Butterball concluded 2024 with a lower net income and lower sales when compared to 2023, according to information from Seaboard Corporation, which owns a non-controlling 52.5% stake in the company.
Seaboard recently released its financial results for the 2024 fiscal year, and in its turkey business segment, which represents its investment in Butterball, the company reported a decrease in Butterball’s net income of $95 million for the year when compared to 2023. The company, in a Form 10-K on its investor relations website, said that change was primarily the result of lower sales of $141 million due to weaker pricing, partially offset by a decrease in production costs, primarily attributable to lower feed costs.
The average selling price for its turkey products decreased 8% for 2024 when compared to the previous year, primarily due to lower market prices. Sales volumes did not have a significant impact on the results.
Closure of Arkansas facility
Seaboard announced that the Butterball further processing plant in Jonesboro, Arkansas, ceased operations on February 3, 2025, consistent with the closure plans announced in December 2024. The company said that it does not expect the closure decision to have any material impact on future earnings.
Seaboard stated that it believes that Butterball has sufficient processing capacity within its network to meet consumer demand, although it does utilize third-party copacker arrangements to supplement portions of its portfolio where it does not maintain specialized competencies or as a means to meet demand beyond its internal production capacity.
Butterball is primarily a national supplier to retail stores, foodservice outlets and industrial entities, but it also exports some products to Mexico and other foreign markets.
Outlook for 2025
Seaboard stated that its management anticipates the turkey segment will be profitable in 2025, however, it added that market prices for turkey products or the cost of feed for future periods can be hard to predict.
