Every Single Worker Has Covid at One U.S. Farm on Eve of Harvest (Sat, 30 May 2020)
(Bloomberg) -- One farm in Tennessee distributed Covid-19 tests to all of its workers after an employee came down with the virus. It turned out that every single one of its roughly 200 employees had been infected.In New Jersey, more than 50 workers had the virus at a farm in Gloucester County, adding to nearly 60 who fell ill in neighboring Salem County. Washington state’s Yakima County, an agricultural area that produces apples, cherries, pears and most of the nation’s hops, has the highest per capita infection rate of any county on the West Coast.The outbreaks underscore the latest pandemic threat to food supply: Farm workers are getting sick and spreading the illness just as the U.S. heads into the peak of the summer produce season. In all likelihood, the cases will keep climbing as more than half a million seasonal employees crowd onto buses to move among farms across the country and get housed together in cramped bunkhouse-style dormitories.The early outbreaks are already starting to draw comparisons to the infections that plunged the U.S. meat industry into crisis over the past few months. Analysts and experts are warning that thousands of farm workers are vulnerable to contracting the disease.Aside from the most immediate concern -- the grave danger that farmhands face -- the outbreaks could also create labor shortages at the worst possible time. Produce crops such as berries have a short life span, with only a couple of weeks during which they can be harvested. If a farm doesn’t have enough workers to collect crops in that window, they’re done for the season and the fruit will rot. A spike in virus cases among workers may mean shortages of some fruits and vegetables at the grocery store, along with higher prices.“We’re watching very, very nervously -- the agricultural harvest season is only starting now,” said Michael Dale, executive director of the Northwest Workers’ Justice Project in Portland, Oregon, and a lawyer who has represented farm workers for 40 years. “I don’t think we’re ready. I don’t think we’re prepared.”Unlike grain crops that rely on machinery, America’s fruits and vegetables are mostly picked and packed by hand, in long shifts out in the open -- a typically undesirable job in major economies. So the position typically goes to immigrants, who make up about three quarters of U.S. farm workers.A workforce of seasonal migrants travels across the nation, following harvest patterns. Most come from Mexico and Latin America through key entry points like southern California, and go further by bus, often for hours, sometimes for days.There are as many as 2.7 million hired farm workers in the U.S., including migrant, seasonal, year-round and guest-program workers, according to the Migrant Clinicians Network. While many migrants have their permanent residence in the U.S., moving from location to location during the warmer months, others enter through the federal H2A visa program. Still, roughly half of hired crop farmworkers lack legal immigration status, according to the U.S. Department of Agriculture.These are some of the most vulnerable populations in the U.S., subjected to tough working conditions for little pay and meager benefits. Most don’t have access to adequate health care. Many don’t speak English.Without them, it would be nearly impossible to keep America’s produce aisles filled. And yet, there’s no one collecting national numbers on how many are falling sick.“There is woefully inadequate surveillance of what’s happening with Covid-19 and farm workers,” said Erik Nicholson, a national vice president for the United Farm Workers. “There is no central reporting, which is crazy because these are essential businesses.”At Henderson Farms in Evensville, Tennessee, where all the workers caught the virus, the employees are now all in isolation at the farm, where they live and work.“We take our responsibility to protect the essential workers feeding the nation through the pandemic seriously,” Henderson Farms Co. said in a statement. “In addition to continuing our policy of providing free healthcare, we have implemented additional measures to support workers directly impacted by Covid-19, including those in isolation as per the latest public health guidelines. We are working closely with public health officials in Rhea County, Tennessee, to ensure we can continue to deliver our high standard of care as we support our workers and our community through these unprecedented times.”One migrant worker from Mexico said seven employees at the Georgia produce farm where he works had fallen ill with the virus. The sick were asked to quarantine in a dormitory unpaid, but others who share the sleeping quarters, full of bunk beds about 3 feet (1 meter) apart, were still going into the fields, he said. He said he was afraid of getting infected, which would mean he wouldn’t be able to send money back to his family.Critical MonthsMay and June mark the start of a critical few months when migrant workers head to fields in North America and Europe to plant and gather crops. Travel restrictions amid the pandemic are already creating a labor squeeze. In