The Seaboard Corporation, which owns a 52.5% noncontrolling interest in U.S. Butterball, reported that after operating at a loss during the 2020 and 2021 fiscal years, the turkey company was profitable in 2022.
For its investment in Butterball, Seaboard reported a $103 million income from affiliates for the most recent fiscal year, which concluded on December 31, 2022. This is a stark contrast to the previous two years. In 2021, Seaboard reported a $20 million loss from affiliates and in 2020, it reported a $10 million loss.
“The increase in income from affiliates for 2022 compared to 2021 was primarily the result of higher selling prices, partially offset by lower volumes of turkey products sold and higher feed and plant production costs,” the company stated in a form 10-K on its investor relations website. “The decrease in income from affiliate for 2021 compared to 2020 was primarily the result of lower sales volumes and higher live and plant production costs due to increased feed and labor prices, partially offset by higher sales due to increased prices.”
In terms of Butterball sales, Seaboard also reported gains in 2023. Net sales for 2023 amounted too $2.05 billion, compared to $1.79 billion in 2021 and $1.28 billion in 2020.
Looking forward, Seaboard stated that it would expect fiscal year 2023 to be more like 2022 than the previous two years.
“Management is unable to predict market prices for turkey products or the cost of feed for future periods; however, management anticipates this segment will be profitable in 2023,” the company stated.
Headquartered in Meeriam, Kansas, Seaboard has six reportable business segments. In addition to the Turkey segment, it also has the following segments: Pork, CT&M, Marine, Sugar and Alcohol and Power. Companywide, Seaboard reported net earnings of $580 million and net sales of $11.2 billion in FY 2023.
