 Boat cost analysis for or 42 Subsidies, mandates and fuel charges ...oh my! News Bites THOMAS 5 BAP certification to continue growth under new 20 Wild salmon: all or nothing and some in- LUCACCIONI oversight committee between PRESIDENT 6 Fresh and local benefit many 22 Muscle profiling research reveals hidden value 7 Prevention of E.coli for further beef processors 24 Greenpeace retail campaign likely a bust 8 Confucius say: Chinese food as American as 26 Dinner and dessert all in one 208 E. HELEN ROAD apple pie 27 Beeler : committed to humane treatment ALATINE 9 Enhanced poultry and eggs may fight against of livestock P , IL 60067 cancer 29 The trade-offs of trade 12 Famous 99-cent special falls victim to economy 46 Small seeds, big potential 15 America’s container crisis 48 Buyers’ guide to purchasing seafood 18 Costco offers scintillating seafood ( 8 4 7 ) 50 Target marketing turkey consumers through new interactive outlets 3 5 8 - 9 9 0 1 Page 54 52 New York food traditions uncovered 53 The challenge of trimming costs 54 Research shows: ethics matter more than CELL: (847) 431-8444 sustainability [email protected] 56 Q and A with... Laurie Bryant

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 3 X ______Sign here for approval and fax to: 732-341-0891

Dated ______A la carte the newsmagazine for the 10 Eye on dining food industry professional Culinary classics in Colorado Springs

Pu b l i s h e r 11 Vitamins and minerals Paul Brown Jr. Riboflavin (Vitamin B2) B2 Nutrients you can use Se n i o r Ed i t o r 14 Foreign relations Russ Whitman Indonesia: The Pacific ring of fire

Ma n a g i n g Ed i t o r 16 Celebrity Chef Joe Muldowney Succulent from SeaPak and Chef Robin Miller Contributors 17 The Reporter quiz Page 10 Janice Brown Test your seafood knowledge Jim Buffum Ken Coons Greg Deppeler 28 Species 101 Dave Herrick and swai Brooke Joensen Jim Kenny 47 From the Recipe Box Linda Lindner Savory makes a super salad Bruce Longo 59 Menu Makeover Mindy Melasky Escargot: “edible ” offer delightful Angel Rubio flavor, texture, health benefits John Sackton Bill Smith Jane Unger Page 59 MaryAnn Zicarelli

Co p y Ed i t o r s Lynn Dekovitch Linda Lindner

Cr e a t i v e Di r e c t o r Glenn F. Juszczak

Pr o d u c t i o n Ma n a g e r Chris Ashley

As s o c i a t e De s i g n e r s Maria Morales Gary Swarer

Adver tising 4689 South 400 West Janice Brown Brooke Joensen P.O. Box 480

Subscription In f o r m a t i o n Huntingburg, IN 47542-0480 800-932-0617 WWW.FARBESTFOODS.COM Ann Block (812) 683-6626 Ryan Downes (812) 683-6627 Greg Meyer (812) 683-6625 Fax# (812) 683-4226

An Urner Barry Publication Published Quarterly Printed in the U.S.A. Copyright © 2008 Editorial and Publishing Offices Tel. 732-240-5330 • Fax 732-341-0891 182 Queens Boulevard, Bayville, NJ 08721 www.urnerbarry.com • [email protected] Nothing may be reproduced in whole or part without written permission from the publisher. MEMBER OF THE NATIONAL TURKEY FEDERATION 4 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008 Uniform safeguards assure quality... BAP certification to continue growth under new oversight committee Contributed by “Such partnerships are a great Global Aquaculture Alliance opportunity to highlight how effective public-private cooperation can be Best Aquaculture Practices certification of when it comes to food safety,” he said. aquaculture facilities is continuing to gain momentum around the world. As of July, Quantitative Standards over 80 shrimp farms and hatcheries in “The BAP program benefits Asia, Central America and South America consumers, buyers and the diverse had been certified to BAP standards aquaculture supply chain by developed by the Global Aquaculture providing a uniform set of safeguards Alliance. Some 85 seafood processing to assure that seafood is healthy plants from Ecuador to Thailand had also and responsibly produced,” GAA In expansion beyond its original focus on shrimp completed the certification process. BAP President George Chamberlain said. facilities, BAP certification now includes audits of standards for channel farms are channel catfish farms. now available, and standards for tilapia BAP certification is based on quantitative production are in the final stage of review. international standards developed by pending standards as well as earlier technical committees coordinated by the standards in the BAP process of continuous Market forces are helping to spread the Global Aquaculture Alliance, a non-profit improvement. The committee will help adoption of BAP certification. To increase trade organization dedicated to advancing set overarching goals for the certification food safety, environmental sustainability responsible aquaculture. The growing list program, as well as offer input on committee and social of standards for shrimp and fish addresses membership, standards development and responsibility “Such environmental and social responsibility, other elements of BAP certification. in their seafood partnerships animal welfare and food safety. supply chains, are a great GAA’s Stevens said the involvement of Wal-Mart Stores, opportunity To establish compliance with the BAP diverse stakeholders in the formation Inc. and Darden standards, evaluators accredited by the of the Standards Oversight Committee to highlight Restaurants, Inc. Aquaculture Certification Council carry reflects the growing support for Best have specified how effective out physical site inspections, effluent Aquaculture Practices. that their public-private sampling and extensive procedural and shrimp suppliers cooperation record reviews. ACC also manages an “Input from many groups was sought and adhere to Best can be when online traceability database that can trace incorporated into the committee structure,” Aquaculture it comes to individual lots from the processing plants Stevens said. “This effort should address Practices food safety...” to the farms and ponds where the animals any questions about the transparency of standards. Other were raised. our process in setting standards that are major seafood buyers and sellers are also both rigorous and attainable as we strive to increasingly endorsing BAP. Balanced Oversight advance the sustainability of aquaculture An important addition to the BAP on a global basis.”UB The BAP program hopes to make further program is a new Standards Oversight gains through participation in a U.S. Food Committee that will oversee the further Since 1979 and Drug Administration pilot program development of standards and assist in to test third-party certification of shrimp their implementation. The 12-person SOC farms. GAA planned to submit its Best is composed of a balance of stakeholders Aquaculture Practices for evaluation in the from industry, nongovernmental pilot. Following a multiphase review, FDA conservation and social justice POULTRY SPECIALTIES, INC. could eventually grant expedited customs organizations, and academic/regulatory All Categories Poultry entry for seafood imports from certified groups. The first major committee Retail • Food Service • Industrial • Export Professional Sales & Procurement Service facilities. meeting is scheduled for late October, just before GAA’s GOAL 2008 conference in Call Butch, Jim, Tommy or Jason GAA Executive Director Wally Stevens Qingdao, China. 479-968-1777 said certifications such as Best Aquaculture (Fax) 479-967-1111 Practices can complement federal The SOC will work with BAP Standards P.O. Box 2061 • Russellville, Arkansas regulation and increase the FDA’s reach. Coordinator Daniel Lee in examining Email: [email protected]

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 5

X ______Sign here for approval and fax to: 732-341-0891

Dated ______Good reasons to stay close to home... Fresh and local Forty-nine years of global experience benefit many Major supplier to It appears that more and more Americans are discovering or wholesalers, hotels, rediscovering the benefits of restaurants, retailers fresh fruits, vegetables and proteins locally grown. People and the U.S. Military are moving away from the mass markets and beginning to focus BEEF on produce and proteins that are fresher and have a greater

PORK nutritional value. Staying local Hawlan ©iStockphoto.com/Dieter is good for the economy and POULTRY it also helps the local farmers also allow the public to access their farm, and businesses stay strong. Further, by education center and other amenities TURKEY purchasing local produce and proteins, to provide a memorable experience in people are helping to protect the open learning about the locally grown fruits space needed for the farms and preserving and vegetables in the area. Stone Hill their local environment not only for today prides itself in being well diversified SEAFOOD but for the future as well. and productive while at the same time TURKEY partnering with the environment to create The basic underlying idea is to find out fresh produce year-round. Furthermore, what is grown in your area by locating Whole Foods Market is supporting locally farmers’ markets and family farms in order produced proteins and other products. LAMB for you to get the For example, they focus on pasture-fed best products. “By simply beef which allows for the meat to retain its SMOKED Also, there are doing a little full flavor and the animals do not receive farms that open research growth hormones, dewormers, pesticides, DUCKS up during the where you or antibiotics and are grass fed. summer and VEGETABLES live, there is early fall months a multitude Mail order is another emerging that allow people development. By purchasing products in of channels POTATOES to pick their this manner you are able to have goods own fruit and you can delivered to your doorstep daily, weekly, BREAD & PASTRIES vegetables or pick purchase and monthly, or however you choose to DAIRY up pasture-fed locally grown receive them. The mail order process has beef. A growing products.” often been referred to as a co-op because trend emerging it can be considered a buying club or Corporate Office where people are having locally grown membership club. Some of the products 2920 Regatta Boulevard fruits and vegetables delivered to their that can be purchased and delivered are doorstep on a weekly, monthly or seasonal fruits, red meat and poultry, grocery and Richmond, California basis. By simply doing a little research produce, seeds, dairy and eggs, flowers 94804-0013 where you live, there is a multitude of and many other products for the kitchen resources exist that allow you to purchase and home. 866- RWM-MEAT locally grown products. (866-796-6328) As the trend toward locally grown One major development in the farming advances opportunities to develop a new www.richmondwholesale.com industry is that many restaurants and understanding for the environment and supermarkets are moving towards using community will continue to come to the locally grown produce, protein and eggs. forefront. For more information about For example, Stone Hill Farms in New purchasing local fruits, veggies and proteins York provides products to its restaurant, visit www.localharvest.org and www. Blue Hill Farms in Manhattan. They stonehillbarncenters.org.UB

6 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008 X ______Sign here for approval and fax to: 732-341-0891

Dated ______Informative conference regarding invasive pathogen... Prevention of E.coli for further beef processors

The numerous recalls and outbreaks Wednesday’s session features food safety related to E.coli 0157:H7 has turned this systems and FSIS expectations, from 8 am past year into one of the most challenging to 3 pm CDT, and will focus on: and frustrating for processors of beef products. FSIS officials are constantly • FSIS checklist results and future plans increasing their focus on plants producing • surviving a FSIS Food Safety non-intact beef products and have begun Assessment increased testing and inspection-related Chicago’s O’Hare Airport, featured • prerequisite programs and approved activities dealing with this pathogen. speakers include Dr. Dan Engeljohn, supplier programs Deputy Assistant Administrator, FSIS • interventions and supporting Responding to this ongoing and renewed Office of Policy, which is responsible for documentation focus by both industry and FSIS, the North generating U.S. government regulations on • in plant validation and verification American Meat Processors Association E. coli O157:H7 control, and experts from • HACCP plans and best practices (NAMP) is partnering with the American the international HACCP Alliance and Meat Institute (AMI), the National Meat BIFSCo. The conference is designed for processors Association (NMA), and the American who produce ground beef, mechanically Association of Meat Processors (AAMP) The conference will feature a technical tenderized and other non-intact to organize a special conference for beef session on microbiological testing on beef products. A block of rooms have further processors. The Beef Industry Food Tuesday, Sept. 16, from 1:30 pm – 5:30 been set aside at discounted rates. To Safety Council (BIFSCo) is supporting the pm CDT, focusing on what testing means, find out more information please visit conference. how to best collect and analyze samples, www.NAMP.com, www.meatami.com, supplemental testing programs, and www.nmaonline.org, www.aamp.com, or Scheduled to be held on Sept. 16-17 at lotting. An evening reception with tabletop call NAMP toll-free at +1 800.368.3043 the Four Points by Sheraton Hotel near exhibits follows. ext. 103.UB

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 7 Chinese food, America’s good fortune... Confucius say: Chinese food as American as apple pie

The allure and popularity of Chinese food ever so popular. “There are the first sentence of her book. that currently exists in the U.S. wasn’t some 40,000 always so. In the second half of the 1800s, It is actually quite Additionally, she also compares Chinese [Chinese] many Westerners would not even have easy to see why food to the American-ness of apple pie. Lee thought of ordering anything from this Chinese food restaurants says “Our benchmark for American-ness is ethnic group for fear they were eating dogs, could hold such in the United apple pie. But ask yourself: How often do cats and even rats! All that has changed a title. First of States—more you eat apple pie? How often do you eat dramatically as Chinese food is now one of all, pork is the than the Chinese food?” America’s most popular cuisines. world’s most number of widely eaten McDonald’s, Lee suggests that perhaps we are most Interestingly enough, there are different meat, and so Burger Kings, attracted to Chinese food because it opinions as to what the most popular many Chinese and KFCs includes variations of the original dishes food in the is—some say dishes contain combined.” from China as well as new creations from , because Americans eat over 14 pork. Of course the United States. She continues to explain billion burgers per year, and others say hot there are many how it is easy to see how Chinese foods dogs since it is estimated that we eat seven that are also seafood-based, and then there have conformed to American dishes. It is billion between Memorial Day and Labor are all those wonderful vegetable dishes, a very pervasive cuisine in the U.S. and Day alone. There is also , an Italian lesser priced rice dishes and the versatile has made its way into fast-food as well as favorite, and Mexican food is becoming and spicy chicken fares. Yet, another theory upscale restaurants from Panda Express to exists. Wolfgang Puck’s Chinois.

In a new book entitled The Fortune Cookie As a history and Asian-American studies Save this for your Chronicles, by Jennifer Lee, the popularity associate professor at UC Irvine, Yong of Chinese food can be easily seen when Chen said, “Chinese food is the most compared to the number of famous fast- important American cuisine, if there next egg purchase! food restaurants. “There are some 40,000 is one. It shows how much culture has [Chinese] restaurants in the United States— transformed and how immigrant cultures EGGS more than the number of McDonald’s, have been incorporated to an ever evolving Burger Kings, and KFCs combined,” reads American culture.”UB Serving the Southwest 623-872-2309

HICKMAN’S EGG RANCH 6515 South Jackrabbit Trail Buckeye, AZ 85326 Phone: 623-872-1120 Fax: 623-872-9220 www.hickmanseggs.com

G G P R O E D D U E C T E I R

N

S

U CERTIFIED Produced in Compliance with United Egg Producers’ Animal Husbandry Guidelines www.uepcertified.com ©iStockphoto.com/David Smith ©iStockphoto.com/David 8 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008

X ______Sign here for approval and fax to: 732-341-0891

Date ______Fight disease with diet... Enhanced poultry and eggs may fight against cancer

Dr. Lin and his research chicken are fed a diet containing the team, Doctors gossypol-enriched cottonseed meal. Macdonald Wick Prior to this research, gossypol and Michael Lilburn, was found to be toxic to learned that this natural humans when consumed pigment inhibits the directly. “The theory is proliferation, development that if humans were to Studying a substance with important and spread of drug-resistant consume gossypol-enriched Konkle ©iStockphoto.com/Kathy Medical icon anti-cancer properties called gossypol, cancer cell lines in the breast, chicken meat or eggs, they researchers at Ohio State University’s ovary, cervix, uterus, adrenal, could reap the anti-cancer Comprehensive Cancer Center say they pancreas and colon. In fact, benefits,” said Lin. could be on their way to developing cancer- by putting gossypol directly fighting chicken and eggs using a natural onto human breast cancer Dr. Lin says he believes the plant extract found in cotton plants. “We tissue, the team recorded it to gossypol binds to protein in the are trying to produce cancer-fighting slow the rate of cancer growth by chicken meat and in the yolks in the chicken meat and eggs by feeding chickens as much as 94%! eggs, and after consumed in this manner, gossypol-enriched cottonseed meal,” said it is released by a human digestive enzyme, Dr. Young C. Lin lead researcher at Ohio The team is continuing to study whether therefore resulting in the same cancer State’s Comprehensive Cancer Center. the same cancer protection exists when protection witnessed in the lab.

“Dr. Lin’s research is exciting and shows promise to stop cancer growth,” says Dr. Michael Caligiuri, director of Ohio State’s Comprehensive Cancer Center. “The Let us handle notion that we could enjoy our “The notion food and at the that we could your speciality. same time receive enjoy our an agent or a food and at drug that could prevent cancer is the same ideal.” time receive an agent or Lin’s study would a drug that be the first to could prevent use gossypol as a cancer is food component ideal.” to help battle cancer. To date, it has only been used in experimental systems in the lab. While researchers are cautious not to overstate the results, they can’t help but see the possibilities.

