RICHMOND, Va. (AP) — Smithfield Foods Inc. said Tuesday that lower profit margins on fresh pork and higher selling costs drove the world’s biggest pork producer’s first-quarter net income down about 25 percent, despite gains in its packaged meats business.
Pork producers like Smithfield are caught in a tug of war with consumers. The company needs to raise prices to offset rising commodity costs, namely the corn it uses for feed. But consumers are still extremely sensitive to price changes in the current economy. By raising prices, Smithfield risks cutting into its sales should consumers cut back or buy cheaper meats, such as chicken.
Recommended Stories
Print subscriber? Click here to login/register your account
Digital subscriber? Click here to login/register your account.