Postville, IA – Israeli Firm Zoglobek Negotiating to Purchase Rubashkin’s Meat Plant

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    Zoglobek Meat plant in IsraelPostville, IA – The general director and one of the owners of Zoglobek company, Eli Zoglobek, is presently negotiating to purchase the Agriprocessors meat plant owned by the Rubashkin family, which supplies 60% of the American kosher meat market, and has a $400 million annual turnover. This is according to Israeli Hebrew Newspaper Sha’ah Tovah

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    The Zoglobek food processing plant in Israel is a privately owned, family business that earns over $100 million a year. It was founded in 1937 by Raymond and Yona Zoglobek, who were refugees from Nazi Germany. The first factory was established in Nahariya, and later a newer factory was built in Shlomi.

    It is conjectured that Zoglobek will try to purchase the meat production plant at liquidation prices, perhaps only several tens of millions of dollars.

    In the past, Eli Zoglobek mentioned that it is difficult to expand in a country as small as Israel and he was thinking of setting his sights abroad.

    If Zoglobek purchases Agriprocessors, Zoglobek would be able to move a large part of his meat production abroad, which would save transportation costs for the profitable kosher meat line which he exports from Israel.

    In Israel, Zoglobek maintains a regular kosher line of products, and also a smaller line of mehadrin kosher products. It also sells meatless kababs, patties, burgers, schnitzel, frankfurters, stir-fry ready meals, and nuggets.

    Rubashkin’s thriving plant suffered sudden reverses after a federal raid of the plant last May discovered the company employed 400 illegals, some of whom were minors. The raid invited further federal scrutiny against the Rubashkins, and today the company faces a myriad of federal bank fraud and immigration-related charges. Chief executive Sholom Rubashkin was taken in custody in Iowa and faces heavy fines and a prison sentence if he is convicted.

    Despite the Rubashkins offering the court $3.75 million for bail, U.S. Magistrate Judge Jon Scoles denied it, saying, among other reasons, he was concerned that Rubashkin might take advantage of Israel’s “Law of Return” which provides citizenship to any Jew who wants to settle in Israel, to abscond.

    The heavy handed federal harassment, whose scope and stringent law enforcement went beyond anything which the feds did to any other American meat packing plant, forced the Rubashkins to declare bankruptcy proceedings in October.

    Zoglobek had its own share of controversy when it was discovered in year 2000 that one of its Jewish plant managers Chanon Zoglobek, was pressuring the workers to become adherents of Scientology, a cult “religion” that has been discredited in dozens of countries.


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    37 Comments
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    robroy560
    robroy560
    15 years ago

    60% of the American meat market? Get this plant running again.

    Secular Danny
    Secular Danny
    15 years ago

    oi vey israeli meat is of horrible quality. they leave all the fat and simply have bad quality meat products.

    Anonymous
    Anonymous
    15 years ago

    Zoglobek, has product under BADAZ !!!

    Anonymous
    Anonymous
    15 years ago

    “Zoglobek had its own share of controversy when it was discovered in year 2000 that one of its Jewish plant managers Chanon Zoglobek, was pressuring the workers to become adherents of Scientology, a cult “religion” that has been discredited in dozens of countries.”

    Ok, that’s bad. But does that change the kashrut of the food? I remember a case in Monsey where a supposedly frum guy was selling treif chickens. That is more of a problem than a misguided yid with his beliefs, but the food is still kosher.

    Litvak
    Litvak
    15 years ago

    Zoglobek is not frum and the OU will not give a hechsher to someone who is not Shomer Shabbas.

    As for 60%……………..
    The figures used were the total Kosher Meat sales (let’s say $100 million) and Rubashkin’s total output (let’s say $60 million. These are not the actual numbers, just an example). So Rubashkin has 60% of the market.

    Here came the Lubinsky spin that no one questioned. Rubashkn sells 50% hindquarters and they have a 70% kosher kill. Lets say that there is a 100% Kosher kill. Then 1/2 of the animal is Glatt. Rubashkin’s KOSHER kill is $30 million dollars.

    Now Rubashkin is only 30% of the market. The ‘meat shortage’ really was not that bad. So why did ALLE (Meal Mart) raise their prices so much???

    Too bad that there is no one trustworthy to investigate this.

    Anonymous
    Anonymous
    15 years ago

    Scientology is like a joke.

    mordy
    mordy
    15 years ago

    As was discussed in great length that the bottom line of the whole controversy was to shut down Kosher meat production in the country. Any major news that seems to imply that Kosher meat may have a revival is positive thing. Just like in the stock market just talk of possible good news will cause the stock to soar upwards (until a few month ago) the same would apply here. Just the talk of a company with a lot of money looking to invest a large amount of money to revitalize the kosher meat industry would seem to be something worthy of celebration. It is almost like the kosher community has been held in captivity from not being able to enjoy their kosher meat that is essential to our religion.

    Secular Danny
    Secular Danny
    15 years ago

    i am a man who loves a steak every now and again and having lived in israel for years i had yet to find a steak in israel that wasnt full of fat. not grizzle, fat. if you make chicken cutlets at home in israel, they come with a huge ring of fat all around them. also israelis eat lots of turkey. ugh you cannot find decent meat anywhere there. a friend there told me they force feed the chickens and turkey to make them fatter.

    Anonymous
    Anonymous
    15 years ago

    There is still that problem of the Takana from the Agudas Horabonim that prohibited an owner from a slaughterhouse owning a Kosher provision house.

    Rubashkin was the only ‘frum’ company that completely ignored that issur. Look at the consequences. Do we want another company thumbing their noses at an issur that was signed by most of Chareidi Rabbonim in America?