“Tailor-made food components that possess anti-cancer and cancer chemopreventive effects in meat and eggs produced by hens fed with gossypol-enriched cottonseed meal 1.888.925.0500 will be a novel vision for improving value www.interplast.net of agricultural commodities,” says Lin.UB

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 9 Eye on dining... Culinary classics in Colorado Springs

by contributing reporter Jim Buffum stopping by the famous Broadmoor. Whether you have While Colorado Springs does not a meal or just sit in the lobby to command the attention of the celebrity people watch, it is a must do. All chefs that Las Vegas or of the restaurants are outstanding, Chefs are ready for Sunday Brunch at the does, there are some truly great places exhibiting super service with Broadmoor’s Lake Terrace Dining Room. to enjoy a great meal. In an area whose memorable food. Another winner is the economy, as well as gastronomical delights, Cliff House, I categorize this one as “an experience that will long be remembered. was driven by the tourist industry, a new oldie, but goodie” as it continues to be One day our sommelier from the age has arisen that satisfies both the locals a leader in the industry; specializing in Reporter will have to do a tasting at the and visitors nouveau continental dishes that are all Briarhurst—his discerning tasting ability is who are looking “…the palate pleasers. second to none! for a meal to opportunity to remember. The Briarhurst Manor offers Colorado Springs’ local chefs have enjoy a truly accommodations as well as fine dining developed quite a following, and the A visit to the unique dining for the weary traveler who is looking for opportunity to enjoy a truly unique dining area would not experience has that something extra. Old-world service, experience has grown over the years. Take be complete grown over the combined with an innovative menu a chance and venture out from your hotel without years.” and extensive wine list, makes this an and enjoy, enjoy, enjoy!UB

Importers / Exporters Vista Wholesale / Trading Food Exchange Inc. Domestic and International Suppliers of Perishable Food Products CONSISTENT ABLE Specializing in: • TURKEY QUAL ITY, DEPEND SERVICE CHICKEN For Domestic Inquiries, • PORK Please Contact Vincent Louis at BEEF Tel. # 718-542-4401 or Fax # 718-542-0042 Website: http://www.vistafood.com FISHE-mail: [email protected] • [email protected] SERVICE CENTERS Bronx, NY • Blue Springs, MO • Hope Mills, NC • Forest, MS • Land O Lakes, FL San Antonio, TX • Colleyville, TX • Manchester, NH • Toronto, Canada 10 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008

X ______Sign here for approval and fax to: 732-341-0891 Dated ______To your health...

Riboflavin (Vitamin B2) Nutrients you can use

Riboflavin, also “The richest sources. Riboflavin found in whole known as B2, is foods is absorbed exceptionally found in a variety sources well into the blood. Because of foods and include organ ultraviolet light can destroy it, foods plays a key role meats such rich in riboflavin should not be in maintaining as the , stored in clear containers. human health. kidney and The Recommended Daily Allowance It is used to heart.” Riboflavin is essential for tissue respiration (RDA) for riboflavin varies according to utilize the and plays a crucial role in certain metabolic weight, metabolic rate, growth and caloric carbohydrates, fats and proteins in the reactions, particularly the conversion of intake. Yet, on average, 1.7 mg/day is foods we eat and is also necessary to carbohydrates into sugar, which is ‘burned’ recommended for an adult man and 1.3 properly use these nutrients for energy. to produce energy. It is important for body mg/day for an adult woman. growth and red blood cell production. This water-soluble micronutrient must Riboflavin also facilitates oxygen use by the Deficiency symptoms include cracks and be consumed on a daily basis because it body tissues, eliminates dandruff and helps sores at the corner of the mouth, sore cannot be stored in the body. It is easily the uptake of iron and vitamin B6. Those tongue and/or sore throat, appearance of obtainable from eating a varied and suffering from carpal tunnel syndrome blood vessels in white part of eyes, burning balanced diet. Good sources of riboflavin have benefitted from a treatment program and itching of the eyes and hypersensitivity include meat, poultry, eggs and fish. The that includes riboflavin. It also works as to bright lights.UB richest sources include organ meats such an antioxidant by scavenging damaging as the liver, kidney and heart. Oily fish, particles in the body known as free radicals eggs and dark leafy vegetables are also rich that can damage cell membranes.

Plastic Egg Tray Dietary Sources Washers/Sanitizers with Automatic Stack Loaders, of Riboflavin Inline Spin Dryers and Restackers Source: USDA Nutritional Database Capacities From 1,000 to 18,000 per hour

Plastic Egg Trays standard size and for extra-large eggs Plastic Pallets and Divider Panels

3 oz. cooked 3 oz. beef, Liver, for transportation 15 and 30 dozen Plastic Egg Crates and canned, 3 oz. canned, , Egg Crate Washers raw 3 oz. raw wild, Salmon, Atlantic

Egg, cooked Egg, P.O. Box 26,

3 oz. cooked loin, 3 oz. Pork, Flemington, NJ USA

amburger, lean, 3.5 oz. H amburger, 08822-0026

3 oz. cooked dark, 3 oz. Chicken, CORPORATION (mg) Phone (908)782-5696 Telefax (908)782-2751 E-mail: [email protected] www.kuhlcorp.com VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 11

X ______Sign here for approval and fax to: 732-341-0891

Date ______Best tail in town... Famous 99-cent special falls victim to economy

the Golden Gate without the 99-cent special as it has been a main constituent of the 102-year- The famous shrimp cocktail from the old casino since “With over a Golden Gate Hotel is 1959. With over a ton of cold- still a great value. Photo ton of cold-water courtesy of Golden Gate water shrimp shrimp served Hotel & Casino. served each each week, it certainly proved week, it to be a crowd certainly favorite that proved to outlasted most be a crowd of the city’s 99- favorite…” cent breakfasts. Co-owner Mark Brandenburg said the last time the price was hiked was in 1991 when it jumped from 50 cents to 99 cents after he combed the books and found the casino was losing approximately $300,000 a year on shrimp cocktail!

What happens in Vegas stays in Vegas... This time Brandenburg’s decision was not this time, it’s happening all over— more difficult, he said. To soften the blow inflation. Only now even Las Vegas to consumers Brandenburg ordered bigger cannot withstand rising prices, and it is shrimp and staffers portioned out extra beginning to take a toll. sauce.

In the midst of high fuel Sadly, that’s not the only menu prices, casino layoffs and item experiencing a price hike in airlines cutting flights, Las Vegas. Casinos offering those Vegas tourism has been famous buffets designed to experiencing a downturn. lure customers are finding MIDWEST Because of this state of it difficult to maintain economic uncertainty, such specials. A $6.95 POULTRY adjustments need to be dinner or a $9.99 prime rib made, many times unpleasant ones. One is getting tougher to supply to those not SERVICES of the greatest deals on the strip has fallen coming in and spending their money on victim to the economic woes, the famous the floor. Some casinos are even forgoing Three generations of 99-cent shrimp cocktail has broke the hiking the price of specials arguing that dollar mark. doing so would no longer make the dish a experience in fresh eggs. special. Still some are discontinuing items For the first time in 17 years, the Golden altogether. Midwest Poultry Servics, L.P. Gate Hotel and Casino saw the need to is an industry leader increase the price of its signature shrimp Yet, The Golden Gate’s Brandenburg with a reputation built on cocktail dish from .99 to 1.99 as a result hopes the recent price jump will not outstanding service. of rising bay shrimp prices. (Players’ Club lessen the mystique of his casino’s shrimp Call us to experience the difference. members can still pay the old price for the cocktail. No matter what the cost, the dish). casino still proudly displays signs to Midwest Poultry Services, L.P. customers that remind them they are P.O. Box 307, Mentone, IN 46539 UB Phone: (574) 353-7651 • Fax: (574) 353-7223 Vegas regulars say it’s difficult to imagine buying the “Best Tail in Town.” 12 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008 VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 13 Wealthy in natural resources...

In d o n e s i a : Th e Pacific r i n g o f f i r e Indonesia is a country in Southeast Asia that shares land borders with Papua New Guinea, East Timor and Malaysia. It serves as a barrier between the Indian and Pacific Oceans and is the 4th most populated country in the world. Located on the Pacific “Ring of Fire”, Indonesia remains vulnerable to volcanic and tectonic disasters. The Main Island groups are the Great Sunda Island, the Lesser Sunda Islands, the Riau Archipelago and Papua. ©iStockphoto.com/Mayumi Terao ©iStockphoto.com/Mayumi Indonesia is wealthy in natural resources Workers plant rice as a fertilizer plant looms in the distance. specifically crude oil and natural gas—a large source of export revenue. Producing plantation crops such as cocoa, coffee, labor force. The majority of the population potential, making it one of the wealthiest palm oil, coconuts, sugarcane, tea, tobacco, is self-sufficient countries in the world. Giant trees are cloves, sisal, spices, and the main crop rice, in terms of food “Great produced from the vast forests in the agriculture is responsible for roughly 13% because of the timberlands mountains. Indonesia is a major exporter of the GDP and employs over 40% of the wide landholding are of timber, accounting for nearly half of base. Cattle are responsible the world’s tropical hardwood trade. As raised on some of of late, Indonesia’s timber exports have for the the Lesser Sunda been suffering from rapid deforestation Islands and both majority of due to an expanding population and a the ocean and Indonesia’s growing industry causing concern among inland ponds natural international environmental groups. The are an abundant resource timber industry also suffers from illegal From the Farm source of fish. potential...” brush fires to clear land set during the to Deli, dry season. These have caused significant we are your Great timberlands are responsible for the health, navigation, and economic hazards majority of Indonesia’s natural resource in some years.UB Source for Turkey! Buyers & Sellers Domestic & International Indonesia / U.S. comparison “Alliance Builders” of: Whole Birds, Bone in Breasts, AREA 1,919,440 sq km 9,631,418 sq km Raw Meats, Tray Pack Parts, COASTLINE 54,716 km 19,924 km Further Processed Products, POPULATION 237,512,355 295,734,134 Turkey Hatching Eggs, LIFE EXPECTANCY 70.46 years 77.71 years Turkey Poults, Live Contracts GDP $837.8 billion $11.75 trillion Jeff Stauffenecker GDP (per capita) $3,700 $40,100 Carl Wittenburg AGRICULTURE AS A %GDP 13.8% 0.9% Sara Almich AGRICULTURAL PRODUCTS rice, cassava, peanuts, fruit, wheat, corn, grains, 605 Crow Lake Street cocoa, coffee poultry, beef poultry, beef, vegetables Brooten, MN 56316 LABOR FORCE 109.9 million 147.4 million Phone: 320-346-4033 UNEMPLOYMENT RATE 9.6% 5.5% Fax: 320-346-4038 POPULATION LIVING BELOW POVERTY LINE 17.8% 12% Toll Free: 1-877-BUY-TURK OIL PRODUCTION / CONSUMPTION 1.07/1.1 7.8 / 19.65 www.proteinalliance.com (million bbl/day) (million bbl/day) 14 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008

X ______Sign here for approval and fax to: 732-341-0891

Dated ______No room at the inn... America’s container crisis

It wasn’t very long ago that America’s goods including meat and poultry, which seemingly insatiable appetite for imported further diverted containers. Increased goods guaranteed sufficient container numbers of exporters were left searching for availability; likewise vessel space for the transportation, a situation some say will not U.S. food industry to export its goods be changing anytime soon. to destinations in Eastern , the Caribbean and According to Jim Sumner, President of Asia, among “…shipping lines both the USA Poultry and Egg and Export others was Council (USAPEEC) and the International are shifting also readily Poultry Council (IPC), one of the most obtainable. increasing pressing impediments to increasing U.S. All of that numbers of agricultural exports is the shortage of has changed containers to containers and cold storage space. As for America’s more profitable exporters wait for the much sought after poultry and routes…” refrigerated containers, they are forced to meat exporters. divert product to cold storage, often for Beginning last year, the availability of weeks or even months on end. He said empty containers declined as U.S. imports that “shipping lines are shifting increasing diminished. At about the same time, U.S. numbers of containers to more profitable ©iStockphoto.com/Claude Beaubien agricultural exports soared in response routes for manufactured goods in Asia and to the diminishing value of the dollar. between Asia and Europe.” In the most back from overseas or from other ports in The growing middle class in Asia seemed desperate cases, poultry and meat producers the U.S. that could be hundreds of miles to discover a liking for U.S. produced are paying for containers to be shipped away. Peter Friedman, executive director of the Agricultural Transportation Coalition, estimated that if more containers were available over the last six months, 20 to SEAFOOD IMPORT 30 percent more product could have been WORKSHOP SERIES shipped by agricultural exporters. This situation is particularly alarming to You will learn how to… Seminars are held U.S. beef producers who recently got the t Meet U.S. governmental requirements green light to export U.S. beef to Korea. throughout the For five years, since the 2003 outbreak of t Streamline your import operations “mad cow” disease, beef exporters have t Integrate seafood product specifications year in cities across been waiting to ship their goods to what with supplier choice had been their third largest market. Now, the U.S. beef destined for Korea and other export t Negotiate supply agreements destinations is left sitting in refrigerated t Conduct supplier audits rails or warehouses. Kevin Smith, director of export services at the U.S. Meat Export t Use entry checklists Federation was quoted as saying “This will hurt us in new markets. We will lose Attendees receive: markets like Korea when they get excited t Books Workshops conducted by about our beef but exporters can’t ship the Richard Gutting, Jr. and Mary Snyder product.”  A Practical Guide to the Regulation of Seafood in Call Urner Barry for more There’s some speculation that the worst the United States of the container shortage could be over  Model Seafood Import information at for now. That said, there doesn’t appear Compliance Manual 1-800-932-0617 or to be any lessening in the world’s demand for U.S. agricultural goods and, at least for  FDA Inspection Notebook 732-240-5330 the short term, international buyers and t 4QFBLFS1SFTFOUBUJPOT or e-mail sellers will continue to face this and other t -VODI [email protected] logistical challenges.UB

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 15 When chef meets shrimp... Succulent shrimp from SeaPak and Chef Robin Miller

Robin Miller, she’s SeaPak Shrimp As the host of Food energetic, enthusiastic, Co. and celebrity Network’s Quick Fix experienced, a chef Robin Miller Meals with Robin Miller, nutritionist, joined forces in a show which focuses television food a new advertising on creating quick, show host, and campaign to convey inventive and great an author, and the company’s tasting meals in now she’s the message of “Making minutes, Miller is a spokeswoman for Great Shrimp perfect representative SeaPak Shrimp Easy.” Together this for SeaPak’s “Making Company—the team has created Great Shrimp Easy” producer of numerous recipes campaign. the #1 selling showcasing SeaPak brand of shrimp products. SeaPak will feature Miller in a series of frozen, value- dynamic cooking demonstration videos added shrimp “Shrimp has the unique ability to turn available for viewing on the company’s in the U.S. what could be a wonderful family meal consumer Web site, SeaPak.com, where her into something elegant enough to serve engaging personality and culinary authority Beginning in your guests,” said Miller. “SeaPak shrimp showcase the great taste, versatility and October of 2007, is great for easy entertaining.” many wonderful usage occasions to incorporate SeaPak Shrimp recipes on the menu.

Other areas Chef Miller stars include FoodNetwork’s site where consumers can find advertisements “Shrimp has featuring Miller the unique and can then ability to be directed to turn what the SeaPak site could be a for viewing. wonderful Additionally, advertising family spots are meal into running during something FoodNetwork’s elegant shows, Quick Fix enough to Meals with Robin serve your Miller, Emeril guests.” Live!, 30 Minute Meals, Everyday Italian, Paula’s Home Cooking, and Semi-Homemade Cooking with Sandra Lee.

A variety of new recipes by Robin Miller are available for viewing along with numerous practical tips and innovative ideas for cooking wonderful meals—all which are designed to “Make Great Shrimp Easy.”UB

16 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008 The “Reporter” quiz... Test your seafood knowledge

1. What is the section on a lobster which 4. What percentage of shrimp is caught 7. Which deep-sea fish, once known as is typically measured to ensure proper domestically? the “slimehead,” grows very slowly and legal size for a lobster tail known as? a. 50% doesn’t reproduce until it is 20 years a. Carapace b. More than 80% old? b. Tail c. Zero a. c. Antenna d. Less than 10% b. Monkfish d. Pleura c. Cod 5. Which shrimp represents more than d. Salmon 2. How many species of Wild Pacific half of all aquacultured shrimp after Salmon are caught in the in U.S. and their explosive growth in Asia? 8. What species is number 5 on the U.S. Canada? a. Black Tiger shrimp consumption list and is also believed a. Zero b. Freshwater shrimp to be the fish depicted in the Christian b. 5 c. White shrimp biblical story of the miracle of the loves c. 25 d. Coldwater shrimp and the fish? d. 1 a. Flounder 6. Early commercial activity of what b. Tilapia 3. Which country is both the number one species of shellfish included processing c. Catfish producer and exporter of seafood in the it into a powder that was marketed as an d. Cod world? anti-inflammatory? a. United States a. Green 9. 10-50% of U.S. Seafood production is b. Canada b. Australian Lobster tails produced in Alaska. c. China c. Langostino a. True d. Japan d. Snow Crab b. False See answers on page 58

FutureSource Workstation 3.0 The preferred market data platform for the energy, agri-business and futures brokerage industries

FutureSource® Workstation is a professional decision support software that delivers real-time, delayed and historical market data for futures, options, exchange-traded spreads, spot prices, F/X, Treasuries (Cantor Market Data) and equities to you. FutureSource Workstation Offers You: Answers �Quotes — 150+ different price aspects, including option “Greeks” and implied volatilities �Charts — Tick, Intraday, Daily, Weekly, Monthly, Continuation and Chartable Expressions — now with seasonal charts �Animated Weather Maps — Enhanced map package crucial to pricing projections �Analysis — 60+ indicators and a complete set of drawing tools �Options — Customizable Options Board and a what-if calculator, as well as premium charting and advanced analytics �Alerts — Price, time, news and customizable condition alerts �DDE — Ability to update your portfolios, strip calculators and With FutureSource Workstation, important market data is easy to risk analysis in real time using Microsoft Excel access and view using intuitive �Exchanges — Access to more than 125 exchanges worldwide tools and features. Call now for your FREE QuoTrek — Get wireless quotes, charts and personalized demonstration news on your PDA at a 50% discount with and get 30 days risk-free.* your subscription to FutureSource Workstation (and no additional exchange fees). 800.481.4442 www.fsworkstation.com eSignal is a division of Interactive Data Corporation (NYSE: IDC). *All fees will be refunded to you, minus any taxes and applicable add-on service/exchange fees, if you cancel within the first 30 days of service. Call for details. x13758

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 17 The scoop on ... Costco offers scintillating seafood

Consumer reporter Pat Volchok and rich in protein, niacin, vitamin B12, pound to 7-scallops-per-pound range. gives a behind-the-scenes look at iron, potassium and phosphorus. Their Costco products and services. delicate flavor makes them enjoyable even Costco’s Kirkland Signature brand offers for many non-seafood lovers. two of the largest sizes. Gorgeous U-10s (10 Reprinted courtesy of or fewer scallops per pound) are available “The Costco Connection” Few foods are as convenient to prepare. occasionally in cooler cases and nearly Scallops thaw and cook fast. You can sear every Friday and Saturday at Seafood Road Scallops are scintillating seafood. Found them in a hot skillet, broil, grill, stir-fry, Shows. The U-8-12s (8 to 12 scallops per in sandy bays and seabeds around the saute or bread them. pound) can be found in the freezer seafood world, they propel themselves through section. the water by clicking their shells together Fished throughout the year, scallops are like castanets. An either wild-caught or No matter the size or warehouse overactive adductor farmed. Like shrimp, department, all Costco Kirkland Signature muscle is responsible scallops are sorted scallops are managed as one program, for this action, and and priced according guaranteeing the same exacting quality this whitish, round to size—the smaller specifications and standards for all. tenderloin is deemed the number per by connoisseurs pound, the larger Disguising the scallops— and chefs to be the most delicious, highly the adductor meat and typically and shucking the consumer prizedAd 6.75x5 part of a2/9/07 scallop. 4:31 PM Page 1 the higher the price. The U.S. wild North Atlantic scallop fishery—where Costco One would think the process pretty These dream puffs have only one gram of harvests Kirkland Signature™ scallops— straightforward—harvest, shuck, rinse, freeze fatAd per 6.75x5 four ounces 2/9/07 and are4:31 sweet, PM tenderPage 1 typically yields sizes in the 40-scallops-per- and package. However, most processors also shuck consumers by treating these delicate ocean morsels with sodium tripolyphosphate (STP) as a way to artificially plump up size, weight and pricing.

