US Premium Beef income drops in 1Q

by Meat&Poultry Staff
Share This:

KANSAS CITY, Mo. – Net income for US Premium Beef dropped $26.5 million to $8.9 million in the first quarter of fiscal 2012 ending Nov. 26. The marketing cooperative realized net income of $35.4 million in the same year-ago period.

The increase in average cattle prices resulted in decreased gross processing margins, which contributed to the decrease in net income. However, demand for beef products bolstered sales, according to Steve Hunt, chief executive officer.

"Regarding the first quarter fiscal year of 2012 results, our sales were higher primarily from an increase in the net sales per head compared to the same period in the prior year, as the demand for beef products remained strong, and the price of beef products increased during the period," Hunt told USAgNet.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.



The views expressed in the comments section of Meat and Poultry News do not reflect those of Meat and Poultry News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.