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Your Employer Cargill, Inc. Hormel Foods Corp. Lilydale Inc. Maple Leaf Foods, Inc. Maple Lodge Farms Limited National Beef Olymel Pilgrim's Pride Smithfield JBS - Swift Tyson FoodsCARGILL, INC. 
15407 McGinty Rd. WestWayzata, MN 55391 www.cargill.com SUBSIDIARIES: Banks Cargill Agriculture Ltd.; Cargill Meat Solutions, Inc.; Advance Brands, LLC; Taylor Packing Co., Inc.; Horizon Milling, LLC; The Mosaic Company; Canpotex Limited; NatureWorks LLC; North Star BlueScope Steel LLC; and Sunny Fresh Foods. Cargill, Inc. is the second largest private corporation in the country and has diversified operations including grain, cotton, sugar, and petroleum trading; financial trading; food processing; futures brokering; and feed and fertilizer production. The company is the leading grain producer in the U.S., and its Excel unit (Cargill Meat Solutions) is one of the top U.S. meatpackers. Cargill's brands include Diamond Crystal (salt), Gerkens (cocoa), Honeysuckle White (poultry), and Sterling Silver (fresh meats). Approximately 16,000 of the company’s 149,000 employees are represented by the UFCW. CARGILL IS A HIGHLY PROFITABLE AND GROWING COMPANY Long the largest private company in the U.S., it lost that title in 2005 when conglomerate Koch Industries acquired forest products maker Georgia-Pacific Corp. However, Cargill is still a powerhouse, and is involved in petroleum trading, financial trading, futures brokering, and shipping. To focus on processing, Cargill sold its seed operations and coffee trading business and is selling part of its steel business. It formed a joint venture with Hormel Foods to market fresh beef, along with pork, under the Always Tender brand. Cargill is also a major U.S. supplier for McDonald's, providing the burger behemoth with eggs, oils, sauces, and beef products. In 2006, Cargill announced the formation of Harvest Health, a Cargill-funded healthcare plan for grain farmers. The company contributes up to $5,450 per family or $2,700 per individual per year in exchange for which the farmer contributes up to 25 percent of his or her annual corn, soybean, or crop. Cargill created the program because it kept hearing from farmers that healthcare costs were squeezing their profits and it guarantees a more predictable grain supply for the company. Also in 2006, the company acquired a 100 percent ownership of Chinese xanthan gum operation Zibo Cargill Huanghelong Bioengineering (ZCHB). Xanthan gum is used in cosmetics and food products as a viscosity modifier. The company also began the process of acquiring full ownership of Agrograin, one of the leading grain and oilseeds trading and storage companies in Hungary. That same year, Cargill launched a new textured soy protein product (meat replacer) called ProSante XCL, which the company claims has the appearance, bite, and chewing properties of muscle meat. Cargill increased its sales in fiscal year 2007 by $13 billion over fiscal year 2006 to $88.3 billion, an increase of 17 percent. For the full fiscal year, Cargill had a net profit of $2.34 billion, a 36 percent increase from a net profit of $1.73 billion a year ago.  RETURN TO TOP   HORMEL FOODS CORP. 