What is STP and why is it used? It is a chemical food preservative that is mixed with water to slow bacterial growth and add moisture beyond natural levels. It also washes away questionable odors and gases, bleaches graying scallops to pure white and adds enough false moisture after a three- day soak to turn U-12 scallops into U-10s. When STP enhanced scallops are cooked, they no longer have their naturally sweet taste and shrink by up to 25 percent.

STP is not allowed in the Kirkland Signature canned tuna or shrimp programs, and I wanted to confirm the same holds true for Costco’s raw, frozen scallops. So I called on Costco’s seafood team of Bill Mardon and Ken Kimble.

Bill reports, “When we began to dig into this industry, we were not happy with what we found. We discovered it is essentially 10901 Roosevelt Blvd. N. an industry standard to treat scallops sold Suite 100B St. Petersburg, FL 33716 at retail with STP, and we knew we needed (727) 822-1288 to eliminate that to give our members the www.seafoodbysigma.com Contact: [email protected] highest-quality scallops.”

18 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008

X ______Sign here for approval and fax to: 732-341-0891

Dated ______to the warehouse is to Bill notes, “We “We don’t partner with reputable, don’t drive stop with the environmentally conscious to a price but government companies. This is why to a program seal. Costco’s Atlantic Capes Fisheries— ... a Grade recipient of the “FINesse” A program.” own labs also Award for responsible Lucky for us, test regularly.” fisheries from the National Costco frozen Fisheries Institute—Mar- raw scallops are also reasonably priced. Lees Seafood and American At the time of this writing, Road Show Seafoods Group are on U-10s are $10.49 per pound, a 5-pound board. All three are USDA, bag is $9.99 per pound and 30-pound USDC, FDA and HACCP cases can be purchased for $9.48 per (Hazard Analysis and pound or less. Critical Control Point) Kirkland Signature Scallops® are not treated with STP, ensuring that certified scallop processors. Costco scallops are partially thawed members are receiving the highest-quality scallops available. for the U-10 Road Shows, so eat these Costco’s scallops are not beauties within a day or so as they are best bought at auction. They if not refrozen. U-8-12 freezer scallops, in Costco’s only recourse was to create a are hauled up from the ocean floor onto a 2-pound resealable bag for $19.99 ($9.99 frill-time government-inspected U.S. Grade small seven-member-crew boats, then per pound), are good for about three A scallop program. This is why a United quickly shucked, rinsed and bagged by months if kept frozen properly. States Department of Commerce (USDC) hand and stored on ice until arrival at the inspection stamp is now on every bag of port of New Bedford, Massachusetts. Cast your net this summer around Kirkland Signature scallops. Costco’s U.S. Grade A Kirkland Signature Kirkland Signature processing plants raw sea scallops. Your friends and family Ken adds, “We don’t stop with the are at the dock, so there’s no worrisome will applaud your savory catch.UB government seal. Costco’s own labs also travel time or additional handling. A test regularly [see “Getting Soaked”]. To USDC inspector is present full-time my knowledge no other large retailer offers during the entire process, from unloading an all-natural scallop with such a highly to final packing. The inspector must first inspected top-grade program. In fact, determine if the scallops from the boat Costco now sells the largest percentage of will meet the Grade A quality standards truly dry [no water added], USDC Grade A for freshness, odor, size, moisture, texture wild scallops in the world.” and color. Those that pass are cleaned again to remove sand, further checked Costco’s scallop process by the official for quality, sprayed with 800-367-0760 is Grade A an ice-water mist to prevent dehydration, individually quick-frozen and packaged. The first step in bringing delicious scallops No sitting or soaking time is allowed. (563) 556-0760

Full Service Brokers of BEEF, PORK It’s hard to believe reputable retailers continue to sell scallops treated with sodium tripolyphosphate (STP). To prove this point, Costco seafood buyers Bill Mardon and & POULTRY Ken Kimble purchased frozen samples around the country and shipped them to Costco’s quality assurance lab in Seattle. Domestic and Export Costco’s corporate quality assurance lab manager, Robin Forgey, analyzed the moisture content of each while I watched. She reminded me, “The natural moisture level of the vast majority of all North Atlantic sea scallops is 80.5 percent or less. The Randy, Cindy, Mark, Darin & Lisa higher the percentage of moisture, the greater the likelihood that something in the processing methods, such as STP, allowed the scallops to absorb more water. STP is 36 Bluff Street, PO Box 171 supposed to be listed if used.” Dubuque, IA 52004-0171 Only two brands, one of which was Costco’s, did not register above-normal levels of moisture, even though none of the brands reported STP use. Fax 563-556-4131 The results speak volumes.—PV

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 19 The story of the 2008 wild salmon season... Wild salmon: all or nothing and some in-between

The 2008 wild “One of the the loss of the commercial and recreational the Alaska Seafood Marketing Institute, salmon fishery has biggest harvest. The states of California, Oregon, discusses the situation with Laine Welch seen many ups and trends we’re and Washington set the wheels in motion to on Fish Radio: downs. It got off obtain federal aid in the amounts of $208, fighting to an extremely $45, and $36 million respectively, marking “One of the biggest trends we’re shaky start with is the the second time in three years that a major fighting is the perception that there’s the announcement perception salmon collapse sparked federal aid for the no salmon available on the West of closures that there’s area. Coast runs and headlines also about in California no salmon disappointing salmon returns to and most of available Within the Farm Bill, the Pacific Coast the Copper and Yukon Rivers. You Oregon. Then, on the west salmon fishing industry was approved continue to see articles that will pick approximately coast runs…” for $170 million in disaster relief aid. on one of another run in Alaska one month before The Bush Administration, however, was that might be lower than others or the salmon season was to begin, news attempting to take back $70 million of the having some difficulty and that’s was released that zero commercial salmon appropriated monies. At the time of this immediately being extrapolated as fishing would be permitted from Cape writing, that issue was still in debate among all salmon are in trouble” Falcon (in northern Oregon) south to the West Coast lawmakers. Mexican border. Here come the sockeyes… With the dismal news on the West Coast, Secretary of Commerce Carlos M. many were looking to the beginning of Much of the talk during the month of Gutierrez declared a “fishery failure” for the Alaskan salmon season to be the light June discussed the missing king salmon; the West Coast Salmon Fishery on May 1, at the end of the tunnel, however, wild however, the beginning of the Bristol Bay 2008. Moving quickly to call the closures salmon marketers’ woes continued with sockeye fishery gave harvesters something a fishery disaster enables Congress to disappointing runs in both the Copper and to cheer about. This year’s Bristol Bay appropriate money for the losses. NOAA Yukon Rivers. The Copper River Salmon salmon run is turning out to be one of the estimated an approximate loss of $22 fishery is one of the most popular runs strongest runs in years. It has elevated the million in commercial ex-vessel revenues—a during the wild salmon season. Bristol Bay sockeye timing chart over the 90% decline from the 5-year average. 5-year average, raised state totals and lifted NOAA also projected a $60 million loss in With constant negative press about the spirits of many in the state of Alaska. personal income impacts associated with poor salmon runs; many people began the commercial processing and commercial questioning Alaska and its fisheries Other reports from different river systems and recreational trip expenditures from management. Ray Riutta, director of have also cited strong sockeye runs

Bristol Bay Sockeye Statewide Alaska Salmon

Figure 1: Alaska Department of Fish and Game – 2008 Bristol Bay Sockeye In season Salmon Harvest Timing. Sockeyes from Bristol are bringing up the Figure 2: Alaska Department of Fish and Game – 2008 Statewide In season average and putting the total salmon catch from Alaska closer to the 5-year Salmon Harvest Timing (All Species) average.

20 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008 salmon harvest for the state of Alaska.

One big question remains in the 2008 wild salmon season. Where did all of the fish go? There are several theories that scientists, journalists, and marketers are throwing around. The first is global warming which results in the warming waters breaking down the barrier that colder water has against parasites. Some say more and more salmon are becoming victims of disease. Another theory is “La Niña,” el Niño’s colder cousin with blame placed on the cooling waters contribution to late runs of salmon. Lastly, there is an increasing by-catch of salmon from pollock trawlers. In recent years, pollock trawlers have intercepted more and more salmon. ©iStockphoto.com/Aleksandar Milosevic By-catches are up and king salmon hit a record this year of 122,000 fish, up from the previous 5-year average of 57,333. including the Columbia River and Cook in 2005 555,200 pounds were landed, in Inlet areas. As for the other salmon species, 2006 they totaled 269,613 pounds, and The fact of the matter remains, no one cohos and pinks are just beginning their in 2007 figures equaled 504,832 pounds. knows why the runs are early, late, better, runs. Pinks are expected to be less than Pink salmon are considered the bellwether or worse. More study and research is last year due to their two year life cycle, as species in the wild salmon harvest as their needed and it is more than likely a they have on and off years. For example, swings from year-to-year impact the total combination of factors.UB

Specializing in program business catering to food service and retail companies

• Snow Crab • Bay Scallops • IQF Sole • Cod

Maloney Seafood Corporation • IQF Flounder • Haddock Call us for all of your seafood needs • Shrimp (All Natural) Maloney Seafood Corporation ph. (617) 472-1004 • fax. (617) 472-7722 • Cold Water Shrimp www.maloneyseafood.com

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 21 X ______Sign here for approval and fax to: 732-341-0891 Dated ______The strength of tenderness... Muscle profiling research reveals hidden value Consumers, producers, product Flat Iron Steaks were sold in the U.S.—an inherent tenderness and the steps taken development experts as well as retailers and indication that this item exhibits an during cutting to remove all connective restaurateurs know the importance beef insurmountable amount of value. Results tissue. tenderness plays in customer satisfaction from muscle profiling research have also as consumers have long been willing to led to other successes at the foodservice No doubt, hundreds of different muscles pay high prices for meat that is guaranteed and retail levels. For example, in 2007, 47 exist in a beef carcass, all of which have tender. Exciting new muscle profiling million pounds different properties. Through additional evidence supplied by over 10 years of of Petite Tender “The keys to funding from The Beef Checkoff, data Checkoff-funded research indicates there and 37 million success for has been compiled to create a definitive is value to be found in some otherwise pounds of Ranch these cuts ranking of 39 different beef muscles from overlooked under-valued cuts. Steak were sold, have been the beef chuck and round, as well as compared to 29 their inherent sensory panel evaluations of tenderness, Thanks to The Beef Checkoff, attention is million pounds tenderness flavor and juiciness in an effort to more now focused on the potential use of under- of Porterhouse fully realize their value. and the steps utilized muscles for value-added products. and 59 million One cut in particular, the Flat Iron Steak, pounds of taken during How did they do it? One of the most has enjoyed the most significant success of T-bone! The cutting to common objective methods used to them all. keys to success remove all quantify the degree of is for these cuts connective called Warner-Bratzler shear force analysis. In 2006, more than 92 million pounds of have been their tissue.” This device records the amount of force

www.radlofoods.com

22 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008

X ______Sign here for approval and fax to: 732-341-0891 Dated ______required to shear a core of cooked meat. Over the years the most commonly used core size has become ½ inch. Of the top ten muscles ranked in a recent Checkoff- funded fact sheet, the infraspinatus (#2 Flat iron), serratus ventralis (#4 Denver steak), and teres major (#7 Petite Tender) were all classified with the lowest reported Warner Bratler shear force values (below 3.9kg) and were classified as most tender—and these cuts did not even exist 10 years ago!

But that’s not all. A trained sensory panel was also on hand to help come to an agreement on the tenderness rankings. As it is such a multidimensional and complex trait, at least five features were evaluated by the panel. These included: softness to tongue and cheek, softness to tooth pressure, ease of fragmentation, Grilled flat iron steaks with pistachio-mushroom rice. mealiness of muscle fibers and tenderness of connective tissue. aging 17 different Upper 2/3 Choice and Checkoff-funded Industry Guide for Beef Muscle profiling also aided in the Select muscles allowing for more consistent Aging or http://bovine.unl.edu to view development of postmortem aging tenderness results every time. the muscle profiling Web sites as well as guidelines as it was combined with other pertinent results from this Checkoff- additional research to create a guideline for Visit www.beefresearch.org to view the funded work.UB

September 16th-17th at the Prevention of E. coli O157:H7 Four Points by Sheraton, O’Hare Airport, Chicago, IL for Beef Further Processors conference

with the support of Sign up now! the Beef Industry Food Safety Council (BIFSCo)

Featured speakers include s$R$AN%NGELJOHN $EPUTY !SSISTANT!DMINISTRATOR &3)3/FlCE 4ECHNICAL3ESSIONONE. coli/(4ESTING OF0OLICY 0ROGRAMAND%MPLOYEE 3UPPLEMENTAL-ICROBIOLOGICAL3AMPLING0ROGRAMS $EVELOPMENT &3)3#HECKLIST2ESULTSAND.EW)NITIATIVES s%XPERTSFROMTHE)NTERNATIONAL 3URVIVINGAN&3)3&OOD3AFETY!SSESSMENT (!##0!LLIANCEAND")&3#O )NTERVENTIONSAND3UPPORTING$OCUMENTATION For more information, go to www.NAMP.com, www.meatami.com, www.nmaonline.org, 0RE REQUISITE0ROGRAMSAND!PPROVED3UPPLIER0ROGRAMS www.aamp.com or call toll free  +1 800.368.3043 x103 (!##00LANSAND)NDUSTRY"EST0RACTICES

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 23 Ceasing the smudge on seafood... Greenpeace retail campaign likely a bust

Adapted from a Seafoodnews.com editorial people will pay a premium for organic or probably make up more than 75% of most comment by John Sackton which local food, all consumers should pay a supermarket retail fish sales, the concept originally appeared on June 17, 2008 premium for sustainably-sourced seafood. of bludgeoning supermarkets to give up these products through consumer pressure What consumers do pay more for is a simply does not work. collection of attributes that add value—such as the marketing story: Alaska Wild or The goal of marketing more sustainable Initially there was some industry Icelandic Char. fish is not something the industry should trepidation about the fact that Greenpeace Here the value “If all shy away from. Greenpeace could have a would rank supermarkets by how they comes from supermarkets more productive campaign by taking note performed in terms of sustainability the fact that are failing, of the growth of the local food movements, criteria, however, in the actual report no the customer and the increasingly prevalent trend in there is little supermarket gets a passing grade. is linking the both white table cloth restaurants and high product with incentive for end retailers to identify the origin and Comparisons are a lot less effective if you attributes they consumers provenance of what they sell. cannot point consumers to any supermarket want and trust. to choose that serves as a model. So in Greenpeace Greenpeace is among failing By highlighting the positive efforts of rankings, not even Whole Foods gets above not a credible supermarkets.” individual fishermen, vessels, or operators in a 40% grade on a scale of 100. source of that particular, fisheries they create a model more trust in the way that a seafood producer or companies and vessels want to emulate. If all supermarkets are failing there is little marketing organization is. incentive for consumers to choose among In the U.S., at least, it is unlikely that failing supermarkets. The heart of the Greenpeace campaign is the Greenpeace campaign will have a a red list of seafood products to avoid. The significant impact.UB Greenpeace also shows a complete lack reason this campaign will not succeed is of knowledge of the retail industry. For that the targets are too broad. example, they say “The price of food is no longer the overriding factor for many The Greenpeace red list contains 22 customers.” Tell that to any supermarket species, including all warmwater shrimp, buyer, and watch their reaction. virtually all tuna, Atlantic cod, salmon and halibut, Alaska pollock, red snapper, In fact, supermarket consumers are , redfish and a number of others. extremely price sensitive. Greenpeace is trying to make the point that since some Since shrimp and salmon and tuna SERVING THE SOUTHEASTERN U.S. WITH LIQUID & FROZEN EGG PRODUCTS 5 POUND CARTON TO TANKER LOAD QUANTITIES

P.O. Box 408 375 Pierce Industrial Blvd. Blackshear, GA 31516 Office (912) 449-5700 Fax (912) 449-2438 E-mail: [email protected] Tuna, one of the “red list” species, makes up a large portion of seafood sales in retail markets.

