SEMA_________________________________

SOUTHEASTERN MEAT ASSOCIATION
P.O. Box 620777; Oviedo, FL 32762 Phone: 407-365-5661

JANUARY 2005

VOLUME 20, No. 1

BORDER OPEN TO CANADIAN CATTLE

The USDA just re-opened it borders to Canadian cattle and beef when the Canadian Food Inspection Agency (CFIA) confirmed an older dairy cow from Alberta, Canada, has tested positive for bovine spongiform encephalopathy (BSE). No part of the BSE animal entered the human food or animal feed systems.

Ron DeHaven, Administrator of Animal and Plant Health Inspection Service said, “USDA remains confident that the animal and public health measures that Canada has in place, including the removal of specified risk material (SRMs) from the human food chain, a ruminant-to-ruminant feed ban, a national surveillance program and import restrictions, combined with existing U.S. domestic safeguards and the additional safeguards announced as part of USDA’s BSE minimal-risk rule announced Dec. 29 provide the utmost protections to U.S. consumers and livestock.”

USDA will continue to permit imports of cattle aged up to 30 months but an import ban will continue on Canadian cattle over 30 months of age.

MIKE JOHANNS NOMINATED FOR AGRICULTURE SECRETARY

President Bush has nominated Nebraska Governor Mike Johanns to replace Ann Veneman as Agriculture Secretary. Born in Iowa and raised on a dairy farm, Johanns became a lawyer and served in county and city government before becoming mayor of Lincoln, Nebraska in 1991. He won the governor’s office in 1998 and 2002. The U.S. Senate must confirm Johanns.

Ann Veneman resigned November 19th and will be remembered for her contributions to food safety, including improving safeguards against bioterrorism.

HEALTH FOOD

Companies hope doctors will “prescribe” their food to patients. Grass-fed beef is one of many products that food companies are marketing to doctors. Grass-fed beef is generally lower in saturated fat than most commercial grain-fed beef. One company, American Grass Fed Beef, gives doctor’s pamphlets about its products to hand out to patients. The company sends doctors who regularly refer patients a gift box of steaks as a thank you.

The Wall Street Journal

FSIS REQUIRING HACCP REASSESSMENTS

Slaughterers of young calves, including those labeled, as “veal” must reassess their food safety plans with respect to residues and the use of unapproved new animal drugs. The FSIS notice requires establishments to reassess their HACCP plans to determine if unapproved new animal drugs are hazards reasonably likely to occur in production.

Earlier this year, FSIS inspectors identified implants in young cattle that were being presented for slaughter as “veal”. The Food and Drug Administration has declared that the use of growth-promoting implants in animals labeled as “veal” is illegal.

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The U.S. job force works 22% more hours per year than the European Union work force.

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ORGANIC FOODS FOR SCHOOL

Organic foods are becoming more commonplace in some schools. Schools in Seattle and some schools districts in California are now encouraging organic foods in school cafeterias. Schools in the Northeast are now beginning to look are organic foods as well.

RETAIL GROCERS UPDATE

Smaller focused stores: A study by the Food Marketing Institute found the average store in 2003 to be 34,000 square feet. New stores are target marketing with natural/organic, Hispanic and gourmet a priority. Dollar item areas were the single fastest growing merchandise category, along with low-carb and wine departments.

Major chains sell: Royal Ahold has sold Bruno’s and Bi-Lo to Dallas based Lone Star Funds. The two southern chains operate 450 stores with sales last year of approximately 6 billion dollars. Ahold also owns U.S. Foodservice and will continue to operate its other U.S. chains, including Stop & Shop, Tops and Giant.

Growth: Publix, that operates 842 stores in the Southeast, is planning to build its eighth Florida distribution center. The 600,000 square foot warehouse to be built in Punta Gorda will distribute perishables to west and southwest Florida.

NEW CHAIRMAN FOR SENATE AG COMMITTEE

Senator Saxby Chambliss (R-GA) has been selected to replace Senator Thad Cochran (R-MS) as chairman of the Senate Agriculture Committee. Chambliss first arrived in Washington in 1994 to represent the 8th congressional district of Georgia. Chambliss served four terms in the House of Representatives before entering the senate. The appointment will become official this month.

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Did you know?

Overall meat consumption continues to rise,
with pork representing almost ¼ off all meat consumed in the U.S.

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HEALTH SAVING ACCOUNTS

Health-care spending continues to skyrocket; will you be able to continue offering your employees a health plan? Many employers are combating this trend by choosing higher-deductible plans.

Now there is the health saving accounts (HSA). It is part of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 and became available on Jan. 1, 2004. A HSA is treated as an investment or retirement account, from which the account holder can withdraw money tax-free for medical care. It acts as a pseudo-health-insurance policy that enables employees to make tax-deductibles contributions toward their own medical expenses, including health-related costs not covered by insurance, such as prescription drugs, diagnosis and treatment or prevention of disease. One of the best benefits is that contributions from employers to employees are tax-deductible and are tax-free to the employee.

