JOHANNESBURG, SOUTH AFRICA — www.RothmanResearch.com provides members a complete scrutiny of the meat products industry with thorough research on Smithfield Foods Inc. (NYSE: SFD) and Hormel Foods Corporation (NYSE: HRL). Sign up now on www.rothmanresearch.com to access these free reports.
While the meat industry earnings have not returned to pre-crisis levels, 2010 is seeing an increase in most areas. With quarterly earnings reports being published in those past two months and August, investors will get a clearer picture of where the industry stands. Hog and pork meat producer, Smithfield Foods Inc., was amongst the first in the industry to post its financial results in June with a narrowed-loss of $4.6 million. www.rothmanresearch.com research team provides investors with insight about Smithfield Foods Inc. by registering now at
http://www.rothmanresearch.com/article/sfd/23807/Aug-09-2010.html
www.rothmanresearch.com is a source for investors seeking free information on the meat products industry; investors and shareholders of Smithfield Foods Inc., Hormel Foods Corp. and other companies in the industry are encouraged to sign up for free at http://www.rothmanresearch.com/index.php?id=6&name=Register.
U.S. poultry exports had a bad start to 2010 with Russia and China imposing a ban and import tariffs respectively. In opposition to a chlorine rinse used in U.S. poultry production, Russia banned all imports up until June when U.S. companies yielded to their demands and changed their processing treatment. However, with shipments cleared, export sales are expected to rise in the next quarter. China on the other hand is still imposing tariffs on U.S. poultry, which they have denounced as being sold at less than cost price.
Current pork inventories are low, and production in 2010 is expected to be around 3.8 percent lower than 2009. Low supply has led to an increase in price, with 3rd quarter prices being up to 49 percent higher than the same quarter last year.
Beef producers are enjoying higher export levels than this time last year but they are concerned about rising corn prices which are eating into their feeding margins. In response to the rising costs of corn, the entire meat industry has been lobbying against government support for ethanol as an alternative energy. They are calling for an end to tax subsidies and import restrictions.
Of concern to larger companies is the new government's shift in attitude towards supporting small scale farming and production. The USDA released a list of proposed rules aimed at making the industry a fairer environment, where smaller companies can better compete with current corporate giants who are dominating the industry.
With a mixed market sentiment in the meat producers' space, a better understanding of the direction the players are heading can better be fathomed by the financial results they deliver. Hormel Foods Corp. is scheduled to release its quarterly readings on August 20th. www.rothmanresearch.com research team provides investors with insight about Hormel Foods Corp. by registering now at
http://www.rothmanresearch.com/article/hrl/23808/Aug-09-2010.html
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Source: Rothman Research
