WATT PoultryUSA - January 2018 - 12
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full year as well. The company reported that the Jennie-O Turkey Store
segment profit was $70.4 million.
While it was still a profitable quarter,
the profit was down 24 percent.
However, Snee said during a
November 21 conference call that
while Jennie-O Turkey Store is still
profitable, "a lot of the turkey industry is operating near break-even."
To help improve the profits and
deal with the current oversupply of
turkeys in the United States and subsequent low prices, Jennie-O Turkey
Store, which is the second largest turkey company in the United
expected in 2018
States, has cut down on production.
However, not everyone in the turkey
"We feel like we have done what
we need to do in that we've cut
production and believe the rest of
the industry needs to as well. Quite
frankly, we are a bit disappointed
that we haven't seen that as of yet,"
Snee said he believes the reason
some companies have not reduced
turkey production is that they fear
another avian influenza outbreak,
like the one that occurred during
2015, could come.
While the turkey market conditions are still challenged, Hormel
Foods Chief Financial Officer Jim
Sheehan, who also spoke during the
conference call, expects to see some
recovery next year.
The company has been actively
watching USDA poult placement
and inventory reports, and while it
doesn't appear things will change
much in the very near future,
Sheehan believes "we're going to
see market improvements toward the
back half of 2018." ■
Roy Graber is a staff reporter at WATT Global Media. Contact Graber via email at email@example.com.
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www.WATTAgNet.com ❙ January 2018