Monday, June 25, 2007

Hormel to raise turkey product prices

By Alicia Karapetian on 6/26/2007 for

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.

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