By Alicia Karapetian on 6/26/2007 for Meatingplace.com
Austin, Minn.-based Hormel Foods Corp. said it plans to again increase prices in its Jennie-O Turkey Store division because of high grain costs.
At an investment conference Monday the company said Jennie-O operating profits were cut nearly in half — dropping to about $14 million — in the second quarter despite sales increases.
Hormel raised prices about 2 percent on Jennie-O products in the second quarter, but spiking corn costs required higher hikes, the Associated Press reported.
Jody H. Feragen, Hormel chief financial officer, said that every 10-cent increase in corn costs translated to about $3.5 million in costs for Jennie-O.
Shares of Hormel closed at $37.56, up 31cents, Monday on the New York Stock Exchange.