SEMA_________________________________

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

SEMA CONVENTION
Trends --> Changes --> Opportunity
The wisest mind has something yet to learn. George Santayana

With the increase in fuel cost, we have less to spend on other things but the June SEMA convention at the Hammock Beach Resort had a great turn-out. The convention surveys are coming in with high ratings and positive feedback. Everyone enjoyed the fabulous oceanfront resort.

To stay competitive, companies need knowledgeable leaders and the convention was in tune with today’s economy. The speakers gave the attendees the information needed to stay in the forefront of our industry. In order to follow-up on topics presented at the convention, the following is a list of the convention speakers.

This year was the largest turn-out of Associate members exhibiting. Special thanks go to the SEMA Associate members that supported and participated in the table-top exhibits. You all are truly an asset to the SEMA Association.

The following companies and Universities exhibited at the convention.

In lieu of the silent auction this year, many of our members donated to the scholarship fund and enjoyed a sunset river cruise on the 117 ft. Sundance yacht. John Williams of Ulma Packaging won the 50/50 scholarship raffle. John donated his portion of the winnings back to the scholarship fund, saying the SEMA members have been great customers and friends.

Our SEMA auctioneer Mitchel Coats from Curwood, auctioned off the SEMA frog. Nancy Swaggerty of Swaggerty Sausage Company did not let the guys out bid her this year. Nancy was awarded the highest bid, purchasing the frog at $1,500.00. This year exceeded all other years with the Association raising approximately $6,500.00. This was made possible in part by A.C. Legg Company matching Nancy’s bid of $1,500.00.

SEMA was proud to give the following students $1,000.00 scholarships.
Danielle Brewer, University of Florida
Thomas Lance, University of Georgia
Crystal Hopwood, University of Tennessee
Chelsea Cooper, University of Tennessee (second time recipient)

Everyone was a winner at the SEMA golf tournament, playing the Hammock Beach Conservatory Course. The weather was great and Jeff Ray from Marel gave hats and sleeves of balls to all the golfers. Jay Javitz, Mark Duncan, Greg Camp, and Purnell Cameron were recognized at the Caribbean Night Buffet as the winning team. Special thanks to Ron Brown of Cryovac for putting together and running the tournament. Again this year Cryovac supplied the gifts for the tournament winners. We appreciate the time and support Cryovac gives to SEMA.

WELCOME BACK ASSOCIATE MEMBERS

Marel Food Systems, is a multinational leader in development of high-tech food processing equipment and software technology covering all major protein industries and spanning almost every segment on the production floor. The corporate office for North America is stragically located in Lenexa, Kansas. Service technicians and sales representatives are located throughout the United States to provide the best possible products and services available. The people at Marel Food Systems take great pride in establishing and maintaining lasting partnerships and aspire to continue this trend through focus on growth, innovation and outstanding customer service. For more information on Marel Food Systems contact Jeff Ray at 913.889.9110.

Poly-clip System, is the world’s leading manufacturer of clip closure systems. Its products have played a major role in enabling the meat-processors to develop new products and open up new markets. Our key markets are the meat and poultry industries. For every application, Poly-clip System offers the right machine. A wide variety of machines, clips, and loops in various colors are available. The FCA automatic double clipper series is suitable for any artificial, fibrous, or collagen casing. The ICA with the unique iris separator is ideal for large caliber and molded products. The TSA automatic sealing machines for forming and sealing flat roll stock film to a tube offer additional advantages for automation. Regional Sales Manager, Ed Norton can be contacted at 847.949.2800.

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Things to Ponder . . . . . . . . .
Three things you can never get back,
Time, Words, & Opportunity

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FOOD DEFENSE PLAN, ARE YOU READY?

FSIS will start surveillance of plants this August to determine how many have a food defense plan. If enough plants do not have a plan the government will step in and require and monitor the plan. It is much better to have this kept in house instead of FSIS dictating how we will defend our food source. Go to www.fsis.usda.gov and type in the Search FSIS block, Food Defense Plan, there is a check list which will help in developing a plan.

The following question and answer is from “FSIS Ask” part of the FSIS web site.

Food Defense Plan
Question: Are FSIS regulated establishments required to have food defense plans?

Answer: There are no regulatory requirements for an establishment to develop a plan; however, FSIS strongly encourages establishments to adopt and maintain a food defense plan to help identify steps to take to minimize the risk of intentional contamination. The Agency is currently surveying plants on a periodic basis to determine how many have functional food defense plans in place and the last survey revealed only 31% of plants had plans in place. Should that number not increase to at least 90% by the next few surveys, the Agency intends to move forward with rulemaking that will mandate functional food defense plans.

