Seaboard Corp. said its pork segment’s net sales for the first quarter and first half of fiscal 2025 were lower due to lower volumes of market hogs and pork products sold.
In a Form 10-Q filed July 29, Seaboard said this was primarily due to availability of hogs and timing of deliveries to the processing plants, which decreased sales by US$26 million and US$62 million for the three- and six-month periods, respectively, partially offset by higher selling prices for both periods.
The US$32 million increase in operating income for the three-month period of 2025 compared to 2024 reflected higher margins on pork products and market hogs sold, primarily due to higher selling prices and lower feed costs of US$37 million due to price and volume. Operating income remained flat for the six-month period of 2025 compared to 2024.
Higher margins on pork products and market hogs sold primarily due to higher selling prices and lower feed costs of US$94 million were offset by a decrease in favorable adjustments to the lower of cost and net realizable value inventory reserve during the six months of 2024 with no adjustments in 2025, and an increase in legal claims expense. With improved pork prices and lower grain commodity costs, the inventory reserve decreased US$42 million during 2024.
In April, in response to U.S.-issued trade tariffs, China issued a series of escalating retaliatory tariffs on U.S. products, including pork, that were later reduced or delayed and are still pending final resolution.
“China has historically been an outlet for certain of Seaboard’s pork products and represented 3% of this segment’s total sales for the year ended December 31, 2024,” the report said. “The pork segment’s results for the three- and six-month periods ended June 28, 2025, were not materially impacted by tariffs. Seaboard continues to monitor the current uncertainties with tariffs, including with respect to tariffs that could originate in other pork export destinations and potential indirect impacts.
“While management anticipates the pork segment will be profitable for the remainder of 2025, no assurances can be made as it is difficult to predict market prices for pork products, the cost of production or third-party hogs for future periods.”
In its pork report from May, Raboresearch said rising geopolitical tensions have had limited impact on global pork markets, but they were likely to redirect global trade volumes in the coming months.
