2018 Top 100 meat and poultry processors: The race is on

For the first time in recent memory, there is a new company at the top of The National Provisioner's annual Top 100 Meat and Poultry Processors Report. Backed by growth in its beef and pork divisions, JBS Holdings holds the top spot in this year’s survey of the meat and poultry industry, with a slight edge over Tyson Foods. JBS and Tyson reported fiscal year-end sales of $38.642 and $38.260 billion, respectively.

JBS USA Pork reported a year-end growth of 16.2 percent, totaling $6.2 billion. In JBS SA’s year-end report, the company credited growth in the demand for pork in domestic and international markets, as well as the expansion of the business in the U.S. through the acquisition of Plumrose in May 2017.

“The excellent performance reported by JBS USA Pork, which was also the best result achieved by any U.S.-based pork operation in the United States, is a testament to the effectiveness of the managerial team, their unrelenting focus on operational efficiencies, their decision to diversify into higher value-added products and the strengthening of commercial partnerships with key customers,” the company said in a statement.

Tyson, for its part, also experienced company growth thanks in part to a noteworthy acquisition. The company bought AdvancePierre Foods on June 17, 2017, boosting the company’s prepared foods capabilities. That acquisition not only helped Tyson reach record sales figures in 2017, but it also got the company off to a record-breaking start in the current fiscal year. First quarter sales totaled $10.229 billion, with an 11.6 percent growth in the Prepared Foods segment leading the way.

Several other acquisitions impacted the look of the Top 100. Columbus Foods was acquired by Hormel Foods in October, and Albertville Quality Foods was acquired by OK Foods, itself a subsidiary of the Mexican corporation Industrias Bachoco, in July. Bob Evans Farms, now known as BEF Foods, was acquired by Post Holdings Corp. in September.

Overall, the mood of the Top 100 meat and poultry companies was upbeat. Fifteen respondents called the previous fiscal year their best ever, while another 20 called it “good.” Twenty-four companies are predicting that the current fiscal year with be their best ever. There are multiple processing and distribution centers being built, expanded upon or opened throughout the country by the companies in the Top 100 Report.

Even with the positive outlook, the processors’ concerns remain largely unchanged from previous Top 100 reports. Labor issues, specifically the lack of available labor, was listed as a top concern by more than a dozen companies. Others are concerned about trade issues and raw material costs.  NP

Thanks to all of the processors who participated in this year’s Top 100 Report. If you would like to participate in next year’s Top 100 report or would like to report a change in media contacts, please send an email to Sam Gazdziak at gazdziaks@bnpmedia.com.

---

2018 Market Segment Reports

Editor’s note: The market segment reports are gathered by information submitted by the following companies. Those companies that did not respond or declined to provide specific information were not included.

PORK

Company	Sales in Sector (in millions)	Overall Sales (in millions)
Smithfield Foods Inc.	14,994	15,300
Tyson Foods Inc.	4,208.6	38,260
Seaboard Foods LLC	1,609	1,609
OSI Group LLC	1,525	6,100
Fresh Mark Inc.	1,190	1,400
Indiana Packers Corp.	975	975
Fair Oaks Farms LLC	300.1	307
Rantoul Foods LLC	300	300
Abbyland Foods Inc.	220.5	306.2
Golden West Food Group	206.1	765
Swaggerty Sausage Co.	150	150
Williams Sausage Co.	130.3	130.3
Cooper Farms	114	570
Trim-Rite Food Corp.	100	100
Stampede Meat Inc.	66.3	510

BEEF

Company	Sales in Sector (in millions)	Overall Sales (in millions)
Tyson Foods Inc.	14,538.8	38,260
OSI Group LLC	3,294	6,100
Greater Omaha Packing Co.	1,900	1,900
Kenosha Beef Int'l Ltd.	930.2	930.6
Caviness Beef Packers Ltd.	690	690
Harris Ranch Beef Co.	567	567
Colorado Premium	308	385
Stampede Meat Inc.	306	510
Golden West Food Group	283.1	765
Rastelli Foods Group	245	500
Jensen Meat Co.	160	160
JTM Food Group	128.3	171
Strauss Brands Inc.	66	200
John Soules Foods Inc.	59.5	425
Abbyland Foods Inc.	52.1	306.2
Fresh Mark Inc.	42	1,400

CHICKEN

Company	Sales in Sector (in millions)	Overall Sales (in millions)
Tyson Foods Inc.	11,478	38,260
Sanderson Farms Inc.	3,342	3,342
Mountaire Farms Inc.	2,214	2,214
House of Raeford Farms Inc.	1,140	1,140
George's Inc.	1,080	1,125
Fieldale Farms Corp.	980	980
Case Foods Inc.	831.4	831.4
OSI Group LLC	671	6,100
John Soules Foods Inc.	365.5	425
Bell & Evans	325.8	334.2
Smithfield Foods Inc.	306	15,300
Golden West Food Group	275.4	765
Fresh Mark Inc.	168	1,400
Cooper Farms	114	570
Stampede Meat Inc.	112.2	510
Rastelli Foods Group	95	500

