Jennie-O Turkey Store’s bird supply is bouncing back after being hit by highly pathogenic avian influenza (HPAI) in 2022 and early 2023, but another situation has led to the loss of turkeys.
“We’ve had some really, really hot weather here in the Midwest at the middle-to-end of August and it’s expected again this weekend. So, we have unfortunately lost some birds that will have an impact on our business in the fourth quarter,” said Jim Snee, CEO of Hormel Foods, the parent company of Jennie-O Turkey Store.
Snee did not specify how many turkeys were lost as a result of the heat, but did say that earlier in the year, the company was expecting a “really strong finish to the year on our whole turkey business,” but the loss of birds is one factor, combined with “unique market dynamics and customer behavior,” might hinder the performance for the remainder of the year.
Snee delivered those remarks during a call with analysts about Hormel Foods’ third quarter of fiscal year 2023.
Jennie-O activity during the third quarter
While the fourth quarter for Hormel’s Jennie-O Turkey Store subsidiary might face some challenges, Snee and Hormel Chief Financial Officer Jacinth Smiley both gave positive reports on how Jennie-O performed during the third quarter, which ended on July 30.
Jennie-O ceased to be a reportable business segment for Hormel on October 31, 2022, the first day of the 2023 fiscal year. As a result, financial figures related to the turkey business were not released, but the two executives did offer some highlights on how the subsidiary has bounced back from the HPAI outbreak.
Snee said during the quarter, companywide volume and net sales for value-added meats improved, “primarily due to higher turkey volumes.”
Smiley said to support that higher turkey volume, Jennie-O expanded its promotional and advertising activity, which is paying off.
“We’re beginning to see signs of these actions paying off, especially for the lean ground category,” she said.
“We’re producing a full assortment of turkey items and our teams are selling with confidence in the retail foodservice and international markets. This bodes well for the long-term outlook for turkey, which remains an important part of our balanced portfolio.
