JBS Swift To Go Public

Today JBS Swift announced their $2 billion dollar intentions to cut out the need for butchering at the grocery store. The Greeley Tribune has more:

In paperwork filed with the Securities and Exchange Commission, JBS intends to offer the company up for public stock offerings to continue its growth strategy into the next five years. The growth includes expanding its value-added options, such as seasoned beef cuts, plus increasing its distribution network. The distribution network includes in-house cutting rooms, whereby meat would be cut and packaged ready for the supermarket shelves, also known as case-ready.

“This might be the next big step in case-ready beef and pork since Walmart said they were going to 100 percent case-ready in 2000 and had to pull back,” said Steve Kay, publisher of Cattle Buyer's Weekly, a California-based trade magazine. “We thought case-ready was going to be the big revolution in the way beef was distributed to retail, and it became a slow evolution and has not made much progress in last several years.”

Shares soared after the announcement. Bloomberg reports that, "JBS jumped 5.6 percent to 7.50 raise at 2:02 p.m. New York time in San Paulo trading, the highest since June 10. The stock has jumped 52 percent this year."

Why the emphasis on case-ready distribution? Drovers has some answers:

“Case-ready distribution is a growing trend in beef marketing,” says Randy Irion, director of channel marketing for the National Cattlemen’s Beef Association, as it offers several advantages to packers and retailers.

The main points for case-ready beef:

• Longer shelf life
• The retailer can stock cuts based on trends, regions, and demand, instead of having to use up primals
• Easier to restock and control inventory
• Targeted distribution

What do you think of this development? Let us know in the comments below!

What is in the FDA Final Rule on Eggs?

This week the House is expected to take up the new Final Rule on preventing contaminated eggs from reaching the public. Here is what you can expect if the measure passes: (Via the FDA)

Producers with at least 3,000 but fewer than 50,000 laying hens must comply within 36 months after the rule’s publication. Producers with 50,000 or more laying hens must be in compliance with the rule within 12 months after its publication in the Federal Register.

Under the rule, egg producers must:

• Buy chicks and young hens only from suppliers who monitor for Salmonella bacteria
• Establish rodent, pest control, and biosecurity measures to prevent spread of bacteria throughout the farm by people and equipment
• Conduct testing in the poultry house for Salmonella Enteritidis. If the tests find the bacterium, a representative sample of the eggs must be tested over an 8 week time period (4 tests at 2 week intervals); If any of the four egg tests is positive, the producer must further process the eggs to destroy the bacteria, or divert the eggs to a non-food use
• Clean and disinfect poultry houses that have tested positive for Salmonella Enteritidis
• Refrigerate eggs at 45 degrees Fahrenheit temperature during storage and transportation no later than 36 hours after the eggs are laid.

You can read the entire final rule here (as a 243 page pdf).

Tighter Food Security Standards Coming Soon

Recalls and public worry about food safety has prompted the Obama administration to strive for tougher standards and better enforcement in the industry. The Wall Street Journal has more:

A cabinet level panel convened by the White House will announce this afternoon a series of steps aimed at reducing outbreaks of salmonella, E.coli and other pathogens, according to a summary of the panel's report. The panel's recommendations represent a shift in food regulation to prevention from reacting to outbreaks of food-borne illnesses.

The new approach includes a rule aimed at reducing salmonella contamination of raw or undercooked shell eggs during production, a step the panel said will cut the number of human infections caused by egg consumption by 60%, or 79,000 illnesses.

You can read more about the announcement at Whitehouse.gov, and the new government food safety website, The President's Food Safety Work Group.

Friday Fun: Fourth Of July for Foodies

With a heat wave warning this weekend in Portland, people are not going to want to be stuck indoors with a hot stove. Even though the news outlets are reporting travelers will keep close to home, there are still some great local events and places to enjoy the outdoors and a great meal.

Oregon Live recently showcased five great new summer restaurants. Top of the list: The Grilled Cheese Grill, a new Alberta cart that offers outdoor seating on picnic tables, or inside seating in a converted a school bus:

Breslow's operation is another example of what makes the Portland food scene special. Though simple, it's personal and passionate -- and a perfect stop on a lazy summer day or night.

If you prefer more BBQ and a little seafood with your fireworks, Salty's is having their 4th of July Buffet Extravaganza!

Want something more civic-minded? The Lions Club of Lake Oswego will have their annual pancake breakfast starting at 7:00 am on the 4th.

Smith Berry Farm will have their annual Berry Festival from 11-4 on the 4th. Besides great berry dishes and drinks, there will be BBQ food available for purchase.

Planning your own event or summer BBQ? About.com has some great tips for keeping food fresh & safe while you're in the sun.

Everyone at Pacific Food Distributors wishes a safe and happy 4th of July to our blog readers!