Ameri-Pac Earns Recognition
DiversityBusiness.com recently named Ameri-Pac, Inc., as one of the top 100 diversity-owned businesses in the United States. The classification represents the top 100 diversity-owned businesses in the country in sectors such as technology, manufacturing, food service, and professional services.
“We achieved certification as a women-owned business in 2005,” said Marcy Colescott, Ameri-Pac’s vice president of Operations. “By doing so, we have uncovered new sales opportunities in our business market that might not otherwise have evolved.” Established in 1985, Ameri-Pac operates three animal nutrition manufacturing facilities in St. Joseph, MO.
Anamax Acquires Another Ohio Company
The Anamax Group of Companies, a 125-year-old rendering company headquartered in Green Bay, WI, announced in mid-June that it had acquired the recycling and by-products processing business of Ohio By Products, Inc., Cleveland, OH.
“This is another excellent strategic fit for Anamax,” said company President Bob Pfeil. “It allows us to extend our market service area and continue to build on our leadership role in the industry.” Roger Zehe, president and co-owner of Ohio By Products, said that the decision to join with Anamax is a good fit in today’s marketplace.
“There has been a great deal of consolidation in the past few years, which has increased competition and tightened margins,” Zehe explained.
“By joining the Anamax team, our heritage will continue,” added Ohio By Products Co-owner and Treasurer Jim Otto. Anamax stated the relationship with Ohio By Products’ suppliers and customers will remain unchanged under the new ownership.
Earlier this year, Anamax acquired the recycling and by-products processing assets of Inland Products, Inc., Columbus, OH, and its sister company, Environmental Pumping Services, Inc., Cleveland, OH. With the addition of Ohio By Products, Anamax now has six processing facilities and approximately 425 employees.
BSE Economic Impact Report Released
The U.S. Department of Agriculture Economic Research Service has issued a new report titled, “An Economic Chronology of Bovine Spongiform Encephalopathy in North America,” that goes into detail on the economic effects of the first confirmed cases of bovine spongiform encephalopathy (BSE) in Canada and the United States. The report concludes that the impacts, though great, happened during a period of low U.S. beef supplies, near-record beef prices, and strong domestic demand for beef that was largely unaffected by the BSE cases. It also highlights the effects the BSE cases had on the rendering industry, including proposed government regulations introduced after December 2003.
The complete report is available online at www.ers.usda.gov/Publications/LDP/2006/06June/LDPM14301/.
Darling Completes Purchase of National
Darling International, Inc., completed its acquisition of National By-Products, LLC, in mid-May (see “Newsline” in the February 2006 Render). The transaction is valued at approximately $141 million in cash and stock.
Feed Association Names Chairman
Mike Horn, president and chief executive officer, Pennfield Corporation, has been named chairman of the American Feed Industry Association (AFIA). He succeeds Robert Gallaway, Ridley, Inc., who has served as chair since September 2004.
Horn has been with Pennfield Corporation, a fourth-generation family business, since he was a teenager. Throughout his nearly 40-year career, he has worked in and managed every area of the feed business, including manufacturing, delivery, purchasing, sales, service, and marketing.
Active in AFIA for many years, Horn has previously served on the Director Nominating Committee, Transportation and Budget Committees, and was chairman of the Finance and Redesign Task Forces. In 2005, AFIA honored him with the Member of the Year award.
James Sullivan, International Ingredient Corporation, was named chair-elect and will succeed Horn as chairman in May 2007.
Feed Products Recalled
In mid-June, H.J. Baker and Bro., Inc., recalled three livestock feed ingredients produced at its Albertville, AL, facility due to the potential risk of unintentional contamination with ruminant-derived protein that may have occurred from February 2005 to June 2006. Since 1997, certain mammalian protein has been prohibited for use in ruminant feed. The products, Pro-Pak with porcine meat and bone meal, Pro-Lak, and Pro-Amino II, were distributed in bulk or bags to feed manufacturers and dairy farms in Georgia, Kentucky, Michigan, Florida, Alabama, Tennessee, Mississippi, California, and Louisiana. The company has not released the amount of product affected by the recall.