TURKEY

Company	Sales in Sector (in millions)	Overall Sales (in millions)
Cooper Farms	399	570
Dakota Provisions LLC	192	240
Rastelli Foods Group	70	500
Abbyland Foods Inc.	30.6	306.2
Eddy Packing Co.	28.6	220
Stampede Meat Inc.	25.5	510
Colorado Premium	11.6	385
JTM Food Group	8.6	171
Bell & Evans	8.0	334.2
Fair Oaks Farms LLC	3.1	307

EXPORT

Company	Sales in Sector (in millions)	Overall Sales (in millions)
Smithfield Foods Inc.	1,836	15,300
Hormel Foods Corp.	552	9,200
OSI Group LLC	488 (est)	6,100
Mountaire Farms Inc.	310.0	2,214
Greater Omaha Packing Co.	285	1,900
Sanderson Farms Inc.	267.4	3,342
Indiana Packers Corp.	195	975
House of Raeford Farms Inc.	171	1,140
Fresh Mark Inc.	140	1,400
Case Foods Inc.	108.1	831.4
Caviness Beef Packers Ltd.	103.5	690
Rastelli Foods Group	85	500
Dakota Provisions LLC	75	250
George's Inc.	67.5	1,125
Rantoul Foods LLC	60	300

The Greatest Gains Report

The meat and poultry companies on this list have shown particularly strong sales growth over the last two fiscal years. Although this list comprises mostly processors who appear in the Top 100 Report, we have decided to incorporate smaller processors who did not appear as well, as a way to demonstrate the full scope of the meat and poultry industry.

Company	Recent Annual Sales	Previous Annual Sales	Percent Growth
Carl Buddig Co.	580	460	26.09%
Pederson's Natural Farms	35	28	25.00%
Rantoul Foods LLC	300	250	20.00%
Sanderson Farms Inc.	3,342	2,816	18.68%
Fair Oaks Farms LLC	307	259	18.53%
George's Inc.	1,125	950	18.42%
Burgers' Smokehouse	60	51	17.65%
Jensen Meat Co.	160	140	14.29%
Fresh Mark Inc.	1,400	1,240	12.90%
Greater Omaha Packing Co.	1,900	1,700	11.76%
Seaboard Foods LLC	1,609	1,443	11.50%
Rastelli Foods Group	500	450	11.11%
Trim-Rite Food Corp.	100	90	11.11%
Kenosha Beef Int'l Ltd.	939.6	845.9	11.08%
Calihan Pork Processors	31	28	10.71%
Case Foods Inc.	831.4	760.3	9.35%
Caviness Beef Packers Ltd.	690	640	7.81%
Golden West Food Group	765	710	7.75%
Smithfield Foods Inc.	15,300	14,200	7.75%
Old World Provisions	25	23.5	6.38%

Greatest Gains Success Stories:

• Rantoul Foods LLC added an animal byproduct conversion facility, a CO2 stunner and a new cut floor.

• Sanderson Farms Inc. selected sites in Smith and Wood Counties, Texas for construction of a new feed mill, hatchery, poultry processing plant and waste water treatment facility. The company is investing approximately $200 million in the new complex, which began construction in 2017 and will begin operations in the first quarter of 2019.

• Burgers’ Smokehouse is adding 40,000 square feet to its headquarters in California, Mo., and has leased an additional 30,000 square feet in Springfield, Mo.

• Jensen Meat Co. enjoyed record sales in 2017. The company launched two new Certified Angue Beef items into retail and launched a Beef & Bacon Burger, co-branded with Slater’s 50/50.

• Greater Omaha Packing Co. is constructing a 65,000-box automated storage and retrieval system.

• In September 2017, Seaboard Foods LLC, with its strategic partner, opened the Seaboard Triumph Foods Sioux City, Iowa, fresh pork processing plant. In addition, Seaboard Foods launched a new foodservice brand of fully cooked smoked meats under the Quick Fire brand and introduced a new brand look for its fully cooked and smoked retail brand 67th Street BBQ made with Sweet Baby Ray’s.

• Rastelli Foods Group launched two new retail products, which are now in over 5,000 grocers: Bubba’s Q Boneless Baby Back Ribs (Original and Honey BBQ) and Rastelli Butcher Shop Craft Burgers (Salmon, Turkey, Short Rib, Angus and Organic Grass Fed. The company is the top-growing food company on QVC and experienced record ecommerce sales and co-packing for top food home delivery programs.

• Trim-Rite Food Corp. acquired more land and opened a new employee & customer care area.

• Kenosha Beef International Ltd. enjoyed a record sales volume in 2017.

• Production at Case Foods’ Canton, Ohio, plant increased 23 percent, thanks to the company’s continued expansion efforts.

• CS Beef Packers, a joint venture between Caviness Beef Packers Ltd. and J.R. Simplot Co., started operations in May 2017.

