Source: WATT Poultry
Seaboard Corporation, which owns a 52.5% stake in Butterball, reported a significant decrease in both net income and net sales for its turkey operations in the first quarter of fiscal year 2024. The net income for this period was $15 million, a sharp decline from the $48 million recorded in the same quarter of the previous year. Similarly, operating income fell from $50 million to $16 million, and net sales dropped from $408 million to $370 million.
The decline in financial performance is attributed mainly to a 7% decrease in average selling prices due to lower commodity prices and a 3% reduction in sales volumes, although a 14% reduction in production costs, primarily from lower feed costs, helped offset some of the losses. Despite the current market volatility, Seaboard anticipates that Butterball will remain profitable through the rest of 2024. Butterball, headquartered in Garner, North Carolina, is one of the world’s leading turkey producers, operating plants across the U.S. and distributing products in over 45 countries.