24 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008

X ______Sign here for approval and fax to: 732-341-0891

Date ______VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 25 Baseball, hot dogs, burgers and ?... Dinner and dessert all in one

In the midst of a health-conscious society is the “hamdog,” a wrapped in a the traditional and hot dog beef that’s deep fried, covered with have been pushed aside to make room chili, cheese and onions, and served on for turkey burgers and hot dogs as well as a hoagie bun topped with a and veggie burgers. Yet, traditional grilling fare fries. still has its loyal fans, and some of them have taken the good old-fashioned burger What better place to market these all- and dog to an entirely new level. American favorites than at a baseball stadium. That’s right, these bizarre One such creation all started in a fusions of meat have become available at suburban bar down in Decatur, GA called the Gateway Grizzlies, Illinois’ Frontier Mulligan’s. Legend has it that one day League baseball team. At concession the cook ran out of buns, and decided to stands there fans can order “Baseball’s use two doughnuts instead. The creator Best Burger,” a deep fried burger with of what has been called the “World’s sharp cheddar Unhealthiest Burger,” Chandler Goff, cheese and “We have ® named the concoction after R&B legend, two glazed doughnuts. It is two slices of had the Luther Vandros, who had come into the over 1,000 calories and contains about 45 , served opportunity bar that day and especially enjoyed this grams of fat. in between artery clogging “meal.” The two fried to bring in a is a one-pound burger (sometimes deep This heart attack on a plate has inspired Krispy Kreme new concession fried) with melted cheese, strips of bacon, bigger and even greasier creations. Yes, it doughnuts. item for the and grilled onions smack in the middle of does get worse. Another favorite offering past two “We have seasons and had the each of them opportunity to have been very Do you have the bring in a new successful...” concession ® item for the past two seasons and each of them have COMTELL EDGE? been very successful,” said Grizzlies’ general manager Tony Funderburg. He told ESPN.com that he got the idea after reading about Mulligan’s in Atlanta.

The “burger” is also responsible for Market Prices, increasing attendance at games and is the most popular item at the ballpark, not News and to mention that it plays a critical role in Analysis supporting the club’s finances. Other offerings at the park include for the Food “Baseball’s Best Hotdog,” a hotdog topped with two strips of bacon, sautéed onions, Industry sauerkraut, and cheddar cheese, as well as the “Swiss Brat,” a bratwurst with a slice of Swiss cheese in the middle, topped with sauerkraut. COMTELL®... all the tools you need. Locals who might not be interested in minor league baseball but who want to Visit www.comtell.com experiment with these creations will have to buy a ticket as these favorites will only or call 800-932-0617 be sold inside the stadium gates.UB

26 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008 Farm animal welfare high priority... Beeler Pork: committed to humane treatment of livestock

In 1846, German immigrant, Fred Beeler Highlights of the Heluka farming system Heluka™ non-confined finishing began raising pigs on an Iowan farm. include: barn that allows spacious room for Beeler cared greatly for his animals, and large social groups. it showed! His pigs became highly sought • No gestation or farrowing crates. after by consumers for word spread that Beeler’s pigs were of superior taste. Five • Fattening phase conducted in Heluka generations later, those beliefs are still houses. guiding Beeler Pork as the company launches their new proprietary method of • Raised without antibiotics or added Taurus farming named Heluka™. hormones. In fact, no artificial Food Products, ingredients are used at all. Inc. Over 160 years later Beeler’s humane concept is still the primary focus of the “Since 1846 our family mission has been company’s main product. Beeler Pork to provide consumers with superb tasting Imported & Domestic feels that it pork products, free of chemicals, and Boneless Beef, is because of “Consumers to treat our animals with compassion,” Pork & Variety Meats the farm’s stated Tim Beeler, President of Beeler are taking a P.O. Box 709 compassionate much more Pork. “I am proud to say, that 161 years and later, our great- great Grandpa Fred’s Carefree, AZ 85377 active role in revolutionary values are still fueling the success and Highwood, IL system of understanding growth of Beeler Pork.”UB 847-681-0351 farming that how their 800-828-7877 their pigs food is being Fax: 847-432-1485 exhibit a produced.” Carefree, AZ superb taste. 480-488-4323 Their newest farming system, Heluka, 800-458-2383 which literally means ‘full of sun,’ does Fax: 480-488-7751 not confine the pigs, but allows them to go Santa Fe, NM outside and bask in the sunshine. 505-820-2951 888-520-5600 “Consumers are taking a much more active Fax: 505-820-0715 role in understanding how their food is E-mail: [email protected] being produced. They understand that poor [email protected] animal welfare can pose a serious threat to the food they eat,” explained Julie Beeler, Michael Berman vice president of sales for Beeler Pork. William J. Berman

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 27

X ______Sign here for approval and fax to: 732-341-0891

Dated ______Catfish, basa, swai… What’s in a name? … Species 101: basa and swai

Basa, Pangasius bocourti, and swai are placed in ponds (also known as “tra” locally) Pangasius and/or cages for hypopthalamus, are farmed, scaleless, a growout freshwater fish predominately from period Vietnam. Part of about of the catfish “…swai and eight family, yet, not basa have months. allowed to be They are gained labelled as such harvested when they are by the FDA, tremendous about two to three pounds and swai and basa popularity in afterwards shipped live to processing plants past two years. have gained the U.S. during where they are mostly filleted. tremendous the past few In 2002, U.S. catfish farmers filed an popularity in years.” Both basa and swai are hearty fish. Basa is anti-dumping petition with the U.S. the U.S. during preferred throughout their native region Department of Commerce which resulted the past few years. The specie are also and is considered the “better” fish with the following year in antidumping duties heavily consumed in Vietnam and all over a thicker and whiter meat. Swai being imposed. Yet, imports in 2006 Southeast Asia. has a higher survival rate and better feed increased 160% when compared to the conversion. Basa is typically a higher-priced previous year. In 2007, growth in imports Swai and basa are primarily farmed in the fish than swai. Most imports reported into curbed allegedly as a result from food safety Mekong River delta in Vietnam, both in the U.S. today are swai. Other markets issues for product coming from China. The ponds and cages in the open water. Fry include Australia and the European increase in imports only reached 9.9% yet and fingerlings from commercial hatcheries Union, where imports have soared in the it remains a popular low-priced fish fillet.UB

Freshness First Quality Flavor & Firmness NATURE’S CATCH 1090 Willis Road • Clarksdale, MS 38614 Commitment 1-800-964-FISH • [email protected]

28 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008 The mixed picture of interdependency... The trade-offs of trade ©iStockphoto.com/Feng Yu ©iStockphoto.com/Feng Trade liberalization has increased competitors, as they will suffer to survive called “shock therapy,” in which markets dramatically within the past three decades. as trade barriers are removed. Workers were completely liberalized virtually Barriers have disappeared and countries whose skills are specialized in their area overnight. Now, Russia is setting reforms have formed alliances and trade blocks will likely become obsolete and therefore to correct the hardships and the trade-offs to establish rules; arguably in the most unemployed within a short period of time. that free trade—and internal corruption— efficient and At times, these workers will have to start brought during the 90s, but is still relying fair manner. “…many from zero and gain completely new skills. on market forces and free markets. In this context, economists Further effects of unemployment could the opinion believe that also include social negative impacts such as Countries have taken different routes of free trade trade barriers depression and alcoholism, among other towards free trade because of the and fair trade things that would discourage a worker from comparative advantages of their industries. should be is widely seeking a job and becoming economically Many of the benefits of free trade are being divided due entirely active in society. experienced by countries and industries to zero-sum eliminated so that have thrived all around the globe. games that that we can let Some economists affirm that whenever Some of the trade-offs are still persistent offer benefits markets work.” there is a change in economic policies, too. Weather a person stands for free for some at there will be initial times of hardships, trade or not, it is imperative to analyze the expense of others. Yet, international especially when trade liberalization takes each case individually; by sector, by factor institutions have been created to regulate place. If we re-examine the NAFTA endowments, region, etc. Free trade intends and monitor market practices all around example we can see there were plenty of for benefits to outweigh the trade-offs that the globe in an attempt to alleviate or bad consequences for the three parties will undoubtedly occur in a transition diminish the trade-offs that follow trade involved, however, we cannot turn away period. The next time someone asks you liberalization. Nonetheless, these haven’t from the benefits that market liberalization for your opinion on free trade, your best been too successful at enforcing fair trade also brings. Foreign direct investment, for answer would be “it all depends.”UB resolutions. In the end, it’s the country’s example, has soared and entrepreneurship trade regulatory body which will determine has made markets more competitive. Take tariffs, quotas, and safeguards. China and the Asian tigers as an example. P A C K E R S O F GDP per capita has grown tremendously To understand why countries engage in this very open market region of the LIQUID, in trading, we must first comprehend world as these economies thrive through the term comparative advantage. By growing economic times. Another example FROZEN, DRIED definition, countries should specialize has been El Salvador. This small country in the production of goods and services in Latin America was among the poorest & SHELL EGGS they can produce most efficiently. Take countries in the Western hemisphere in NAFTA, for example, and assume there the 1980s and today it enjoys one of the ESTHERVILLE are no trade barriers—including subsidies. best economic performances as well as FOODS, INC. Assuming that Canada and the U.S. can 40% poverty alleviation through free trade Estherville, IA produce meat products more efficiently economic policies. 712-362-3527 than Mexico, but cannot manufacture SIOUXPREME EGG PRODUCTS, INC. textiles in the same manner, the logic of Under the thinking of Milton Friedman, Sioux Center, IA comparative advantage would lead us to many economists believe that trade barriers 712-722-4787 the following: consumers in Mexico would should be entirely eliminated so that we SONSTEGARD be able to purchase meat products from the can let markets work through the “magic FOODS, INC. Sioux Falls, SD U.S., while Canada and the U.S. would be of the price system.” Others believe in 605-338-4642 able to buy clothing products from Mexico. strict rules that would protect a nations’ This scenario seems rather efficient as the industry, regardless of its efficiency. Finally, SONSTEGARD FOODS, INC. market itself brings goods to Canadian, there are those who believe in free trade, Springdale, AR American, and Mexican consumers. but are aware of the need of international 479-872-0700 institutions that would monitor and asses SONSTEGARD of GEORGIA Yet, this nice state of affairs does not come the fairness of international competition. Gainesville, GA without a negative trade-off. Left remaining One cannot be all for free trade or against 770-534-5644 are the meat-producing industry of Mexico it. China did not open its market entirely SUN RISE FARMS and the textile industries of Canada and in one day. Rather, it did so step by step Harris, IA the U.S. These sectors will likely be hurt and as needed. Poland and Russia—then 712-735-6010 given their disadvantages against their new the ex U.S.S.R—experienced what was

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 29

X ______Sign here for approval and fax to: 732-341-0891

Dated ______Cost analysis: transportation... By air, land or sea, transport issues challenge the food industry

Rising costs of ingredients, soaring fuel and international trade. According to Jeff $3,000 to ship the same container. prices, and the falling value of the U.S. Rubin, chief economist of CIBC World dollar have been wreaking havoc on the Markets, the explosion in global transport The same is true of land transport. Bob food industry. Even with U.S. food exports costs has effectively offset all the trade Powell, of Skyline Express, an intermodal catapulting higher, transport issues have liberalization efforts of the last three trucking company, comments that fuel given rise to a whole new set of problems decades. It also suggests that there could prices have doubled since last year. Not confronting the food industry, many of be a major slow down in world trade and a only are fuel prices an issue but anything which have presented serious logistical fundamental realignment in trade patterns. using petroleum is costing companies challenges and added costs that at times like Skyline Express more money which seem insurmountable. Because of the explosion in agricultural ultimately gets passed on to the consumer. trade, spurred on in part by a growing Belts, tires, and oil are just a few of the Escalating Oil Prices Affect middle-class in Asia and points beyond, items being affected by soaring petroleum Land and Sea Transport changes in transportation methods have prices. For the agriculture industry, led to increased sensitivity to energy prices. where margins are much less than for Due to rising fuel prices, transport costs One of the most significant changes in manufactured goods, this is a big problem. are being impacted at an unprecedented export trade has been a trend towards Additionally, the industry’s reliance on rate. This is so much the case that the cost containerization. owner operators to transport goods puts of getting product from point “A” to point them in a more precarious position than “B” has become one of the largest, if not From a time standpoint, container ships other manufacturers. A lot of truckers are the largest, barrier to enhancing domestic can be unloaded much more quickly and simply parking their trucks because of their efficiently than break cargos, allowing the inability to turn a profit which has resulted ship to spend more time at sea. This has in reduced capacity and higher freight rates resulted in more importance being placed for an industry that is already struggling on the speed of the ship. Faster ships to get by. According to the IBM Institute require more fuel which adds costs. The for Business Values, 2008 GMA Logistics latest figures suggest that over the last 15 Survey, freight costs per mile continue to SEAFOOD IMPORTER years, fuel consumption has doubled per increase. In 2005, freight costs per mile unit of freight. averaged $1.69. By the end of March this Steve Richter CEO year, freight costs climbed to $1.92, up [email protected] In a world where many experts expect 14% from just a few years ago. “If it isn’t Romeo Imperial oil prices to stay well into the triple petroleum based, it’s corn based,” states CFO digits, trade routes in general could Powell and that hits the food and transport [email protected] be changed forever. In CIBC’s May industries especially hard. Tracy Muñoz Economics and Strategy Report, Rubin VP / USA states that “globalization is reversible” Fuel Consumption Burt Malinsky because transportation costs are going National Account Executive to force buyers to seek supply sources Gallons of fuel [email protected] closer to home. He writes “…and while consumed hauling one ton of freight. Ramon Morales trade liberalization and technology may Based on 3000 mile VP / P.R. have flattened the world, rising transport coast to coast haul. [email protected] prices will once again make it rounder.” Chris Hood For instance, in an article published by CIO the Montreal Gazette regarding today’s [email protected] oil prices, every 10% increase in trip distance translates into a 4.5% increase SEA TO SEA, LLC in transport costs. The report goes on to 870 Greenbrier Circle state that, including inland costs, shipping Suite 400 a standard 40-foot container from Chesapeake, VA Shanghai to the U.S. eastern seaboard 23320 now costs $8,000. In 2000, when oil Ph# 757-366-0222 7 gallons 27 gallons prices were $20 per barrel, it cost only Fx# 757-366-0082 Source: Association of American Railroads 30 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008 High fuel prices and a shift in trade routes have A study of 50 major U.S. metro areas by made it increasingly difficult for the agriculture transportation consultant Wendell Cox industry to export their products using ocean going vessels. Rail yards, like the one pictured found that the diversion of 25% of truck below, have benefitted by being a cheaper freight to rail would lead, by 2025, to: alternative to shipping refrigerated containers over land by truck to the nation’s ports. • 2.8 billion fewer traveler-hours wasted in congested traffic • A savings of 16 billion gallons of fuel • Nearly 800,000 fewer tons of air pollution.

In 2007, major freight railroads in the United States moved a ton of freight an average of 436 miles on each gallon of fuel. This represents a 3.1% improvement over 2006 and an astonishing 85.5%

©iStockphoto.com/Dan Barnes ©iStockphoto.com/Dan improvement since 1980. “That’s the equivalent of moving a ton of freight all “…‘globalization is the way from Baltimore to Boston on just reversible’ because a single gallon of diesel fuel,” said AAR transportation costs are President and CEO Edward R. Hamberger. going to force buyers to seek supply sources According to Hamberger, moving more freight by rail does more than just reduce closer to home.” fuel consumption and pollution, it also reduces highway congestion. “A single Rail Transport Gaining Favor than 40% of all freight transportation—and intermodal train can take 280 trucks off the that’s more than trucks, boats, barges or highways. And because the average size of a Goods that have a high value to freight planes. truck is equal to almost four automobiles, ratio carry implicitly small transport costs, that’s the same amount of space that 1,100 while goods with low value to freight ratios According to the American Association of automobiles would occupy.” typically carry significant moving costs. Railroads (AAR), in 2007 farm products This, along with advancing energy costs ranked number three in volume behind Whether by truck, railcar or vessel, and growing environmental concerns, is coal and chemicals in the type of freight logistical challenges for the U.S. why agricultural suppliers, whose products carried. Agricultural goods ranked fourth agricultural industry have never been typically carry low value to freight ratios, in overall revenue. For the food industry, greater. Rapidly rising fuel prices and are increasingly looking to rail transport to shipping by rail is rate efficient and increasingly congested roadways and ports ship their goods. As an example, railroads meets the needs of an increasingly green are sure to provide buyer and seller alike move enough wheat to provide every man, transportation movement that is keeping a with obstacles to hurdle in order to safely woman and child a fresh loaf of bread six very close eye on the methods agricultural and efficiently transport U.S. agricultural days a week. Additionally, on a typical day and manufactured goods are being goods to a world demand that is showing in the U.S., railroads account for more shipped. no signs of slowing.UB

Freight Cost Per Mile By Truck U.S. Railroad Ton-Miles Billions U.S. Dollars U.S. ©iStockphoto.com/Wendell Franks ©iStockphoto.com/Wendell

Source: IBM Institute for Business Value, 2008 Logistics Survey Source: January ’08 Report Assocation of American Railroads

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 31 Cost analysis: storage... Growing trade, international consumption creating greater need for cold storage space

For those involved in the day to day daily buy, sell and logistical challenges, cold chain to meet growing trade and business of food production and another increasingly concerning issue has consumption rates of perishable products. distribution who are already facing pressing surfaced quietly, but just as alarmingly. Oddly enough, these days it’s In the United States, the USDA shows that not just about the purchase the PRW industry continues to dominate and the sale, but where to the overall cold storage industry. According store the product once the to USDA, public general warehouse handshake has been made. capacity totaled 2.50 billion gross cubic feet (71 million cubic meters) in 2007, According to the accounting for 75% of the general cold International Association of storage in the U.S. States that experienced Refrigerated Warehouse’s the most significant gains in capacity (IARW) Global Cold Storage were Illinois (35%), Arkansas (32%) Capacity Report, public and Delaware (26%). “The cold storage refrigerated warehouse (PRW) industry is continuing to grow rapidly storage capacity is increasing around the world,” notes IARW President around the world. This and CEO Bill Hudson. “Additionally, growth suggests a worldwide we are seeing more and more companies Aerial view of a temperature-controlled facility in Cincinnati, Ohio. Modern refrigerated warehouses are equipped with everything from trend toward increasing choose to rely on the expertise of the convertible spaces to advanced warehouse management systems. cold storage capacity driven third party logistics industry to meet their Photo courtesy of the Tippmann Group. by a greater reliance on the storage and distribution needs.”

