Sand takes over the vertically integrated pork company at a time when the industry is facing global uncertainty with major export markets like China responding to US tariffs on some Chinese imported products with tariffs of their own that target US pork imports. Meanwhile, labor shortages and ramping up several new US pork plants have many processors seeing green while exercising caution. Sand recently answered questions about taking over the leadership of Seaboard Foods, market headwinds and tailwinds influencing the pork industry and the challenges and opportunities he faces.
MEAT+POULTRY: Seaboard Foods and its partners are obviously experiencing a lot of growth as of late, including the recent start-up of the new STF plant (and adding a second shift), a new Daily’s bacon processing plant coming online recently, expansion at the Triumph facility, etc. What are some of the factors that are fueling the growth for Seaboard and throughout the pork industry?
Duke Sand: A few things are fueling our growth. Global demand for pork continues to grow and the United States is the competitive leader in producing cost-effective, high-quality pork. The competitive spirit of American producers to always do more with less while improving productivity, which in turn increased the need for more processing capacity. This played a key role in our decision to build another state-of-the-art processing plant to be sure there was a reliable outlet for this expansion. Lastly, global consumer demand for affordable high-quality, safe pork produced in a sustainable manner has driven the expansion. The connected food system we’ve created with our strategic partners positions us to be the leader in meeting this demand for the long term.
M+P: As an IBP employee during the 1980s and 1990s, what were some of the lessons you learned in the shadow of industry legends like Bob Peterson and others prior to joining Seaboard?
Sand: I had the privilege of working for and with a number of great people at IBP and my biggest takeaway was to have a passion for this industry. I learned we can’t have waste of any kind in an industry that relies on live animals as our primary input. We have an obligation to the animals and producers to create all the value we can from our inputs, while doing it responsibly in a sustainable manner.
M+P: Talk about your time at IBP and the transition to what would be the next 20-plus years of your career with Seaboard.
Sand: I started my career in international sales at IBP back when international markets were limited and exports were less than 5 percent of sales. Years later, I had the opportunity to join Seaboard Foods in its infancy and help build and develop our own international sales business.
My time spent on the international side of the business developed my basis for how I view all our sales relationships. I see all our customers as partners, and as such, we work together to make each other better by pursuing to offer the most sought-after pork products for our mutual end user: the consumer.
M+P: As vice president of international sales during your early years at Seaboard, what are some of the biggest differences in international trade practices then versus today?
Sand: The biggest differences are that we are more engaged across the production system in what it takes to satisfy our international customers’ demands. The industry today understands what it takes to be successful in other markets, and we have better access to those markets through trade agreements that did not exist when I started in the business. We’ve learned one size doesn’t fit all when selling in the global marketplace with diverse global consumers.
M+P: Mexico, China and Japan are obviously important and longtime trade partners for US pork exports. Volume and values of exports to Mexico have more than doubled in 10 years while those to Asia have steadily increased. Where do you see the next potential emerging market being for US pork exports?
Sand: South America and Central America are both growth areas because of trade agreements that have helped foster these markets. Specifically, the Dominican Republic and, more recently, Colombia have shown strong year-over-year increases in US pork imports. Other countries in those regions still show strong promise and opportunity.
However, we must stay focused on China, Japan and Mexico. These markets still present huge potential for increased sales, and we continue to face strong competition in each of these markets. It is essential we protect the trade we have in those markets, while we look to continue to expand on other opportunities.
M+P: What are some of the protein trends you’ve recognized more recently and what is Seaboard’s strategy for competing in the evolving protein market, which now includes competition from plant-based and cultured proteins?
Sand: Consumer demand is shifting toward smaller portion-controlled packaging, bold flavors and the expectation of transparency from their food supplier. In addition, they expect consistent quality and great taste in the pork they purchase. We are in the business of producing nutritious protein with real meat in a transparent and sustainable manner. Our connected system delivers this while going above and beyond due to the inherent traceability and alignment from our farms to family tables around the world. We strive to create the most sought-after pork products for our diverse global consumers.
Read the complete Q&A with Sand in the June issue of MEAT+POULTRY.