Conagra Brands, one of the largest packaged food companies in North America, reported fiscal 2025 financial results this week that fell short of expectations, with key impacts traced to rising animal protein costs — including pork — and steep import tariffs.
The company, known for household brands like Banquet, Slim Jim, and Healthy Choice, reported fourth-quarter net sales of $2.8 billion, down 4.3% year-over-year. Full-year net sales came in at $11.6 billion, a 3.6% decline, though net income improved significantly to $1.15 billion.
While Conagra is not a pork processor itself, animal protein accounts for roughly 20% of its raw material costs. On a call with analysts, Chief Financial Officer David Marburger highlighted that double-digit increases in animal protein prices are expected in fiscal 2026, with pork a key contributor. These cost pressures, combined with new tariffs — including a 50% rate on imported tin plate steel and aluminum, and additional rates on imports from China and other countries — are driving an anticipated 4% core inflation rate for the company next year.
CEO Sean Connolly stated the company remains focused on its frozen and snack food segments, investing in volume strength and supply chain resilience while managing costs.
What it means for pork producers: While Conagra is a downstream user of pork rather than a processor, their financial signals reflect a broader market reality: sustained strong demand and tightening supplies of pork continue to put upward pressure on prices. For pork producers, this is another indicator that protein demand — despite inflationary consumer pressures — remains resilient heading into 2026.
Swine Web will continue monitoring how major food brands like Conagra are navigating protein markets, and what this means upstream for pork production and pricing.
