People, Places, & ...

Carl Peterson Mourned

SCP Control, Inc., founder Carl M. Peterson died June 14, 2010, in Minneapolis, MN. He was 72.

Peterson, an expert in odor control technology for the rendering industry, founded SCP Control in 1982 and was an active member of the National Renderers Association. He was a graduate of the University of North Dakota where he received his bachelor of science and master of science degrees in mechanical engineering. Peterson then went on to receive his PhD in environmental health from the University of Minnesota.

Peterson is survived by his wife of 46 years, Shirley, sons Eric and Nathan, daughters Kris and Nancy, six grandchildren, a sister, and many more family and friends, including those in the rendering industry.

Darling Acquires Nebraska Renderer

Darling International, Inc., has acquired substantially all of the assets of Nebraska By-Products, Inc.

Nebraska By-Products, Inc., head-quartered in Lexington, NE, is a provider of dead stock collection and rendering services in Nebraska, Kansas, and parts of Colorado and South Dakota. The acquisition includes a rendering facility located in Lexington, NE, as well as several transfer stations.

“We are pleased to have the opportunity to add this business to our portfolio and carry on Nebraska By-Products’ long tradition of outstanding service to farmers, ranchers, and feedlot operators in the Midwest,” said Randall Stuewe, chairman and chief executive officer, Darling International.

Headquartered in Irving, TX, Darling International is the largest publicly-traded food processing by-products recycling company in the United States.

Dupps Names New President

Frank Dupps Jr. took the helm as president of The Dupps Company, Germantown, OH, on July 1, 2010. He succeeds John A. Dupps, who became the company’s chairman of the board on July 1 after serving as president since 1982.

Frank Dupps Jr., who leaves the post of director of international sales, joined the company in 1991. During his tenure, he has gained experience in every aspect of the business, including engineering, manufacturing, service, administrative operations, marketing, and sales. In his most recent role, he was responsible for introducing The Dupps Company into new global markets, including major positions in Latin America, that now account for a significant and growing portion of the company’s annual sales.

As president, Dupps plans to usher the company into new markets, including process applications that would benefit from Dupps’ engineering and manufacturing expertise, as well as even more comprehensive product and service offerings to traditional Dupps market segments. He is careful to put ambitious company growth into perspective, noting that, “As we pursue the business objectives that will keep us on a successful path well into the future, we will do so with the same philosophy – putting the customer first, offering the best value possible, and cultivating opportunities and incentives for our family of employees – that we’ve stood for since the company was founded 75 years ago.”

The Dupps Company designs, builds, markets, and services a rendering systems and machinery for the protein co-products industry. The company also serves the pulp and paper, oilseed, fish meal, and other industries with a variety of processing systems and equipment.

Diversified Laboratories Awarded Accreditation

Diversified Laboratories, Inc., is now ISO/IEC 17025:2005 accredited, which, along with the company’s U.S. Department of Agriculture (USDA) accreditation, validates the laboratory’s technical competence and quality management systems.

The International Organization for Standardization, or ISO, International Electrotechnical Commission (IEC) 17025 is the international standard by which a laboratory’s commitment to quality is evaluated. It not only considers management and technical expertise, but emphasizes continual improvement of customer service and the overall quality management systems.

“We always considered outside verification of our laboratory vital,” commented Peter Kendrick, chief executive officer, Diversified Laboratories. “ISO accreditation is another part of our continuing mission to improve how we serve our customers.”

Diversified Laboratories is currently the only independent laboratory accredited by the ISO and USDA for chlorinated hydrocarbons and PCBs.

JBS Souderton Reaches Settlement Over Clean Water Violations

JBS Souderton, Inc., formerly known as Smithfield Beef Group, has agreed to pay $2 million in civil penalties and damages to resolve allegations that the company’s beef processing plant in Franconio Township, Montgomery County, PA, failed to comply with the Clean Water Act and the Pennsylvania Clean Streams Law during plant operations, some of which resulted in fish kills. The consent decree was entered into with the United States of America and the Commonwealth of Pennsylvania.

As of 2004, JBS Souderton’s operations, which include a rendering facility, were producing approximately 180 million pounds of boxed beef and 117 million pounds of ground beef per year. The rendering facility processes the inedible material from the slaughter operations and kitchen grease from various restaurants. Water from the beef processing and rendering facilities is conveyed to an on-site wastewater treatment plant, treated, and then discharged into the Skippack Creek, pursuant to a permit. The creek is a tributary of the Perkiomen Creek and the Schuylkill River.

In December 2008, the United States filed a complaint alleging that the plant had been out of compliance since 2003 with the federal water act and state streams law. The allegations concern three areas:

• The environmental agencies allege that the plant spilled pollutants into the water without a permit.

• The agencies allege that the plant discharged pollutants into the water in excess of the limitations set by its permit.

• The agencies allege the plant failed to operate and maintain its facilities in a manner appropriate to ensuring compliance with its environmental obligations. These violations resulted in fish kills in the Skippack Creek on August 10, 2007 (16,461 fish), December 5, 2007 (1,754 fish), and June 10, 2008 (6,500 fish).

