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Beef Market "UGLY"- Tyson eyes China and Brazil

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Anonymous

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Today 1/30/2006 11:42:00 AM


Tyson Calls Beef Market 'Ugly,' Sees Leading To 2Q Loss



A strike at one of its Canadian plants cost Tyson $9 million in the first quarter. Higher energy expenses also contributed to quarterly net earnings of $39 million, or 11 cents a share, compared with $48 million, or 14 cents a share, a year earlier.



Tyson's near-term guidance is for a "difficult" time. "Chicken will be tough going forward, beef continues to struggle...and pork should be OK but fall short of expected returns," Chairman and Chief Executive John Tyson said on the call. He spoke of a "continued tough environment" for the Springdale, Ark., company.



Elaborating on the outlook for chicken, President Bond said that prices have softened but grain costs "appear in good shape. Demand will be the key factor going forward, domestically and internationally."



Overseas consumer concern about avian influenza, which originates in poultry, contributed to a downtick in chicken sales in the fiscal first quarter.



Executives disclosed that Tyson was in due diligence talks with an unnamed Chinese poultry company.



Tyson executives also said they are taking a hard look at Brazil, for possible acquisitions of plants or "green fields" for a startup facility.



The company's CEO said he hoped to be able to announce the appointment of a new chief financial officer soon. Tyson has been operating with an interim CFO.


 
"Tyson executives also said they are taking a hard look at Brazil, for possible acquisitions of plants or "green fields" for a startup facility. "

Figure it out folks. This is one more cloud on the horizon.
 
I wonder if Tysons "due diligence talks with an unnamed Chinese poultry company" is the reason USDA announced last month that we would begin importing chicken from China? Right in the middle of bird flu epidemic concerns :roll:

Makes you wonder when USDA will "announce" that we will begin importing beef from Brazil :???: :mad: :cry: If they don't worry about bird flu from a Communist nation that once promised to overrun us why worry about a little thing like foot and mouth disease :???:
 
US: First shipment of Chilean beef arrives
30 Jan 2006
Source: just-food.com



The Chilean and American Chamber of Commerce has confirmed that today (30 January) the Port of Philadelphia will accept the first-ever shipment of Chilean beef into the US.

Chilean fruit has been imported at Philadelphia's Delaware River ports for more than 30 years. The arrival of Chilean beef as a new commodity to the Philadelphia region was facilitated by the passage of the US-Chile Free Trade Agreement.


 
Oldtimer said:
US: First shipment of Chilean beef arrives
30 Jan 2006
Source: just-food.com



The Chilean and American Chamber of Commerce has confirmed that today (30 January) the Port of Philadelphia will accept the first-ever shipment of Chilean beef into the US.

Chilean fruit has been imported at Philadelphia's Delaware River ports for more than 30 years. The arrival of Chilean beef as a new commodity to the Philadelphia region was facilitated by the passage of the US-Chile Free Trade Agreement.
Click to expand...

You should welcome that, you protectionist old fart! Don't you realize that the packers need the Chilean beef to mix with your worthless trim so they can add value to your beef and make more money, which is then passed directly to you?

Come on, man, figure it out! :wink: :lol:
 
Commodity Fact Sheet
April 2003

What's at Stake for Beef?

On Dec. 11, 2002, the United States concluded negotiations on a free trade agreement (FTA) with Chile, the first such arrangement with a South American country. This agreement, which Congress must now approve and enact implementing legislation, will provide America's farmers, ranchers, food processors, and the businesses they support with improved, and in many cases, new access to Chile's market of 15 million consumers. This comprehensive agreement calls for duty-free access on all products and addresses other trade measures for both countries.

U.S. Beef Gains Improved Access to Chile's Dynamic Economy

The current situation… U.S. beef and other meats are restricted due to differences in meat inspection regulations. Consumer cuts of beef are also denied access unless labeled and graded according to Chilean standards which differ from U.S. standards. Without preferential access, U.S. beef is at a disadvantage to product from Brazil, Uruguay, Paraguay and Argentina, regional countries that have advantages in transportation and existing trade agreements with Chile. The U.S. share of Chile's beef import market averaged less than 1 percent from 1999-2001.

With the agreement… Both governments agree to immediately recognize each others' grading systems, making it possible for USDA to certify beef product for export to Chile. A technical working group has been established for the purpose of recognizing Chile and the United States' respective red meat inspection systems. U.S. fresh and frozen beef products (HTS codes 02011050, 02012080, 020213080, 02021050, 02022080 and 02023080) gain preferential access as tariffs are reduced over 4 years and then eliminated in the fourth year of the agreement. In the first year of the trade agreement a tariff-rate quota (TRQ) of 1,000 tons is established, which rises to 10 percent annually over four years and then is eliminated. Chile imported 85,000 tons of beef valued at $153 million in 2001, making it the world's ninth largest beef importer. Virtually all of Chile's beef imports come from its South American neighbors; Brazil and Paraguay combined captured 92 percent of Chile's import market in 2001. It is expected that U.S. beef will find its niche in the high-end, higher valued Chilean beef market.

