Farbest Foods to slow trend of company growth
Because of oversupply of turkeys, it does not make sense to keep expanding company at such a rapid pace, company president says
U.S. turkey company Farbest Foods has essentially tripled in size over the past ten years, but the company’s president says continued growth will come at a slower pace.
Ted Seger, president of Farbest Foods, told the Vincennes Sun-Commercial that it does not make good business sense to continue expanding the company so quickly because there is presently an oversupply of turkeys and other animal proteins. Subsequently, consumer prices for turkey are lower, which does not benefit the producer.
Instead, Seger said the company will let its organic growth go at a more natural pace of about 3-5 percent annually.
Farbest Foods, headquartered in Huntingburg, Indiana, slaughtered an estimated 582 million pounds of live turkeys from an estimated 13.7 million toms in 2015, according to the WATTAgNet Top Poultry Companies Database.
Its recent expansion projects included the addition of a turkey processing plant and feed mill, both of which were completed in 2014. The company also added turkey brooding farms in Southern Indiana and Northern Kentucky.
Farbest president describes new game
Farbest Foods Inc. has enjoyed “meteoric growth” over the past few years — so much growth, in fact, that the Huntingburg-based family-owned business is focusing on slowing that surge and changing its strategy.