May’s top stories: Tyson’s $6.8bn offer, USDA-ARS food modelling tool

Tyson Foods offers $6.8bn to buy Hillshire Brands

Meat processor Tyson Foods made a $6.8bn offer to buy Hillshire Brands, two days after Pilgrim’s Pride made a similar proposal for $6.4bn.

Tyson Foods’ offer to Hillshire equates to $50 per share, a 35% premium on the closing price as of 9 May; Pilgrim’s offer was $45 per share, at a 25% premium.

Both Tyson and Pilgrim’s bids require Hillshire to drop the proposal it made recently to acquire Pinnacle.

US scientists develop advanced modelling tool to improve food security

Scientists from the USDA Agricultural Research Service (USDA-ARS) developed an advanced modelling tool to help optimise crop production across larger areas.

The new tool, known as the Geospatial Agricultural Management and Crop Assessment Framework (GAMCAF), brings together crop models that estimate plant growth and crop yield at scales as fine as 30m.

It also uses spatial sources of information on soils, water, land use, and other factors.

Highlander Partners divests food solutions firm SensoryEffects for $567m

US-based investment firm Highlander Partners divested its portfolio company SensoryEffects to Balchem for a purchase price of $567m.

SensoryEffects is a food and beverage company that develops complete systems, including flavourings and ingredients, to finished products.

Its business units include SensoryEffects Powder Systems in Defiance (Ohio), Reading (Pennsylvania), Marshfield (Wisconsin) and Sleepy Eye (Minnesota); SensoryEffects Flavor Systems in Bridgeton (Missouri); and SensoryEffects Cereal Systems in Lincoln (Nebraska).

FrieslandCampina, Huishan to establish infant milk formula JV in China

Dutch dairy cooperative Royal FrieslandCampina and China Huishan Dairy Holdings entered into exclusive talks to create a joint venture (JV) to produce, market and sell infant milk formula in China.

The JV is aimed at operating a fully integrated infant milk formula supply chain in China.

The formal agreements are said to be subject to conditions precedent, including a due diligence review and other conditions.

Hillshire Brands to acquire Pinnacle Foods for $6.6bn

US-based food company Hillshire Brands signed an agreement to acquire packaged foods firm Pinnacle Foods for around $6.6bn, including debt.

The transaction will bring together two highly complementary businesses with leading brands, to create a diversified food company with estimated pro forma 2014 sales of $6.6bn.

The combined company will have leading positions in key frozen, refrigerated and centre of store grocery categories.

Valio commences construction of €170m snacks facility in Finland

Finland-based dairy products manufacturer Valio commenced the construction of a new snacks plant in Riihimäki, Finland, which is expected to create dozens of new jobs in production and warehousing operations.

The total investment for the new snacks plant, which is located near the company’s Valio Herajoki plant, is around €170m, while the value of the investment in the building is about €75m.

As part of the first phase, the company will build a plant with a floor area of about 18,000ft² on a plot of land purchased in 2013.

Cargill receives clearance for use of sunflower lecithin in food in Japan

American agribusiness firm Cargill received approval for the use of sunflower lecithin in food in Japan.

Japan’s Ministry of Health, Labour and Welfare approved Cargill’s Topcithin sunflower lecithin, a clean label non-GM emulsifier made from oilseeds, making the product available for customers in Japan for the first time.

With this move, food companies worldwide can also export products containing Topcithin sunflower lecithin for sale in the growing Japanese market.

China imposes ban on British cheese imports

China temporarily imposed a ban on British cheese imports after inspectors raised concerns over standards at an unnamed UK dairy.

During an audit, Chinese officials complained about maintenance, raw milk transport temperatures, chemical storage and air sanitisation.

However, it was reported that the unnamed dairy does not export any of its produce to China.