1 Hormel PlaceAustin, MN 55912-3680 www.hormel.com SUBSIDIARIES: Century Foods International; Clougherty Packing, LLC; Dan's Prize; Jennie-O Turkey Store; Lloyd's Barbecue Company; Valley Fresh, Inc.; Saag’s Products; and Provena Foods. Hormel Foods is primarily engaged in the production and marketing of meat and food products throughout the United States. The company operates in five business segments as follows: the Grocery Products segment that consists of the processing and sale of shelf-stable food products; the Refrigerated Foods segment that consists of pork products; the Jennie-O Turkey Store segment that consists of turkey products; the Specialty Foods segment that is engaged in the packaging and sale of various sugar, sugar substitute, salt, pepper and gelatin products, as well as private-label canned meats; and the All Other segment that produces and sells beef products. The Refrigerated Foods segment is the largest segment in sales, comprising 51 percent of the company’s sales in 2006. Hormel’s meat and poultry brands include Always Tender, Black Label, Curemaster, Homeland, Hormel and Jennie-O, and its canned and other prepared foods brands include Chi-Chi’s, Dinty Moore, Herb-Ox, Herdez, House of Tsang, Kid’s Kitchen, Lloyd’s Barbeque, Marrakesh Express, Mary Kitchen, Pataks’s, Peloponnesse, SPAM, Stagg, and Valley Fresh. Approximately 5,000 of the company’s 18,000 employees are represented by the UFCW. HORMEL ANTICIPATES INCREASED SALES IN 2008 DUE TO ACQUISITION OF BURKE CORPORATION In August 2007, Hormel announced its $110 million acquisition of the privately-held Burke Corporation, a manufacturer of pizza toppings and other cooked meat products. The Burke Corporation product line will also be included in the Refrigerated Foods segment and is anticipated to add $125 million to Hormel sales in 2008. Sales for the past nine months of fiscal year 2007 increased 8 percent, from $4.2 billion in the same period in 2006 to $4.5 billion in 2007. Net income for the same period has increased at a slower rate, up 2 percent from $196 million in 2006 to $200 million in 2007. The company has not accounted for the impact of its acquisitions on its nine-month sales figures. It reports that its 2007 third quarter sales have increased 8 percent from the same period in 2006, a figure which drops to 7 percent when excluding 2006 acquisitions. On this basis it appears that the ongoing integration of Hormel’s recent acquisitions has so far a minimal impact on 2007 sales. RETURN TO TOP LILYDALE INC. 
7727 127 AvenueEdmonton, AB T5C 1R9 Canada www.lilydale.com SUBSIDIARIES: Lilydale Foods and Lilydale Poultry. Established in 1940, Lilydale provides primarily poultry products throughout Canada. At its inception, Lilydale's primary business was providing eggs to Great Britain during World War II. In the past 65 years, the company has grown into one of Canada's leading poultry providers. In 2005, the Company voted to end its existence as a co-operative in favor of becoming a conventional corporation. Lilydale brands include Lilydale, Lilydale ZamZam, Lilydale Gold and Country Fair. Lilydale operates 7 processing plants, 4 hatcheries, and one manufacturing plant. The company generates hundreds of products, which are sold throughout Canada and internationally. Approximately 1,200 of Lilydale’s 2,700 employees are represented by the UFCW. Sales for fiscal year 2004 were reported to be C$505 million. More recent reports indicate sales in fiscal year 2005 fell in the range of C$400 - C$450 million. There are no indications that the company is performing poorly. RETURN TO TOP MAPLE LEAF FOODS, INC. 
30 St. Clair Ave. West, Ste. 1500Toronto, ON M4V 3A2 Canada www.mapleleaf.com SUBSIDIARIES: Canadian Bread Company; Maple Leaf Consumer Foods; Cold Springs Farm; Schneider Corporation; Elite Swine; Landmark Feeds; and Larsen Packers. Maple Leaf Foods, Inc. is Canada’s largest pork producer and second largest food processing company, with approximately $5.9 billion in revenue in 2006. Maple Leaf is getting out of the pork commodities business, and will only process pork to serve its internal needs. The company is consolidating its pork operations into one double shifted operation at its Brandon facility, and is selling or closing its remaining six pork facilities. Maple Leaf produces and processes products for wholesale, retail, foodservice, industrial and agricultural customers in Canada and almost 80 other countries around the world. The company divides its business into three segments. The Meat Products Group includes prepared meat products, and fresh, frozen, and value pork, chicken, and