Tuesday, December 29, 2015

Simmons Feed Ingredients breaks ground on Arkansas facility

Simmons Feed Ingredients, a division of Simmons Foods Inc. & Affiliates, this month held a groundbreaking ceremony for its new 89,125-square-foot pet food ingredient facility in Siloam Springs, Arkansas.
The company plans to invest approximately $26 million in the facility where it will produce fresh and frozen meat ingredients for pet food manufacturers. The project will generate an estimated 78 new jobs.
“The pet food industry requires ingredient integrity, traceability and safety. We’re really proud of the work our team has done in setting a new standard for how ingredients are produced,” said Todd Simmons, CEO of Simmons Foods. “We’re excited to see this innovative facility here in Arkansas.”
He added, “We’re very thankful for the support from our state and community leaders. They made it possible for us to keep this project local.”
Simmons was born and raised in Siloam Springs and took the helm as CEO in 2012. Simmons Foods, a producer of poultry, pet food and ingredient products, is one of the state’s largest private companies and employs over 1,200 people in its Siloam Springs operations. The company combines proprietary processes and its extensive experience in food production to develop innovative, top-quality ingredients for pet food manufacturers.
“Arkansas is fortunate to have a company like Simmons Foods here in our state,” said Governor Asa Hutchinson. “Simmons has an emphasis on strong family values and an exemplary workforce that have driven the company to today’s significant expansion announcement. Their business model is an inspiration for entrepreneurs throughout the state.”
Founded in 1949, Simmons Foods has been known for its business foresight, innovation, and loyalty to its customers and community. In the late 1990s, the company began to concentrate on business-to-business customers. Some customer relationships go back almost 50 years.
“The Simmons history goes back many decades in Siloam Springs,” said Siloam Springs City Administrator Phillip Patterson. “Simmons is a great corporate partner here, and having them build this facility here is a huge acknowledgement that they want to be here and reinvest in the community.”

Monday, December 28, 2015

Blue Buffalo settles class action lawsuit over ingredients

Blue Buffalo Pet Products Inc. subsidiary Blue Buffalo Co. Ltd. has entered into a settlement agreement in class action lawsuits brought against it on behalf of consumers.
The lawsuits claim that some Blue Buffalo products were not consistent with the company’s “True Blue Promise,” which states that the products are “formulated with the finest natural ingredients” and made with “no chicken/poultry by-products meals; no corn, wheat or soy; and no artificial preservatives, colors or flavors.”
On May 6, 2014, Purina filed a lawsuit against Blue Buffalo for false advertising after testing revealed the presence of poultry byproduct meal in some of Blue Buffalo’s top-selling pet foods. On May 6, 2015, Blue Buffalo acknowledged in court that a “substantial” and “material” portion of Blue Buffalo pet food sold to consumers contained poultry byproduct meal, despite advertising claims to the contrary.
Blue Buffalo denies any wrongdoing and has agreed to the settlement to eliminate any ongoing litigation.
Under the terms of the agreement, Blue Buffalo will pay US$32 million into a settlement fund to settle the claims of the plaintiff class. The agreement is subject to preliminary and final approval by the court. The company intends to pay the settlement with cash on hand.

Friday, December 25, 2015

Cargill acquires feed formulation software company

Driven by opportunities in the global feed software market to provide customers with integrated formulation software and solutions on a larger scale, Cargill has acquired Format International Ltd., a leading global feed formulation software company with more than 30 years of experience and more than 5,000 users across 93 countries.
Format International specializes in the design, authoring and marketing of recipe optimization, ingredient allocation and food and feed formulation solutions for the animal feed, aqua feed, pet food, human food, premix and other industries.
Format International will become part of Cargill Feed Management Systems (FMS), a software company that operates as a separate part of the Cargill Animal Nutrition business. FMS has more than 12,000 users and provides formulation and operations solutions to the feed industry.
The acquisition creates a unique opportunity for Cargill to create world-class formulation solutions and provide customers with an even more comprehensive range of products and services.
“This acquisition combines Format International’s software capabilities and state-of-the-art platform with Cargill’s expertise in animal nutrition and nutrient analysis,” said Bruce Feist, managing director, Cargill Feed Management Systems. “Together, we will be able to offer our customers a complete and fully integrated nutrition solution that will deliver the right information to the right person – anytime, anywhere.”
Customers and employees will benefit not only from Cargill’s scale and animal nutrition expertise, but also from working with a company that shares its values. “What impresses me about Cargill is its high ethical standards, sustainable business practices and values-based culture focused on customers, employees and communities,” said Merryl Webster, managing director, Format International. “Its commitment to providing customers with end-to-end solutions will give Format’s customers additional choices of tools and systems which will help to more effectively grow their businesses long-term and ensures that we continue to deliver high quality products and services to them.”