Russia, the government is calling on convicts and students to fill in the labor gap on berry and vegetable farms. In the U.K., Prince Charles took to Twitter to encourage residents to PickForBritain. Farmers in western Europe usually rely on seasonal workers from eastern Europe or northern Africa.In Canada, migrant workers often come from Jamaica, Guatemala and Mexico. They’re typically housed on farms, with two or four people sharing a room, depending on if there are bunk-beds, said Colin Chapdelaine, president of BC Hot House, a greenhouse farming company that grow tomatoes, peppers and cucumbers in Surrey, British Columbia.All the houses are audited and approved by regulators with guidelines for how much kitchen and bathroom space to provide, but “Covid has kind of turned that on its head,” he said.“It’s a precarious situation if something happens and it flows through a greenhouse and you can’t pick your crop,” Chapdelaine said. “We’re taking huge precautions to make sure everyone comes in suited and masked up. You have to do all the right things and still hope for the best.”In the U.S., migrant farm workers primarily come from Mexico and Latin America.President Donald Trump has sought to maintain the flow of foreign workers to U.S. farms during the pandemic, waiving interview requirements for some guest workers when consular offices shut down and exempting them from a temporary immigration ban. But so far, the administration hasn’t created rules to protect the workers. Democratic Representative Jimmy Panetta of California and 71 other members of Congress urged in a letter last week that the next coronavirus relief package include funding dedicated to combating spread of the virus among farm workers.Even before infections started to creep up, there weren’t enough workers, causing harvest issues in parts of the U.S. Some prices started to move up. A 2-pound package of strawberries is fetching about 17% more than it was last year, and a pint of cherry tomatoes is 52% higher, USDA data as of May 22 show.So far, though, the price impact has been limited. As restaurants shuttered during virus lockdowns, many farmers lost a key source of produce demand, creating some supply gluts.Now, stay-at-home restrictions are easing in all 50 states, and some restaurants are opening back up. Meanwhile, labor shortages could get worse as illness among farm workers deepens.“The cost will go up, and there will be a little bit less available,” said Kevin Kenny, chief operating officer of Decernis, an expert in global food safety and supply chains. “You really will see some supply issues coming.”Perishable crops that require more hands on labor to pick are the most at-risk of disruptions, including olives and oranges, Kenny said.In Florida, oranges are “literally dying on the vines” as not enough migrants can get into the country to pick the crops and things like processed juice will probably cost more in the coming months, he said.When the virus spread among America’s meat workers, plants were forced to shutter as infections rates topped 50% in some facilities. Prices surged, with wholesale beef and pork more than doubling, and grocers including Kroger Co. and Costco Wholesale Corp. rationed customer purchases. Even Wendy’s Co. dropped burgers from some menus. After an executive order from Trump, plants have reopened, but worker absenteeism is restraining output. Hog and cattle slaughter rates are still down more than 10% from last year.The produce industry could see similar problems because workers face some of the same issues. They sometimes work shoulder to shoulder. They are transported to and from job sites in crowded buses or vans. They often come from low-income families and can’t afford to call in sick or are afraid of losing their jobs, so they end up showing up to work even if they have symptoms.“A lot of people are concerned that the summer for farm workers will be like the spring for meat packers,” said David Seligman, director of Towards Justice, a nonprofit law firm and advocacy organization based in Denver.There’s “a lot of worker fear because of the asymmetry of power in this industry,” Seligman said. “We’re hearing anecdotal reports. Gathering information about farm workers is very hard because of how scared and how isolated they are.”There are some key differences between the two industries. For one, farm workers spend most of their time outside, and some research has shown that the virus is less likely to be spread outdoors. Meanwhile, meat workers are piled into cold, damp factories where infectious diseases are particularly hard to control.In other ways, farm workers are more exposed. Living conditions can be even more cramped, with close-together bunks and communal cooking and bathroom facilities that make physical distancing extremely difficult.Plus, the workers move around so much, meaning increased chances of exposure for themselves and more chances that sick individuals can spread the illness to other communities.In Oregon, a farm worker often may move a half dozen times during the summer, working for new growers and housed in new labor camps as they shift from harvesting cherries to strawberries to blueberries to pears, said