Friday, June 27, 2008

Dean Foods Profits on Higher Dairy Prices

Dean Foods Ethanol milk pricesDean Foods Co. raised its second-quarter earnings guidance on Wednesday, due in part to a strong performance by its direct store delivery dairy segment. Dean Foods is a large milk and dairy products distributor in the US.

The company expects adjusted earnings for the quarter ending June 30 of at least 32 cents per share. The company had previously expected earnings per share between 26 cents and 31 cents.

Dean Foods also confirmed the company's full-year guidance for at least $1.20 per share in adjusted earnings.

What's interesting about this financial update is that the Grocery Manufacturers Association, which Dean Foods is a leading member, blames American biofuels for higher food prices.

It's clear that higher profits are playing a key part of the food inflation story.

Source: Dean Foods

Food Before Profit

Thursday, June 26, 2008

ConAgra Foods Profits on Higher Prices

ConAgra Food ethanol profitsProfiting on higher prices appears to be good for food manufacturers.

ConAgra Foods, Inc., a leading member of the Grocery Manufacturers Association, reported its results for the fiscal 2008 fourth quarter. Overall sales grew 15% and fourth-quarter net income rose 4.8%
Gary Rodkin, chief executive officer of ConAgra Foods commented about the strong results, “In fiscal 2008, we made progress in several important areas of our company, most notably pricing, the innovation pipeline, more effective marketing, and efficiencies.

He went on to say, "we have an even greater focus on successfully executing the initiatives in our core food operations, as well as a much stronger foundation on which to deliver predictable and sustainable profitable growth going forward.”
The Grocery Manufacturer Association and its members have been strong critics of America's move to biofuels. But it's clear this is just a calculated distraction to record profits and justify higher food prices.

Source: ConAgra Foods

Food Before Profit

Wednesday, June 25, 2008

Del Monte Foods' Profits Soar on Higher Prices

The food business is soaring high this year. Yet another major food company announced increased revenues AND profits.

Del Monte Foods Company reported growth in both its fourth-quarter and fiscal year-end earnings earlier this month.

As a leader of the Grocery Manufacturers Association, Del Monte Foods supports the GMA's campaign against biofuels. The GMA blames higher food costs on ethanol rather than higher energy, marketing and, apparently, PROFITS!

The company, headquartered in San Francisco CA, earned $50.4 million, or 25 cents per share, on sales of $1.04 billion for the quarter.

That's a 37 percent increase in earnings from the same quarter last year when Del Monte Foods earned $36.7 million, or 18 cents per share, on sales of $940.1 million.

For its fiscal year, Del Monte Foods earned $133.1 million or 66 cents per share on sales of $3.74 billion. Last year the company earned $112.6 million or 56 cents per share on sales of $3.41 billion.

The company also recently announced that it is considering selling its Starkist Seafood business.

Source: Del Monte Foods


Tuesday, June 24, 2008

Suit Claims Pilgrim's Pride Workers Denied Pay

Pilgrim's Pride chicken pay lawsuitLegal notices were mailed recently to Pilgrim’s Pride workers explaining their rights should they choose to join a lawsuit against the company seeking overtime pay.

According to the plaintiff's attorney in the notice:
“The Plaintiffs in this case claim that Pilgrim’s Pride does not pay its hourly chicken-processing workers for all the time they work putting on, taking off and cleaning safety and sanitary equipment, such as smocks, plastic aprons, ear plugs, safety glasses, hairnets, beard nets, plastic sleeve covers, arm guards, face masks, hard hats, rubber gloves, cotton liner gloves and metal cutting gloves. The Plaintiffs claim Pilgrim’s Pride has violated the Fair Labor Standards Act. Pilgrim’s Pride denies that it has violated the law in any respect.”
The full notice and consent forms to join the suit can be found online at the Website for Cohen Milstein Hausfeld & Toll. Pilgrim’s Pride workers with questions about the suit should call the toll-free hotline at (888) 816-4995 or send e-mail to

The notice also tells workers that they will not risk paying any fees by joining the suit:
“Regardless of whether or not you win the case, you will not be required to pay attorneys’ fees or costs out of your own pocket. The lawyers for the Plaintiffs will be paid only if the Plaintiffs win or Pilgrim’s Pride settles the case. If that happens, these fees will either be paid by Pilgrim’s Pride, or paid out of any settlement fund, or both, as the Court directs. Plaintiffs’ counsel will not ask the Court for more than one-third of your recovery. If there is no recovery, there will be no lawyers’ fee paid to the lawyers.”

Source: Cohen Milstein Hausfeld & Toll

Farmers Donate Food in Illinois

Illinois Corn GrowersIllinois farmers recently donated 2,500 pounds of pork to the Central Illinois Food Bank.

“Livestock is our number one consumer and we are happy to be partnering with them on such a worthwhile project,” said ICMB Chairman Ron Gray. “Not only does this project feed the hungry, but we are also getting excess pork out of the market which benefits our friends with hogs. This program is a win-win for everyone.”
This first delivery of food through the "Pork Power" program was paid by the Illinois pork, corn and soybean producers.

Source: Illinois Corn Growers Association

Monday, June 23, 2008

General Mills' Profit Perspective

General Mills profitsForbes offered a sneak peek at General Mills' profit outlook today. Higher input costs have caused General Mills to raise prices.

But what's interesting to note is that price hikes are much higher than increased costs:
"Higher retail prices have, so far, helped keep profits safe from the higher costs. In the company's third quarter, profit jumped 61 percent, helped by far higher price"
Seems to us that all the fuss about about biofuels is really a concerted distraction over much higher food hikes to drive profits higher.

Source: Forbes


Sunday, June 22, 2008

Food Before Profit Begins

Welcome to our new site. We'll post interesting news about world hunger, food production and international business.