The Pennsylvania Department of Environmental Protection and Pennsylvania Fish and Boat Commission intervened with their own allegations in June 2010.

During the time frame covered by the consent decree, JBS Souderton, Inc., was formerly known as Smithfield Beef Group – Souderton, Inc. The name change occurred in 2008 when Smithfield Foods, Inc., sold its stock in Smithfield Beef Group, Inc., to JBS USA, Inc.

The consent decree requires JBS Souderton to make a number of changes to its operations that are meant to prevent the kinds of environmental incidents alleged in the complaint. They include:

• the implementation of an environ-mental management system that incorporates prevailing best practices and that will, among other things, include a process for analyzing the root causes of future environmental mishaps to ensure that they are corrected;

• the installation of a computer based system – the Supervisory Control and Data Acquisition system – to monitor equipment, leaks, and water flow;

• improved record keeping and training;

• an asset management and preventive maintenance program to set schedules for the upkeep of the operation’s equipment.

The consent decree also requires JBS Souderton to construct an upgrade to the system of pipes that brings water to the wastewater treatment plant. The construction project includes installation of advanced piping, an inventory of existing piping, and shut-off of unused piping. The upgrade is to ensure that all the wastewater that needs treating will be safely carried to the wastewater treatment plant. The consent decree is part of other enforcement activity by environmental agencies that requires JBS Souderton to construct an approximately $6 million state-of-the-art wastewater treatment plant.

The required $2 million payment by JBS Souderton includes civil penalties of $950,000 each to the federal government and the Pennsylvania Department of Environmental Protection, and $100,000 in civil damages, of which $10,000 represents investigative costs, payable to the Pennsylvania Fish and Boat Commission.

JBS Buys U.S. Feedyard, Belgium Beef Processor

On June 30, 2010, JBS S.A. entered into an agreement to acquire through its U.S. subsidiary – JBS Five Rivers Cattle Feeding, LLC – the McElhaney Feedyard in Welton, AZ.

The feedyard has a one-time capacity to feed 130,000 head of cattle and is strategically located near the JBS production facility in Tolleson, AZ. The transaction, which includes the purchase of 100 percent of the assets including yards and feed mill, is valued at $24 million.

“We are very pleased with the proposed acquisition of this state-of-the-art installation through which we can liaise with local producers and ranchers to provide feed service for their cattle and customize the animal diet to suit the needs of our many customers not only in the U.S. but around the world,” said JBS’ Wesley Batista. “As I have said previously, we are strong believers in the U.S. livestock community and we will continue our efforts to bring efficiencies to the sector for the benefit of all.” The transaction is subject to the customary regulatory approvals.

Meanwhile, in mid-July, JBS S.A. finalized its purchase of the Toledo Group, located in Gent, Belgium, for $11 million Euros. The Toledo Group specializes in researching, developing, and commercializing customized cooked and frozen beef products for a wide range of end users across Western Europe. In 2009, the company had net revenue in excess of $50 million (U.S. dollar).

The Toledo Group was founded by Clayton Toledo and Bob Stevens more than 20 years ago and has developed its cooked beef products through partnerships at production level with beef companies in South America.

Kastalon Takes Home Safety Honors

For the second consecutive year, Kastalon, Inc., makers of the Sekure Kap for internal used cooking oil tanks, was honored with the Safety Award of Honor from the Fabricators and Manufacturers Association (FMA), Inc., for having a perfect safety record of no reportable injuries or illnesses for the year. Having accumulated more than 1,350 days without an accident, this was only one of many safety awards and special honors that Kastalon took home. As a member of the Workers’ Compensation Trust of Illinois, or WCTi, the company ranked first out of 29 eligible companies for their second WCTi Chairman’s Award for Safety Excellence, as well.

“We have implemented more than a safety program; we have adopted a holistic safety philosophy,” said Bruce DeMent, president, Kastalon. “In addition to the obvious advantage of conserving our ‘human capital,’ we have reaped the benefits of reduced workers’ compensation premiums, reduced absence resulting in higher productivity, and a greater harmony amongst our employees. It is truly a win-win combination.”

Kastalon, a second generation family-owned polyurethane manufacturer, has 65 employees in the south suburbs. DeMent credits the thorough safety training program that was put into place in 2005 along with the lean manufacturing practices that were adopted around the same time for the company’s award-winning safety record.

Meat and Wool New Zealand Changes Name

On July 1, 2010, Meat and Wool New Zealand, Ltd., changed its name to Beef and Lamb New Zealand, Ltd. The group’s Web site has also changed to

The name change signals a fresh start as the organization moves into a new era with a meat only focus. The group now shares its name with Beef and Lamb New Zealand, Inc., its partner in domestic promotion work that was principally funded by Meat and Wool New Zealand.

