Financialnewsmedia.com News Commentary
PALM BEACH, Florida, March 26, 2020 /PRNewswire/ -- Numerous recent reports have projected that the worldwide feed market will continue to show growth for the next several years. A report from Mordor Intelligence said that The Compound Feed Market is projected to grow at a CAGR of 4.8%from 2020 through 2025. The growing demand for meat and aquaculture products is the major driving force behind the growth of the compound feed market. Increased awareness regarding quality meat and milk products and increased livestock production are two other factors augmenting the growth of the market studied. The growing demand for meat and aquaculture products is helping to sustain the growth. Compound feed is a mixture of raw materials and supplements fed to the livestock, sourced from either plant, animal, organic or inorganic substances, or industrial processing, whether or not containing additives. While soybean, corn, barley, wheat, and sorghum are the most commonly used raw materials, vitamins, minerals, and amino acids are the most common additives blended to form compound feed. Active healthcare stocks in news today include: China Xiangtai Food Co. Ltd. (NASDAQ: PLIN), The Hain Celestial Group, Inc. (NASDAQ: HAIN), Beyond Meat, Inc. (NASDAQ: BYND), Hormel Foods Corporation (NYSE: HRL), Sysco Corporation (NYSE: SYY).
Another report, this one from Technavio, projects that the global animal feed market size has the potential to grow by USD $92.79 billion during 2020-2024, and states that the market's growth momentum will accelerate throughout the forecast period. The market is currently fragmented, and the degree of fragmentation will increase during the forecast period. Market vendors are focusing on new product launches and mergers and acquisitions to strengthen their position in the animal feed market Archer Daniels Midland Co., Cargill Inc., and Charoen Pokphand Foods Plc are some of the major market participants. Though the accelerating growth momentum will offer immense growth opportunities, the high price of non-GMO animal feed will challenge the growth of the market participants. To increase their animal feed market share, companies should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
China Xiangtai Food Co. Ltd. (NASDAQ: PLIN) BREAKING NEWS - China Xiangtai Food Enters into MOU to Acquire Controlling Interest in Chongqing Ji Mao Cang Feed Co., Ltd. - China Xiangtai Food (the "Company" or the "PLIN"), an emerging growth company primarily engaged in pork processing in China, today announced that the Company, through its subsidiary Chongqing Jinghuangtai Enterprise Management Consulting Co., Ltd., entered into a non-binding Memorandum of Understanding (the "MOU") to acquire 51% controlling interest in Chongqing Ji Mao Cang Feed Co., Ltd.("JMC"), a private enterprise specializing in feed raw material sales and providing feed formula solutions, to expand the southwest market in China.
Pursuant to the MOU signed on March 23, 2020, PLIN proposed to acquire 51% controlling interest of JMC, one of the leading feed sales companies in southwest China. JMC has more than 200 customers in farm industry and nearly 100 customers in feed production industry. In 2019, JMC sold more than 200,000 tons of soybean meal, exceeding RMB 500 million (approximately $70,000,000 USD) in sales. Given the Company's revenue of fiscal year 2019 was $102,545,152USD, PLIN is expected to increase 70% of revenue through this acquisition.
Ms. Jiaping Zhou, General Manager of JMC, commented, "We are pleased to have an opportunity to start a partnership with a Nasdaq listed company, and it is regarded as an essential milestone in JMC's history. JMC stands to benefit greatly from PLIN's senior experience and resources in the food industry, and values PLIN's continued involvement as we look to further expand JMC's profitability with the development of production capability and enhancements to our distribution channels."
Ms. Zeshu Dai, Chairwoman and CEO of China Xiangtai Food, commented, "We are enthusiastic about partnering with JMC to continue accelerating the growth of the Company. This move is in line with our growing strategy of solidifying our industry position by gaining additional market share and expanding our product portfolio. With JMC's capability in feed raw material and formula solutions, we can improve our industrial chain and our competitiveness to position well for the expansion."
Mr. Xiaohui Wu, the President and Director of China Xiangtai Food, added, "The integration between the Company and JMC will further strengthen PLIN's dedication in assuring people's basic needs, as well as highlight both companies' efforts to fight for respective industry leading position in Chongqing City and Sichuan Province. The robust marketplace not only creates a new business model for industry chain enterprises to unite and strategically increase profitability through maximizing capability allocation, but also boosts competitiveness by providing related supporting services throughout the industry chain." Read this entire press release and more news for PLIN at: https://www.financialnewsmedia.com/news-plin
In other industry news this week of note includes:
The Hain Celestial Group, Inc. (NASDAQ: HAIN) a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East providing consumers with A Healthier Way of Life™, recently announced that the independent Compensation Committee of the Company's Board of Directors has made inducement awards (the "Inducement Awards") to new Executive Vice President and Chief Financial Officer, Javier H. Idrovo.
The Inducement Awards were granted on December 2, 2019 under The Hain Celestial Group, Inc. 2019 Equity Inducement Award Program, which was approved by the Company's Board of Directors on February 15, 2019 and provides for the granting of equity awards to new employees of the Company. The Inducement Awards were granted as an inducement material to Mr. Idrovo's acceptance of employment with the Company, in accordance with NASDAQ Listing Rule 5635(c)(4).
Beyond Meat, Inc. (NASDAQ: BYND) recently said that it will launch Beyond Breakfast Sausage at the end of March. Available in classic and spicy, the plant-based breakfast meat will have half the fat and a third of the calories of a leading pork sausage patty. Beyond Meat has partnered with Martha Stewart on two recipes for the launch: Classic Beyond Breakfast Sausage frittata with spinach and sweet onions, and Spicy Beyond Meat Breakfast Sausage with grits and roasted tomatoes. Beyond Breakfast Sausage will be available nationwide by early April at retailers including Amazon.com Inc.'s Whole Foods Market, Albertson's and Kings. It will sell for about $5 for six patties. Beyond Meat shares are down 2.5% in premarket trading, but are up 20.3% for the year to date.
Hormel Foods Corporation (NYSE: HRL) recently announced a special cash bonus to its plant production team members who continue to work tirelessly to produce food during the COVID-19 outbreak. The more than $4 million bonus will be paid to all full- and part-time plant production team members who have been working around the clock to ensure the company's trusted brands and products are available during the COVID-19 pandemic.
"As a global branded food company, we play a critical role in providing safe, high-quality food during this unprecedented time," said Jim Snee, chairman of the board, president and chief executive officer at Hormel Foods. "Our incredible team of more than 13,000 plant professionals is the backbone of our company and this special bonus is one way we can continue to thank them for how they have risen to the challenge and continue to produce food with a sense of purpose and pride."
Sysco Corporation (NYSE: SYY) the leading global foodservice distribution company, recently announced business and financial updates in response to changes in the foodservice industry due to the impact of the novel coronavirus (COVID-19) pandemic.
Sysco's strong balance sheet provides meaningful financial flexibility for the company to navigate current challenges in the "food-away-from-home" market resulting from the spread of COVID-19 and subsequent actions taken across the country to increase social distancing. The Company has cash on hand of approximately $2 billion as of March 20, 2020, including a recent $1.5 billion withdrawal under its revolving credit facility. Importantly, Sysco has no debt maturities for the next six months. In addition, Sysco is working with its banking partners to explore opportunities to raise additional funds and further strengthen its liquidity.
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