turkey products. The Agribusiness Group supplies Canadian farmers with livestock and poultry feed, raises swine, and operates one of Canada's largest rendering operations. The Bakery Products Group is comprised of Maple Leaf Foods’ 88 percent indirect ownership in Canada Bread, which produces fresh and frozen baked goods, pasta, and pasta sauces. Maple Leaf brands include Maple Leaf, Maple Leaf Prime, Maple Leaf Simply Fresh, Olivieri, Dempster's, Bittner’s, Burns, California Goldminer, Hygrade, Nutriwhip, Prime Turkey, Shopsky’s, Tenderflake and Maison-Cousin. Approximately 8,700 of Maple leaf’s 24,000 employees are represented by the UFCW. For the past three years, Maple Leaf has experienced a decline in sales, and this has been reflected in the company’s operating profits and net income. Net income saw a decrease of over 95 percent in 2006 to C$4.5 million, mainly due to restructuring costs of C$65 million. RETURN TO TOP MAPLE LODGE FARMS LIMITED 
8301 Winston Churchill Blvd Brampton, ON L6Y 0A2 Canada www.maplelodgefarms.com SUBSIDIARY: Nutram Pet Products. Maple Lodge Farms, Ltd. is primarily a producer of poultry products. Jack and Bob May are co-chairmen of the company that was founded by their father in 1955, and the company remains 100 percent family-owned. The company operates two processing facilities in Norval, Ontario and St. Francois, New Brunswick. The Ontario facility includes two hatcheries, two feedmills, and a laboratory which supports the processing facility. Maple Lodge Farms processes 400,000 chickens each day, and delivers 2.5 million kilograms of poultry products around the world, exporting approximately 17,000 metric tons of chicken products annually to 30 countries worldwide. Maple Lodge Farms brands include Maple Lodge, Zabiha Halal and The Fat Boy. Approximately 1,100 of the company’s 2,200 employees are represented by the UFCW. RETURN TO TOP NATIONAL BEEF PACKING COMPANY LLC 
12200 N. Ambassador Dr., Ste. 500Kansas City, MO 64163 United States www.nationalbeef.com SUBSIDIARY: National Carriers. National Beef Packing is a leading U.S. meatpacker. The company produces boxed, case-ready, portion-controlled, and branded fresh beef products for domestic and export customers. Its refrigerated trucking unit, National Carriers, transports beef within the U.S. For natural foods consumers, the company has introduced its Naturewell Natural Beef and NatureSource brands of corn-fed, naturally raised beef products for sale through retail grocers. Unlike other big meatpackers (Tyson Fresh Meats, Cargill Meat Solutions, and JBS - Swift & Company), National Beef Packing is owned by beef producers, who control the company through their ownership of U.S. Premium Beef. The company reported $1.85 billion in sales for fiscal year 2006. National Beef Packing brands include NatureWell Natural Beef, NatureSource, Vintage, Certified Premium Beef, Black Canyon, Certified Angus Beef and Certified Hereford Beef. Approximately 2,700 of the company’s 6,300 employees are represented by the UFCW. RETURN TO TOP OLYMEL L.P. 
2200 Ave. Pratte, Bureau 400 Saint-Hyacinthe, QC J2S 4B6 Canada www.olymel.com SUBSIDIARY: Olymel Food Service. Olymel is Canada's largest poultry processor and second largest pork processor, with plants in Quebec, Ontario, and Red Deer. Originally a subsidiary of the La Cooperative Federee, Olymel merged with the Supraliment division of Groupe Brochu in 2005. The new company took on the Olymel name and has integrated the slaughtering, processing, and marketing operations from Supraliment with Olymel's existing facilities. The company has 16 poultry breeding facilities and 19 slaughtering, processing, and distribution facilities. Its products sell under the Flamingo, Galco, LaFleur, Olymel, and Prince brands and are distributed in Canada, Australia, Japan, and the U.S. Olymel exports a third of its production to foreign markets. Approximately 3,100 of Olymel’s 9,000 employees are represented by the UFCW. Because Olymel is a privately held corporation, only limited financial information is available. Olymel’s sales steadily increased until 2006, when the company experienced C$100 million loss. Olymel recently obtained wage and benefit concessions from the union (CNTU) at its Vallee-Jonction facility in order to prevent a plant closing. However, Olymel still plans on closing its St. Valerien hog slaughter facility, as well as the pork cutting plant in St. Simon. The company stated that it cannot remain profitable with international competition (including the U.S.), a strong Canadian dollar, and uncompetitive labor costs. RETURN TO TOP PILGRIM’S PRIDE CORP. 
