The $20 billion food company Cargill Inc is profiled by the Minneapolis Star Tribune. The privately-held firm is is among the nation's top four largest producers of beef, pork, turkeys, animal feed, salt and flour. Full Story (Free Registration Required)

Safeway Inc. expects non-fuel identical-store sales to grow between 2% and 3% in 2009. Cash expenditures will be $1.2 billion, down from $1.6 billion in 2008. The company is "focused on growing our business in this tough economic environment, as well as in the long run," stated chairman, president and chief executive Steve Burd in an analyst conference. The executive noted that "these results will be supported by an aggressive cost reduction effort, coupled with price reductions, to further the company's effort to lower everyday pricing," reported The Associated Press. Full Story

Starbucks claims it will save $200 million from cost cuts this year by making in-store labor more efficient, streamlining its supply chain and managing waste such as excess steamed milk or brewed coffee that is not sold after 30 minutes. Starbucks is also looking to improve efficiency in each store, stated Cliff Burrows, president of its U.S. business. One plan includes reconfiguring store space so fewer workers are needed to serve customers, reported Reuters. Full Story, Full Release

Kraft will introduce halal products in response to an idea brought forth by an employee, according to Kraft CEO Irene Rosenfeld, who spoke at Duke's Fuqua School of Businesses, reported The Chronicle (Duke University). Full Story

The addition of cranberry concentrate to ground beef may help to control potential E. coli O157:H7 outbreaks associated with the meat, according to a study published in the journal Food Microbiology. Researchers at the University of Maine found that cranberry concentrate possessed antimicrobial effects and did not cause significant negative impact on the flavor, taste or color of burgers, reported Food Navigator Europe. Full Story, Study Abstract

International News

The hotel, restaurant and institutional food service (HRI) sector market in Mexico represents good export opportunities for U.S. suppliers of food and beverages, according to a FAS report. Upscale hotels and restaurants that cater to international tourism are the most important sectors to target. No import duties apply to U.S. food and beverages entering the Mexican market and they are regarded as consistent high quality products by the HRI industry. FAS Report

Campbell Soup Company expanded its Chinese broth business with the launch of its "Swanson" broth products in Shanghai, which has 18 million residents and an affluent middle class. Campbell's research indicates that 72% of the population eats a bowl of soup every day. Full Story

Washington News

The National Labor Relations Board filed a complaint against U.S. Foodservice Inc., charging the company with unfair labor practices during a union campaign in Arizona. U.S. Foodservice's warehouse employees, drivers and fleet-maintenance workers narrowly voted against organizing with the International Brotherhood of Teamsters in September, reported the Arizona Daily Star. Full Story

EPA is proposing to charge fees for air-polluting animals. It would require farms or ranches with more than 25 dairy cows, 50 beef cattle or 200 hogs to pay an annual fee of about $175 for each dairy cow, $87.50 per head of beef cattle and $20 for each hog, reported The Associated Press. Full Story

Rep. Bart Stupak (D-MI) asked President-elect Obama to avoid naming any current officials of FDA to lead the agency, reflecting a divergence of views on how to fix its problems, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

Market News

The U.S. remains the global leader in the production of genetically modified (GM) crops but claims of enhanced yields and nutrition are not yet realized, according to a report from the Worldwatch Institute. The total global area of GM crops increased 12% in 2007 compared to the previous year, bringing total GM land area up to 114.3 million hectares, accounting for 9% of global primary crop production. Four cash crops account for virtually all GM production: soybean (51%); corn (31%); cotton (13%); and canola (5%). Full Story

Mexican apple production for 2008/09 is forecast at 540,000 metric tons, a 1.8% increase compared to 2007/08. Apple imports are forecast to decrease approximately 5% as a result of decreased demand and adverse exchange rates with the U.S. dollar. Pear production is forecast at 28,000 metric tons for 2008/09, a marginal increase compared to 2007/08. Pear imports are forecast to decrease 4.7% due to lower demand and the depreciation of the Mexican Peso. FAS Report