Ag Headlines, Thursday November 19, 2015

ConAgra Foods to Divide into Two Public Companies

ConAgra Foods announced plans to divide the company into two independent public companies Wednesday. Meatingplace reports one company will contain its consumer portfolio of brands, and the other containing its foodservice portfolio of frozen potato products. The consumer brands business will be renamed Conagra Brands Inc. and the frozen potato business will operate under the Lamb Weston name. Immediately following the transaction – which is expected to be completed in the fall of 2016 – ConAgra Foods shareholders will own shares of both independent companies. The transaction is expected to be structured as a spin-off of the Lamb Weston business, tax-free to the company and its shareholders. CEO Sean Connolly said “the separation will enable each company to sharpen its strategic focus and provide flexibility to capitalize on the unique growth opportunities in its respective market.”

Egg Prices Falling as Flocks Rebound from HPAI

Egg prices declined last month following a march to record levels due to avian influenza. Bloomberg reports egg prices declined 5.3 percent to $2.80 a dozen from the all-time high of $2.96 in September. The drop was the biggest since May 2014 and comes after prices soared 52 percent in the previous four months following the poultry industry’s loss of 48 million birds caused by avian influenza. Of the 48 million birds wiped out by flu, USDA says at least 32 million were egg-laying chickens. The last avian influenza case was detected on June 17th. Meanwhile, U.S. egg imports in 2015 will double to a record 80.9 million dozen, according to USDA.

“The major oil industry lobbying group is growing as it takes over the association representing natural gas drillers. The American Petroleum Institute announced Wednesday it is taking over America’s Natural Gas Alliance which will make the API an even greater lobbying powerhouse, according to The Hill. The merger had been rumored for months and first reported by Politico though the groups declined to speak publicly about the negotiations until Wednesday. API head Jack Gerard said “There is a natural synergy between our organizations.” The lobbying groups have rarely disagreed publicly. API takes a harsh stance against the Renewable Fuels Standard, which the final mandate by the EPA is expected to be announced by the end of this month. API gave testimony in June at an EPA hearing in Kansas City, Kansas that “Until Congress repeals or significantly reforms the RFS, EPA must continue to address the obsolete volume requirements by exercising its waiver authorities.”

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