Darling Ingredients Inc (DAR) |
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Darling Ingredients Inc's Suppliers Performance
DAR's Supply Chain
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DAR Costs vs Sales of Suppliers Growth |
Revenues of Darling Ingredients Inc's Suppliers, deteriorated by -1.96 % compared to the same quarter a year ago, from the previous quarter, sales fell by -1.96 %, Darling Ingredients Inc's cost of sales deteriorated by -14.62 % year on year, relative to one quarter ago cost of sales fell by -4.93 % in Q4.
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Darling Ingredients Inc's Suppliers realized a deteriorated in sales by -1.96 % compared to the same quarter a year ago, from the previous quarter, sales fell by -1.96 %, Darling Ingredients Inc's cost of sales deteriorated by -14.62 % year on year, compare to one quarter ago cost of sales fell by -4.93 % in Q4.
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News about Darling Ingredients Inc Contracts |
Darling Ingredients Inc's Comment on Supply Chain
Bakery by-products are collected from large commercial bakeries that produce
a variety of products, including cookies, crackers, cereal, bread, dough, potato
chips, pretzels, sweet goods and biscuits. The Company collects these materials
by bulk loading onsite at the bakeries utilizing proprietary equipment, the
majority of which is designed, engineered, manufactured and installed by us.
All of the bakery residual that the Company collects is bulk loaded, which we
believe represents a significant advantage over competitors that receive a large
percentage of raw materials from less efficient, manual methods. The receipt
of bulk-loaded bakery residual allows us to significantly streamline our bakery
recycling process, reduce personnel costs, and maximize freight savings by hauling
more tons per load.
The Companys North American animal by-products operations collect beef, poultry
and pork by-products, which are collected primarily from slaughterhouses, grocery
stores, butcher shops and food service establishments. These raw materials are
collected in one of two manners. Certain large suppliers, such as large slaughterhouses,
are furnished with bulk containers in which the raw material is loaded. We provide
the remaining suppliers, primarily grocery stores and butcher shops, with containers
in which to deposit the raw material. The containers are picked up by, or emptied
into, the Company’s trucks on a periodic basis. The type and frequency
of service is determined by individual supplier requirements, the volume of
raw material generated by the supplier, supplier location and weather, among
other factors. The raw materials we collect are transported either directly
to a processing plant or to a transfer station where materials from several
collection routes are loaded into trailers and transported to a processing plant.
These raw materials are delivered to plants for processing usually within 24
hours of collection to deter spoilage.
In North America, we also collect used cooking oil from and service grease
traps at restaurants, food service establishments and grocery stores. Used cooking
oil is heated, settled, and purified for use as an animal feed additive or is
further processed into biodiesel. Products derived from used cooking oil include
YG, biodiesel, and Fat for Fuel®, which uses grease as a fuel source for
industrial boilers and dryers. Many of our customers operate stores that are
part of national chains. Used cooking oil from food service establishments is
placed in various sizes and types of containers that we supply. In some instances,
these containers are unloaded directly onto our trucks, while in other instances
used cooking oil is pumped through a vacuum hose into the truck. We sell two
types of containers, called CleanStar® and B.O.S.S., for used cooking oil
collection to food service establishments, both of which are proprietary self-contained
collection systems that are housed either inside or outside the establishment,
with the used cooking oil pumped directly into collection vehicles via an outside
valve. The frequency of all forms of used cooking oil collection is determined
by the volume of oil generated by the food service establishment. We either
transport trap grease to waste treatment centers or recycle it at our facilities
into a host of environmentally safe product streams. We provide our customers
with a comprehensive set of solutions to their trap grease disposal needs, including
manifests for regulatory compliance, computerized routing for consistent cleaning
and comprehensive trap cleaning. The Company also collects non-hazardous liquid
and semi-solid waste streams from the food processing industry and reprocesses
and recycles these residuals, primarily by permitted land application to enrich
soils in accordance with applicable environmental regulations.
We have two primary pricing arrangements-formula and non-formula arrangements-with
our suppliers of poultry, beef, pork, bakery residuals and used cooking oil.
Under a “formula” arrangement, the charge or credit for raw materials
is tied to published finished product prices for a competing ingredient after
deducting a fixed processing fee. We also acquire raw material under “non-formula”
arrangements whereby suppliers are either paid a fixed price, are not paid,
or are charged a collection fee, depending on various economic and competitive
factors. The credit received or amount charged for raw materials under both
formula and non-formula arrangements is based on various factors, including
the type of raw materials, demand for the raw materials, the expected value
of the finished product to be produced, the anticipated yields, the volume of
material generated by the supplier and processing and transportation costs.
Formula prices are generally adjusted on a weekly, monthly or quarterly basis,
while non-formula prices or charges are adjusted as needed to respond to changes
in finished product prices or related operating costs. Since most of our raw
materials are residual by-products of meat processing and other food production,
we are not able to contract with our suppliers to increase supply if demand
for our products increases.
Darling Ingredients Inc's Comment on Supply Chain
Bakery by-products are collected from large commercial bakeries that produce
a variety of products, including cookies, crackers, cereal, bread, dough, potato
chips, pretzels, sweet goods and biscuits. The Company collects these materials
by bulk loading onsite at the bakeries utilizing proprietary equipment, the
majority of which is designed, engineered, manufactured and installed by us.
All of the bakery residual that the Company collects is bulk loaded, which we
believe represents a significant advantage over competitors that receive a large
percentage of raw materials from less efficient, manual methods. The receipt
of bulk-loaded bakery residual allows us to significantly streamline our bakery
recycling process, reduce personnel costs, and maximize freight savings by hauling
more tons per load.
