Agriculture. Animal welfare, a major issue for livestock farming

Animal welfare has become a key issue in agriculture and a challenge for the health of everyone and for farmers. How can animal welfare and farmer welfare be combined? How can we combine animal welfare and profitability? Explanations.

CO2 shortage – UK details “short-term” deal to restart production

The UK government described the deal with US fertiliser group CF Industries as an “exceptional short-term arrangement”.

The UK government has announced a deal to resume output at one of two fertiliser plants where shutdowns last week led to fears of pressure on food supplies.

In a statement issued just before 10pm local time last night (21 September), the UK’s Department for Business, Energy and Industrial Strategy (BEIS) said an agreement had been reached with the owner of the two sites, US-based fertiliser group CF Industries.

George Eustice, the UK’s Environment, Food and Rural Affairs Secretary, said the deal with CF will cost tens of millions of pounds.

“It’s going to be into many millions, possibly the tens of millions but it’s to underpin some of those fixed costs,” Eustice told Sky News. “They’re big costly plants”

Last week, CF Industries stopped production at the two facilities, both in northern England, pointing to high gas prices. The move prompted concerns in the food sector about supplies of CO2, which is a by-product of fertiliser manufacturing and widely used in areas such as meat processing and the packaging of chilled foods.

This afternoon, there were a number of media reports saying the Government and CF Industries had reached an agreement on the resumption of production but there was no formal announcement from either side.

A few hours later, a statement was issued by BEIS, announcing an “exceptional short-term arrangement” with CF Industries’ local arm CF Fertilisers over one of the two facilities, based in Billingham in north-east England.

The deal “will allow the company to immediately restart operations” at the site, BEIS said. It added: “The Government will provide limited financial support for CF Fertilisers’ operating costs for three weeks whilst the CO2 market adapts to global gas prices.”The two CF Industries plants, located in Billingham and in Ince in Cheshire in the north west, account for 60% of the country’s CO2 production, food industry executives say.

BEIS said the UK government had held talks “with the main food producers, their trade bodies and the major supermarkets and they are committed to doing whatever it takes to move to a sustainable market-based solution by the end of the three-week period”.

UK Business Secretary Kwasi Kwarteng added: “This agreement will ensure the many critical industries that rely on a stable supply of CO2 have the resources they require to avoid disruption. The quick and decisive action we have taken to resolve the issue shows the seriousness with which we have approached it. In our ongoing response to manage the impact of global gas price rises, we will continue to protect businesses and consumers.”

The UK government argues the deal will “ensure immediate supplies to the food sector remain in place”.

Environment secretary Eustice said: “We have acted decisively to ensure that CO2 supplies, which are critical to some of our food sectors, continue to be available following some exceptional events. However, this is a short-term intervention to provide the space and time for market adjustment.”

In the wake of this afternoon’s media reports but before the formal announcement, UK food industry groups were cautious in their response.

“If today’s conversations on shortages have given the CO2 manufacturers enough confidence to restart production, this is to be welcomed. We don’t yet have the detail but if production can restart at appropriate scale before the end of the week, this should be enough to ensure pig and poultry production can continue at close to normal. There will be some shortages, but these will not be as bad as previously feared,” Ian Wright, the chief executive of UK manufacturing body The Food and Drink Federation, said.

“When we are certain that the immediate supply issues are resolved, we should then work with government to build resilience into the production of CO2 to protect our food supply chain.”

The British Poultry Council, which had called on the UK government to “financially support” the production of CO2 in the country until the end of the year, also gave the news of a deal a tentative welcome.

“The announcement that the Government has reached an understanding with CF Industries is good news for the continuation of CO2 production to keep food moving. We thank the Government for this intervention. We are currently waiting for Defra to facilitate how this will work in practice,” Richard Griffiths, the council’s chief executive, said.

“This is just the start of a long road ahead. This episode has demonstrated the importance of CO2 in British poultry production, to avoid both bird welfare and supply issues. Food is a national security issue and must be treated as such: total poultry production in this country is around 20 million birds a week. The whole poultry meat industry is working tirelessly to avoid food shortages or the worst-case scenario of empty supermarket shelves.”

There had been warnings from the UK food industry the sector had between five and 15 days’ supply left. Some meat processors were reportedly having to choose whether to use their dwindling supplies of CO2 for slaughtering or packaging.

The pressure on CO2 supplies was the latest jolt to the UK’s food supply, already buffeted by a lack of HGV delivery drivers and a shortfall of workers in certain areas of processing.

Kraft Heinz lifts profit forecast as pricing boosts sales

The US giant said its organic sales growth had been “better than expected”.

 

Kraft Heinz today (27 October) upped its estimate for a core profit metric on the back of “better-than-expected” sales growth.

The ketchup, baked beans and baby-food maker said it expects “adjusted EBITDA” to come in at “more than” US$6.2bn in 2021, up from an earlier forecast of “at least” $6.1bn.

“This reflects a combination of greater-than-expected organic net sales as well as the company’s ongoing efforts to manage inflationary pressures as it continues to invest in long-term growth,” Kraft Heinz said as it published its third-quarter financial results.

The Oscar Mayer meats owner told the market it expects its organic net sales to be “flat compared to an exceptionally strong 2020 period”. Last year, Kraft Heinz’s net sales rose 6% on an organic basis.

In its stock-exchange filing today, the group noted its new guidance includes the impact of the sale of its nuts business to US peer Hormel Foods – a deal completed in June – but not the pending sale of its natural cheese business to Lactalis.

