SEABOARD : DE/ Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-K)







Sales and costs of Seaboard's segments are significantly influenced by worldwide

fluctuations in commodity prices and changes in foreign political and economic

conditions. Accordingly, sales, operating income and cash flows can fluctuate

significantly from year to year. As each segment operates in a distinct industry

and a different geographic location, management evaluates their operations

separately. Seaboard's reporting segments are based on information used by

Seaboard's CEO to determine allocation of resources and assess performance, in

his capacity as chief operating decision maker.


Seaboard's operations have been both directly and indirectly impacted by the

COVID-19 pandemic. At the onset of the pandemic in March and April of 2020,

Seaboard experienced a change in product mix, including a significant decline in

volume and prices for food service business due to restaurant closings, less

demand for transportation due to customers temporarily shut down due to

government orders and capital market volatility. Seaboard saw improvement in its

third and fourth quarter 2020 results though challenges remain. Seaboard

continues to encounter partially staffed shifts, lock downs or curfews in some

geographic regions and the impacts from commodity market volatility. The near

and long-term impacts of COVID-19 on Seaboard's operations and the global

economy are unknown and impossible to predict with any level of certainty.


Pork Segment


The Pork segment primarily produces hogs to process and sells fresh and frozen

pork products throughout the U.S. and to foreign markets. Sales prices are

directly affected by both domestic and worldwide supply and demand for pork

products and other proteins. Feed accounts for the largest input cost in raising

hogs and is materially affected by price changes for corn and soybean meal.

Market prices for hogs purchased from third parties for processing at the plant

also represent a major cost factor. Within the portfolio of Seaboard's

businesses, management believes profitability of the Pork segment is most

susceptible to commodity price fluctuations. As a result, this segment's

operating income and cash flows can materially fluctuate from year to year,

significantly affecting Seaboard's consolidated operating income and cash flows.

This segment is Seaboard's most capital-intensive segment, representing

approximately 58% of Seaboard's total fixed assets, in addition to approximately

48% of total inventories, as of December 31, 2020. With the plant generally

operating at capacity, Seaboard is continually looking for ways to enhance the

plant's operational efficiency, while also looking to increase margins by

introducing new, higher value products. This segment also produces biodiesel for

sale to third parties. Sales prices are affected by the supply and demand of

diesel and environmental credit initiatives.


CT&M Segment ...


Marine Segment ...


Sugar and Alcohol Segment ...


Power Segment ...


Turkey Segment ...








more, including financial tables