The rules and stipulations for creating HSA’a in 2005 are:

  • The accompanying high-deductible plan must have an annual deductible of at least $1,000 for individuals or $2,000 for families.
  • Maximum annual tax-deductible contributions for individuals are limited to the amount of the annual deductible of $2,600, whichever is less.
  • Maximum annual tax-deductible contributions for families are limited to the amount of the annual deductible or $5,150, whichever is less.
  • Individuals 55 and older can make an additional contribution limited to $500 annually.
  • Individuals 65 and older can withdraw from the HSA for any reason without penalty.
  • Unused contributions accumulate without limit and turn over each year.

HSAs can help businesses maintain employee benefits. Any qualified insurance company or bank can establish a HSA. You may also want to visit the U.S. Treasury web site at www.ustreas.gov.

Orlando Sentinel / CFB

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More than 62% of Americans receive their health benefits through an employer plan.

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SEMA STARTING A NEW YEAR

SEMA finished a good year, with membership retention at 95% and a year-end increase in total membership. The 2004 convention was held in Daytona with over 60% of its member companies represented. SEMA will continue to work for it members, keeping members informed of government rules and regulations, along with general business information to help build a stronger company. Networking within the Association is encouraged, with associate members keeping us informed of new processing ideas and techniques and processing members sharing solutions for common problems without giving away trade secrets.

SEMA is starting a New Year and membership dues forms have been mailed out. The input from our members is what has made SEMA the Association it is and we look forward to having you join us again for another great year.

If you do not belong to SEMA and would like membership information please e-mail info@southeastern.com or call our office at 407.365.5661.

SEMA 2005 CONVENTION
The Shores Resort & Spa
Daytona Beach Shores, FL
June 10-12

INDUSTRY NEWS

* Bernie Shire, AAMP’s Director of Legislative and Regulatory Affairs for the past nine years has resigned from the AAMP staff to pursue other career goals. Bernie represented AAMP in Washington as a registered lobbyist.

* The National Food Processors Association (NFPA) the largest trade association is changing its name to Food Products Association (FPA). The associations President John Cady said, “NFPA now offers representation to an increasingly broad range of members-including not only new types of food companies, but also restaurants, retail grocers and suppliers to the industry”.

* SEMA company member, Lowell Packing Co. of Fitzgerald, GA has shutdown its slaughter and processing operation. Morris Downing, President, said they will be selling off their inventory and no decisions have been made as to the sale of the property and/or equipment. Scott Downing, Vice President of Lowell Packing, serves as Treasurer of SEMA. A management-
service company is being formed at a new location. Watch for information as details are finalized.

* Jamison Door Co., the 99 year old leading manufacturer of cold storage and specially engineered doors announces its purchase of HCR, Inc. of Lewistown, Montana. HCR Inc., in its 30th year, is the door manufacturer that pioneered air door technology for the cold storage and grocery distribution industries. More detailed product and company information can be found at www.jamisondoor.com and www.hcr-inc.com.

WELCOME
NEW ASSOCIATE MEMBERS

Ingredients Corporation of America
676 Huron Ave.
Memphis, TN 38107
Contact Person: Kathryn Peterson
P: 901.525.4422 F: 901.525.4425

NEW SEMA ASSOCIATE MEMBERS

BK GIULINI

BK Giulini Corporation is the North American marketing arm of BK Giulini Chemie, Germany, and a leading phosphate producer owned by Rotem Amfert Negev Ltd. Of Israel. BK distributes a broad range of phosphates and phosphate specialties as well as a number of unique organic-inorganic food ingredients, primarily serving the meat, poultry; seafood, dairy and dairy related industries. Our products include a wide range of unique agglomerates and blend as well as food grade commodities such as sodium, potassium and calcium phosphates.

For more information contact, Marty Brouillette, Technical Advisor Phone: 225.222.6514

M & Q Packaging

M&Q Packaging is a manufacturer of meat casings and cook-in bags. YieldMaster meat casings are customized to offer just the right amount of meat adhesion and shrink to maximize product yield. YieldMaster is an excellent casing for molded meats and D-shape logs. M&Q’s cook-in bags offer a wide range of temperature resistance up to 400F and a wide range of shrink properties. No matter what product you are processing. M&Q have the right bag for you.

For more information contact, Bob Cullen. Phone: 214.912.1465

CALENDAR OF EVENTS

International Poultry Expo Georgia World Congress Center in Atlanta, GA Jan. 26-28
Basic Meat & Poultry HACCP Workshop UGA Campus in Athens, GA Feb 1-2 & April 5-6
SEMA Convention The Shores Resort & Spa in Daytona Beach, FL June 10-12
North Carolina Meat Processors Convention Grove Park Inn in Asheville, NC July 14-17

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THINGS TO PONDER………………
Math…….111,111,111 x 111,111,111 = 12,345,678,987,654,321

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