Jim Snee, head of Hormel Foods, has told investors that the company’s the Jennie-O Turkey Store business faces significant hurdles due to flock losses from highly pathogenic avian influenza.
Biosecurity measures implemented since the last U.S. outbreak in 2015 have meant Hormel lost 25 per cent fewer birds at company-owned facilities than during the previous event, he said.
Hormel is repopulating impacted turkey farms and expects supply volume to improve in the fourth quarter, then return to normal early next year, assuming there are no further outbreaks.
“As supply comes back in line we expect strong demand in retail and foodservice,” Snee said.