Thursday, December 24, 2015

Geelen Counterflow signs on to Paris Pledge For Action

Geelen Counterflow has signed on to The Paris Pledge For Action.
The pledge is an initiative of the COP21 French Presidency. L’Appel de Paris, or The Paris Pledge for Action, brings together a multitude of voices on an unprecedented scale with a single, collective statement:
“We welcome the adoption of a new, universal climate agreement at COP 21 in Paris, which is a critical step on the path to solving climate change. We pledge our support to ensuring that the level of ambition set by the agreement is met or exceeded.”
Sander Geelen, managing director of Geelen Counterflow: “We have signed this pledge because man-made global warming is an urgent threat to the world we leave to our children and because the feed and food industry that we are active in can and must play an important role in solving this problem, as confirmed by the signing of this pledge by companies such as Mars, NestlĂ©, Unilever, Kellog, Arla, Danone, Coca Cola, DSM, BASF, Tesco, Carrefour, etc.”
“We must change course urgently. Our new energy-plus-office is an example of what is now possible. A much bigger challenge is to develop technology that helps our customers to reduce their ecological footprint. Every dryer we supply to the feed and food industry consumes on average the same amount of energy as 300-500 households. Most of the energy currently is from natural gas. We can have a major impact on the carbon footprint of the feed and food industry and we are determined to take that responsibility seriously.”

Wednesday, December 23, 2015

Packaging purchases driven by service attributes

Service attributes, not product characteristics, are driving purchases of packaging containers, materials, equipment and supplies, according to research conducted by Priority Metrics Group (PMG).
The company has conducted more than 40 proprietary research projects on behalf of packaging (materials, containers, equipment, supplies) suppliers over the past two decades. After interviewing more than 4,000 purchasers, PMG has been able to identify a consistent pattern.  The objective has been not only to identify how buyers of packaging rank performance, but also to determine which of the categories are of higher importance.
“Some companies spend hundreds of thousands of dollars perfecting their product offering. But unless that innovation is dramatic and disruptive, what determines whether or not the sale will be made or the business retained, are service attributes,” said John Barrett, president, PMG. “A better mouse trap – if it does not bring added revenue or enhanced profit – will collect dust.”
Packaging buyers identify the most important of those such as responsiveness, communication, customer service and accessibility. Product attributes—including product quality, product performance, product line, equipment and systems, even innovation—are of lesser importance.
“It may come as a surprise to many in the packaging community that business is won, and enduring competitive advantage achieved, by building and maintaining strong personal relationships between the buyer and vendor,” said John Barrett, president, Priority Marketing Group.
These relationships occur at multiple levels – senior management (business relationship), mid-management (communication, accessibility) and operational (responsiveness, customer service).
“Product quality and performance are more easily duplicated – by using the same equipment to produce the packaging components or buying from the same raw material suppliers. Service performance is much more difficult to replicate and consequently can lead to sustainable advantage,” Barrett explains.
Product improvement and innovation should be centered on delivering lower cost to customers. Price is something most suppliers do not want to use as a lever. However, helping customers to lower their total cost also can be a powerful way to establish and grow a long-term, profitable relationship.
PMP’s proprietary unique research approach yields results which not only tells companies where their customers rank them in a broad spectrum of attributes, but also compares the data against competition and prioritizes it in order of importance.
“A company may receive a high score in innovation, for example, but if the customer doesn’t identify innovation as an important characteristic then the score becomes less relevant. It’s important to identify which attributes are most relevant to the customer and put processes in place to make sure they either remain or improve to levels that will sustain the business,” Barrett concludes.