4845 U.S. Hwy. 271 NorthPittsburg, TX 75686-0093 www.pilgrimspride.com SUBSIDIARIES: Gold Kist, Inc. In January 2007, Pilgrim’s Pride announced it had acquired Gold Kist, Inc., which became a wholly owned subsidiary of the company. Together, Pilgrim's Pride and Gold Kist are the world's leading chicken company in terms of production and the third-largest U.S. meat protein company by revenue. Pilgrim's Pride is the largest chicken producer in the United States and Puerto Rico and the second-largest chicken producer and seller of chicken in Mexico. Pilgrim's Pride operates 37 chicken processing, one turkey processing, and 12 prepared-food facilities, with major operations in Texas, Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia, Mexico and Puerto Rico, as well as other facilities in Arizona, Iowa, Mississippi, Ohio and Utah. In the U.S., the company produces both prepared and fresh chicken and turkey, while in Mexico and Puerto Rico, it produces fresh chicken. The company controls the breeding, hatching and growing of chickens and the processing and preparation, packaging, and sale of its product lines. Pilgrim’s Pride brands include Big Value, Country Pride, Early Bird, EggsPlus, Game Time Wings, Gold Kist, Gold Kist Farms, Hume Dingher, Medallion, Mega Bites, Pierce Country, Pierce Gold, Pierce Marinata, Pilgrim's Pride, Roastery, Super-Chick'n, Wampler, Whistlin' Dixie and Wing-Dings. Approximately 13,800 of the company’s 56,500 employees are represented by the UFCW. PILGRM’S PRIDE IS EXPERIENCING A REDUCTION IN SALES For fiscal year 2006, Pilgrim’s Pride recorded total sales of $5.2 billion, a decrease of $500 million from fiscal year 2005. Net profits plummeted in 2006, and after more than doubling in fiscal year 2005, the company lost $34.2 million in 2006. The company ascribes the reduction in sales to an over supply of the market. Accordingly, it announced a reduction in weekly chicken production of 5 percent (approximately 1.3 million head per year) which began January 1, 2007. This reduction came on top of a 3 percent reduction in weekly production instituted in July 2006. The company issued pro forma financial results for the first three quarters of fiscal 2007 as if the acquisition of Gold Kist had occurred at the beginning of the fiscal year. Pro forma figures should be considered as a guideline only; they are only the company’s estimates of financial performance. The full cost of integrating Gold Kist into the company may not be accurately reflected in these figures. Based on these estimates, sales for the first three quarters are $5.98 billion, and operating income is $91.7 million while the company reports a net loss of $20.3 million. Based on these estimates, the company’s estimated annual sales for fiscal 2007 would be $7.97 billion. Estimated net loss would be $27 million. It should be noted, however, that the company reported an actual net income of $13.8 million for the first three quarters of fiscal 2007, and sales during this period were $5.45 billion. RETURN TO TOP SMITHFIELD FOODS, INC. 
