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We have a clear path to add over
$100 million in incremental operating
earnings on an annualized basis by the end
of 2009 through our protein reorganization.
We started down this path in late 2006
and we are on track to achieve our goals.
While 2008 will be another year of intense
change, we expect the bulk of major
projects will be completed this year and
to start seeing the financial rewards
of our efforts as we head into 2009.
Our path to step-change shareholder
value consists of five key value drivers.
They provide the platform to increase
profitability and earnings stability, and
drive top-line growth through product
and geographic expansion.
- Restructuring our Protein Business
- Driving Growth in Fresh Bakery
- Fix to Grow in Frozen Bakery
- Value Creation in Value-Added
Meat and Meals
- Expansion in U.K. Bakery
1. Restructuring our Protein Business.
Our strategy is straightforward - reduce
our currency and commodity exposure
and increase profitability by downsizing
our hog production and fresh pork
operations, converting them from
independent businesses to an internal
supplier of high quality pork to support
growth in our more stable and profitable
packaged meat and meals business.
Last year we sold our animal nutrition
business, significantly restructured our
hog production operations and improved
the scale and efficiency of our pork
processing plant in Brandon, Manitoba
by doubling the hogs processed.
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