Dale of the Northwest Workers’ Justice Project.Nely Rodriguez is a former farm worker who is now an organizer with the Coalition of Immokalee Workers in Immokalee, Florida, a major tomato growing area. She said that some farms are taking steps to protect migrants, such as having buses make more trips so workers won’t be as cramped and requiring them to wear masks, as well as providing more hand-washing stations and sanitizer.Lisa Lochridge, a spokeswoman for the Florida Fruit and Vegetable Association, also pointed to increased measures to protect workers and said some employers even set aside separate housing to be used for a quarantine area if necessary. Cory Lunde, of the Western Growers Association, said farm owners are staggering start times, disinfecting buses and increasing distances between workers, both in the field and in packing facilities and offices.But protection measures can be spotty, said Rodriguez of the Coalition of Immokalee Workers. There aren’t yet any farm specific Covid-19 safety protocols from the federal government.Developing GuidanceThe USDA is “diligently working” with the the U.S. Centers for Disease Control and Prevention and the Occupational Safety and Health Administration “to develop guidance that will assist farmworkers and employers during this time,” the agency said in an emailed statement.“Additionally, considering the seasonal and migratory nature of the workforce, we are working to identify housing resources that may be available to help control any spread of Covid-19,” the USDA said.Harvests take place at different times across the country, depending on the weather and the crop. That means when gathering finishes in an early state like Florida, workers will travel into areas such as Georgia, North Carolina, Indiana and New Jersey, said Rodriguez of the Coalition of Immokalee Workers. They’ll often make the journey on old school buses rented by employers, sitting for 7 or 8 hours at a time with 45 people crammed in.“If there is a bunch of farm workers here that are sick, they can essentially spread this virus to other rural communities,” Rodriguez said.Many farm workers come from indigenous communities in southern Mexico and don’t speak English or Spanish as their first language, so they don’t have adequate information on the pandemic in a language they can understand, said Bruce Goldstein, president of Farmworker Justice, a national advocacy group.They typically don’t have easy access to coronavirus tests, and many are undocumented so they are concerned about reporting illnesses, he said.“They’re marginalized in Mexico. They’re similarly marginalized here,” Goldstein said. “People like that are incredibly vulnerable to Covid-19.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Coty Shares Tumble After Forbes Questions Kylie Jenner’s Wealth (Fri, 29 May 2020)
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3 “Strong Buy” Dividend Stocks Yielding at Least 9% (Fri, 29 May 2020)
The S&P 500 has broken above 3,000, marking a milestone in the current bull rally. There’s a deepening feeling that equities by be a leading indicator, showing that the economy will turn around in 2H20.That’s the blue-sky scenario, and it may happen. We live in an uncertain world, however, and even the most upbeat investors will look for ways to defend their portfolio in times like these. It’s natural to look at value stocks, equities trading at low cost but offering high upside potential, and high-yield dividend stocks, with their steady income stream providing a cushion against share depreciation. We’ve used TipRanks database to find three stocks to fit that profile. Ares Commercial Real Estate (ACRE)We’ll start with a real estate investment trust. These companies typically pay out high yield dividends, as tax codes require them to return a high percentage of income directly to shareholders. Ares, which originates, invests in, and manages commercial real estate loans in the mid-market, is typical of its niche.The economic and market slides of the past few months hit the company hard. With commercial activity slowing, there were fewer opportunities for real estate loans, and repayment income was hit. Ares saw a sequential decline in earnings from Q4 to Q1, although at 11% it was not as deep as many similar companies. The company’s stock price is still down, however; with a net share price loss of 50%, Ares has badly underperformed in the current cycle.Even though the stock is down and income is lower, Ares has maintained its solid dividend. The company paid out 33 cents per share in Q1, slightly more than its EPS. The yield, however, is the true attraction here – at 16.5%, it is sky-high, far higher than the 2.2% average found among peer companies in the financial sector.JMP’s 5-star analyst Steven DeLaney sees ACRE’s current condition as an opportunity to buy in at lower prices. He writes of the stock, “…our outlook for a recovery in the value of ACRE shares remains positive after an expected few months of temporary economic turbulence as the company has minimal exposure to higher-risk commercial property types and has generally demonstrated solid loan underwriting since its inception in 2012.”DeLaney’s Buy