Tuesday, December 22, 2015

AFIA makes headway in regulatory compliance

The American Feed Industry Association (AFIA) hosted its Regulatory Training Seminar – a biennial event – in Arlington, Virginia, USA, on December 9-10, 2015. The training pinpointed regulatory hot topics affecting the U.S. feed industry including genetically modified labeling challenges, biosecurity and trade, as well as numerous training exercises.
Prior to RTS, AFIA hosted a one-day Food Safety Modernization Act Phase III training themed, “The Future is Now.”
AFIA’s legislative and regulatory staff members covered a variety of topics at the FSMA training including AFIA’s reaction to the animal food final rule and how to complete an animal food safety plan, current good manufacturing practices and what records are necessary for FSMA compliance. Dan McChesney, Ph.D., of the U.S. Food and Drug Administration Center for Veterinary Medicine, provided an overview of the animal food rule, touching on the Foreign Supplier Verification Program (FSVP) and third-party rules.
“Don’t look at the (FSMA) rules and say what do I have to do, but look at the rules and say what am I doing and see if there are gaps. You may be further along than you think,” McChesney said at the conclusion of his presentation.
The RTS training that followed also discussed numerous FSMA implementation aspects, exploring FSVPs and accreditation bodies, preparation for FDA inspection and the documentation process.
Keynote speaker Andrew Walmsley of the American Farm Bureau Federation discussed food policy issues currently up for debate in Washington, D.C., including genetically modified organisms. Walmsley continued to explain, “We have been genetically modifying food since we stopped being hunter-gatherers.”
Attendees also heard from various AFIA staff members and Bob Hahn and John Dillard from AFIA’s outside legal counsel, Olsson, Frank and Weeda; Dave Edwards, Ph.D., FDA-CVM; Rebecca Fecitt, U.S. Department of Agriculture’s Foreign Agricultural Service; April Hodges, Ph.D., FDA-CVM; Kristi Krafka, Kemin Industries; Angela Mills, Southern States Cooperative; Eric Mittenthal, North American Meat Institute; Ron Moser, Ph.D., JBS United; Eric Nelson, FDA-CVM; Dr. Jack Shere, USDA’s Animal and Plant Health Inspection Service; Kay Johnson Smith, Animal Agriculture Alliance; and Will Stone, USDA’s Agricultural Marketing Service.
AFIA will host another identical FSMA Phase III training at the International Production & Processing Expo on Jan. 27, 2016, from 8 a.m. to 5 p.m.

Monday, December 21, 2015

Petfood Forum 2016 announces speakers and topics

Pet food industry experts will present the latest research on pet nutrition, pet food ingredients, safety, processing, product development and the market at Petfood Forum 2016, April 18-20 in Kansas City, Missouri, USA. The schedule of speakers and topics is now available at www.petfoodforumevents.com.
Following the opening keynote on April 19 by Victoria Stillwell, star of It’s Me or the Dog on Animal Planet and judge on CBS’s Greatest American Dog, Maria Lange of GfK will deliver a pet food market update, “Making sense of pet food specialty trends in 2016.” That afternoon, concurrent sessions begin, with four tracks: nutrition (including the new AAFCO dog and cat nutrient profiles, plus sustainability of pet foods), ingredients (such as sorghum, novel proteins, phytonutrients), market and product development (including natural and freeze-dried pet food, and insights from a pet food R&D executive) and safety and processing (FSMA animal feed preventive controls rule, new methods for extrusion-baked pet foods and other topics).
Jackie McClaskey, secretary of agriculture for Kansas, will be among the general session speakers on April 20, followed by more concurrent sessions. The program concludes with a discussion session on finding the pet food industry’s future work force, featuring a panel of industry executives.
During the day on April 18, Petfood Innovation Workshop will take place, focusing on meat and novel proteins. Early bird registration savings for both Workshop and Petfood Forum 2016 are available through February 1, also at www.petfoodforumevents.com.