200 Commerce StreetSmithfield, VA 23430 www.smithfieldfoods.com SUBSIDIARIES: ADA Premium Beef Co., Inc.; CalfSource, LLC; Farmland Foods; John Morrell & Co.; Lykes Meat Group; Moyer Packing Company; Murphy-Brown, LLC; North Side Foods Corp.; Packerland Packing Co.; Patrick Cudahy Inc.; Sunland Beef Company; and Smithfield Bioenergy. Smithfield Foods, Inc. is the leading company worldwide in hog production and processing. In the U.S., it ranks as the leading company in turkey processing, and among the top five in beef processing. Its operations consist of six segments: Pork, Beef, International, Hog Production, Corporate, and Other, each of which is comprised of several subsidiaries. Smithfield’s Pork segment is marketed nationwide and to foreign markets such as Japan, Mexico, Canada and Australia. Cattle feeding operations in the company’s Beef segment are marketed predominantly in the U.S. The International segment is comprised of international meat processing operations, mainly in France, Poland, Romania, Mexico, the United Kingdom, and Spain. The Hog Production segment produces approximately 53 percent of the Pork segment’s domestic live hog requirements and 66 percent of the International segment’s requirements. Smithfield processes approximately 27 million hogs annually, representing 26 percent of the U.S. market. It operates hog production facilities in the U.S., Poland and Romania. The Other segment is mainly comprised of the company's turkey production. In August 2006, Groupe Smithfield, a joint venture between Smithfield and investment firm Oaktree Capital Management, acquired the European meats business of Sara Lee Corporation. The company also acquired ConAgra Foods Refrigerated Meats Business in October 2006, and Premium Standard Farms Inc. in May 2007. Smithfield brands include Aberdeen Farms, All Natural, Butterball, LLC, Carando, Cook’s, Dinner Bell, Farmland, Farmstead Preferred, Fresh & Tender, Gwaltney, John Morrell, Lundy’s, Mash’s, Natural Excellence, Packerland Packing, Premium Farms, Smithfield, Stefano Foods, Sunnyland, and Virginia’s Choice. Approximately, 15,600 of Smithfield’s 53,100 employees are represented by the UFCW. In 2006, the company was ordered to allow an election at its Tar Heel plant and to reinstate and pay illegally discharged employees $1.5 million in back wages. The Justice at Smithfield Campaign is working on obtaining a card check neutrality agreement with Smithfield to allow the 5,500 Tar Heel workers to have union representation. SMITHFIELD IS EXPERIENCING UNSTEADY GROWTH DUE TO MAJOR RESTRUCTURING EFFORTS Smithfield sales for fiscal 2007 were $11.9 billion, a 4 percent increase over its $11.4 billion in fiscal 2006. While sales have increased over the past three years, this growth has been unsteady. As compared to the 4 percent increase, sales increased 1 percent from fiscal year 2005 to 2006, and 18 percent from fiscal year 2004 to 2005. In contrast, Smithfield’s net income has declined since fiscal year 2005. From fiscal year 2005 to 2006, Smithfield’s net income declined by 70 percent. It declined by another 3 percent from fiscal year 2006 to 2007. The unsteady performance can be partly attributed to the company’s major restructuring efforts. Positive contributing factors include Smithfield’s acquisition of Farmland Foods, MF Cattle Feeding, Cook’s Hams and Armour-Eckrich. Negative factors include the closing of several processing facilities in Virginia, Florida and Nebraska in fiscal year 2006. The company was also affected by the December 2003 ban on exported beef from the U.S. As a result, it lost 16 foreign markets from its customer base. RETURN TO TOP JBS - SWIFT & CO. 
1770 Promontory CircleGreeley, CO 80634 www.swiftbrands.com SUBSIDIARY: Swift & Co. After completing the acquisition of Swift & Co. on July 12, 2007, JBS S.A. became the world’s largest beef company and beef exporter, and the largest Brazilian multinational company in the food sector with combined revenues of US$11.5 billion. Acquiring Swift gave JBS access to the U.S. beef market, as well as to Asian markets that are open to U.S. imports but currently ban Brazilian beef due to hoof-and-mouth disease issues. JBS now has access to 100 percent of the world’s beef consuming markets and exports to over 110 countries, including Australia. JBS - Swift & Co. brands include Fresh Sliced Beef, La Herencia, G.F. Swift 1855 Brand Black Angus, Miller Blue Ribbon Beef, Retail-Ready Ground Beef Chubs, Swift Premium Black Angus, Swift Angus Select, Swift Angus Guaranteed Tender, Swift Premium Guaranteed Tender, Swift Natural Fresh Pork, and Xtreme Trim. Approximately 8,500 of the company’s 20,200 employees are represented by the UFCW. On Dec. 12, 2006, the U.S. Immigration and Customs Enforcement (ICE) raided six Swift plants and arrested and detained 1,300 employees. The