rating is backed by a $10 price target, suggesting room for a robust upside of 32%. (To watch DeLaney’s track record, click here)Ares has a unanimous Strong Buy analyst consensus rating, based on 3 recent Buy reviews. Shares are selling for $7.61 and the average price target matches DeLaney’s at $10. The 31% upside and ultra-high dividend yield should bring investors in. (See ACRE stock analysis on TipRanks)Barings BDC, Inc. (BBDC)Next up is a business development corporation, Barings BDC. This company, provides asset management and direct origination for its customers to raise capital. Barings invests in middle market debts, equities, and fixed income assets, with customers around the world. Barings boasts over $327 billion in world-wide assets under management.In Q1, Barings managed to avoid sharp sequential declines, but the 15-cent EPS still missed the forecast by a penny. Top line revenue, at $18.7 million missed the forecast by almost 2%; however, it did show modest year-over-year growth.BBDC pays out 16 cents per share quarterly, making the yield on the 64-cent annualized payment an impressive 9%. While not as stellar as Ares above, it is still more than 4x higher than the average 2% yield found among S&P listed companies.Finian O’Shea covers this stock for Wells Fargo and writes, “With a stable portfolio, leverage and liquidity profile, we believe BBDC is one of the names that will sail through the recession with comparatively little harm – and therefore likely to provide a very attractive return over the medium to long term.” (To watch O’Shea’s track record, click here)The Strong Buy analyst consensus rating here is another unanimous vote, also based on 3 reviews. BBDC is selling for $7.40 per share, and the average price target of $8.50 indicates room for a 10% upside potential. (See Barings BDC stock analysis on TipRanks)Ready Capital Corporation (RC)Last up is another REIT, this one focusing on commercial mortgages. Ready Capital buys, originates, finances, and manages loans for commercial mortgages and related real estate securities including multi-family properties. The company’s customer base is in the US, where it boasts that it has provided over $3 billion in capital through its services.Ready suffered the worst share price loss of the stocks in this list, as it is down 59% since February. Shares have been flat since their initial decline, and the first quarter saw earnings collapse from over 40 cents to just one penny.However – the prospect for Q2 is better, with forecasts predicting up to 52 cents EPS inQ2. Most investors appear to see Ready’s pain as already baked in – repayments were down, but as the economy improves that situation is likely to reverse itself. In the meantime, Ready has kept up its dividend at 40 cents quarterly. The annualized payment is $1.60 per share. These are decent numbers, but the yield is where it’s at here. RC’s dividend yields an eye-popping 25% after the share declines – more than enough to make the potential risks worthwhile.Piper Sandler analyst Crispin Love writes, “We believe RC can weather the volatility given its diversified platform, low LTVs, PPP benefits, and potential to buy distressed assets in 2020/2021… The company's $4.2B portfolio of 4,500 loans have LTVs of about 60% and 90% of loans are current through April 30. In the CRE portfolio, 10% of loans are in forbearance while 7% of loans in the resi portfolio are in forbearance. Given RC's focus on small balance, we believe there were worries that forbearance rates would be significantly higher.”All of this is a recipe for a stock ready to bounce back, and Love rates RC a Buy. The analyst’s $17.50 price target shows how strong his confidence is – it implies an upside potential of 195% for the coming year. (To watch Love’s track record, click here)While RC shares get another Strong Buy from the analyst consensus, also based on 3 Buy reviews, there is some caution here, shown by one Hold tossed into the mix. Ready’s shares are selling for $5.92, and the average price target of $13.50 suggests a strong upside of 128%. (See Ready stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

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Beyond Meat Teams Up With KFC, Pizza Hut In China (Sun, 31 May 2020)
Beyond Meat (BYND) is partnering up with fast-food chains Kentucky Fried Chicken (KFC) and Pizza Hut to expand the reach of its famous plant-based beef in China.The news sent shares up 6.2% on Friday. According to social media site Weibo, the plant-based meat pioneer will be rolling out its products with KFC from June. The partnership with Pizza Hut is slated to start in the coming week. No further details were announced.