About Seaboard

Seaboard Corporation and its subsidiaries (Seaboard) engage in the agricultural and ocean transport businesses worldwide. Seaboard is primarily engaged in hog production and pork processing in the United States (U.S.); commodity trading and grain processing in Africa and South America; cargo shipping services in the U.S., the Caribbean, and Central and South America; sugar and alcohol production in Argentina; and electric power generation in the Dominican Republic. Seaboard also has an equity method investment in Butterball, LLC (Butterball), a producer and processor of turkey products. Approximately 77% of the outstanding common stock of Seaboard is collectively owned by Seaboard Flour LLC and SFC Preferred, LLC, which are Delaware limited liability companies. Segments Seaboard has six reportable segments: Pork, CT&M, Marine, Sugar and Alcohol, Power and Turkey. Seaboard operates in over 45 countries, with a concentration in the U.S. and countries in Central and South America and Africa. Pork This segment, through the company’s subsidiary, Seaboard Foods LLC, is a vertically integrated pork producer that primarily produces and sells pork products to further processors, foodservice operators, distributors and grocery stores. This segment sells to the U.S. customers and exports to Japan, Mexico, China and numerous other foreign markets. Seaboard’s hog production facilities consist of genetic and commercial breeding, farrowing, nursery and finishing buildings. Seaboard has a 50% noncontrolling interest in Seaboard Triumph Foods, LLC (‘STF’), which operates a pork processing plant located in Iowa, with a capacity to process approximately six million market hogs annually. Seaboard and Triumph Foods, LLC (‘Triumph’), an independent pork processor, supply a portion of the hogs processed at the STF plant. The Pork segment also has a 50% noncontrolling interest in Daily’s Premium Meats, LLC (‘Daily’s’), which produces and markets raw and pre-cooked bacon using pork bellies primarily sourced from Seaboard, Triumph and STF, at its locations in Utah, Montana and Missouri. Seaboard has marketing agreements with STF, Daily’s and Triumph to market their products; and has a margin-sharing arrangement with Triumph that considers the average sales price, standard costs and the mix of products sold from the Seaboard and Triumph pork processing plants. In 2022, Seaboard’s Pork segment sold to Triumph a 50% interest in Seaboard de Mexico USA LLC, its ham-boning and processing plant in Mexico. The Pork segment produces biodiesel at facilities in Oklahoma and Missouri and renewable diesel at a facility in Kansas, which began operations during the third quarter of 2022. These products are produced from pork fat supplied by the Oklahoma pork processing plant and other animal fats and vegetable oils purchased from third parties and sold to fuel blenders for distribution. CT&M This segment, which is managed under the name of Seaboard Overseas and Trading Group, is an integrated agricultural commodity trading, processing and logistics company. Seaboard’s CT&M segment has ownership interests in several non-consolidated affiliates to further its business strategies. Overall, the CT&M segment, including its affiliates, has facilities in 27 countries, primarily in Africa and South America. The majority of the trading business is transacted with chartered ships or vessels this segment owns. Marine This segment, through the company’s subsidiary, Seaboard Marine Ltd., and various foreign-affiliated companies and third-party agents, provides cargo shipping services in the U.S. and 26 countries in the Caribbean and Central and South America. This segment’s primary operations are in Miami, Florida; and include a marine terminal and an off-port warehouse for cargo consolidation and temporary storage. Scheduled port calls are made in Brooklyn, New York; Houston, Texas; New Orleans, Louisiana; Philadelphia, Pennsylvania; Savannah, Georgia; and various foreign ports in the Caribbean and Central and South America. A network of offices and agents are used to sell freight services and this segment’s capabilities allow transport by truck or rail of import and export cargo to and from various U.S. and foreign ports. This segment’s fleet consisted of 17 chartered and six owned vessels as of December 31, 2022, as well as dry, refrigerated and specialized containers. Sugar and Alcohol This segment, through the company’s subsidiary, Seaboard Energías Renovables y Alimentos S.R.L., operates a vertically integrated sugar and alcohol production facility in Argentina. Seaboard supplies most of the raw material processed in this facility with sugarcane grown on land that it owns. The sugar is primarily marketed locally, with some exports to other countries. The alcohol is marketed to industrial users and sold as dehydrated alcohol to certain oil companies under the Argentine governmental bioethanol program, which requires alcohol to be blended with gasoline. This segment also owns a 51-megawatt cogeneration power plant, which is fueled by the burning of sugarcane by-products, natural gas and other biomass, like woodchips. Power This segment, through the company’s subsidiary, Transcontinental Capital Corp. (Bermuda) Ltd., is an independent power producer generating electricity for the Dominican Republic power grid. It is not directly involved in the transmission or distribution of electricity and is exempt from regulations under the Public Utility Holding Company Act of 1938, as amended. Seaboard’s Power segment uses two power-generating barges for its operations. The barge that began operations in 2012, named Estrella Del Mar II (‘EDM II’), is capable of using natural gas or heavy fuel oil to produce up to 108 megawatts of electricity. The barge that began operations in 2022, named Estrella Del Mar III (‘EDM III’), can generate approximately 148 megawatts of electricity using natural gas. While EDM II remains in operation in the Dominican Republic, Seaboard continues to explore strategic alternatives for this barge, including a sale or relocation. Turkey This segment has a 52.5% noncontrolling interest in Butterball, a producer and processor of conventional and antibiotic-free turkey products. Butterball is a national supplier to retail stores, foodservice outlets and industrial entities, and to a lesser extent, exports products to Mexico and other foreign markets. Other Businesses Seaboard, through its subsidiary, Mount Dora Farms, Inc., processes jalapeño peppers at its plant in Honduras, which are primarily shipped to and sold in the U.S. Customers The Sugar and Alcohol segment had two bioethanol customers that collectively represented 35%-46% of its total sales in 2022. The Power segment sells power in the Dominican Republic to wholly government-owned distribution companies and other spot-market customers. The Turkey segment had two retail customers that collectively represented approximately 27% of its total sales in 2022. Seasonality The Turkey business is seasonal for whole birds and related products, with the holiday season driving the majority of those sales. Intellectual Property The Pork segment uses trademarks, including Seaboard Foods, Seaboard Farms, Seaboard Energy, Prairie Fresh, Prairie Fresh USA Prime, Our Farms, Our Commitment, St. Joe Pork and Cook-in Bag. The CT&M segment uses trademarks, including Mothers Pride and Zambia’s Pride in Zambia, Thunderbolt Flour and Maid Marian in Guyana, GMA and Top Pain in Ivory Coast, GMD and Jarga in Senegal and Wayne in Ecuador. The Marine segment uses trademarks, including Seaboard Marine and Seaboard Solutions. The Sugar and Alcohol segment uses trademarks, including Chango, Chango Premium and Tabacal. The Turkey segment uses trademarks, including Butterball, Carolina Turkey and Farm to Family Butterball. Research and Development The company incurred research and development expenses of $210 million for the year ended December 31, 2022. History Seaboard Corporation was founded in 1918. The company was incorporated in 1946.