Chilean Exporters Secure Improved Access to U.S. Buyers

The current situation… Chilean beef is prohibited from accessing the U.S. beef market because USDA has not recognized Chile's meat inspection system.

With the agreement… Upon approval of Chile's meat inspection system, Chilean beef (same six commodity groups noted above) gains preferential access to the U.S. market following the same schedule set up for U.S. beef entering Chile's market. That is, tariffs are reduced over 4 years and then eliminated in the fourth year of the trade agreement. Upon implementation of the agreement, Chile receives a tariff-free quota of 1,000 MT of beef to ship into the U.S., which rises to 10 percent annually over four years and is then eliminated. The FTA also eliminates the 4 percent tariff Chile currently faces on beef on the existing WTO tariff-rate quota amount that is not allocated among WTO members. A net importer of beef products, Chile does not pose a threat of becoming a significant supplier to the U.S. market.
 
Mike said:
Commodity Fact Sheet
April 2003

What's at Stake for Beef?

On Dec. 11, 2002, the United States concluded negotiations on a free trade agreement (FTA) with Chile, the first such arrangement with a South American country. This agreement, which Congress must now approve and enact implementing legislation, will provide America's farmers, ranchers, food processors, and the businesses they support with improved, and in many cases, new access to Chile's market of 15 million consumers. This comprehensive agreement calls for duty-free access on all products and addresses other trade measures for both countries.

U.S. Beef Gains Improved Access to Chile's Dynamic Economy

The current situation… U.S. beef and other meats are restricted due to differences in meat inspection regulations. Consumer cuts of beef are also denied access unless labeled and graded according to Chilean standards which differ from U.S. standards. Without preferential access, U.S. beef is at a disadvantage to product from Brazil, Uruguay, Paraguay and Argentina, regional countries that have advantages in transportation and existing trade agreements with Chile. The U.S. share of Chile's beef import market averaged less than 1 percent from 1999-2001.

With the agreement… Both governments agree to immediately recognize each others' grading systems, making it possible for USDA to certify beef product for export to Chile. A technical working group has been established for the purpose of recognizing Chile and the United States' respective red meat inspection systems. U.S. fresh and frozen beef products (HTS codes 02011050, 02012080, 020213080, 02021050, 02022080 and 02023080) gain preferential access as tariffs are reduced over 4 years and then eliminated in the fourth year of the agreement. In the first year of the trade agreement a tariff-rate quota (TRQ) of 1,000 tons is established, which rises to 10 percent annually over four years and then is eliminated. Chile imported 85,000 tons of beef valued at $153 million in 2001, making it the world's ninth largest beef importer. Virtually all of Chile's beef imports come from its South American neighbors; Brazil and Paraguay combined captured 92 percent of Chile's import market in 2001. It is expected that U.S. beef will find its niche in the high-end, higher valued Chilean beef market.

Chilean Exporters Secure Improved Access to U.S. Buyers

The current situation… Chilean beef is prohibited from accessing the U.S. beef market because USDA has not recognized Chile's meat inspection system.

With the agreement… Upon approval of Chile's meat inspection system, Chilean beef (same six commodity groups noted above) gains preferential access to the U.S. market following the same schedule set up for U.S. beef entering Chile's market. That is, tariffs are reduced over 4 years and then eliminated in the fourth year of the trade agreement. Upon implementation of the agreement, Chile receives a tariff-free quota of 1,000 MT of beef to ship into the U.S., which rises to 10 percent annually over four years and is then eliminated. The FTA also eliminates the 4 percent tariff Chile currently faces on beef on the existing WTO tariff-rate quota amount that is not allocated among WTO members. A net importer of beef products, Chile does not pose a threat of becoming a significant supplier to the U.S. market.
Click to expand...

Mike, are you telling us that we have actually signed a trade agreement with a net importing country? I think I need some smelling salts!
 
Pretty sad if a company accused of manipulating the markets loses profit due to a strike and utilities. :roll:

Maybe the margins just are really thin, and small blips make the difference in profit or loss.
 
Jason said:
Pretty sad if a company accused of manipulating the markets loses profit due to a strike and utilities. :roll:

Maybe the margins just are really thin, and small blips make the difference in profit or loss.
Click to expand...

They are writing off all the money for greasing the tracks before profits are reported. It should be a line item in the financial reports.
 
There are foreign investment laws that limit the amount a company can reduce domestic taxes by.

Factually void again.
 
Jason said:
There are foreign investment laws that limit the amount a company can reduce domestic taxes by.

Factually void again.
Click to expand...

What are they, mr. factual? You brought them up, let us see them. I dare you to explain them.
 

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