LIVESTOCK HIGHLIGHTS: Top Stories of the Day
In Pilgrim's Chicken Plants, Hopes for Labor Relief
In the midst of a nationwide run on chicken, poultry producer
Pilgrim's Pride aims to grow its flocks--those on farms as well as
the workers who staff processing lines in the Colorado company's
plants. The latter has long been tough for the meat industry, and
Covid-19's rapid spread
through U.S. meat plants last year exacerbated the challenge.
Pilgrim's Chief Executive Fabio Sandri said on a Thursday
conference call that short-staffed plants are costing the company
money, and making it harder to fill orders. The restaurant industry
views empty positions on processing lines as a chief impediment to
putting more wings and chicken sandwiches on the plates of
Federal Chicken Price-Fixing Probe Expands, Koch Charged --
1026 ET - The US Department of Justice's ongoing probe into
price-fixing in the chicken industry expands, with an indictment
filed in a federal court in Colorado charging Illinois-based
poultry supplier Koch Foods with participating in the alleged
activity. Koch is the sixth-largest US chicken company,
representing about 6% of pounds produced, according to data from
research firm Watt Poultry USA. Bigger competitor Pilgrim's Pride
reached a plea deal with the DOJ on the allegations last fall, and
Tyson Foods has been cooperating with the investigation under a
corporate leniency program. Representatives of Koch have no
immediate comment. (firstname.lastname@example.org; @jacobbunge)
Yum Outpaces Pre-Pandemic Sales in the U.S.
Fast-food chain owner Yum Brands, which operates KFC, Pizza Hut
and Taco Bell, reported rising same-store sales compared with 2019
levels in the U.S.
KFC says its U.S. same-store sales were up 19% in the second
quarter compared with the same period in 2019.
STORIES OF INTEREST
Chicken Sandwich Delivers for KFC -- Market Talk
0902 ET - KFC's same-store sales in 2Q grew 19% in the US
compared to the same period in 2019, and chain parent Yum Brands
credits a new chicken sandwich for helping deliver that growth.
"Our chicken sandwich performed exceptionally well and provides us
with a solid platform to drive additional sales layers in the
future," Yum CEO David Gibbs tells investors. McDonald's also
credited its strong US sales in 2Q to new chicken sandwiches
introduced this year as Americans flock to poultry.
Agco Sees More Growth Left in Farm Machinery -- Market Talk
1253 ET - There's still growth left in the red-hot farm
equipment market, says Agco CEO Eric Hansotia. He says the market
is above the middle of the sales cycle, but not yet at a peak. "We
still think there's room for this to play out for some time yet.
There are low grain inventories. There's high commodity prices and
there's still equipment replacement demand that's unmet yet from
many years of farmers holding off on purchases," he says. Agco
expects its production to be up 15% to 20% this year over 2020.
Share up 3.7% at $130.42. (Robert.email@example.com)
Bayer Plans for Roundup Litigation Claims Rising by $4.5
Bayer AG sees expenses from lawsuits accusing its Roundup
weedkiller of causing cancer potentially rising by $4.5 billion --
significantly more than it had previously planned for.
The company will set aside the additional funds to cover Roundup
claims in its next quarterly financial report, Bayer executives
said Thursday. The new provisions would raise Bayer's funds
earmarked for the claims to more than $16 billion from the $11.6
billion the company had previously said it would pay to resolve the
Hogs Rise, Cattle Slides After Export Reports -- Market Talk
1438 ET - Lean hogs close up 0.6% to $1.063 a pound in the wake
of strong weekly exports reported by the USDA. The agency said that
last week net sales of pork were 57% higher than in the previous
week and 43% above the four-week average. The report comes after a
case of African Swine Fever was confirmed in the Dominican
Republic. Live cattle, meanwhile, slides 0.3% to $1.2815 a pound.
The USDA said net exports of beef were down 11% from the previous
week, though 28% above the four-week average.
(END) Dow Jones Newswires
July 29, 2021 17:14 ET (21:14 GMT)
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