28 YEARS OF NATIONAL SERVICE WITH PRIDE TRADERS OF A FULL LINE OF FRESH & FROZEN POULTRY PRODUCTS MAIN OFFICE: 25 West Union Street • Ashland, MA 01721 Tel. 508-231-1426 • Fax 508-231-5256 Alan Singer

Office: Office: Office: 55 Miracle Mile, Suite 210 4650 Arrow Hwy., Suite G24 12505 Coastal Hwy. Coral Gables, FL 33134 Montclair, CA 91763 Ocean City, MD 21842 Tel. 305-620-0700 Tel. 909-445-9060 Tel. 410-250-7270 Fax 305-620-0366 Fax 909-445-9664 Fax 410-250-3190 Hector Perez Kevin McNelis Jamie Doherty

32 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008

X ______Sign here for approval and fax to: 732-341-0891 Dated ______With a growing industry, why then have reached historical highs. For the first for weeks or even months on end. He is storage space at such a premium? five months of 2008, poultry meat exports said that “shipping lines are shifting According to the Global Cold Chain set an all-time record in both volume and increasing numbers of containers to more Alliance, perishable foods are the largest value, according to Foreign Agricultural profitable routes for manufactured goods and fastest growing sector of agricultural Service trade data. Combined export in Asia and between Asia and Europe.” trade and the most profitable on a per kilo volume of chicken and turkey products That leaves fewer containers available to basis. Simply put, perishable foods need for January through May was 1,537,947 exporters and a greater need for storage refrigeration, and storage space is at a metric tons; up 27% from the same period space. In fact, the growth in the locations premium. This is especially true as can be in 2007. Combined value reached $1.506 of storage space tells this story nicely. Mr. seen with growth in “consumer-oriented” billion; 40% greater than in 2007. Hudson of the IARW says that the top food, advancing five areas of growth in storage are at ports, worldwide “…retailers These record export volumes have also distribution centers, China, and disposable will increase helped the U.S. to regain its status as Eastern Europe. income and a frozen food the world’s leading exporter of poultry. trend towards What this means for the storage business, Despite rapid growth, space is still often space up to supermarkets however, is that more cubic feet of cold at a premium. Industry consultant and rather than 25% of their storage space than ever is required to warehouse operations expert Benjamin more traditional square footage satisfy domestic and international demand Milk believes the rates being paid for cold “wet markets” by 2010.” for U.S. agricultural goods. Jim Sumner, storage have actually declined. Although in many parts President of the USA Poultry and Egg not officially tracked, he says that unlike of the world. According to the National Export Council stated that one of the other input costs, as a general trend rates Grocers Association, retailers will increase most pressing impediments to increasing have come down rather than advance. The frozen food space up to 25% of their U.S. agricultural exports is the shortage warehouses have been able to handle the square footage by 2010. of containers and cold storage space. As lower rates through efficiencies and by exporters wait for the much sought after offering additional paid for services such That’s not all. Exports of U.S. agricultural refrigerated containers, they are forced as transloading, repacking, labeling, and goods, especially in the protein sector, to divert product to cold storage, often shrink wrapping.UB We produce Wagyu beef from the ground up

PRIMETIME KOBE BEEF

PRIMETIME MEATS 4VJUFt8JMTIJSF#MWEt-PT"OHFMFT $" 1IPOFt'BY RETAIL AND FOOD SERVICE READY growing the grain • breeding the cattle • processing the meat preparing specialty cuts • packaging for customers all over the world

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 33

X ______Sign here for approval and fax to: 732-341-0891 Dated ______Cost analysis: energy... Largest rate increases in decades

With global oil prices reaching sector coal consumption historic highs, other forms growth. Yet coal is an energy of energy quickly follow with form that we will continue to price increases. In fact, many see more use from. The coal utilities are initiating their deposits here in the U.S. are largest rate increases in decades. the richest in the world, and Coal and natural gas, which all of choice grade. Because of fuel approximately 70% of the this, and because severe supply nation’s power plants, have constraints in other parts of doubled in cost over the past the world such as Australia year. As many businesses are and have already struggling over the cost impeded the growing demand of gasoline and grain, further from China and India, U.S. escalating commodity costs coal is in great demand. will continue to place added ©iStockphoto.com/Tim McCaig stress on many companies’ Other forms of energy bottom line and leave them searching for gas consumption is predicted to experience are also widely used. alternative energy sources that may be of continued increases with a 2.1 % increase Water is currently the better value; but does one exist? in 2008 and 1.1 percent increase in 2009. leading renewable The increases are largely expected to come energy source used According to the U.S. from the usage of electricity generation by electric utilities to Energy Information sector---3.2 percent, and the industrial generate electric power. Hydroelectric Administration, crude sector, with an anticipated growth rate of plants operate where suitable waterways oil prices increased from 1.6 percent in 2008 and 0.6 percent in are available. Generating electricity using $122 per barrel on June 2009. A new report from CIBC World water has several advantages. The major 4, 2008 to $145 per barrel Markets estimates electricity and natural advantage is that water is a source of cheap on July 3, 2008. Because of global supply gas prices will surge as North American power. In addition, because there is no fuel uncertainties and significant demand in utilities shift from coal fired generation to combustion, there is little air pollution China, the Middle East and Latin America, cleaner burning natural gas generation. in comparison with fossil fuel plants oil markets are expected to be further and limited thermal pollution compared pressured. A projected average of $127 per Electricity rates throughout with nuclear plants. Like other energy barrel is expected for the balance of 2008 the nation have also been sources, the use of water for generation and $133 per barrel in 2009. rapidly increasing, and these has limitations, including environmental costs are often the first to impacts caused by damming rivers and Global demand of liquid fuels, especially be passed onto consumers. streams, which affects the habitats of the from China, the Middle East and Latin Average U.S. residential electricity prices local plant, fish, and animal life. America is projected to grow by 900,000 are forecasted to increase by 5.2 percent barrels per day in 2008 and by an in 2008 and 9.8 percent in 2009. Wind is another source of additional 1.4 million in 2009. The U.S., Consumption of electricity is expected energy that is experiencing a however, from an increase in ethanol to grow by 1.4 percent in 2009.The most “lift” in usage. The American use, expects to experience a decline in expensive states in which to purchase Wind Energy Association liquid fuel consumption by approximately electricity, according to the Department (AWEA) says U.S. wind 400,000 barrels per day in 2008, and to of Energy, are Hawaii, Massachusetts, New farms now generate more remain as such through 2009. York, Connecticut, Rhode Island, New electricity than any other nation in the Hampshire and Alaska. world and are on track to expand by over Because of high energy 45% this year. Total U.S. installed wind prices, U.S. natural gas Coal consumption growth power capacity now stands at 19,549 production is soaring. is expected to grow only megawatts, with more construction slated According to government slightly in 2009, a mere for completion either by the end of this data production is up 8% 0.4 percent as projected year or the beginning of next. Although this year. The natural gas spot price increases from other wind-based electricity generating capacity averaged $7.17 per thousand cubic feet in generation sources (nuclear, natural gas, has increased over the last 40 years, it still 2007 and is expected to average $11.86 in hydroelectric and wind) in 2009 are remains a small fraction of total electric 2008 and $11.62 in 2009. Total natural expected to dampen the electric-power- capacity. The AWEA reports a strong

34 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008 increase in domestic investment in wind plants: growing plants specifically for market experienced a 57% growth in solar turbine and wind turbine component energy use and using the residues from energy demand in 2007. As far as costs go, manufacturing facilities over the past year plants that are used for other things. Of booming demand has increased the price and a half. At least 41 facilities have been particular note is the United States’ use for solar panels. A residential solar energy announced, opened, or expanded over that of its corn crops to produce alcohol fuel, system typically costs about $8-10 per watt. period of time. or ethanol for its use as an oxygenate in Where government incentive programs “The most gasoline. Many analysts argue that biomass exist, together with lower prices secured The oldest expensive is a net energy loser—that is, it takes more through volume purchases, installed source of states in which energy to produce fuels from biomass than costs as low as $3-4 watt can be achieved. renewable the fuels themselves. Without incentive programs, solar energy to purchase energy known costs range between 22-40 cents per to humans, electricity The final form of energy kilowatt hour. and one that is … are Hawaii, we will examine is solar becoming more Massachusetts, energy. Solar energy is It is very clear that increasing energy costs familiar in our New York, the cleanest and most are front and center on many minds, both news, is biomass Connecticut, abundant renewable the consumer and the business sector. As energy—that Rhode energy source available. they continue to pose a serious challenge which comes Island, New Today’s technology allows the U.S. to to the industry, companies are forced to from plant Hampshire and capture solar power in more than one pass these costs onto the consumer, who is material and Alaska.” way; photovoltaics, heating and cooling already suffering from the same increases. animal waste. systems, concentrating solar power and For those companies that choose to absorb In the United States this supplies almost lighting. The biggest challenge facing the increases, they can do so only for a 15 times as much energy as wind and the U.S. solar market is scaling up limited time before it impacts their bottom solar combined. A wide variety of biomass production and distribution enough in line and forces cutbacks on planned energy resources exist—wood, waste and order to drive the price down so it is on investments. Perhaps it is time for an alcohol fuels. In general, there are two par with traditional fossil fuel sources. alternative source.UB approaches when using biomass from According to Solarbuzz.com, the U.S. Energy icons ©iStockphoto.com/Marc Brown

DOMESTIC & INTERNATIONAL TRADERS Poultry, Beef, Pork & Seafood w w w . e p o u l t r y . c o m

PONTE VEDRA BEACH, FL Corporate Headquarters Tom Rueger, CEO • Mike Hagarty, CFO N. LITTLE ROCK, AR (904) 543-9410 HAMMOND, LA Jim Burke Fax (904) 543-9493 Mike Delaney (501) 771-4046 (985) 345-3458 Fax (501) 771-4739 PONTE VEDRA BEACH, FL Fax (985) 345-5153 Thad Eshelman • Ted Rueger SPRINGDALE, AR (904) 543-9429 WEST CHESTER, PA Beth Parma Fax (904) 543-9493 John Duffy (479) 717-2633 (610) 692-6232 Fax (479) 717-2635 FT. LAUDERDALE, FL Fax (610) 692-6234 Joe Reid • Henry Buzgon BURBANK, CA Brandon Reid WELLSBORO, PA Jon Poole • Chris Myatt (954) 983-6211 Tom Mitchell (818) 841-7500 Fax (954) 983-9869 (570) 724-9200 Fax (818) 841-7507 Export division Fax (570) 724-9204 Martin Piffaretti • Angelica Rangel Olga Starodubtseva (954) 983-6211 Fax (954) 983-9869

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 35

X ______Sign here for approval and fax to: 732-341-0891 Dated ______Facing the industry challenge... Ethanol debate

By Keith Shoemaker by saying, “The proof is in the figures. You President and CEO, Butterball, LLC can go to a supermarket in some areas and find that turkey breast product that a year In recent months, the ethanol debate ago cost $5.50 now costs $7. This is having has heated up. Now, more and more a real impact on working families who are environmental, retail, consumer and food trying to make a food budget.” industry organizations are stressing the “…rising corn prices extensive and real effects of The negative results are have been a damaging the United States’ food-to- that many companies are blow because corn is the fuel policy on the nation’s being forced to reduce primary ingredient in economy, consumers and staff, increase prices, halt poultry feed.” the environment. plans for future growth and, in some cases, move Specifically, organizations production overseas. It’s a Keith Shoemaker, President and CEO, Butterball, LLC are emphasizing that viscous cycle that impacts current U.S. food-to-fuel policies are companies and consumers. response, we have proactively streamlined driving up corn prices and thereby our production models and created affecting consumer prices, land use and In the presence of such challenges, focuses for each complex based on regional prospects for future price inflation. The Butterball, LLC, remains committed to demand. As with any challenge within the result is that various groups are calling developing production practices that industry, Butterball, LLC will continue to on Congress to revisit the current U.S. ensure we remain the leading low-cost, develop and implement procedures that biofuels policy. high-quality producer. As part of our ensure we remain the turkey expert.UB

Some, on the other side of the debate, are arguing that supporters of revisiting current policies see ethanol as the only culprit of rising food prices. In a recent press release issued by the Food before Fuel Coalition, Ken Cook, co-founder and president of the Environmental Working Group, disagreed and said, “I don’t know of any organization that believes ethanol is the sole cause of rising food prices, but it is very clearly a leading cause and the one cause that we can control.”

For Butterball, LLC and other poultry producers nationwide, rising corn prices have been a damaging blow because corn is the primary ingredient in poultry feed. At Butterball, LLC we have seen our feed costs • Packers of whole birds increase dramatically by more than half. and bone-in breasts

Joel Brandenberger, president of the • Frozen tray pack National Turkey Federation recently • Fresh boneless meat participated in a Food before Fuel Coalition call where he shared that • Private Label is available industry wide, feed costs for poultry have increased more than 85% in the past two CONTACT: years, resulting in more than a half billion Kent Puffenbarger, Patrick Fowler or Chris Seme dollar impact on the poultry industry. He credited the phenomenon to current www.PrestageFoods.com ethanol policies. Brandenberger continued St. Pauls, NC 28384 • 1-800-679-7198

36 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008

X ______Sign here for approval and fax to: 732-341-0891

Dated ______VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 37 Animal health technologies improve efficiencies... Addressing costs in the supply chain for beef

Costs, from “As costs have final 160 days of the feeding period. Just convert feed into weight not only produce fuel to food, are increased, the cost in these last 160 days over the past cost savings, but also meet fundamental increasing. As beef five years has increased $160 per animal. needs for our supply chain and our consumers, rising producers consumers. prices impact As costs have increased, beef producers have learned what goes on have learned to improve efficiencies Managing costs today can make the the table. As to improve through genetics, good management difference for the future of many of our professionals, the efficiencies...” practices and use of animal health businesses throughout the supply chain. margins that drive technology. Without animal health In this case, as we continue to meet the our business, specifically in food service technologies, the cost of the same 810 challenges of providing safe, affordable and retail, can be squeezed significantly pound beef carcass would be $365.65 and wholesome beef, it is good to know impacting financial performance. The more per animal/carcass3 today, increasing that we do have methods that can help us question is, what can be done to minimize today’s price to approximately $1,692 not only manage costs, but help meet the the impact? Let’s look at beef as an according to an economic study by John growing concerns around animal welfare, example. Lawrence at Iowa State University. food safety, environmental impact and adequate beef supplies at the best prices Today, the cost to produce an 810 pound The basis of these cost savings comes possible.UB beef carcass is about $1,326.1 Feed from helping the beef animal to be more accounts for 65% of the total cost.2 As productive. Eliminating parasites, keeping 1) USDA market prices, South Dakota State University breakeven calculator. grain prices have increased so have the animals healthy by treating and preventing 2) http://www.extension.iastate.edu/agdm/livestock/xls/b1- costs associated with the production of our diseases, and using products that assist the 21beefcowcalfp15.xls 3) http://www.econ.iastate.edu/faculty/lawrence/ , Economic Analysis beef. Most of the grain is fed during the natural growth process to more efficiently of Pharmaceutical Technologies in Modern Beef Production

FinalFinal 160 160 Da yD Feeday Feedinging Cost Per CostAnimal Per - 2003 Animal vs. 2008 ImpactImpact of of Technology Technology onon BeefBeef Costs Costs $1,750

$1,700

$1,650 2003 = $1,600 $340 $365.65 Difference $1,550

$1,500

$1,450

2008 = Dollars U.S. $1,400 $500 $1,350

$1,300 Cost Cost $0 $100 $200 $300 $400 $500 $600 Cost witWhouITtH TeOUTchnology Cost wiWthIT TeHc hnology DollarsDollars/ A/ nimAnimalal Technology Technology

38 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008 Empacadora Celaya, S.A. de C.V. An enterprise proud of its origins in Celaya Una empresa orgullosamente Celayense

Founded in 1976, Empacadora Celaya is one of the top Fundada en 1976, Empacadora Celaya es una de las producers of high-quality deli meats in Mexico. principales productoras de carne delicatessen en México.

