Posted on 27 October 2007.
The American Meat Institute is the parent corporation for the meat
packer lobby. Subsidiaries are the National Cattlemen’s Beef
Association and the National Pork Producers Council.
AMI has new board members and officers. They are worth noting:
- Chairman: David Miniat, president of Ed Miniat, Inc.
- Vice Chairman: Rod Brenneman, president and chief executive officer of Seaboard Foods
- Treasurer: Jeffrey Ettinger, chairman of the board, president and chief executive officer of Hormel Foods Corporation
- Secretary: Dennis Vignieri, president and chief executive officer of Kenosha Beef International, Ltd.
- Immediate Past Chairman: Richard L. Bond, president and chief executive officer of Tyson Foods, Inc.
New board members are:
- Wesley Batista, president and CEO, JBS Swift & Company
- Brian Nilsson, Co-CEO, XL Foods Inc.
- Larry Pope, president and CEO, Smithfield Foods, Inc.
- Bill Rupp, president, Cargill Meat Solutions Corporation
- Mike Townsley, executive vice president, Food Products Division, Bob Evans Farms, Inc.
Posted in Food and Ag
Posted on 27 November 2006.
Tyson Foods Inc. lost $196 million in fiscal 2006. The company continues to face multimillion dollar problems with once lucrative beef export markets as well as oversupplies in poultry. To top it off, rising feed prices threaten already tight margins across all three of the company’s protein sectors.
Welcome to a glimpse into the daily business world of Tyson Foods’ CEO Dick Bond.
Bond was given command of Springdale-based Tyson Foods earlier this year, as economic challenges – beyond much of the company’s control — plagued the meat industry.
The May move by the Tyson Foods’ board of directors to place Bond in charge of the company was hailed by industry watchers as a good move.
His resume and almost 40 years experience are respected in the industry, said Farha Aslam, analyst for Stephens Inc., who conducts investment advisory services for Tyson Foods.
"Dick Bond is clearly recognized among his peers as an industry leader. He has a proven track record as a business manager in a very tough business, meat packing and poultry processing." said J. Patrick Boyle, president and CEO of the American Meat Institute in Washington.
CUTTING COSTS in a recent interview, Bond talked about the experiences that brought him to Springdale and what he must do to secure the future of the $25 billion company he now runs.
Bond was named chief executive officer by the company’s directors May 19, which put him in charge of Tyson Foods day-to-day operations.
The company had just lost a record $127 million in the second quarter, its worst showing in more than a decade. The losses were blamed on bird flu fears and mad cow concerns that led to a protein oversupply and declining prices.
Wall Street analysts applauded the management move then and continue to endorse Bond’s efforts.
David Nelson, with Credit Suisse said, "Dick is one in a handful of people in the world who knows how to run a fresh meats business. He personifies good management."
The disciplined Bond wasted no time. Within one week of taking the helm, Bond proposed spending cuts of $110 million from the company’s 2007 fiscal budget.
The primary initiative Bond set out to tackle was getting Tyson Foods’ spending in line.
By mid-July, Bond and employees had exceeded the $110 million goal and found a way to trim $200 million from the company’s 2007 expenses.
"For Dick, it is all about getting the company back in an advantaged position," said John McMillin, industry analyst for Prudential Equity Corp. of New York. "I have known Dick Bond for over 10 years, back to when he was the No. 2 man at IBP Inc. He is a pragmatic leader who, like a football coach, gets his employees to play hard for him."
Streamlining operations began immediately and Tyson Foods eliminated 420 management and support jobs and it consolidated beef-packing facilities to increase capacity in its existing beef plants.
The company cut beef and chicken production levels when they weren’t profitable, and continues to focus on moving products up the supply chain. Adding value to products — selling easy-to-fix chicken meals instead of just basic chicken in a package — generates more revenue per dollar of production.
Value-added margins typically run two to 2 1/2 times that of pure commodity rates, Bond said.
Bond said the face of Tyson Foods is changing. While adhering to its basic culture and core values, the new Tyson Foods will not only return to profitability but also raise the bar for innovation in the food processing industry.
Moving products up the value chain is an essential part of Tyson Foods’ strategy in growing its revenue. Bond said a new plan was just revealed that will help Tyson Foods turn protein fat into biofuel.
Posted in CPA