The Companys North American animal by-products operations collect beef, poultry
and pork by-products, which are collected primarily from slaughterhouses, grocery
stores, butcher shops and food service establishments. These raw materials are
collected in one of two manners. Certain large suppliers, such as large slaughterhouses,
are furnished with bulk containers in which the raw material is loaded. We provide
the remaining suppliers, primarily grocery stores and butcher shops, with containers
in which to deposit the raw material. The containers are picked up by, or emptied
into, the Company’s trucks on a periodic basis. The type and frequency
of service is determined by individual supplier requirements, the volume of
raw material generated by the supplier, supplier location and weather, among
other factors. The raw materials we collect are transported either directly
to a processing plant or to a transfer station where materials from several
collection routes are loaded into trailers and transported to a processing plant.
These raw materials are delivered to plants for processing usually within 24
hours of collection to deter spoilage.
In North America, we also collect used cooking oil from and service grease
traps at restaurants, food service establishments and grocery stores. Used cooking
oil is heated, settled, and purified for use as an animal feed additive or is
further processed into biodiesel. Products derived from used cooking oil include
YG, biodiesel, and Fat for Fuel®, which uses grease as a fuel source for
industrial boilers and dryers. Many of our customers operate stores that are
part of national chains. Used cooking oil from food service establishments is
placed in various sizes and types of containers that we supply. In some instances,
these containers are unloaded directly onto our trucks, while in other instances
used cooking oil is pumped through a vacuum hose into the truck. We sell two
types of containers, called CleanStar® and B.O.S.S., for used cooking oil
collection to food service establishments, both of which are proprietary self-contained
collection systems that are housed either inside or outside the establishment,
with the used cooking oil pumped directly into collection vehicles via an outside
valve. The frequency of all forms of used cooking oil collection is determined
by the volume of oil generated by the food service establishment. We either
transport trap grease to waste treatment centers or recycle it at our facilities
into a host of environmentally safe product streams. We provide our customers
with a comprehensive set of solutions to their trap grease disposal needs, including
manifests for regulatory compliance, computerized routing for consistent cleaning
and comprehensive trap cleaning. The Company also collects non-hazardous liquid
and semi-solid waste streams from the food processing industry and reprocesses
and recycles these residuals, primarily by permitted land application to enrich
soils in accordance with applicable environmental regulations.
We have two primary pricing arrangements-formula and non-formula arrangements-with
our suppliers of poultry, beef, pork, bakery residuals and used cooking oil.
Under a “formula” arrangement, the charge or credit for raw materials
is tied to published finished product prices for a competing ingredient after
deducting a fixed processing fee. We also acquire raw material under “non-formula”
arrangements whereby suppliers are either paid a fixed price, are not paid,
or are charged a collection fee, depending on various economic and competitive
factors. The credit received or amount charged for raw materials under both
formula and non-formula arrangements is based on various factors, including
the type of raw materials, demand for the raw materials, the expected value
of the finished product to be produced, the anticipated yields, the volume of
material generated by the supplier and processing and transportation costs.
Formula prices are generally adjusted on a weekly, monthly or quarterly basis,
while non-formula prices or charges are adjusted as needed to respond to changes
in finished product prices or related operating costs. Since most of our raw
materials are residual by-products of meat processing and other food production,
we are not able to contract with our suppliers to increase supply if demand
for our products increases.
DAR's Suppliers Net profit fell by |
DAR's Suppliers Net margin fell in Q4 to |
-25 % |
7.15 % |
DAR's vs. Suppliers, Data
(Revenue and Income for Trailing 12 Months, in Millions of $, except Employees)
COMPANY NAME |
MARKET CAP |
REVENUES |
INCOME |
EMPLOYEES |
Darling Ingredients Inc |
7,318.17 |
6,788.08 |
660.39 |
10,000 |
Sealed Air Corp |
5,165.98 |
5,488.90 |
341.60 |
16,500 |
General Mills Inc |
39,548.21 |
20,200.00 |
2,460.60 |
32,500 |
Csx Corporation |
74,922.51 |
14,657.00 |
3,715.00 |
20,900 |
Illinois Tool Works Inc |
80,332.04 |
16,107.00 |
2,957.00 |
45,000 |
O i Glass Inc |
2,325.96 |
7,105.00 |
-85.00 |
21,100 |
International Paper Company |
12,271.61 |
18,916.00 |
288.00 |
31,000 |
Ricebran Technologies |
1.27 |
30.43 |
-15.82 |
264 |
Clearwater Paper Corporation |
678.34 |
2,082.80 |
251.90 |
3,300 |
Graphic Packaging Holding Co |
8,376.29 |
9,428.00 |
723.00 |
13,000 |
Packaging Corp Of America |
16,332.78 |
7,842.10 |
787.60 |
15,200 |
Sonoco Products Company |
5,530.30 |
6,780.65 |
475.90 |
20,000 |
Advanced Drainage Systems Inc |
12,777.30 |
2,443.05 |
504.12 |
4,615 |
Innospec Inc |
3,052.48 |
1,963.90 |
126.80 |
1,800 |
Newmarket Corporation |
5,988.16 |
2,697.51 |
388.86 |
1,998 |
Aptargroup Inc |
9,438.27 |
3,487.45 |
284.18 |
12,700 |
Berry Global Group Inc |
7,045.78 |
12,457.00 |
562.00 |
21,000 |
Greif Inc |
3,656.37 |
5,153.10 |
360.30 |
0 |
Matthews International Corp |
948.84 |
1,880.79 |
33.19 |
10,300 |
Tredegar Corporation |
173.21 |
999.02 |
-105.91 |
2,800 |
SUBTOTAL |
288,565.68 |
139,719.70 |
14,053.33 |
273,977 |
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