raid is estimated to have cost the company US$30 million, about US$20 million of which was spent on restoring its labor force. No charges were made against the Swift management. Pork and Beef production has recovered to its previous levels. JBS - SWIFT & CO. ANTICIPATES SALES INCREASES IN 2007 DUE TO INCREASING DOMESTIC DEMAND AND GROWING EXPORT MARKET FOR MEAT JBS reported total sales of 225 billion Brazilian Reais (US$113.16 billion/C$119.93 billion) for the first half of fiscal year 2007, which ended June 30, 2007. This represents an increase of 23.9 percent over the first half of fiscal year 2006. Net income, however, is down compared to last year. In the first half of fiscal year 2007, the company reported a net income of R$49.4 million (US$24.8 million/C$26.34 million), a 23.2 percent decrease from the first half of fiscal year 2006. Total sales in fiscal year 2006 were R$3.97 billion (US$1.99million/C$2.12 million). The fiscal year 2007 results do not include results from Swift. The results from Swift will be incorporated starting in the third quarter of 2007. Currency conversion rates are as of August 2007. For the fiscal year ending in May 2006, Swift reported total sales of US$9.35 billion. Its U.S. beef sales accounted for the majority (60 percent) of the company’s total sales in fiscal year 2005, followed by its U.S. pork sales, which accounted for almost 22 percent of its total sales in that period. Swift also has significant operations in Australia, with four processing plants and one facility, whose market accounted for almost 18 percent of its total sales in fiscal year 2005. Due to price fluctuations caused by the inflow of Canadian cattle into the U.S. market and discoveries of BSE in recent years, Swift’s operating profit dropped from US$239 million in fiscal year 2003 to just US$6 million in fiscal year 2006. Management anticipates a rebound, however, primarily from increasing domestic demand and the growing export market for meat. In March 2007, Swift reported US$61 million in operating profit from the 12-month period ending in November 2006, more than ten times higher than its fiscal year 2006 operating profit. However, this figure does not account for the US$30 million loss from the ICE raids in December 2006. RETURN TO TOP TYSON FOODS, INC. 
2210 W. Oaklawn DriveSpringdale, AR 72762-6999 www.tysonfoodsinc.com SUBSIDIARY: Cobb-Vantress. Tyson Foods produces, distributes and markets chicken, beef, pork, prepared foods and related products. Through its wholly owned subsidiary, Cobb-Vantress, the company is a breeding stock supplier. Tyson's operations consist of breeding and raising chickens, as well as the processing and marketing of these food and related allied products, including animal and pet food ingredients. The company is also involved in the processing of live fed cattle and hogs, and fabrication of dressed beef and pork carcasses into primal and sub-primal meat cuts, case-ready products and fully cooked beef and pork products. In addition, Tyson also produces allied products, such as hides and variety meats for sale to further processors. Wal-Mart Stores accounted for approximately 12.5 percent of Tyson's consolidated sales during the 2006 fiscal year. Tyson’s meat and poultry brands include Corn King, Iowa Ham, Jordan’s, Nature’s Farm, Russer, Thornapple Valley, Tyson, Tyson Holly Farms, Weaver and Wright. Its canned and other prepared foods brands include Doskocil, Lady Aster and Mexican Original. Tyson Foods employs approximately 107,000 workers throughout North America. With more than 27,000 members covered by 27 collective bargaining agreements, the UFCW is the largest union at Tyson Foods. TYSON INTRODUCES A RETURN TO PROFITABILITY STRATEGY TO OFFSET DECREASE IN SALES Overall, 2006 sales fell by $455 million, or 1.7 percent from 2005. The company claims its sales were adversely affected by Hurricane Katrina and avian influenza outbreaks. The company’s beef operations continue to be adversely affected by import restrictions. Beginning in July 2006, Tyson implemented a return to profitability strategy by introducing cost reductions of $200 million. As part of this strategy, Tyson closed or scaled back operations in eight different facilities. Most recently, Tyson sold two poultry processing plants to Koch Foods. Tyson is reporting savings due to the consolidation in the first quarter of 2007, but has not disclosed the specific amount. Operating income fell 2.9 percent from $745 million in 2005 to $77 million in 2006. Earnings in Tyson’s Beef operations were offset by lower sales in the Chicken, Pork, and Prepared Foods segments. For the first quarter of fiscal year 2007, Tyson reported earnings of $57 million, compared to $39 million for the first quarter of fiscal year 2006. RETURN TO TOP |
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