New Zealand Processor Closing Plants

Silver Fern Farms will close its Canterbury, New Zealand, lamb cutting plant, and the rendering and casings departments at its Belfast plant. The company will also restructure the coldstore department at the Belfast location. Chief Executive Keith Cooper said the closures are a result of Silver Fern Farms’ continued focus on streamlining business operations and optimizing efficiencies across the company’s various processing sites in the South Island.

According to the company, New Zealand’s red meat industry is suffering from the threat of alternative land uses, processing overcapacity, weak processor profitability, and low farmer returns.

“Against this backdrop, Silver Fern Farms must, and will, continue to make difficult decisions to maintain industry competitiveness and give security to the business and our farmer shareholders going forward,” said Cooper. “This means integrating our operations where possible so that the majority of our product is slaughtered, cut, and packed at the same plant to attain the highest standards of food hygiene and safety and minimize our environmental impact.”

Affected by the closures are 174 employees: 135 at the Canterbury plant and 39 at the Belfast plant. The company is offering a range of support services to affected employees including employment search assistance and, where possible, alternative employment at other plants where vacancies exist.

In 2008, Silver Fern Farms closed the slaughter chains at Canterbury but retained the lamb cutting operation to cater for an imbalance between the forecast kill and Silver Fern Farms’ overall cutting capacity.

“Since that time sheep and lamb kill numbers in the South Island have dropped and with increased on-site cutting at slaughter plants, the imbalance is no longer an issue,” said Cooper.

Regarding the closure of the rendering and casings departments and restructuring of the coldstore operations at the Belfast plant, Cooper explained that in 2009 a joint venture company was formed with Farmbrands to provide capital to establish new specialized rendering facilities, improve processing efficiencies, and leverage expertise in technology, processing, and marketing.
The Farmbrands’ purchase of a new state-of-the-art rendering facility at Washdyke has provided the company with an alternative for rendering Belfast material. Retaining rendering at Belfast would require significant incremental capital investment to achieve and maintain building, hygiene, and environmental standards.

The company is not ceasing the beef slaughter operation at Belfast, its largest South Island beef processing plant.

Silver Fern Farms, a farmer controlled cooperative representing more than 20,000 farmer shareholders, is New Zealand’s leading procurer, processor, and marketer of lamb, mutton, beef, venison, and associated products to more than 60 countries. The company operates 22 processing facilities throughout the country.

National Pork Board President Elected

Gene Nemechek, a swine veterinarian from Springdale, AR, has been elected president of the National Pork Board by his fellow board members. The board also elected Everett Forkner, a pork producer from Richards, MO, as vice president. Both will serve one-year terms effective July 1, 2010.

Nemechek is a swine quality assurance veterinarian with the live swine division of the Tyson Pork Group, Inc., for Tyson Fresh Meats, Inc. He has a shared responsibility to work with the Tyson pork production units in Arkansas, Oklahoma, and Missouri as well as customer quality assurance for the Tyson Pork Group weaned pig and feeder pig customers.

Nemechek is serving his second three-year term on the National Pork Board and serves on the organization’s Budget Committee, Resolutions Committee, Pork Safety Committee, and Swine Health Committee. Previously, he served as president and vice president of the North Carolina Pork Council.

Forkner is the owner and president of Forkner Farms, Inc., which has 500 purebred sows and markets 8,000 hogs per year. He has sold hogs in 27 different countries, and raises corn, soybeans, and wheat on 2,000 acres.

Nationally, Forkner is chair of the board’s Budget Committee and serves on its Administrative Committee. He also serves on the Pork Checkoff’s Animal Science Committee and Niche Committee, and serves on the Nutritional Efficiency Consortium. At the state level, Forkner is a member of the Missouri Pork Producer Association and serves on the board of directors.

University Breaks Ground on Animal Health School

Washington State University (WSU) broke ground in late June 2010 on a 62,000-square-foot, three-story flagship research building for a new School for Global Animal Health.

Scheduled for completion in the spring of 2012, the new research facility, which will house a state-of-the-art infectious disease research center for investigating emerging diseases, will be constructed with the help of a $25 million grant from the Bill and Melinda Gates Foundation. The balance of the $35 million total cost of the first-phase project will be comprised of bonds issued by the State of Washington and private gifts to the university.

According to WSU, zoonotic diseases, or infections transmitted from animals to humans, account for more than 70 percent of human infectious diseases, with a disproportionate impact in the developing world. The university is pursuing innovative solutions for the prevention of zoonotic diseases through vaccination and other strategic interventions in animal populations and the environment that will reduce pathogen levels below thresholds required for transmission.

The new research building will not house animals, but will support scientific staff with two floors of research laboratory space and an administrative wing containing conference rooms, administrative offices, and eventual access to a planned second facility providing high-level biosecurity laboratory space for surveillance and test development for diseases such as avian influenza and bovine spongiform encephalopathy. All construction plans will utilize state-of-the-art energy management and sustainability strategies.

The Gates Foundation grant constitutes the largest single private financial commitment to WSU in the history of the university. The long-term capital plan for the School for Global Animal Health includes additional laboratory space for emerging disease diagnosis, surveillance, and test development.

People, Places, &… – August 2010 RENDER | back