“We’re proud to expand our partnership with KFC into China, one of their largest markets worldwide, as well as introduce a new partnership with Pizza Hut in China,” a Beyond Meat spokesperson said in an e-mail response to Bloomberg. "We'll be sharing more details soon."Back in April, Beyond Meat made the foray into the market in China announcing a partnership with Starbucks (SBUX). The coffee chain operator is offering a new menu to Chinese customers featuring the company’s ‘beef’ in pastas and lasagna, as well as non-dairy milk and fake pork products.During the same month, Yum China’s KFC also announced that it will begin its first Chinese trial of a plant-based version of its popular fried chicken. According to the company’s Weibo page, U.S. agribusiness Cargill Ltd will supply the nuggets.Beyond Meat’s expansion plans have fueled its share price to more than double since March 18. The stock traded at $128.29 as of Friday. Following the impressive rally, the $90.64 average analyst price target now indicates 29% downside potential from current levels. (See Beyond Meat stock analysis on TipRanks)However, one of the analysts sees more gains in the offing for Beyond Meat’s stock. Five-star analyst Peter Saleh, on May 19 initiated the stock with a Buy rating and $173 price target, reflecting 35% upside potential over the coming year, citing strong sales growth in coming years.“The company’s stated goal is to tackle the $1.4 trillion global meat industry,” Saleh wrote in a note to investors, adding that about $270 billion of that is spent in the U.S. “The adoption of Beyond’s products by mainstream customers in the suburbs will be the key to long-term success. We expect the company to expand into other protein categories including poultry to help broaden its appeal.”The analyst forecasts sales to grow 56% in 2020 and 51% in 2021.The rest of Wall Street analysts remain sidelined on Beyond Meat’s stock right now. The Hold analyst consensus is divided into 5 Hold, 5 Sell and 4 Buy ratings.Related News: Hormel Stock Rises After It Reports Record Sales Papa John’s U.S. Pizza Sales Jump 33.5%; Shares Pop 7% In Pre-Market Uber In Partnership With MoneyGram For Driver Discount During Pandemic More recent articles from Smarter Analyst: * China’s Tencent In Talks To Buy $200 Million Stake In Warner Music - Report * Quest’s Covid-19 Self-Collection Test Kit Gets FDA Nod For Emergency Use * Minerva Shares Tank 72% As Schizophrenia Drug Misses Trial Goals * American Airlines Plans To Cut 30% Of Its Management Staff

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Barron's Picks And Pans: Cheniere Energy, Delta Air Lines, Extended Stay And More (Sun, 31 May 2020)
* This weekend's Barron's cover story offers some stocks poised to rebound as the economy reopens. * Other featured articles look at why now is a good time to buy insurance stocks, and who wins as Americans take to the roads again. * Also, the prospects for a senior-living stock, cruise and hotel stocks with a difference, and more.Cover story "7 Travel Stocks Set for Success as Lockdowns End" by Avi Salzman shows why, despite the recession, Americans are about to hit the road. Now is the time to find deals in the likes of Delta Air Lines, Inc. (NYSE: DAL) and Las Vegas Sands Corp. (NYSE: LVS).Avi Salzman's "A Senior-Living Stock That Should Age Well" suggests that with manageable debt and a seemingly safe dividend, Caretrust REIT Inc (NASDAQ: CTRE) looks like a standout in a corner of the real estate industry that has growth potential.In "Yes, Now Is a Good Time to Buy Insurance Stocks," Al Root points out that shares of property and casualty insurers such as Hartford Financial Services Group Inc (NYSE: HIG) typically rally after catastrophic events as the industry raises its rates.Lindblad Expeditions Holdings Inc (NASDAQ: LIND) not only has a loyal and relatively wealthy customer base, but it faces lighter logistical challenges than its bigger cruise line rivals. So says "Why This Small, Elite Cruise Operator Could Weather the Coronavirus Storm" by Alexandra Scaggs.In Daren Fonda's "3 Airline Stocks That Can Benefit From a Pickup in Domestic Travel," see why Americans are more likely to book domestic, short-haul leisure trips, rather than business and international flights. What does that mean for Southwest Airlines Co (NYSE: LUV) and others?See Also: 'Price Is Truth': Analyzing Stock Chart Performance Using Technicals"Hotel Stocks Have Been Hit Hard. Why Extended Stay Is Different" by Carleton English examines why, unlike other hotel chains, Extended Stay America Inc (NASDAQ: STAY), has not had to make radical changes to its operations.Driving is rebounding as the economy reopens and Americans take to their cars, according to Andrew Bary's "Americans Are Getting Back on the Road. 3 Stocks to Buy." That looks bullish for Marathon Petroleum Corp (NYSE: MPC) and others.In "Buy This Energy Company. It Raised Its Dividend Twice This Year," Avi Salzman discusses why, thanks to long-term contracts for liquefied natural gas, Cheniere Energy Partners LP (NYSE: CQP) offers safety that is unusual for such a challenged sector.Also in this week's Barron's: * Concerns arising from the president's feud with Twitter * Why the U.S. probably will prevail over China in the long run * Why NASA would be a huge aerospace player as a stock * The most dangerous sectors for dividend investorsSee more from Benzinga * Notable Insider Buys: Avis, Dynavax And Formula One * Benzinga's Bulls And Bears Of The Week: Amazon, Disney, Netflix And More * Notable Insider Buys This Past Week: Berkshire Hathaway, Sysco And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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