The voluntary recall was the result of clerical and procedural issues discovered during an inspection by the Food and Drug Administration (FDA) that could have possibly led to some contamination of prohibited material. Mark Hohnbaum, president of H.J. Baker’s Feed Products Group, said the company has always conducted testing for prohibited material on every outbound product, with all tests returning negative. He added that the recall was just about complete by mid-July and that the Albertville plant is only producing “stamped” feed products, that which is labeled with the FDA required statement, “Do not feed to cattle and other ruminants.”
Headquartered in Westport, CT, the company has served the fertilizer and animal feed industries since it was founded in 1850.
Generational Change at Haarslev
Haarslev a/s, a manufacturer of equipment for the treatment of meat and fish by-products, has agreed with Odin Equity Partners that Odin enter into the ownership together with Claus Ostergaard effective April 1, 2006. Ostergaard is the son of Leif Ostergaard, Haarslev’s founder, present major shareholder, and managing director. The change follows Haarslev’s acquisition of Atlas-Stord in January 2006 (see “People, Places &…” in the April 2006 Render).
Haarslev was established in 1973 by Leif Ostergaard and sold its first rendering plant in 1977 in Greece. Since then, the company has generated a double-digit percentage annual growth. After purchasing Atlas-Stord, the company staff grew to 350 with approximate sales of $93.5 million (U.S.).
Claus Ostergaard has been employed with the company since 1997 and today has global responsibility for sales. He will take over the position of managing director in connection with the transaction.
Odin Equity Partners was established in 2005 with institutional and private investors. Odin focuses on carrying through successful change of generation and owner in minor and medium-sized companies.
Lilly Joins Dupps, Which Now Provides Replacement Shafts
With over 25 years experience in the rendering industry, David Lilly has joined The Dupps Company as a sales representative. Lilly previously worked for both Atlas-Stord and AC Corporation.
In a separate announcement, Dupps is now offering replacement disc rotors for Rota-Disc rotary disc cooker/dryers, a competitive brand to its own line of Discor equipment. The company will also provide shaft installation and service.
Many of the older Rota-Discs were manufactured by the former Stord-Bartz Company, which was acquired by the Aker Group and later merged with Atlas Industries to form Atlas-Stord, Inc. In January 2006, Atlas-Stord was purchased by Haarslev a/s, a Denmark company.
Mendota President Retires, Davis Named General Manager
Joe Baka, president and chief executive officer of Mendota Agri-Products, Mendota, IL, retired July 1, 2006, after serving the company for 16 years.
Baka began his career in the rendering industry in 1964 as a commodity trader for Swift and Company, rising through the ranks to eventually become vice president, Swift International. In 1978, Baka took a position as general manager with Nick Beucher and Sons in Chicago, IL. In 1983, National By-Products acquired the organization and Baka served as district manager until 1990, when he was recruited by Mendota Agri-Products.
Tina Davis has been named as Mendota Agri-Products’ general manager after serving as the assistant to the president. She joined the company in 1989 and has a background in sales, operations, and human resources. Davis will also manage sales and production for Mendota Agri-Products’ Toledo, OH, and Indianapolis, IN, plants. Baka will serve in a consulting capacity with Mendota Agri-Products until March 2007 to assist Davis in the transition.
Massachusetts Renderer Passes
Richard C. Plakias, co-owner and operator of Western Mass. Rendering Co., Inc., in Southwick, MA, passed away May 24, 2006, after an illness. He was 60 years old.
Along with his brother David, Plakias owned and operated the rendering company founded in 1937 by their father that serviced the New England and New York areas. He was also a sailplane pilot and an avid boater. Plakias loved traveling throughout Europe, had a fondness for Germany, and was a history enthusiast with a special interest in World War II.
Plakias is survived by his companion, two sons, four brothers, and three sisters. Expressions of sympathy may be made to the Town of Southwick Animal Shelter.
Missouri Processor Fined for Odor
A turkey-processing facility in Carthage, MO, that repeatedly violated state odor regulations will pay $100,000 in civil penalties under a consent judgment obtained in late June by Missouri Attorney General Jay Nixon. The penalty is the largest amount ever obtained in the state for an odor case, according to the attorney general’s office.
