Food Business News - Jan 10, 2006 - (Page 1)

FoodBusinessNews January 10, 2006 NEWS, MARKETS AND ANALYSIS FOR THE FOOD PROCESSING INDUSTRY General Mills honors Texas Longhorns 8 Diet trends Encapsulation evolution 36 F.D.A. dealing with backlog of trans fat extension requests WASHINGTON - The Food and Drug Administration, reacting to numerous food company requests for extensions on the agency's Jan. 1 deadline for trans fat labeling, on Dec. 30 said it would "consider the exercise of its enforcement discretion" for companies meeting certain criteria. The F.D.A. had published a notice in the Dec. 14 Federal Register telling companies how to request the agency consider enforcement discretion. Without an extension, companies are required to insert a line in their Nutrition Facts Panel listing trans fat content per serving in grams. While the agency originally had predicted it would receive about 50 extension requests, industry sources indicated the number of petitions has exceeded 300. "Given the agency's limited resources to handle all of these pending requests," the F.D.A. said companies that had petitioned for an extension by Dec. 31 would receive consideration for enforcement discretion if: 1 - The requests contain all the information outlined in the F.D.A.'s Dec. 14 guidance. 2 - The labels of the products subject to the Continued on Page 8 MARKET WATCH Reversal of fortune? After three years of record setting results, Pilgrim's Pride cites weakness in Mexico and A.I. in cutting earnings guidance Peanut stocks are up 31% from last year. After a third straight year of record setting financial results, fiscal 2006 did not start auspiciously for Pilgrim's Pride Corp., Pittsburg, Texas. On Jan. 3 the company announced it was slashing its previously issued earnings guidance for the first quarter of fiscal 2006 ended Jan. 1 to a range of 36c to 41c per share, which excluded charges associated with the further restructuring of its turkey operations and certain one-time tax benefits in the company's Mexico operations. At the same time the company withdrew guidance for the full fiscal year. The company's original earnings guidance for the first fiscal quarter of 2006 was 75c to 85c per share. The results for the quarter were expected to be less than previously forecasted due to the performance of the company's Mexico operations and lower sales prices realized during the quarter on chicken leg Continued on Page 32

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Food Business News - Jan 10, 2006