    Meatloaf
    Meatloaf
    15 years ago

    a) They don’t force feed chickens and turkeys in Israel. They did until recently force feed geese to produce foie gras which was in great demand for the export market.
    b) Meat quality in Israel has improved somewhat in recent years. It is still not as good as US corn fed beef.
    c) There continues to be a controversy surrounding shechita in South America where most Israelis get their meat. Shackel & hoist is still being used in schechita but is supposed to be phased out. It is unclear at this time how muuch meat is produced using this cruel and inhumane method of slaughter.

    Anonymous
    Anonymous
    15 years ago

    The batadz allows force feeding an animal? what happened to tzar ballei chaim.

    Concerned
    Concerned
    15 years ago

    As someone stated very clearly, many of the allegations against the Rubashkins were unfounded. The CEO, who is a very decent and kind human being, should not be sitting in prison, without bail, while discussions abound about who should own his company. He has a right to defend himself as ALL Americans do. Jews across the world should stand up for him and convince the courts that his rights as an American citizen are being violated.

    Anonymous
    Anonymous
    15 years ago

    BS”D

    1) The Soglowek (correct spelling) family member who is involved with the cult is gone from the business.

    2) The OU is already giving hechsher on Soglowek products.

    Anonymous
    Anonymous
    15 years ago

    The “Takanah” of which you speak was never, NEVER intended to apply to a schlachthaus. It applies to a “smokehouse” and, presumably, a similar manufacturer of finished products.

    Reply »
    The takana was specifically written and says that the owners of slaughterhouses are NOT to own a smokehouse. Either in proximity or not. By direct pwnership or in shares.

    Anonymous
    Anonymous
    15 years ago

    “Have you read the Takana? It seems to be self-explanitory to me.”
    “The takana was specifically written and says that the owners of slaughterhouses are NOT to own a smokehouse. Either in proximity or not. By direct pwnership or in shares. “

    It is obvious that neither of you have read the Takanah. It refers to “Batei Asiyah” and “Batei Charusot”; “factories” and “sausage makers”, respectively. And the conclusion specifically mentions such food manufacturers that produce “smoked” products. There is no mention at all about slaugherhouses. Hence, any discussion about Empire, Agriprocessors or any other abbatoir operator is irrelevant.

    Interestingly, the Takanah also mentions treif and kosher operations that are “al yadam” (adjoining) or “samuch” (nearby). Both are expressions of proximity.

    Anonymous
    Anonymous
    15 years ago

    Iowa’s Best was a label that was used by Agri as their treif label.

    Where was that made?

    IN A FACTORY!!

    Anonymous
    Anonymous
    15 years ago

    “Certified … Anderson-Tarlow …Manhatten had a slaughterhouse and a provision house…”

    And the takanah applied to their product manufacturing, not their slaughtering. Face it, any beis schitah will produce about 70% treif. If we accept your understanding then the takanah requires that they not sell that 70% and take a major financial loss. Never gonna happen, my friend.

    “As for Agri – I have seen tshuvas over the years. The takana was only for New York, Lubavitch looked at the list of Rabbonim and since there were no Lubavich on the list, it did not apply to them, etc.”

    So, the O-U, KAJ, Weissmandl, etc. were someich on that fact, right? Or perhaps they also agreed that abbatoirs are not included.

    “Iowa’s Best was a label that was used by Agri as their treif label.

    Where was that made?”

    In a “beis schithah”. Not in a “beis assiyah” or a “beis charusheth”.

    Anonymous
    Anonymous
    15 years ago

    “So ….you are trying to convince yourself that the takana is no longer relevant or does not apply here…You are obviously smarter than the gedolim that wrote it.”

    That is a total straw man argument and you know it. You have failed to address the substance of my argunments and they stand on their own. Additionally, you are mesaleif divrei tzadikim by inserting words into the takanah that simply do not exist.

    “you want to find a way to call Rubashkin a legitimate company.”

    And now comes the substance of your continuing to hammer on this “Takanah” business despite my Tiyuvta to your assertions. The applicability of takanos does not matter as much as assuring the demise of a kosher business that doesn’t shtim with your chumros. And that RSMR just gives you indigestion, to boot. You really need to work on fixing your farbissener middos.

    Anonymous
    Anonymous
    15 years ago

    Now I see youe agenda. You have manipulated the Takana to make your ends appear as if it were important.

    1) Your version of the Takana talks about ” “al yadam” (adjoining) or “samuch” (nearby). Both are expressions of proximity” to quote you. Mine does not have that. Please post your version and the source so that we can all see.what you are talking about. It would never appear to you that we are talking about 2 takaos, while you are very quick to blast me for no reason. This was already pointed out a few posts ago.

    2) Iowa’s best was a wholesale branded label. That would be made in a factory. If it were, in fact, produced at the slaughterhouse, then it would make that slaugterhouse into a factory.

    3) We are trying to protect Kashrus in America. You are not. Rubashkin applied many kulas to himself that no one else would do. Example – until he was caught, Rubashkin did not split the arm (shoulder) from the chuck. Had he done that, he would have seem Dom Sheparush me’makom l’makom, AFTER HADACHA. Another example – he had different standards on taking the veins out of the tongue. One day, he pulled it out. Another day, he split the tongue down it’s length. What was the real way of pulling out the veins? Another thing – he gave drivers labels so taht the meat could be marked as bais yoseph or not. What kind of Kashrus supervision was that?

    You don’t care about Kashrus – all you want is Rubashkin to dictate his false ‘chumros’ on the rest of us, while still looking pious. There was a mashgiach that told me many years ago – he tries to separate Kashrus from halacha. Obviously, to you, Kashrus is a business while halacha falls to the side.