• Golden West Food Group experienced growth in all the core areas of meat, both raw and fully cooked. The year saw renewed interest in branded products after last year’s growth in private label. “Americans are consuming record amounts of beef and animal proteins and GWFG is supplying this demand using the latest innovations in packaging with our Darfresh raw meat capability as well as at the high end for beef with Certified Angus Beef, Organic, Never Ever and Snake River Farms meats,” the company said.

• Smithfield Foods Inc. fulfilled its commitment of providing group housing systems for pregnant sows on all company-owned farms in the United States. To celebrate this accomplishment in sustainability, Smithfield released a 360-degree, virtual reality video that transports viewers to a company sow farm. The video can be viewed at SmithfieldFoods360.com.

• Smithfield launched several new, innovative platforms in 2017, including Smithfield Bioscience and Smithfield Renewables. Throughout 2017, Smithfield introduced nearly 150 new products, including Smithfield Breakfast Sandwiches, Nathan’s Toppers, Eckrich Spicy Pineapple Ham, Carando Genoa Salami, as well as Smithfield Pork Belly, Smithfield Marinated Center Cut Chops, Smithfield Dry Seasoned Ribs, and a full line of products raised without antibiotics under the Pure Farms brand and private label.

• Old World Provisions launched a new brand, Old World Naturals.

 

Highlights from the rest of the Top 100 companies

• Abbyland Foods Inc. opened a new sausage production facility to increase its summer sausage capacity.

• Bell & Evans announced in November that it is converting 100% of its chickens to a new, higher-welfare breed. On Jan. 23, 2018, the first Das Klassenbester chickens were processed at its harvesting plant. The company will be fully converted to the new breed within the next year. Bell & Evans also broke ground on a new chicken harvesting plant that will open in early 2020. At full capacity, it will be able to process another 2.6 million birds per week in addition to the 1 million processed today. “To accommodate this expansion, we’re also expanding our breeding and grow out programs with farmers. One area of planned expansion is our organic line of products,” the company said.

• Cargill Meat Solutions Corp. expanded its cooked meats facility in Nashville, Tenn., a beef processing facility in Columbia, S.C., and egg processing facilities in Big Lake, Minn. and Mason City, Iowa. The company also dedicated a $111 million cooked meats facility in Columbus, Neb. It repositioned its Rumba Meats brand with new packaging and products. The company also conducted a fresh whole turkey blockchain traceability pilot project for the 2017 holiday season and started a Canadian beef traceability/sustainability pilot project.

• Colorado Premium started a new cooked meat facility in Carrolton, Ga.

• Cooper Farms completed its new Distribution Center in St. Henry, Ohio, and a production volume increase at the Cooked Meats Plant in Van Wert. The company also continued its live turkey and hog expansion programs.

• Dakota Provisions LLC finished an $8.5 million freeze/storage expansion as well as the substantial completion of a 70,000-square-foot ready-to-eat plant for $35 million.

• Eddy Packing Co. purchased new line equipment for a mass-market private label roll out and expanded a dry warehouse. The company continues its BRC A Rating and saw increases in private-label business and new technology to improve efficiencies.

• Farmington Foods completed the expansion of its ready-to-eat facility in 2017.

• To support growth in the foodservice channel, Hormel Food Corp. acquired Fontanini Italian Meats and Sausages, a Chicago-based company specializing in authentic, premium Italian meatballs and sausages. The company also made its first acquisition in South America with Ceratti, a premium deli meats brand headquartered in Brazil. Hormel said the acquisition will help drive sales and earnings growth while serving as a platform for future acquisitions in South America.

• The House of Raeford Farms plant in Wallace, N.C., is being rebuilt following a fire in February 2017. It will re-open this summer.

• Indiana Packers Corp. constructed a 99,000-square-foot cold-storage distribution center attached to its Delphi plant.

• John Soules Foods Inc. acquired a new facility in Valley, Ala. The planned start-up date is 2020.

• Johnsonville LLC completed the expansion of its global headquarters building.

• JTM Food Group completed the construction of an 80,000-square-foot processing plant/9,000 pallet storage freezer at the cost of $80 million.

• Mountaire Farms Inc. bought a plant in Siler City, N.C., and is in the process of renovating it. The company also bought two grain elevators in Virginia and announced plans to build a new feed mill in Scotland County, N.C.

• OSI Group LLC opened a new GenOSI facility in the Philippines to replace an old plant in June 2017. The company also doubled chicken production capacity in OSI Spain plant in 2017, through a building addition of over 22,000 square feet. The plant now has a production capacity of 24,000 tons annually.

• Strauss Brands Inc. enjoyed record sales, thanks in part to new customers and growth in e-commerce sales.

• Swaggerty Sausage Co. opened new regional markets and customers. The company increased its foodservice channel with fully cooked items, and all natural items posted double-digit increase over prior year.

• Williams Sausage Co. is building a new $40 million distribution/sandwich-processing plant in Union City, Tenn. Expected completion is August 2018.