Seaboard Corp. reported its pork and turkey revenue decreased mainly as a result of increased feed costs.
The pork segment posted operating income of $32.3 million in the first quarter ending March 30, compared with $52.9 million in the period a year ago. Butterball, its turkey segment, reported a loss of $2.1 million this year, compared with a $23.4 million gain in the first quarter of 2012.
In addition to higher feed costs, Butterball incurred additional charges related to the planned sale of its Longmont, Colo., facility. Seaboard's proportionate share of these charges represented a loss of $2.7 million. During the first quarter of 2013, soybean and corn commodity prices dropped, resulting in losses of $2.4 million.
Sales in the pork segment rose 2 percent to $409.2 million, reflecting increased sales volume for biodiesel, a one-time credit of $11.3 million recorded as revenues and higher domestic sales volume.
Butterball sales were $370.5 million, compared with $301.6 million in first-quarter 2012.
The pork segment plans to spend $60.2 million for additional finishing barns, improvements to existing facilities and related equipment and to complete construction on a new feed mill.