Question: If I have a HACCP plan in place, will that count as a food defense plan?

Answer: Not entirely. A HACCP plan deals with food safety and consists of measures to protect the food from unintentional contamination at critical control points. However, a HACCP plan does not consider points where the intentional contamination may occur. For examples, a HACCP plan does not consider measures to protect the process from a disgruntled employee nor does it plan for intentional contamination of raw product coming in to the facility. A food defense plan concentrates on those points and plans measures to protect from intentional contamination. It is possible that some of the same protective measures used to prevent the effects of unintentional contamination may help in preventing the effects of an intentional one. For example, if a product goes through a heat process, that measure might be effective for a heat sensitive contaminant that is unintentionally introduced as well as one that is intentionally introduced.

Food Safety Inspection Podcasts
The Office of Food Defense and Emergency Response are currently offering a series of Food Defense pod casts. Food Safety Videos also offer a collection of streaming video and audio resources for food defense and meat, poultry and processed egg product inspection. More information on this is available at www.fsis.usda.gov.

NO CHANGE IN E.coli POLICIES

Even with National Meat Associations asking for change, USDA Under Secretary for Food Safety, Richard Raymond stated the E.coli O157:H7 policies will stay as is. Two concerns the industry have are, broadening the definition of E.coli as an adulterant and if FSIS will implement a mandatory test and hold policy. Currently, the agency is not considering a mandatory test and hold policy.

REGULATORY EDUCATION SESSION

Small and very small plant owners and operators are invited to join FSIS inspection personnel at regulatory education sessions. The workshops will include a walk-through of a variety of topics, which may include HACCP, Sanitation Performance Standards, Sanitation SOPs, Rules of Practice, Food Defense strategies, E. coli 0157:H7 workshops. To register call 800.336.3747 or for online registration forms and information about upcoming sessions go to: www.usda.fsis.gov/News_&_Events.com.

Raleigh, NC | Register
Tuesday July 15, 2008 6:30 PM - 8:30 PM Holiday Inn Crabtree

Regulatory Web Seminars
The seminars will be conducted via Net Meeting. Net Meeting uses internet access for viewing the presentation and a phone line for the audio portion.
None are scheduled at this time.

VERIFYING AN ESTABLISHMENT’S FOOD SAFETY SYSTEM

FSIS Directive 5000.1 - Revision 3

The directive provides comprehensive direction to Consumer Safety Inspectors (CSI’s) on how they are to protect the public health by properly verifying an establishment’s compliance with the pathogen reduction, sanitation, and HACCP regulations. This cancels, FSIS Directive 5000.1, Revision 2, dated July 18, 2006.

FSIS is reissuing this directive to include:
A. additional instructions regarding the weekly meeting with establishments and the need to discuss any changes the establishment makes to its processes (section V.C. of this directive);
B. additional instructions for verifying prerequisite programs (Chapter II, IV, B);
C. instructions for verifying the annual HACCP reassessment and the related training requirements for individuals who conduct reassessments (Chapter II, IX, D, E, and F);
D. updated instructions for completing NRs (Chapter IV, I); and
E. instructions to Frontline Supervisors regarding repetitive non- compliances (Chapter IV, VI,B);
This directive also provides an attachment addressing the use of microbial pathogen computer modeling in HACCP plans.

REVIEW OF ESTABLISHMENT TESTING DATA BY INSPECTION PROGRAM PERSONNEL

FSIS Directive 5000.2 - Revision 1

This directive is to clarify that inspection program personnel have access to a wide range of records under the Hazard Analysis and Critical Control (HACCP) regulations (9 CFR part 417), and that they are to use that access to review certain types of records on a regular basis.
NOTE: This directive does not address Sanitation Standard Operating Procedures (Sanitation SOPs) records verification. All instructions related to verification of Sanitation SOP records are addressed in FSIS Directive 5000.1, Chapter I. This cancels FSIS Directive 5000.2, dated 3/31/04

FSIS is reissuing this directive to instruct inspection program personnel on how to document that they conducted the weekly record review and to provide additional information on how to review establishment records.

For more information on these and other new directives go to: www.fsis.usda.gov/regulations_&_policies.

The following article is by Jeff Faulkner, M.S. whom many of you heard at the SEMA Convention

He’s My Brother…and He’s Heavy!

“Steve, explain to me your top reason for hiring me,” I asked. Steve kicked back in his oversized black leather chair, raised his cigar to his mouth, puffed slowly, and exhaled for what seemed like a full minute. As the smoke began to clear he responded, “I want you to help me find a way to buy my brother out.” I asked, “Does he want to sell?” “That’s beside the point,” Steve responded. “The employees don’t like him. He’s disruptive to teamwork, he doesn’t contribute anything around here and I can’t count on him. I’m tired of carrying his dead weight and I want him out!”

