MEATINGPLACE.COM: National Beef profits drop by half

[Guest guest]

Notice Miller doesn't even hint at one of

the reasons for this drop could possibly have anything to do with the fact that

beef is definitely in a downturn in popularity, due to health, environmental and

cruelty awarenes being campaigned all over the globe!!! Are we making progress?

I think so. ~Paris

 

National Beef profits drop by half by Pete Hisey on 12/2/2005 for

Meatingplace.com Kansas City, Mo.-based National

Beef Packing Co. said its profits dropped 53 percent this year, mostly because

of ongoing business conditions resulting from the discovery of bovine spongiform

encephalopathy in the United States two years ago.

 

For its fiscal year ended Aug. 27, net profits were $20.8 million, compared to

$44 million a year ago. Sales increased 5 percent to $4.3 billion, but gross

margins declined to 1.2 percent from 1.7 percent a year ago.

 

John Miller, chief executive, said that the combination of higher cattle prices

brought on by the U.S. ban on Canadian cattle, combined with the closure of the

Japanese market to American processed beef, raised National Beef's costs and

kept prices for finished products low.

 

" It was a tough summer, and we were fortunate to get out of it with a reasonable

margin structure and profit, " Miller said.

 

However, Miller warned that 2006 will be challenging, and that National Beef is

likely to see a larger loss in its first quarter than it did a year ago, when it

lost $4.4 million. " It's going to be pretty tough sledding here for another six

months, maybe longer, " he said, adding that it will take time to reestablish

market share in Japan, even if it reopens its market quickly.

 

 

 

Ms. Paris Harvey bitebackvegan 925 788 8296 (PST)

http://www.peta.org/AnimalLiberation/display.asp ...Spend a few minutes here.