It began as a small family business in the city of Celaya, Inició como un pequeño negocio familiar en la ciudad Guanajuato. de Celaya, Guanajuato.

To keep up with increasing Al día de hoy, Empacadora Celaya consumer demand, Empacadora ha experimentado tal crecimiento Celaya is currently expanding its que su planta procesadora se está processing plants to double expandiendo, con la intención de production. duplicar sus niveles de producción.

Capistrano una de las marcas más exitosas de la compañía, ofrece una línea completa de jamones y carnes frías One of the company’s most delicatessen a precios muy successful brands, offers a competitivos. complete line of high-quality ham and deli meats at very Promocionada bajo el slogan competitive prices. “Capistrano es frescura y nutrición”, demostrando su compromiso con It is marketed under the slogan: la misión de la empresa: “Capistrano: Freshness and Nutrition”, which clearly “Cumplir orgullosamente con cada compromiso establecido demonstrates the commitment to the company’s mission con nuestros clientes, satisfaciendo las necesidades de statement: “Our goal is to proudly satisfy each and every nutrición de la sociedad”. customer order while satisfying the nutritional needs of society.”

Additionally, Empacadora Celaya offers a full line of products Adicionalmente, Empacadora Celaya le ofrece una gran from a host of their family brands, all with the same variedad de productos en otras marcas de excelente excellent quality. calidad.

For more information visit our Web site / Para mayor información visite nuestra página: www.capistrano.com.mx Or contact us at / O contáctenos en: [email protected]

Celaya Guanajuato México Telephone: (52) 461 61 88500 Ext. 5100

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 39 Hauling in less profits... Boat cost analysis for tuna or swordfish

in his business. Mr. Rush has 26 years The cost to leave the dock experience in the seafood business Diesel fuel @ $4.30 per gallon, 1,500-5,000 and has been with gallons depending on the size of the vessel Jensen Tuna for Fuel costs = $6,450 - $21,500 the past seven years as the Vice 100 blocks of ice @ $9.00 per block = $900 President of Sales 100 boxes of bait @ $30.00 per box = $3,000 & Marketing. He supplied the Reporter 2 cases of monofilament line @ $450 per case = $900 with an overview 5 cases of light sticks @ $550 per case = $2,750 of the costs of The fishing vessel Daytona, owned by Greg Food for a crew of 5 or 6 people = $1,000 Abrams Seafood, and Captained by Mike Cardin, fishing for tuna and is typical of the boats experiencing economic swordfish. Miscellaneous gear, hooks, leaders, etc. = $500 challenges in the industry today. ______This is an analysis TOTAL $15,000 - $30,550 In these times of economic uncertainty, the of a typical boat that pinch is not only felt by consumers, it is fishes in the Gulf of light sticks are used to attract swordfish at hitting producers as well. Profit margins are Mexico for 7 to 14 days with the average night. They glow in the dark and swordfish squeezed when operating costs increase at a trip lasting approximately 12 days. The tend to swim toward the surface if they see faster rate than market prices. Urner Barry’s fishing method used is longline and the light. Reporter recently interviewed Phil Rush monofilament line is the actual lines that with Jensen Tuna to discuss the rising costs are used to catch and reel in the fish. The The information indicates that it costs approximately $15,500 to $30,550 to leave the dock with the average cost estimated at $23,000 per trip. These expenses do not include maintenance or payment to a crew ROYAL of 4-5 members or the captain. If 100 fish are caught weighing an average of 60 pounds each and are sold by the boat for an average of $5.00 per pound, HARVEST the total amount that would be paid to the boat would be $30,000. The boat owner, who in many cases is also the captain, FOODS along with the crew splits the profits after expenses. In our example, the boat owner Trading a Complete Line of Batter & Breaded Items: and crew would have approximately $7,000 to share. An average 12 day trip would Chicken Tenderloins • Breast Fillets • & Nuggets yield a profit of $1,166 per person given Specialty Boneless Items on Skewer their shares of the profit were equal. In Gourmet Hand Shaped Stuffed Breasts some cases, boats return with less than 100 fish and their expenses exceed their profit. Also: According to Mr. Rush, market prices have Boneless Thigh • I.Q.F. Chicken Wings • M.D.P. not been able to accelerate as fast as the Marinated Breast Fillets fishing expenditure rates have.

When the Reporter asked Mr. Rush what he TRADERS WANTED saw for the future he replied, For further info e-mail [email protected] “We have a sustainable fishery. Whether or not the fishermen are sustainable remains Call (413) 737-8392 to be seen. We don’t know how much 90 Avocado Street, Springfield, MA 01104 longer this fishery can sustain itself.”UB

40 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008

X ______Sign here for approval and fax to: 732-341-0891

Dated ______Spreading it thin... Pressure behind fertilizer costs

As farmers collect the best prices for grains fertilizer products. such as corn, winter wheat and soybean, robbing them of The falling rate of the U.S. their profits is the “Globally, dollar places even further additional since 2000. This increase resulted in high costs associated fertilizer pressure on the cost of fertilizer as it the closure of 26 U.S. ammonia plants with fuel and demand is increases the cost of goods imported. and a 42 percent reduction in ammonia fertilizer. According According to The Fertilizer Institute, the production—forcing the U.S. to rely on expected to the USDA, U.S. imports over half of its nitrogen nitrogen imports. average prices paid to rise 14 supply and over 90 percent of its potash by U.S. farmers for percent by supply. Since most fertilizer materials are As there are so many driving factors the major fertilizer 2012...” priced in U.S. dollars, foreign producers determining fertilizer prices, farmers nutrients reached raise the price to offset the fall in the value obviously must struggle to make a profit. their highest level on record in June 2008— of the dollar. On the good side, price increases across 268% higher than January 2000 levels. the board also mean an increase in profits Supply and demand factors that influence The building block of all nitrogen from resulting crops. As long as yields fertilizer prices are the increase in global fertilizers is ammonia, and the feedstock are normal, adverse weather conditions demand, the U.S. ethanol boom, increased for producing ammonia is natural gas. do not cause havoc and insects are not transportation costs, the weak U.S. dollar High natural gas prices caused ammonia problematic, farmers may still pocket a and high natural gas prices in the United production costs to rise significantly return.UB States. Collectively, these factors result in an increase in fertilizer’s price tag, and they are costing farmers plenty. DISTRIBUTORS OF THE FINEST Globally, fertilizer demand is expected PROTEIN PRODUCTS to rise 14 percent by 2012 as developing countries such as China, India and Brazil BEEF continue to see an increase in consumer PORK incomes. As these countries emerge, the dietary habits of the people change as POULTRY do their food preferences, which, in turn SEAFOOD elicits a greater demand for agricultural & LAMB goods and the need for more nutrients to replenish the soil. PROCESSED MEATS NATURAL PRODUCTS A further driver of this commodity is the United States’ increase in ethanol CHEESE THE HARVEST FAMILY OF COMPANIES production. While all grains require Sales Offices in: fertilizer, application rates differ among Since 1989, From Our Door to Yours. crops. Corn, wheat, soybeans and cotton San Diego ...... 800-653-2333 account for 70 percent of total nutrient Los Angeles ...... 800-653-2334 use, corn alone accounts for 43 percent. Los Angeles (JSS) ...323-584-3160 Sacramento ...... 916-399-8982 Pressuring the fertilizer market, as well Phoenix ...... 800-883-6328 as a host of others, are fuel costs. Fuel costs directly correlate to a number of Denver ...... 800-306-6328 other factors as they are necessary means Kansas City ...... 800-653-6328 of transport. Ocean freight rates, rail Orlando ...... 800-883-7777 shipping rates, barge rates and truck rates Portland (WBX) .....800-547-9801 are all impacted by high fuel costs and one or more means may be required to move MAKE US YOUR FIRST CALL! VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 41

X ______Sign here for approval and fax to: 732-341-0891

Dated ______We’ve never seen this before...

and recycled restaurant oils (yellow grease). So for 28 ½ of the almost 30 years I’ve Subsidies, mandates and spent trading fats, tallow commanded a premium to grease. The biofuels industry, for the most part, desires softer fats. fuel surcharges...oh my! Because of the tremendous premium vegetable oils command over fats and because of the aforementioned Indian/ Chinese demand at this time, the biofuels industry has driven the price of better grades of grease to a premium over tallow because “at least it’s cheaper than veg.”

We have added about 40% additional demand to the Chicago Basis market for tallow and maybe as much as 60% additional demand for choice white grease in the Midwest with the new biofuels industry needs. I said in a speech at the American Fats and Oils meeting in October 2007 that the only thing that would stop the price rise of animal fats once the biofuels demand kicked in would be Sanimax’s biodiesel facility in DeForest, Wisconsin. Photo courtesy of Sanimax. raising the fats price level to a point where vegetable oils worked better for margin and by Bill Hurley, went on an unprecedented buying spree yield. We may yet get to that point. We’ve President, Hurley Brokerage of all fats and oils. Concurrent with the never seen this before.UB resulting spike in value for fats and oils the When I broke into the fats trading railroads (over a period of years) increased business in 1979 bleachable fancy tallow their tariff was traded almost the entire year in a rates, took “Concurrent with range of 18–26 cents per pound Chicago away most the resulting Basis. You could move a rail car from mileage spike in value Sioux Falls, SD, to Chicago for about 1 credits, and for fats and oils ¼ cents per pound in freight charges. So introduced the railroads… at 20 cents per pound delivered to the fuel increased their end user in Chicago the seller netted 18 surcharges. ¾ cents. The market traded lower over So that net tariff rates, the next five years but traded back to 25 for the seller took away most ½ by June of 1984. Being a “seasoned” in Sioux mileage credits, trader of five years experience at the time Falls is more and introduced I confidently told customers, “We’ve like 46 cents fuel surcharges.” Crystal Farms, Inc. seen this before.” By June of 1986 tallow (because of had fallen to 8 ¾ cents per pound when increased demand) and if they chose to USDA McDonald’s pulled edible tallow from ship it to Chicago in a rail car it would cost their recipe. So when we the end user about 48–48 ½ cents (because GRADED EGGS entered the recession of 2000-2001 of increased freight charges). brought on by the collapse of dot.com PO BOX 7101 and tallow got down to around nine cents Adding even more confusion to our CHESTNUT MOUNTAIN GA 30502 I once again uttered with confidence, industry, the biofuels’ desire for softer “We’ve seen this before.” fats has inverted the relationships SALES INFORMATION between tallow and grease. Oleo chemical I assure you I haven’t uttered that same manufacturers have for the most part JIM BROCK phrase over the past 2–3 years. At the always desired harder fats made from beef same time that government subsidies and by-products rendering (bleachable fancy (770) 967-6152 Office mandates for ethanol and biofuels drove tallow). The feed industry was the larger (770) 967-7242 Fax skeptics into the same camp as evangelists consumer of softer fats from hog by- for alternative fuels, China and India products rendering (choice white grease) www.crystalfarmsga.com

42 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008

X ______Sign here for approval and fax to: 732-341-0891

Dated ______VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 43 Cover story Continued from page 1 ribeyes and strip loins are in less demand. Conversely prices for things like low-cost business is starting to adapt to the higher roasts and hamburgers are getting more cost levels. play at the supermarket. Even at the lower end of the price spectrum there has been As escalating costs result in higher prices, downgrading, premium ground beef items customers purchase less product (this is like 93% lean ground sirloin are now especially true if demand is elastic which displaced by 73% ground beef. means that buyers will find substitutes). Some processors adjust their production A society that at one time focused on huge to comply with the demand curve only to portion sizes now sees a potential reversal find that they have less finished product to in the trend as companies work to maintain spread their fixed expenses across. a certain price point. Fast-food companies toy with smaller sizes. Packaging As the industry contends with these at retail is also changing. Net weights overcapacity issues, packing and processing are shrinking on items like cereal, ice plants have been shuttered. Other cream, cheese and other items. The trend companies are more fortunate to have favors those that sell by the piece, but is opportunities in both traditional and concerning to packers and processors that emerging export markets or to find some sell by the pound. point of differentiation that separates their product from the normal demand curve. As you page through this newsmagazine pay special attention to the stories with the blue Higher costs are also affecting the form stripe at the top of the page as they will and marketing mix of what we eat as help identify, explain and quantify some of people start to trade down on the things the cost challenges that we’ve experienced they eat. Higher quality beef cuts, like recently.UB

800.832.8325 F: 708.849.8094 [email protected]

44 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008 Feeding the masses to feed the masses... Pounds of feed required to produce a pound of protein

CAL-MAINE FOODS, INC. 3320 Woodrow Wilson Jackson, MS 39209 Contact Dolph Baker (601) 948-6813

Fax (601) 949-7845

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 45

X ______Sign here for approval and fax to: 732-341-0891 Dated ______The bioenergy tree... Small seeds, big potential The global race to produce alternative a trickle down affect on almost all of fuels that are both economical and the proteins. As a result; many countries environmentally renewable continues to around the world, including this one, have be a key issue in politics here in the U.S. started to research or are already using as well as around the world. Biofuels alternatives. One such alternative is a plant have become a fast growing industry, and called Jatropha. although they do provide a number of benefits they have created their own set Jatropha is indigenous to most of Central of complications. Now, a debate exists America and has become well established over the effect these alternative fuels seem in many other tropical and subtropical to have on the price of food. The trade areas due to its adaptability. The hardy off of food for fuel has had a significant Jatropha plant is resilient to droughts impact on corn prices, which have risen and pests and produces large amounts of dramatically since 2005, not to mention seeds; these seeds contain a large amount, up to 40%, of oil. When the seeds are crushed and processed an oil is extracted; this resulting oil can be used uncut in a standard diesel engine. The residue can also be processed into a biomass fuel that can be used to power “Biofuels have electricity become a fast plants. growing industry Unlike in the U.S…they other biofuels, have created Jatropha has their own set of the ability complications.” to be grown on arid lands that are typically not suited for commercial farming, thus limiting any Let’s face it – compromise for food production crops and fresh tuna eliminating the food for fuel trade-off. is expensive. So why are we not planting fields of Jatropha right now; well there are We know. drawbacks to consider. For starters, We’re one of the largest Jatropha contains multiple compounds that are considered highly toxic to fresh tuna buyers in the world. both animals and humans, limiting the That’s why we’ve sourced the proximity to populations and livestock with which it can be grown. Complications in big albacore that swim in the pure, production have led many to determine deep waters of the South Pacific. that its productivity is variable, and the long-term impact of its large-scale use At about half the price of yellowfin and on the land and environment are still bigeye tuna, tombo’s attractive deep pink meat unknown.

makes it a great value that will put new sizzle in your fresh tuna sales. Is Jatropha the miracle answer that everyone has been looking for? Most likely not, at least not on its own. More realistically this plant could be one of a number of alternative, renewable fuels that together can help the world as a whole reduce its dependence on petroleum based energies.UB

46 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008 From the recipe box... Savory cephalopod makes a super salad

Octopus is an oft overlooked item c to p u s in the United States. A staple of O Sa l a d Mediterranean and Japanese diets, Ingredients in the U.S., it is largely limited to : Preparation: In a medium-to-large stock pot, 4-6 lb. ethnic and regional markets like add 8 cups of water, juice of three lemons, Hawaii. Octopus can be tough 4-5 celery stalks sliced two tablespoons of seasoned salt, and and is best tenderized by boiling 5 lemons octopus. Bring to a boil. Simmer until tender, in water prior to preparation. The 1 jar kalamata olives sliced about 1 to 1 ½ hours. Test with a fork or sharp entire cooking process can last knife. Remove octopus, and when cool, slice 3 garlic cloves minced several hours in order to ensure into ½ inch rings. tenderness. Raw, it is purplish in ½ large red onion chopped In a separate bowl, combine celery, olives, color, but cooked, the purple skin 2 Tbsp. seasoned salt garlic, onion, and octopus. A conceals a fairly translucent white ¼ cup olive oil (recipe below), salt & pepperdd (as dressing needed), stir meat. The flesh is very firm and and top with fresh parsley. somewhat chewy, though tender Fresh parsley and possesses a mild, almost sweet Salt and pepper Dressing: Combine juice of 2 lemons, oil, and flavor. All parts of the octopus can salt & pepper. be consumed and is either eaten raw or prepared boiled, fried, grilled or stewed.

