AFIA and AAPA Approve Merger
The boards of the American Alfalfa Processors Association (AAPA) and the American Feed Industry Association (AFIA) have finalized a merger between the organizations, with the processors becoming an AFIA council. The merger took effect May 1, 2001.
Chartered in 1941 as the American Dehydrators Association, AAPA membership includes 30 alfalfa processors and firms that also manufacture cubes and sell alfalfa hay. Under the merger arrangement, all AAPA members in good standing will become AFIA members and will be represented by a newly formed Alfalfa Processors Council. Former AAPA Executive Vice President Wanda Cobb will become the council’s primary staff contact and will maintain an office in Overland Park, KS, where the AAPA is headquartered.
Foster Buys Zacky Chicken
Foster Farms has announced plans to acquire Zacky Farms’ El Monte, CA, chicken operations. The completion of the acquisition is subject to regulatory approval and expected to close mid-2001.
Under the terms of the agreement, Foster Farms will acquire Zacky Farms’ Fresno area plant, hatchery, feed mill, and 35 live production ranches as well as its Los Angeles distribution center, adding 165 million pounds to its current annual poultry production. Zacky Farms’ fully integrated turkey operations and its deli and further processed meat operations will remain under ownership and management of the Zacky family. Most of the estimated 1,500 Zacky Farms employees involved with the acquisition will remain at their jobs at the processing plant.
Paul Carter, chief executive officer for Foster Farms, estimates the acquisition will add 25 percent to the company’s chicken production.
Northwest Poultry Council Established
The Oregon Poultry Industries Council and the Washington Poultry Industries Association have merged to form the Northwest Poultry Council (NWPC). The Pacific Northwest Grain and Feed Association will handle administrative tasks and lobbying for the new group.
Newly elected NWPC officers are: Ron Chase, Skylane Farms, president; Dennis Kamstra, Lohmann Health International, vice president; Tom Henderickson, Foster Farms, treasurer; and Marvin Friesen, Featherland Farms, secretary.
Additional board members include Curt Nelson, Mike Previtt, Greg Satrum, Jason Gentemann, and John Jenks. The board is comprised of five members from Oregon and four members from Washington, with the geographic weight alternating every other year.
Ruminant Feed Inspection Info Available Online
A spreadsheet containing information about inspections conducted under the Food and Drug Administration’s (FDA’s) ruminant feed ban rule has been posted on FDA’s Center for Veterinary Medicine (CVM) home page at www.fda.gov/cvm/efoi/efoi.html. The feed rule went into effect August 4, 1997, and prohibits the use of most mammalian protein in feeds for ruminant animals and was implemented to prevent the establishment of bovine spongiform encephalopathy in the United States.
Inspections of over 10,000 renderers, feed mills, ruminant feeders, and others have been conducted to determine compliance with the feed regulations. Included in the spreadsheet is information such as name, city, state, and type of facility for each firm inspected, dates of the inspections, and any violations. CVM hopes to update the information posted on a monthly basis.
Tyson Foods Calls Off IBP Merger
Just three months after it began, Tyson Foods, Inc. announced that it was discontinuing the agreement and planned merger with IBP, Inc. Reasons given in a lawsuit filed shortly after terminating the proposed acquisition were alleged fraud and breach of contract by IBP. IBP cross-complained against Tyson’s lawsuit, claiming Tyson had breached the acquisition agreement.
After the termination decision was announced, Tyson Foods’ Executive Vice President and General Counsel Les Baledge stated, “We believe Tyson Foods, Inc., was inappropriately induced to enter into the merger agreement. Further, we believe IBP cannot perform under the merger agreement. Under these facts, Tyson has a right to rescind or terminate the merger agreement and to receive compensation from IBP. We have commenced legal action in Arkansas seeking such relief.”
Tyson claims IBP’s financial statements and reports filed with the Securities and Exchange Commission prior to the final negotiations that led to the merger agreement January 1, 2001, were misstatements, resulting in misrepresentation of IBP.
IBP officials have stated that Tyson’s reasons for backing out of the deal “are completely unjustified.” The trial was scheduled to start May 14.
New Beef Plant for Southwest
Eight Southwestern cattlemen are launching Brawley Beef, LLC, Brawley, CA, a new beef processing plant projected to begin processing 1,200 head per day on Oct. 22. Expectations are to have a daily capacity of 1,600 head per day within 12 weeks.
While not a co-op, the operation will harvest cattle exclusively from seven designated feedlots in the Southwest. Greg Beck is president and chief operating officer of the new company.
June 2001 Render