Seaboard Corp. has reported a $30 million operating loss from its pork segment in the first three quarters of 2008. The loss compared to a net income of $45 million for the same period in 2007.
Pork segment sales for the company in the first nine months totaled $830.9 million, up from $752.1 million in the prior year period. The company reported the increase was a result of increased daily capacity at its processing plant in Guymon, Okla. and increased export sales.
For the third quarter, the company reported sales for its pork segment of $303.6 million, up from $248.7 million in last year's third quarter. The company’s third quarter operating income of $1.2 million fell by 90 percent compared to the same period last year.
The company blamed higher corn and soybean meal costs and start-up costs related to its new Guymon, Okla biodiesel processing plant.
Seaboard added that the pork segment spent $27.5 million on constructing additional hog facilities, the biodiesel plant and a ham-boning and processing plant in Reynosa, Mexico during the first nine months of the year.
The company said, "Without a noted improvement in current market conditions including feed costs, management expects to incur additional losses during the remainder of 2008.”