Without admitting guilt, Renewable Environmental Solutions (RES), which uses a thermal conversion process to convert turkey by-products from Con-Agra’s Butterball turkey processing facility in Carthage into biofuels, will pay a civil penalty of $175,000 to the state, with $100,000 due up front and the remaining $75,000 to be suspended and deferred unless the facility is charged with additional violations of the Missouri Air Conservation law during the next two years. RES has stated the penalty will be paid to the Jasper County School Fund. Per the attorney general’s office, under the agreement, RES could also pay a $25,000 penalty each time it is cited by the state for odor violations in the next two years – two and a half times the maximum penalty of $10,000 normally allowed under the Missouri Air Conservation law.
The mutual agreement resolves a lawsuit Nixon filed in January 2006 to seek penalties against RES for past odor violations. A separate public nuisance lawsuit jointly filed by Nixon and the city of Carthage remains on file. RES is a wholly owned subsidiary of Changing World Technologies.
Neogen Leader Passes, New President Named
Ted Doan, founder, Neogen Corporation, Lansing, MI, passed away May 16, 2006, at the age of 83.
Doan served on the company’s board of directors since it began in 1982, and became chairman in 1984. Prior to that, he served as president and chief executive officer of Dow Chemical, a company founded by his grandfather Herbert Dow in 1897, from 1962 until 1971, and continued to serve as a member of Dow’s Board of Directors until 1987. Doan was also a key player in the forming of Dow Corning Corporation, and served on that board for 18 years. He also served on numerous other boards, including the National Science Board, the Board of the Office of Technology Assessment for the U.S. Congress, and served as president of the Michigan High Technology Task Force under two governors. Doan was also very active in many public service and philanthropic activities.
“Ted’s reputation and his knowledge of creating and growing new businesses were extremely helpful to Neogen management,” said James Herbert, Neogen president. “In those early days when we struggled to grow revenues, and fought for enough cash flow to meet payroll, Ted would remind me that his grandfather, Herbert Dow, went broke twice before he got Dow Chemical on its feet.”
In mid-June, Neogen’s Board of Directors elected Chief Operating Officer Lon Bohannon as the company’s president and chief operating officer. With 20 years of experience in the company’s most senior positions, Bohannon replaces Herbert, who served as Neogen’s president since its founding in 1982. Herbert will continue full-time responsibilities as chief executive officer and will assume the position of chairman of the board of directors.
Smithfield to Divide Chairman and CEO Positions
Joseph W. Luter III will relinquish the title of chief executive officer (CEO) of Smithfield Foods, Inc., as of August 31, 2006, after serving for 31 years as chairman and CEO. He will remain non-executive chairman of the board of directors.
“Looking back over the past 31 years, it is gratifying to see how far Smithfield Foods has come,” said Luter. “We have grown the company from a humble enterprise into one of the largest and well-respected food companies in the world. It is a task to which I have dedicated most of my life, and I am glad that I have done so.”
C. Larry Pope, president and chief operating officer (COO), was named CEO effective September 1, 2006. Pope joined Smithfield in 1980 as controller, became vice president of Finance in 1999, and was named chief financial officer in 2000. The board elected him president and COO in 2001.
Tyson Names New CEO, Makes Cuts
Richard L. Bond has been elected by Tyson’s Board of Directors as president and chief executive officer (CEO). John Tyson will continue to serve as chairman of the board.
Bond will have responsibility for all operations and sales for the company and has agreed to stay on until at least the end of 2009.
In other news, Tyson will implement approximately $200 million in cost reductions as part of a strategy to return to profitability, significantly exceeding the $110 million goal set by Bond. Savings will be generated from reductions in staffing, recruiting, relocation, consulting fees, sales related expenses and supplies, as well as travel. The company, which employs 114,000 people worldwide, plans to eliminate approximately 420 positions primarily held by Tyson management and management support team members and 430 jobs that are currently open will not be filled and will be eliminated. All affected employees will be offered severance payments and outplacement assistance, and will be given an opportunity to apply for other jobs in the company.
August 2006 Render