An announcement by Hormel Foods Corporation to sell the Fremont plant surprised area pork producers.
On Thursday, Hormel Foods Corporation announced it had entered an agreement to sell the Fremont processing facility to WholeStone Farms, LLC. The transaction is expected to be completed in December.
Company officials said the multi-year agreement with WholeStone ensures the Fremont facility will continue to supply pork raw materials to Austin, Minn., based company.
The purchase of the Fremont plant aligns with WholeStone’s vision of creating and capturing value in the pork supply chain for the 220 producers who own it, said Luke Minion, the board chairman.
Todd Smith of Herman, who had just dropped off hogs at the Fremont plant, was among those surprised by the announcement.
“It sounds like an expansion by producers into the packing sector,” Smith said. “I don’t know what motivated Hormel to sell the plant, but obviously we’re in the midst of a very strong expansion in packing capacity in the U.S. — a lot of that driven by producers wanting to own packing plants.
“Packing margins have been extraordinarily favorable in recent years and I think the producer wants a piece of that exceptional margin.”
On its website, WholeStone states that it’s owned by independent producers and farmers raising livestock and crops in the upper Midwest.
“We collectively farm nearly 400,000 acres of cropland, raise 12 million pigs a year, and share a vision to continue the legacy of family farming,” the site states.
Smith said he believes the announcement was a surprise to people who work at the plant and it’s too early to know what it will mean for farmers.
“In the intermediate term, I think it’s business as usual,” Smith said. “The sale doesn’t close until December.
“Most of the supply to the Hormel plant is pretty tightly coordinated anyway,” Smith continued. “There are relatively few local producers, such as myself, who continue to supply the plant. There aren’t many hogs in the local area anymore.”
Smith said he believes most of the hogs come from Iowa and Minnesota.
“There’s a lot of packing plants in eastern Nebraska to draw hogs from, too, so there’s not enough local producers for any of those. We’re a fairly hog-deficit area, relative to the number of plants we have — IPB in Madison, the new plant in Sioux City, Fremont and one in Crete. So there’s a lot of packing capacity in the 70-mile radius of Fremont,” Smith said.
Greg Hoegermeyer of Herman said he was surprised, but not totally caught off guard by the announcement, in part, because of Hormel’s leadership changes and its sale of another company.
Hormel announced in 2016 that it was selling Clougherty Packing, LLC, parent company of Farmer John and Saag’s Specialty Meats, along with PFFJ, LLC farm operations in California, Arizona and Wyoming to Smithfield Foods, Inc.
The sale was finalized in 2017. The purchase price was $145 million in cash, subject to working capital adjustments, Hormel stated.
In recent years, Hormel has announced various leadership changes.
“And their focus is totally changed,” Hoegermeyer said.
In the announcement of the Fremont plant’s sale, Jim Snee, chairman of the board, president and chief executive officer at Hormel Foods, talked about the company’s strategy.
“The strategic decision to transition the Fremont facility to WholeStone Farms reflects the long-term, changing dynamics in the pork industry, and most importantly, is aligned with our vision as a global branded food company,” Snee said.
Hoegermeyer noted that Hormel has done a good job of finding a premium market for some of its products.
“A Cure 81 ham is considered to be one of the better hams. Black Label Bacon’s considered a premium bacon. They weren’t the largest player in the hog-processing world, but they did a very effective job on what they had, I thought,” he said.
Hoegermeyer expressed cautious optimism, adding that he doesn’t know much about WholeStone.
Rural Hooper farmer John Kriete, who raises hogs, was surprised by the announcement as well.
“Efficiencies must be gained by that move on somebody’s part,” he said.
Orin Haas, president of the Hormel Retirees group, said he was very surprised.
Haas worked at the local plant for almost 38 years, the last 28 of which he spent boning Cure 81 hams. Now 78, he retired in 2002.
“It probably isn’t going to be a bad thing,” he said of the sale.
Hormel has been a major employer in Fremont for years.
Longtime Fremonter Marv Welstead remembers when Hormel bought a local hog processing plant here in the 1940s.
Welstead said that back then, several Fremont community leaders formed Fremont Pack with the idea of having a place that would provide jobs for men coming back after serving their country during World War II.
He believes those community leaders included Lester Walker (then owner of Fremont Tribune), Dale Milliken, attorney Art Sidner, Bill Mitten, Bill Rowe and Art Baldwin.
“Lester Walker was a prime mover as I understand it,” Welstead said.
Fremont Pack went into operation, processing hogs in 1945.
The community leaders then went to the George A. Hormel company in Austin, Minn., about the possibility of its buying Fremont Pack.
Hormel purchased the Fremont plant in 1947 and made expansions throughout the years.
Tribune files indicate that in 2005, Hormel announced plans to invest $7 million to expand its pork processing facilities at the Fremont plant. The expansion would allow Hormel to slaughter 7,000 more hogs per week.
At that time, the company said — when at full capacity — it slaughtered about 45,000 hogs a week and the expansion would increase that to 52,000 per week.
That year, the expansion was expected to add about $5 million to the annual payroll. But, at least initially no employment was expected to be added.
The company planned to pay overtime and get work done by extending hours.