The song “He Ain’t Heavy, He’s My Brother” popularized by the Hollies in 1970 is packed full with positive images of a man who believes in his brother and that “his welfare is of my concern.” While this sentiment is nice, it can be idealistic. The reality is that in many family business environments, nothing could be further from the truth. My colleagues and I often seem to be permanently ensconced in the middle of some intense sibling rivalry, where the sentiment is more like “he’s my brother, he’s heavy, and I’m not about to carry him another inch.”

What we have discovered in most cases is that the “carrying” is a perception that is often based in past family dysfunction and relational bitterness that the family has never worked through. In more cases than not, the reality is that each sibling is carrying his own weight. However, the business relationship between them was established on some poorly understood principles and dynamics of sibling partnerships. The misperceptions, misunderstandings, and the consequences of such have taken root and taken a toll.

If you are a part of a sibling partnership in business, please understand that your relationship, just like any other relationship, will require a significant amount of effort to make it an effective one. Effective sibling partnerships will not happen by default. It takes an intentional effort and there are many factors that lead to its effectiveness. Here are a few of the primary factors that if addressed, will help you establish an effective working relationship with a sibling:

1. Rise above Sibling Rivalry by recognizing that you are no longer fighting each other for your parent’s approval. You are now in business together fighting for the success of your business. You should now be more interested in earning your sibling’s approval. If the dysfunction runs deep, admit it, and seek professional help together.
2. Engage in Family Strategic Planning to determine a “shared vision” of your future together. If there is a shared vision or dream that you are both pursuing, it will serve to assist you through some difficult times.
3. Agree upon a Leadership Model. It doesn’t matter whether you take the more traditional route of one sibling being the leader, or the more contemporary co-CEO approach, as long as you have agreed upon the basic model and how it will work.
4. Create a set of Covenant Agreements that will dictate how you will make decisions together, how you will communicate, how you will resolve conflict, how you will hold each other accountable, how you will represent one another to the senior managers and employees, etc. Then, stick to the agreements.
5. Establish a Supporting Outside Board. If necessary, agree to have outside independent advisors to facilitate debate and discussion.
6. Develop a comprehensive Family Business Employment Policy. This policy will cover everything from the criteria by which members of the next generation become eligible for employment in the family business, to compensation, bonus, and perk structures, to behaviors and attitudes expected on the job. Agreeing upon these sensitive issues ahead of time will serve to minimize a lot of disagreement in the future.
7. Provide assurance that your Estate Plans are in order. We have seen on many occasions the tragedy of an untimely death without appropriate estate planning and the subsequent challenges it can create in family business circles. Having your estate plans in order will provide peace of mind regarding your sibling’s affairs and the impact it could have on the business.
8. Agree upon an Exit Strategy. It is inevitable that eventually one or more siblings will want to exit the business. Knowing that you have an agreed upon strategy for handling this difficult discussion and transition will alleviate concern.

If you are in the beginning stages of a sibling partnership, putting these Best Practices in motion will serve to provide you with a firm foundation for future growth of the partnership and the business. If you have been in a sibling partnership for some time that has gone awry for lack of implementation of the above principles, realize that it’s never too late to pull it together…if you want to. It will require hard work, but with resolve and determination you can forge an effective sibling partnership. Recognize that you may need the services of an outside facilitator to help you work through the issues. Otherwise, you may not have the resolve to continue working at it. And understand that it’s okay to need help. In the end, remember that the family business is all about family and sometimes we need to bear up under the load and carry each other through. For “the load doesn’t weigh me down at all…he ain’t heavy, he’s my brother.”

Jeff Faulkner, MS, is a partner with The Rawls Group and Family Business Resource Center and specializes in family business succession planning. Jeff relies upon his background in family counseling to navigate the unique challenges of family dynamics in the succession planning process. Jeff’s private practice in the counseling industry, as well as his training in financial planning, has allowed him to gain specialized experience in working with families in achieving mutually satisfactory resolutions in succession planning issues. For additional information, contact him directly at 770-894-9056 or through The Rawls Group at 407-578-4455. www.seekingsuccession.com.

SEMA INDUSTRY NEWS

SEMA members, if you have a press release, something to share or information to up-date please send it to the SEMA office and it will be posted at no charge. Example, new salesperson, personnel promotions, expanding your company, etc.

Buster Monk, passed away mid-June. Buster worked for Cryovac and Sunnyland during his career and had been a member of SEMA. Our condolences go out to Linda and their children.

CALENDAR OF EVENTS

Companies that invest in employee learning have higher productivity, revenue growth,
and profit growth than companies that do not.