Dive Brief:
- Hormel Foods has announced the sale of its whole-bird turkey business to Life-Science Innovations, retaining the Jennie-O brand.
- LSI will acquire Hormel’s production facility and feed mill in Minnesota, along with associated transportation assets and farmer supply contracts.
- The deal, expected to close at the end of Hormel’s second quarter, includes assets related to hen turkeys, traditionally used during Thanksgiving.
Dive Insight:
Hormel’s decision to sell its whole turkey business comes as the company faces challenges such as lower demand and the impact of bird flu outbreaks.
Prices for whole turkeys have been on the rise due to bird flu limiting production, but consumer demand has shifted towards other proteins like chicken, leading to discounted prices for Thanksgiving turkeys in 2025.
By divesting from the whole turkey business, Hormel can focus on expanding its presence in profitable areas like foodservice and value-added turkey products.
President John Ghingo highlighted Jennie-O’s success in the ground turkey market and expressed the company’s commitment to capitalizing on protein demand growth.
Similar to Hormel, other meat producers are also streamlining their operations by selling off agricultural assets to reduce exposure to volatile commodity markets.