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Will We Still Need The Imported Lean?

Mike

Well-known member
KLA: Tyson Entering Energy Business



The world’s largest meat processor has announced it is entering the renewable energy business to generate additional revenue. During a presentation to analysts and investors yesterday in New York City, Tyson officials announced the company is exploring ways to commercialize animal fat, a by-product of the processing business, into biofuels. The new business unit, called Tyson Renewable Energy, also is examining the potential use of poultry litter to generate energy and other products.



In other news from the presentation, Wendy Davidson with Tyson Foodservice announced plans to open a new, state-of-the-art research and development (R&D) facility early next year in Springdale, AR. The new Tyson Discovery Center is expected to boost the speed and efficiency of new product development by the company. Davidson said it will “quite simply be the best food R&D facility in the world,” with 19 test kitchens and a USDA-inspected pilot plant.



Tyson is the world’s largest processor and marketer of beef, chicken and pork. It is the second largest food company in the Fortune 500.
 

mwj

Well-known member
From what I remember from an art. I read a while back they are proposing the use of fat that is seperated from the waste water stream and not diverting fat from a salable product. In theory if the price of energy went high enough they could burn the whole chicken beef or hog :shock: The petfood may be the one to take the hit as they now use a lot of the unedible fat.
 

Mike

Well-known member
Red Robin said:
That sounds like good news to me Mike.

You're right. It CAN be good news. I was just wondering if they'll continue to dock us for fat on cattle or pass some of the earnings down the line?
 

mwj

Well-known member
Mike your fat is figured into the drop value of slaughter sterrs. The total was around $9.60 a cwt. last week. The fat has always been a salable product.
 

Sandhusker

Well-known member
I think I read someplace that the British had a bit of a tallow buildup after thinning their herds as a result of their BSE problem. They had plants that burned it and generated electricity.
 

S.S.A.P.

Well-known member
This process would lower the amount of ground beef using the process as is known today ... right?

The question that comes to my mind is where will current customers (example: fast food places) get their ground beef?
  • Import it as a “ground beef” product
    or will domestic higher value cuts be ground to supply the burger market.
    ..... combination of both !?!
How much more (or less) will they need to pay and still keep selling burgers?

This Tyson venture won't happen overnight so will the industry have time to adapt and still supply the amount needed at a price the consumer is willing to pay?

What scenerios does everyone see happening
1. if the venture takes a small amount of fat out of the system
2. if it expands (catches on)

..... opinions?
 

Mike

Well-known member
mwj said:
Mike your fat is figured into the drop value of slaughter sterrs. The total was around $9.60 a cwt. last week. The fat has always been a salable product.

" The standard values used in the market-adjusted profit calculations per cwt were: Commodity Hot Carcass Average Price - $106, Choice/Select Price Spread - $8, Standard Grade Discount form Select -$4, Prime Grade Premium from Choice -$4, Discount for Heavies and Lights - $10, Discount for Dark Cutters -$15, Premium for Yield Grade 1 -$6, Premium for Yield Grade 2 -$3, Premium/Discount for Yield Grade 3 -$0, Discount for Yield Grade 4 -$15, Discount for Yield Grade 5 -$25, Fixed Price for Utility Grade and Lower -$70."

This is from a while back but, why are they docking me -$25 CWT for a Yield grade 5 but only giving me a premium of +$6 for a yield grade 1?
 

mwj

Well-known member
I did not post anything about yield grades or the value of cutouts. The topic was fat and I posted that the FAT trimed from the carcas as fat or talow is figured in the drop value of the steer. If you want the exact value of the fat that is trimed I can prob. find it for you.
 

Mike

Well-known member
mwj said:
I did not post anything about yield grades or the value of cutouts. The topic was fat and I posted that the FAT trimed from the carcas as fat or talow is figured in the drop value of the steer. If you want the exact value of the fat that is trimed I can prob. find it for you.

If Tyson didn't think they could make more money from fat by turning it into fuel they wouldn't do it.

They can also make more money off of fat by paying us less for cattle by raising the yield grade discounts.
 

mwj

Well-known member
Mike if they are just wanting fat it would prob. be cheeper to just buy inedable fat on the open mkt.. If there is much profit to be made on this deal you can bet the price of fat will go up as others get into the buisness.
 
A

Anonymous

Guest
Mike: "You're right. It CAN be good news. I was just wondering if they'll continue to dock us for fat on cattle or pass some of the earnings down the line?"

That's why we have 5 major packers. If Tyson doesn't pass some of the benefits of added value down the line, their competition will. You keep forgetting that there is 4 major packers competing for the same cattle. If one doesn't pay up, the other will. The only reason bids are close in price is because these plants are near equal in efficiency and adding value.


~SH~
 
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