CEO Miguel Patricio added: “We are effectively adapting to near-term challenges while transforming our business and rejuvenating our iconic brands to better serve consumers for the long term. We still have much to do, but our momentum is strong and our strategy to bring agility to our scale is working, which is why we are increasing full-year expectations.”

In Kraft Heinz’s third quarter, which ran to 25 September, the company’s net sales were up 1.3% on an organic basis. Moves on price had a 1.5 percentage point positive impact, with “volume/mix” dipping 0.2 percentage points.

On a reported basis, Kraft Heinz’s net sales were down 1.8% on the back of selling its nuts business to Hormel.

For the first nine months of the company’s financial year, net sales inched up 0.5% on an organic basis, with volume/mix down one percentage point. Reported net sales also rose 0.5%.

Third-quarter operating income increased 0.8% to $1.16bn. Net income grew 23.2% to $736m.

Nine-month operating income stood at $3.48bn, versus $578m a year earlier when charges crimped Kraft Heinz’s earnings. The company posted a nine-month net income of $1.27bn, compared to a net loss of $680m the year before.

SPACE 2021: a great edition for starting and meeting again!

The 35th edition of SPACE, inaugurating its new format, was held from 14 to 16 September, in person, at the Parc-Expo in Rennes, and continued on 17 September in a digital version.

After two years without a physical edition due to the health crisis, this edition was a great success: 1,118 exhibitors, including 323 international exhibitors, welcomed 74,772 visitors, including 4,629 international ones. SPACE is pleased and proud to have given rise to these exchanges, which took place in a very positive atmosphere. All of the livestock farming family were finally able to see each other again at their show and there were many smiles.

This return of SPACE also symbolises the resumption of activity in the events sector, which has been severely impacted by the health crisis. SPACE 2021 was the first and only worldwide trade show this year for all animal sectors. It is a strong sign of encouragement for all event organisers who have to resume their activities in difficult conditions due, in particular, to difficulties in recruiting staff.

We must therefore commend the collective efforts of all the teams who overcame all the obstacles and who remained confident in organising this show. More than ever, SPACE has fulfilled its mission to farmers and exhibitors. Its fundamentals, which describe it as a professional, international and friendly trade show, have been confirmed or even strengthened this year. The multitude of exchanges, the modernity of the presentations and the booths and the many innovations presented illustrated the dynamism and the ability to adapt and listen that guide the development of our livestock farming sectors.

The visit of the Minister of Agriculture, Julien Denormandie, for the inauguration of SPACE, allowed professionals and sector managers to discuss the crucial issues that are relevant. These exchanges were like those that took place between exhibitors and visitors: high-quality, in-depth, and committed to the future of our agriculture in its diversity.

SPACE has been, once again, an exceptional platform for presenting innovations with 35 Innov’SPACE winners, including 5 special mentions. These products, services and equipment have illustrated how these companies are constantly looking for new solutions to offer working tools to farmers that improve their working conditions while ensuring animal welfare.

By placing the theme of Espace for the Future under the sign of welfare shared between farmers and their animals, this 35th edition has allowed professionals to express themselves on this subject, thus bringing more rationality to the discussions. Thanks to this space for demonstrations, testimonials and round tables by sector, the question of welfare has been at the heart of exchanges and discussions. This Espace for the Future, implemented with the expertise of the chambers of agriculture, has made it possible to highlight the constant and daily concern of farmers for the welfare of their animals. It also highlighted the need to always make it known, explain it and share it with citizens, while highlighting the economic aspect of these issues for farmers.

Despite the constraints linked to the health context, the difficulties of travelling and obtaining visas, international visitors were present at this 2021 edition. Several international delegations, in particular from several West African countries, made the trip. The Livestock Farming Ministers from Mali and Senegal, at the head of their delegations, were thus able to explain their needs in terms of training, equipment and genetics, to meet the food needs of their countries and to find suitable solutions for the work of their farmers. This participation, which was unexpected at the time of preparing the show a few months ago, is proof of the importance and role of SPACE as a facilitator of links, but also as a provider of solutions to answer fundamental questions concerning food sovereignty at local, regional, national and global level.

The animal presentations and competitions were very busy over these three days. The Normande breed and the Rouge des Prés had pride of place this year. The Genomic Elite sale, unique in the world, also enjoyed great success in an unprecedented format both in the SPACE ring and remotely, thanks to digital. These SPACE highlights illustrate the high level of technicality of our genetic know-how for farmers.

Throughout these three days, the friendliness of the exchanges and the happiness of being part of the large farming family have also shown that farmers and SPACE are kind-hearted. An unprecedented action symbolises it, since the proceeds of the milk collection day on Wednesday 15 will be donated to the Food Bank. This action was carried out thanks to the joint action of Solaal, Food Banks, and Agriculteurs ont du Cœur [Farmers have Hearts].

SPACE has been very happy to see you at the Parc-Expo in Rennes and will see you again in 2022, from 13 to 15 September, in person, and on 16 September, digitally.

Between now and this new get-together, to extend discussions and keep in touch, find the content and relive the highlights of the show on uk.space.fr, on digital.space.fr and our mobile app: app.space.fr.

Also visit SPACE’s “Podcast Area” on the website and on the app. You will find all the show’s live broadcasts on innovation, food sovereignty, generational renewal, etc. On SPACE’s digital tools, you can also find some replays taken from the programme of the hundred or so conferences that took place during this 2021 edition.