Buying Tips: Pulpo, as it is commonly called, is mostly sold head on and normally cleaned before distribution, this means viscera, eyes and beaks are removed. The ink sac is used in many recipes and may be left with the animal. The skin is edible and therefore FORECASTING SOLUTIONS remains. Octopus is typically frozen in FOR THE MEAT AND blocks and graded 1-2, 2-4, 4-6 and 6-8 Jan. 29, 2008 pounds. Octopus smaller than one pound POULTRY INDUSTRY e at 12.097 million head. The arger than a year ago and Back to Market Fundamentals ear average from 1996- may be packaged for retail sale. Octopus January 1 U.S. cattle-on-feed was record larg imes, the increased demand Includes Jan 1 COF number was over 120,000 head l e dynamics of cattle feeding Volume 8, Number 3 tly lower over the past • BEEF more than one million head larger than the 10-y in the cost to feed cattle in ay in the very 2005. As Cattle-Fax has pointed out several t pply) versus the South has Fed cattle be fed in the North Quarterly meat products are also available. Raw, it is for corn for ethanol production has changed th Fed cattle prices have traded steady to sligh data indicates. In t that point a rally is still in the past 2 years. As a result, the difference couple of weeks, last quoted at $90 to $91 live and $145 dressed. the mid $90s. It is impor- the North and Midwest (closer to the corn su cattle were on feed on Trade volumes have been moderate. Look for pricesigher toduring st the next 30 Reports and increased. This change has encouraged more cattle to low $90s over the next couple of weeks. A prices could move into uthern Plains and • PORK and Midwest during the past 2 years, which the COF purplish in color and should smell of the expected into April that would take prices into load cattle inventory. We Iowa and Nebraska combined, over 500,000 more up over 400,000 head tant to note that if corn stays high or moves h on in the next issue of Jan 1 than compared to the 10-year average from 1996 The to bottom2005. However, line is, al- LIVE Webinars days, the fed price rally may fail to occur and raged more cattle to on-feed numbers have also grown in the Central and So the upper $80s instead as sellers seek to un in the West. In Kansas and Texas, COF on Jan 1 was ing capacity does not ocean.UB will likely have a better read on this situati and in California and Arizona over 200,000 head.try is significantly shifting to • POULTRY Obsono. st of the cuts recently; With cattle in though the change in the cost to feed cattle has encou be fed in the North, the feeding capacity and pack Loin and Colorado along support the idea that the cattle feeding indus Loin values have traded very near even for mo roduct this spring could the North. supply is currently forecast to PSMOs continue to be a seasonal exception to the rule.Choice loins could st quarter and average lly, supplies will tough pen conditions in part of Nebraska, Iowa arly May. The spread Regional Supplies • LIVESTOCK with higher corn prices, the amount of Choice p Select loins would be Based on Cattle-Fax data, the total fed cattle rward. Texas supplies be lower than expected. So, a fairly strong rally for e likely to be on the increase in the second quarter compared to the fir lies remaining more flat ril and May. In the develop starting in mid-February and lasting into e 3 percent above a year ago for April through June. Regiona between Choice and Selects would be wide as increase in the Panhandle from this point going fo est supplies of the first The One With Taste... discounted if this scenario plays out. Prices ar are set to increase the fastest with Kansas supp ow. Supplies in the North defensive early this summer. ould begin to press over the next 60 days before beginning to increase in Apf weeks and decline oduct may be North Plains, the trend is just the opposite. The larg lt of this shift in sup- in recent weeks Rib ad between Choice quarter in Nebraska and Colorado are right n . Rib prices are likely near a seasonal low and sh e very wide by late should begin to decrease within the next couple o the past month higher in the coming weeks. The amount of Choice pr through the remainder of the first quarter. As a resu ments of Means Profits! y driven by grilling more limited than originally thought and the spre plies, the fed price premium the South has captured and Select ribs should begin to widen and becomuld struggle if the U.S. wilbegin to decrease and price spreads will narrow0 head. Over this time period ould peak over head more than in spring. Although demand has been very sluggish during From September 2007 to December 2007, place otaled 374,000 head Nothing assures profitability like authentic, because of macroeconomic factors, a spring rall ance of the year. Bottom Line: demand is still forecast. This summer prices co cattle into feedyards were up nearly 700,00 heduled to be marketed in economic landscape continues to worsen. Supplies sh placements weighing less than 700lbs totaled 337,000gains, cattle feeders may the next 30 days and trend lower through the bal 2006 and placements weighing more than 700lbste. This t could potentially pull delicious taste - exactly what you’ll find in nuckles, insides and ing supply than is ct. Round items are more. The largest placed against numbers are sc May and June. However, depending on cost of upon whether or not Round nally. While many of be trying to market cattle at an aggressive ra in mind that competing every product with the House of Raeford name. Most round cuts saw flagging demand as peeledar klast year, keep in mind fed slaughter levels forward leading to a larger spro be larger compared to a eyes saw price declines necessary to move produ educing supplies. currently forecast. This scenario will also depend likely headed lower as demand softens seaso enomenon is very packer profitability moves into the black and keeping these round cuts saw prices climb into Feb/M er. We offer the world’s most complete line of protein supplies, mainly pork, are also expected t that it was due mainly to the severe winter weather r year ago. Larger supplies are on the horizon and this price ph turkey and chicken products and back every unlikely this year without similar extreme weath asonal decline in orted by a cutback in Chuck emand is firm mation. item with our uncompromising commitment to The chuck market would greatly benefit from a se leverage to the beef production. The market will also be supp ould have a signifi- . Please do not copy or redistribute this infor pork production, which is expected as we go forward.ess Dcan be regained. quality, service and real taste. for chuck cuts, but weak fed prices will give the retailer. The export sector remains a wildcard but c cant positive impact on some cuts if market acc House of ©2008 OBSONO. All rights reserved. This publication is protected by USA Federal copyright law Raeford Farms, Inc. 800-8-TURKEY • www.houseofraeford.com CALL TODAY! 732-240-2349 www.obsono.com Obsono LLC is a joint property of Urner Barry Publications and Cattle Fax VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 47

X ______Sign here for approval and fax to: 732-341-0891

Dated ______Economic integrity in seafood... Buyers’ guide to purchasing seafood In an effort to help seafood buyers determine fraudulent products, the National Fisheries Institute is trying to promote economic integrity within the seafood industry. Three areas of concentration are transshipment of products, mislabeling of products or species substitution and mislabeling of weights or counts of products.

Transshipment of products occurs when a product from one country is sent to another country and then shipped to the U.S. The reason that importers might do this is to avoid tax or tariffs that are owed to the U.S. or import embargoes or restrictions. The U.S. requires that all seafood products of foreign origin be Sack ©iStockphoto.com/Juergen labeled with the proper country of origin. When foreign exporters transship their because this illegal product can be seized by buyers. Those who deliberately short-weigh products through third countries, these the government. products may also offer discounts to give products may enter the U.S. with an them an edge over their competition. This incorrect country of origin, an unlawful Short-weighting is simply getting less than can make it challenging for those who are practice. Buyers need to be aware of this what you pay for, which can be costly for legitimate sellers to compete and sell their

Great Northern Products, Ltd. has been providing the finest quality seafoods for over 20 years. Our consortium of proud, independent producer- partners brings to market an assortment and volume matched by few, with service second to none! Snow Crab Clusters, Coldwater Shrimp, Rock Crab, Lobster and Turbot from Québec; Old World style Salt fish from Gaspe; the finest farmed shrimp from Mexico. And so much more... Domestic Sales - Foodservice, Manufacturers, Retailers. Inventories Boston, Los Angeles, San Francisco, Seattle. Global Export - Container shipments FOB plant. Mackerel, Herring, Capelin, , Monk, Redfish, Scallop, Greenland Halibut.

48 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008

X ______Sign here for approval and fax to: 732-341-0891 Dated ______product for true market value. A pound or that breaded shrimp contain at least 50% recognized by the FDA. A list of these even a few ounces less than what a buyer shrimp. names can be found the FDA’s Web site pays for could become very costly. www.cfsan.fda.gov/~frf/seaintro.html. Sodium tripolyphosphate (STP) is an Another practice by dishonest importers accepted practice which helps seafood The Food and Drug Administration is the deliberate retain its water. However, when misused (FDA) is responsible for regulating proper tampering with “A buyer it can cause an increase in the weight labeling of interstate commerce, however, actual weight or net should only and therefore affect the actual value. For the responsibility for food product’s weight of seafood example, when shrimp or scallops are safety, wholesomeness, identity, and be required by adding extra bumped up to a higher weight, their price economic integrity lies with the processor water/glazing or to pay for per pound can be higher. The FDA has set or importer. They need to comply with breading during the actual percent-moisture guidelines and labeling regulations that are set by the Federal processing. It is a weight of requirements for treated scallops, however, Food, Drug and Cosmetic Act (FFDCA) customary practice the seafood no standards exist for shrimp. and the Fair Packaging and Labeling Act for processors to use product.” (FPLA). These rules are explained in A a light glaze which The U.S. does have standards for the Practical Guide to the Regulation of Seafood in protects the product from dehydration or grading of fresh and frozen shrimp. Grade the United States. freezer burn. However, many packers add “A” shrimp is examined for good flavor extra product to the box to compensate and odor, uniformity of size and weight, In other instances, importers or processors for the added weight. A buyer should only and the absence of defects which include have been known to replace a species of be required to pay for the actual weight dehydration, black spots, and damaged or higher value with that of lesser value. In of the seafood product. To avoid being broken unusable materials. some cases the species may be very similar duped in this manner, buyers should looking, particularly if they have been weigh products when they are thawed and Another serious issue is falsifying labels filleted or further processed. Urner Barry’s compare that to the frozen weight in order of the actual species. Proper labeling is The Commercial Guide to Fish and Shellfish to help determine the percentage of water. critical. Buyers should only accept seafood is a useful reference for proper species With breaded products, the FDA requires products that are labeled with names identification.UB

® farms, inc. Traders of Meat & Poultry

NORTH CAROLINA SOUTH CAROLINA MISSISSIPPI

® Wayne Reynolds Bob Rike David Cole Gayla Kennedy Alec Herring Donnie Pepper (910) 328-1288 (803) 798-0725 (601) 932-5997 PENNSYLVANIA Selena Jackson MISSOURI Fred Bloom • Bill Buehler (910) 875-5757 ARKANSAS Randy Witt Brett Linder • Ted Bloom Bill Lewis Tom Drewianka Bob Willoughby NORTH CAROLINA (479) 968-3332 (417) 235-5700 (717) 291-5855 David Wilson (910) 695-0661 TEXAS Dan Morris Jackie Cates GEORGIA - International Sales Brian Kanedy (936) 564-0539 Allen Ligon (404) 380-1450 (260) 358-1897 JP Petiot (404) 424-9341 www.bihfarms.com VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 49

X ______Sign here for approval and fax to: 732-341-0891 Dated ______The young and the culinarians... Target marketing turkey consumers through new interactive outlets

Contributed by the the latest news from friends, and join The voki platform allows users to send the National Turkey Federation sub-networks across a variety of groups. talking turkey to friends, or post it on a NTF created a customizable talking social network profile area or a blog. In order to reach their goal of turkey “voki” cartoon, which users are increasing turkey consumption, the able to post on their personal pages. “Our goal was to get Facebook users National Turkey Federation (NTF) is NTF targeted this cyber community thinking and talking turkey, by placing the targeting two new audiences—the by using the cartoon to inform talking turkey on their profile page,” said young and the culinarians— users that June is Turkey Lovers’ Sherrie Rosenblatt, NTF’s vice president through two different Month®, as well as encourage of marketing and communications. “We interactive mediums. them to visit www.eatturkey. believe this com to learn more about turkey hip, relevant “Our goal To reach a younger audience, and turkey products. message was to get NTF chose to create excitement resonated Facebook users on Facebook, a social The turkey delivers a humorous, with the target thinking and networking Web site that has customizable message. It wears a audience and generated a significant buzz t-shirt that says “Shake Your Tail inspired them talking turkey, around interactive online Feather” and includes the www. to pass the by placing the communities. Home to more eatturkey.com URL. The turkey turkey voki talking turkey than 69 million users worldwide, the site voki also says, in faux British accent, “Do I along to their on their allows members to upload photos, get make you hungry? Happy Turkey Month!” friends.” profile page…”

Wabash Brown Ballas Valley Produce Egg Products Produce Co. Corp. Dubois, Farina, Zanesville, Indiana 47527 Illinois 62838 Ohio 43701 Larry Seger Larry Pemberton Leonard Ballas Tel. (812) 678-3131 Tel. (618) 245-3301 Tel. (740) 453-0386 Fax (812) 678-5931 Fax (618) 245-3552 Fax (740) 453-0491

50 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008

X ______Sign here for approval and fax to: 732-341-0891 Dated ______During the month of June, more than a 15-second one million users downloaded, passed video featuring along or visited the voki. On average, users tantalizing turkey spent 16 minutes playing with the voki plate shots to and interacting with the NTF brand. The entice viewers application attracted more than 35,000 to visit www. unique visitors per day. Media coverage eatturkey. added to its success with 84 articles written com. During about the innovative promotion, reaching the months a readership of nearly 56.3 million. of June, July, Additionally, a news release posted on a August and third-party Web site garnered more than November, 82,000 headline impressions and 3,064 NTF will full-page reads. The animated turkey even present their loomed large over Manhattan’s Times message to Square on the Reuters News Board four online visitors within times during the second week of June. the TV OnDemand section of ATK’s Web site. Along with the video, a banner ad ad. In addition, Visitors to the NTF Web site can still see appears throughout the segments to drive Americastestkitchen.com was the 16th the turkey voki and send it to a friend by traffic to www.eatturkey.com. Through this top referring site to www.eatturkey.com. visiting www.eatturkey.com/consumer.html. underwriting partnership, NTF is reaching out to ATK’s loyal audience of cooking Through these new online mediums, To target culinarians, NTF partnered enthusiasts. NTF has found success in targeting two with a well-known presence in the very different audiences. Each uniquely cooking world, America’s Test Kitchen In June, the NTF video was viewed positions www.eatturkey.com as the (ATK). On the ATK Web site, www. nearly 29,500 times and more than 200 authority on turkey recipes, information on AmericasTestKitchen.com, NTF placed Web users clicked on the NTF banner turkey products and preparation tips.UB

TRI-STATE AREA’S LARGEST INDEPENDENT SUPPLIER Hunts Point Co-op Market, Building #E, Bronx, New York 10474 Telephone (718) 842-8500

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 51

X ______Sign here for approval and fax to: 732-341-0891 Dated ______Deli meats preserved... New York food traditions uncovered

Years ago, culinary enthusiast, Dan Brooklyn to the Bronx. Estridge says he finally unearthed the “Deli Scrolls” and Estridge, had a passion for food. As a was exposed to some of the greatest food founded Manhattan Deli-Arts™, a tribute child growing up in New York, he would traditions of the earliest 20th century. to the culinary heritage of the original New sample some of the finest deli meats he Then, as the years went on, he moved to York Delis. had ever tasted all over New York City’s Massachusetts where it became obvious neighborhoods, from that the old-style deli food he that Manhattan Deli-Arts, located in Westford, loved as a child was hard to find. MA, is dedicated to the protection and preservation of great, endangered food “You can find a lot of products traditions—especially those associated with in the marketplace claiming the melting pot of early 20th century. His to be original New York Deli, first treasure but today, sadly, it’s more in to debut was “You can name than in substance,” said “The Great find a lot of Estridge. Lost Pastrami.” products in the Separating it marketplace So at 50 years old, Estridge, the from other claiming to be “culinary archeologist,” realized pastrami is his interest in creating the best in the method of original New food was something he wanted to preparation— York Deli, but explore more deeply. He set out gently cured, today, sadly, on a journey, and after many and marinated it’s more in years of searching, digging and with an name than in sifting through New York Deli rubble, he original blend substance.” of 16 whole- grain spices, hand-rubbed with a unique all-natural pre-smoke rub and then smoked with real hardwood as it slow cooks to perfection.

All of the Manhattan Deli Arts products SAVAGESAVAGE have been well-received by the marketplace. Other available products from Manhattan P O U L T R Y , I N C . Deli Arts include: “The Great Lost ;” “The Historically Essential MARYLAND OFFICE Pastrami Hash;” and “The Historically Billy Savage Essential Corned Beef Hash.” Product Ginger Trader Eggs can’t get any fresher! lines are available for retail and foodservice Fred Cline distribution at leading Boston area Je Vivalo Our family farms dedication to specialty stores.UB Phone: 866-2SAVAGE excellence, integrity and quality Fax: 410-543-8919 insures that NuCal Foods and Rocky Mountain Eggs are your best source TURKEY VALLEY FARMS ALABAMA OFFICE for premium quality conventional Lewis Wood and special eggs. The BIGGEST Little Company Chris Fly Serving the Western United States... Phone: 866-3SAVAGE in the Turkey Industry Fax: 251-970-5273 Specializing in Whole Turkeys, Breasts, MISSISSIPPI OFFICE Turkey Parts, Ground Turkey & Steve Farmer Sausage Products Phone: 888-430-2320 Retail & Foodservice • Tray Pack Fax: 601-919-2330 Private Label Packing 112 S. 6th Street • P.O. Box 200 • Marshall, MN 56258 www.savagepoultry.com 800-377-3447 Phone: 507-337-3100 www.nucalfoods.com www.turkeyvalleyfarms.com

52 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008

X ______X ______Sign here for approval and fax to: 732-341-0891 Sign here for approval and fax to: 732-341-0891

Dated ______Dated ______Making tough choices... The challenge of trimming costs

Discretionary income, or should we say and what they feed themselves and their Service Restaurants) establishments. the lack of discretionary income, has families. Mainly attributed to rising food White table cloth establishments, which forced many consumers to change how and energy costs, as of June 2008, U.S. are normally insulated from downturns consumer prices surged five in spending, have seen drops in revenue. percent when compared to Gourmet style angus burgers have made year ago figures, the largest their way onto the lunch ‘special’ menus at jump since 1991. The family traditional upscale steak house restaurants, cook is now challenged with with chefs seeing the need to modify their preparing creative meals using offerings to attract business. Perceived as a cost effective purchasing, and value, “all you can eat” style family dining “staycation” becomes a popular restaurants have seen a slight resurgence in buzz word associated with sales and meal counts during this period of families cancelling vacation slumping economy. plans as they look to curb optional spending. The consumer is not only “trading down” with their dining out preferences, but Belt-tightening consumers have also now opting to buy lesser quality and reacted to unbridled inflation generic products instead of the more costly by eating out less often. If you national brands at the retail supermarket. were a frequent customer at They’re also buying more items on sale, as casual dining restaurants, you well as using more coupons. Varied and may find yourself now pulling non-traditional into fast-casual or QSR (Quick merchandising “Rather than methods of grilling a tasty beef, pork, t-bone or URNER BARRY’S and poultry to porterhouse Seafood Import Data Online optimize profits steak, the are occurring. FOREIGN TRADE DATA Retail GAIN ACCESS TO: supermarkets aficionado is have increased spending more Compliance Manuals their features of time cooking Directory of Foreign Agencies lower cost fresh lower cost poultry items items...” Urner Barry’s Foreign Trade Data A Practical Guide to the Regulation such as split gives you detailed information of Seafood in the United States chicken breasts and leg quarters, due to the shift in spending by the consumer. Rather on each and every frozen NEW: Searchable Census Database than grilling a tasty T-bone or porterhouse waterborne shipment of seafood steak, the barbecue aficionado is spending entering the United States Call toll free more time cooking lower cost items such as the time-honored hamburger, hot dog, including: 1-800-932-0617 sausage or bratwurst. Less expensive steak • Commodity names E-mail: [email protected] cuts such as the boneless sirloin or chuck steak have also seen improved demand at • Importer and exporter names Tel. 732-240-5330 Fax 732-341-0891 the retail counter. & addresses www.foreigntradedata.com • Volume of shipment During times of economic stress, family • Origin country food expenditures may be the first area where choices have to be made. “Trading • U.S. port of entry Richard Gutting, lawyer and seafood down” to cheaper alternatives will occur • Date of arrival regulation expert, will be sharing his initially as families seek to restrain research and expertise with spending, but as adjustments are made to Foreign Trade Data customers other areas of the family budget, a return to typical trends of eating usually returns.UB

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 53 Consumers have value... Research shows: ethics matter more than sustainability

not a simple yes or no. For the seafood industry, these results suggest a real benefit exists in the industry’s approach of moving towards sustainability across a wide range of seafood products. It means that as the number of seafood products responsibly harvested grows, the industry as a whole can reap the benefits of being sustainable in the consumers mind.