In 2016, the Fremont Area Chamber of Commerce recognized Hormel as “Agricultural Business of the Year,” stating how employees were active in many community organizations including: Fremont Area United Way; Summer Lunch Program; Fremont Area Habitat for Humanity; Low Income Ministry of Dodge County; Salvation Army; Fremont Family YMCA and Heartland Family Service Jefferson House.
Hormel announced it would raise starting wages and offer stock options in February.
According to Snee, the company would offer its 20,000 employees with stock options and raise its starting wage for all employees to $13 per hour by the end of the fiscal year 2018 and to $14 per hour by the end of fiscal 2020.
“We also pledged an additional $25 million in donations over the next five years as supporting our communities through product and monetary donations is important to us,” Snee said.
During that announcement, Hormel said Fremont was home to the second largest plant in the Hormel chain and employed approximately 1,400 people.
The company’s Fremont plant is responsible for producing various products including: Hormel Always Tender fresh pork, Little Sizzlers sausage and the SPAM family of products. Fremont is one of only two plants in the United States that makes SPAM.
On Thursday, Hormel media relations personnel said the company is in a quiet period and unable to provide further commentary until its earnings announcement next week.
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Don’t miss a moment Hi Jimmy, I think you might also hear from us: LITTLE SIZZLERS® sausages are really on hiatus. If you send a direct message with your zip code, I can see who ordered near you. Maybe they still have some available.
Did Hormel stop Little Sizzlers too?
Little Sizzler’s Sausages were introduced in 1961 and Cure 81 Hams in 1963. Unfortunately, Little Sizzler’s Sausage was discontinued on October 10, 2019 via email from Hormel Customer Service. The following year, Hormel Foods launched the Top Shelf line of products that cannot be frozen in the microwave.
Does Hormel also belong to China?
Hormel Foods is currently in China through a wholly owned subsidiary called Hormel (China) Investment Co., Ltd. Founded in Jiaxing, China. This company is now a leading supplier of Western and Chinese style sliced meat and peanut butter to retailers and food suppliers across China.
Is Hormel still crackling in that sense?
Hormel purchased the Fremont plant in 1947. It produces the company’s best-known product, Spam, as well as sausages and other Little Sizzler products. Under a multi-year agreement between WholeStone and Hormel, the Fremont plant will continue to supply Hormel pork, the statement said.
What brands does Hormel have?
- Applegate® brand.
- Columbus® artisanal meat.
- Dinty Moore® finish.
- Herdez® sauce.
- Brand of JennieO®.
- Justins® brand.
- Skippy® brand.
- Full-brand Guacamole®.
How much is the Hormel family worth?
Hormel, who raised his family in the Paradise Valley mansion, died in 2006 at the age of 77. His family has tried to sell the property several times since then, first for $ 25 million, then for $ 20 million, then in 2010 for $ 15 million.
WHY is spam called spam?
It means spicy ham and was proposed in a competition organized by the Geo. A. Hormel Company in 1937 to find a name for their new product, they called miracle meat and marketed it as a healthy food.
What does Healing 81 mean?
No support meat or the like was injected. These are all natural juice products. Anything with a Cure 81 label is a 100% natural juice and hardwood smoked product, adds Bacon.
Who Invented Spam?
Jay Hormel
What does spam mean?
Is Hormel a good employer?
Hormel was a great place to work. Come to work, be on time, do your best. So many benefits, the company has provided uniforms, so much family involvement. Hormel Foods is a great place to work.
Where does Hormel get his meat from?
For the Hormel Foods plants in Austin (MN) and Fremont (NE), we supply pigs from independent producers in the Midwest. These pigs are purchased via the Lean Pig table and we pay a premium for lean pigs that are well selected, consistent and meet Hormel Foods stringent requirements.
Is the spam produced in Hawaii?
Spam is particularly prevalent in the state of Hawaii, where the United States has the highest per capita consumption rate. A popular local Hawaiian dish is spam musubi, which is cooked stuff placed on top of rice and wrapped in a ribbon of nori, a form of onigiri.
How are Hormel Little Sizzlers made?
Use within 7 days of thawing. Hormel Little Sizzlers Wurstofen Cooking Instructions: Frozen: Cook the sausages in a large skillet over medium heat for 12-15 minutes, turning occasionally, until golden brown and the sausage has a core temperature of 165 ° C. Empty sausage on paper napkins.
How do you cook Little Sizzler in the oven?
What is Hormel?
Hormel Foods is a Fortune 500 company that manufactures and markets high quality foods, brands and meat products around the world.
Which country consumes the most spam?
Guam
Is Skippy Peanut Butter Made in China?
Skippy is a peanut butter brand made in the United States and China. Skippy was first sold in 1932 and is currently manufactured by Hormel Foods, which bought the brand from Unilever in 2013.
Do we buy pork from China?
China imports most of its pork from European countries, but it also buys it from the United States. This makes the trade war with the United States an additional challenge.
Who will buy Chinese pork?
Do you own Smithfield Chinese Ham?
Smithfield Foods, Inc. is a meat processing company headquartered in Smithfield, Virginia, USA and is a wholly owned subsidiary of the WH Group of China. Founded in 1936 by Joseph W. Luther and his son as the Smithfield Packing Company, the company is the world’s largest producer of pigs and pigs.