The other part of this experiment provides a clear warning sign for seafood.

Adapted from a Seafoodnews.com editorial of a premium, if any, consumers would Although the industry has made great comment by John Sackton which pay for products that were produced strides on increasing the amount of originally appeared on May 12, 2008 sustainably using coffee and T-shirts as sustainably sourced seafood, both wild their test products. and farmed, the integrity of many seafood products has been slipping. A group of random adult coffee drinkers were given information regarding a brand While the National Fisheries Institute New research on how consumers reward not sold in began a campaign against illegal activities sustainability and ethical behavior has the U.S. After “ …consumers such as short weights, mis-labeling and some very interesting implications for the reading about that have illegal product substitution, such practices seafood industry. the company driven the continue to be rampant in our industry. and its coffee, growth in Some of the NFI members who have The Wall Street Journal set out to determine they relayed the committed to 100% net weight have lost seafood whether consumers will pay a premium price they were substantial business to less scrupulous for products produced in a sustainable, willing to pay popularity operators. environmentally responsible manner. The on an 11-point could turn on premise that consumers will reward this scale, from $5 the industry in The Wall Street Journal test shows that behavior underlies the entire sustainable to $15. The a heartbeat…” when unethical behavior is publicized seafood movement from the Marine results showed and known to consumers, they react very Stewardship Council to the Monterey Bay the mean price for those who understood negatively and the value they are willing Aquarium and many others. the coffee was sustainably produced was to pay for products in these circumstances 17% higher than a control group who had drops drastically. The research shows some surprising no information. For those who were told results which strongly support the seafood negative things about the brand, in terms Seafood is, by and large, riding a wave of industry’s approach to sustainability, rather of ethics, the mean price was 29% lower popularity, and the effort of the NGOs than the all or nothing approach of many than the control. to promote sustainable fishing and the NGOs. More importantly, research also industry’s response have increased this shows that while consumers will reward The Journal than designed a follow-up popularity, not hurt it. The study by The sustainability, they will punish unethical test. A group of subjects were recruited Wall Street Journal has a timely warning: the behavior even more. to purchase T-shirts, made with 100% same consumers that have driven the growth organic, 50% organic, and 25% organic in seafood popularity could turn on the First, the positive news cotton, or with no organic cotton. industry in a heartbeat if they felt widespread for the seafood industry. unethical practices were rampant. Researchers concluded that the premium The Wall Street Journal set up several social consumers were willing to pay for a Today, can we honestly tell them they are science experiments to estimate how much sustainable product was a matter of degree, not?UB

54 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008 VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 55 Moark_image_ad_rev1.indd 1 12/19/07 2:47:13 PM ‘Reporter’ talks with MICA executive director...

Q and A with... Laurie Bryant

Laurie Bryant has spent his entire “...barriers be correct then supplies will improve. life in the . Born on a associated with sheep and cattle seed stock farm just animal health UBR: Recently the U.S. government required north of Wellington, , Australia and New Zealand and Uruguay to and food safety Laurie got his degree in Agriculture get E.coli certification on the beef they send to Science with a Major in Economics restrictions are the U.S.–was this warranted? and Marketing from Massey pressing issues University in New Zealand. His fueled by LB: E. coli O157:H7 is a serious food career has taken him with the New misinformation safety issue in the U.S. and it occurs Zealand Ministry of Agriculture, and political in all countries, albeit at varying levels the New Zealand Meat Boards agendas rather of incidence. As a result E. coli testing (now called Meat and Wool New than facts.” programs have been undertaken in Zealand) and more recently Laurie supplying countries for many years. While is the Executive Director of the there have recently been changes in the Meat Importers Council of America methodology employed (MICA), a group that exists to foster for testing, consistent the trade, commerce and interests with changes in testing of importers and exporters of meat. methodology employed by the domestic industry URNER BARRY’S REPORTER: What’s the in the U.S., the recent most pressing issue today that you see in the introduction of point meat industry? of entry testing by FSIS that should contribute to some recovery in has been the change that has created LAURIE BRYANT: With everything that imports going forward. the greatest concern. This development is happening in the industry today it is has meant that processors in supplying difficult to identify just one issue as the The re-entry of U.S. beef into Korea will countries are having to do much more most pressing. Domestically the dramatic undoubtedly displace some Australian and than the U.S. domestic industry to ensure escalation in livestock feed costs has to be New Zealand product from that market that there is no major recall in the unlikely the most pressing issue. The real impact and some will come here. event of a positive point of entry test. of this has still to be seen but it will undoubtedly impact future production Another problem has been the UBR: The media was focused on the safety of of all meats with implications for further displacement of Brazilian product from the food that we import—how safe is the meat declines in capacity utilization and more Europe and, to a lesser extent, Russia that we get from Australia/New Zealand, industry restructuring. because of concerns over foot and mouth Uruguay and other countries? disease and the effectiveness of their Internationally the distortions to trade traceability system. I would expect the LB: Meat imports from the limited resulting from barriers associated deficiencies in the system to be addressed number of countries that are approved to with animal health and food safety so that product can be sourced from an export to the U.S. are safe. restrictions are pressing issues fueled by increasing numbers of farms over the misinformation and political agendas coming months. The result may be some The media issue has arisen as a result of rather than facts. recovery in U.S. imports from Uruguay, issues surrounding foods that are under which are discouraged by a small tariff rate the oversight of FDA not those for which UBR: The weak U.S. dollar and increased quota and a 26.4% duty on over quota USDA has responsibility. buying power from countries such as Russia has product, but probably not until 2009. severely constricted the flow of meat from other Prior to being able to export meat and countries to the U.S. How do you see the U.S. Imported beef prices have been at record poultry to the U.S. FSIS will undertake competing for beef supply in the world market levels and it is simply a question of an in depth review of the inspection going forward? whether there will be a price adjustment in systems operated by the competent the European and Russian markets when authorities in the supplying country to LB: The U.S. market will continue to Brazil’s access improves while at the same determine whether it is “equivalent” to struggle to attract beef imports for a time U.S. imported beef prices hold firm the inspection system in the U.S. If a number of reasons, of which the dollar is at these higher levels, compensating for the country’s inspection system is equivalent only one. But I do see some positive signs weak U.S. dollar. If that scenario proves to to the U.S.’s only then can individual

56 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008 plants be certified to be able to export LB: This is one of those questions that to be an increase in the cost that will be meat to the U.S., provided those plants is impossible to answer as the decision incurred between the cow calf operator, meet all the standards required for the on access to the U.S. for fresh or frozen who is the only one that can attest that a U.S. market. meat rests with USDA and the U.S. calf is born in the U.S., and the ultimate Administration consumer. I do not see the consumer FSIS employs two methods to ensure that which has been “Meat paying any more for their meat, as that is the required standards are maintained in very slow in imports from determined by supply and demand and supplying countries. First they undertake approving access the limited I don’t believe demand will be affected. regular audit of the supplying country’s for countries number of That leaves the cow calf operator with the inspection system, including visits to with a history countries bill for this program as everyone else in the plants approved to export to the U.S., of foot and that are system operates on a margin and will pass to ensure standards are maintained. The mouth disease. approved to back any increase in costs they incur. second check is the random point of entry A case in point export to the inspection of meat including residue is access for the US are safe.” As far as imports are concerned, testing and now testing for E. coli as well. Patagonian region there will probably be some impact of Argentina which is internationally on Canadian live cattle more so than As a result imported meat is subject to recognized as free of foot and mouth on retail meat cuts. Identification of more inspection than domestic because disease without vaccination. The comment imported meat is simple because the of the re-inspection that occurs in the US period for a proposed rule that would allow country of origin is right there on after it has already been inspected prior to imports from this region closed in early the box. Consequently the impact on export. March 2007. The final rule has still not processors and retailers will be limited been published 16 months later. to any labeling complications that arise UBR: Brazil is a major producer of red with record keeping much less difficult meat and has the capacity to send us frozen UBR: Country of origin labeling starts on than for domestic meat and imported manufacturing beef among other items. When September 30. How will this affect the business? live cattle. The need for the packer to do you think we might start seeing non-cooked segregate live cattle by county of origin product in the U.S.? LB: In my view the main impact is likely will be an additional complication.UB

New features include: Expanded Latin American and Japanese coverage The Seafood Industry Standard Broadest news gathering 1-800-932-0617 network in the industry IN ASSOCIATION WITH B.A.N.R. - Bill Atkinson News We focus on the Report included in subscription business of seafood Simplified navigation

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 57 L.L. Bean heir Continued from page 1 marketplace. Large restaurant chains and in Danvers serve on the Fund for the companies are saying we are not Advancement of Sustainable Maine expected to exceed 2.2 million pounds this going to carry your product Lobster that is raising the grassroots year—10% of the anticipated Knox County unless it is sustainably money for the certification of Supply. harvested.” what they observe are current sustainable practices of Maine John Petersdorf, Port Clyde Lobster This issue is so important lobster fishermen. Application vice president and general manager, to her that recently, is being made to the Marine acknowledges that starting up a new lobster Bean’s family company Stewardship Council (MSC), business right now is a bit of a challenge took a leadership position, based in London, England for given rising fuel and bait costs, however, along with North Atlantic the certification. says that Bean is energetic, and “She’s really Lobster Company, to help raise promoting the product and trying to keep $250,000 to achieve independent Established in 1997, the MSC offers the lobster in Maine [to be processed].” certification and eco label recognition of the fisheries that are certified as “sustainable” sustainability of Maine’s natural resource with use of the MSC blue ecolabel that He adds, “Sustainability is very important of wild-caught lobster. Both Bean and assures consumers that the fishing grounds to her. It’s going to be important in the Hank Rimkewicz of North Atlantic Lobster for their purchases are not overfished or harvested in a way that harms the ocean environment. The label is receiving more and more demand by the consuming public, most especially by the “greening” of American grocery marketing leaders.   Currently the MSC is the lead organization promoting sustainably harvested seafood.

In February, Bean was appointed by Governor John Baldacci of Maine to sit on the private sector group’s working team for Maine lobster.

“Lobstering is a way of life in Maine and MSC certification is an important element needed for the future of our industry. I want our lobstering men and women to get the national recognition they deserve. Cage or Cage-Free Systems With the MSC certification, their catches will be in high demand and well positioned for global markets,” added Bean.

Bean is also a licensed wharf buyer of wild Maine shrimp currently packaged under the label Port Clyde Wild Maine Shrimp and available both frozen and fresh.UB

Answers to the quiz on page 17: #ONTACTUSTODAYFOR#HORE 4IMElSCOMPLETECAGE 1. A. Carapace ORCAGE FREEEGGPRODUCTIONPACKAGE 2. B. 5 3. C. China 0%!#%/&-).$s%''02/$5#4)/. 4. D. Less than 10% #HORE 4IME%GG0RODUCTION3YSTEMS 5. C. White Shrimp !$IVISIONOF#4" )NC 0HONE 6. A. Green Mussels )NTERNETWWWCHORETIMEEGGCOM 7. A. Orange Roughy % -AILEGG CHORETIMECOM 8. B. Tilapia 9. A. True

58 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008

CTB ADVERTISING CT-2402 H/0108 Chore-Time Egg Production Systems Adventures in eating... MENU Escargot: MAKEOVER “edible snails” offer delightful flavor, texture, health benefits

As one of “Often found in them to empty their entrails. the most fine French or popular and Mediterranean An excellent addition to one’s diet, snails traditional restaurants are full of calcium, protein, iron, zinc, dishes in potassium, selenium and magnesium. in the United French They are also known to be high in health- cuisine, States, escargot benefitting essential fatty acids such as escargot have is said to have a linoleic acids. A study on a species in Brazil been used for quite ‘delightful estimated that 75% of the fat in is processed in France and therefore get the thousands flavor and unsaturated fatty acids, the good kind. French label attached. of years texture.’” for human As of 2007, France still led the world in “When we tell British tourists that consumption. Many Americans are snail consumption at approximately 20,000 Burgundy snails, even with a ‘Made in unfamiliar with this mollusk; however, tons per year. It is surprising to learn that France’ stamp on them, in fact come from in other parts of the world, finding it on most of the product served in France Eastern Europe, they are shocked and the menu is just as common as is finding actually comes from Russia, Poland, , disappointed,” said Mr. Bonis, France’s first muscles or clams. Turkey and Indonesia. Many are, however, and only certified organic snail farmer.UB

Escargot is simply a term for “edible snails.” Formally, it is the name for a preparation Advertiser index... of snails that can be served with a variety of sauces. Often found in fine French or AgroAmerica...... 44 L & S Foods...... 32 Mediterranean restaurants in the United American Egg Products, LLC...... 24 Maloney Seafood...... 21 States, escargot are said to have a quite Australian Premium Brands...... 2 Midwest Poultry Services...... 12 “delightful flavor and texture.” Baker Commodity...... 27 MoArk LLC...... 55 Beaver Street Fisheries...... 25 Moore Stephens Frost...... 43 Snails for escargot are most commonly Bird-in-Hand Farms Inc...... 49 NAMP...... 23 prepared either boiled or steamed. They Cal-Maine Foods...... 45 Nature’s Catch Inc...... 28 are usually served on a special plate with six Chore-Time Brock...... 58 Nucal Foods...... 52 cavities to hold the snail, within its shell, Crystal Farms...... 42 Poultry Specialities Inc...... 5 in place. The dish has a rim to prevent D&R Foods...... 19 Prairie Natural Meats...... 7 the unique dipping sauce from spilling. Dutch Valley Foods...... 44 Prestage Farms Inc...... 37 Proper etiquette calls for snail tongs and a Eastern Poultry Distributors...... 35 Primetime Meats...... 33 slender two-pronged snail fork. Diners use Empacadora Celaya...... 39 Protein Alliance ...... 14 the tongs to hold the snail shell while they Empress International...... 37 Radlo Foods...... 22 extract the meat and use the fork to pull eSignal ...... 17 Richmond Wholesale Meat Company..... 6 out the contents from the shell and dip it Estherville Foods...... 29 Royal Harvest...... 40 into a savory sauce. Farbest Foods...... 4 Ruggiero Seafoods...... 13 Great Northern Products...... 48 Savage Poultry Inc...... 52 Snails used in escargot can be collected from the wild or farmed. No matter H & N Foods International...... 46 Sea to Sea, LLC...... 30 what variety, after harvesting, they Harbor Seafoods...... 60 Sigma Seafood International...... 18 must go through a period of fasting for Harvest Meat Company...... 41 Taurus Food Products...... 27 approximately one week to cleanse the Hickman’s Egg Ranch...... 8 Turkey Valley Farms...... 52 intestines. When not properly emptied, the House of Raeford...... 47 Vista Food Exchange...... 10 dishes are said to turn bitter. During the Interplast Packaging Inc...... 9 Wabash Valley Produce...... 50 fasting period, the snails are washed every Jason’s Food Incorporated...... 3 Westside Foods...... 51 other day with running water to stimulate Kuhl Corporation ...... 11

VOL. 3, NO. 4 • fall 2008 / URNER BARRY’S REPORTER • 59 upc bar code area

upc bar code area

Urner Barry Publications, Inc. P.O. Box 389, Toms River, NJ 08754-0389

60 • URNER BARRY’S REPORTER / VOL. 3, NO. 4 • fall 2008