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Investments in Affiliates

12 Months Ended

Dec. 31, 2024

Investments in Affiliates

Investments in Affiliates

Note 6 – Investments in Affiliates

Seaboard has investments in several non-consolidated affiliates to further its business strategies and partner with other entities that have expertise in certain industries and countries. These investments are all accounted for using the equity method of accounting.



		Investments in and						Income (Loss)
		Advances to Affiliates						from Affiliates
		December 31,						Years ended December 31,
(Millions of dollars)		2024			2023			2024			2023			2022
Pork		$	154		$	154		$	26		$	32		$	24
CT&M			164			164			17			(18)			21
Turkey			375			370			37			87			103
Other			45			43			5			4			4
Segment/Consolidated Totals		$	738		$	731		$	85		$	105		$	152

As Seaboard conducts its agricultural commodity trading business with third parties, consolidated subsidiaries and non-consolidated affiliates on an interrelated basis, cost of sales on affiliate sales transactions cannot be distinguished without making numerous assumptions, primarily with respect to mark-to-market accounting for commodity derivatives. Purchases of raw materials or services from related parties included in cost of sales were $68 million, $86 million and $91 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The Pork segment has investments in Seaboard Triumph Foods, LLC (“STF”) (50%), which operates a pork processing plant, Daily’s Premium Meats, LLC (“Daily’s”) (50%), which produces raw and pre-cooked bacon, and Seaboard de Mexico USA LLC (“Seaboard de Mexico”) (50%), which debones hams. Seaboard’s Pork segment supplies raw materials to Daily’s, STF and Seaboard de Mexico for processing and also provides marketing services to Daily’s and STF for its pork products. STF supplies feedstock for the Liquid Fuels segment’s renewable diesel operations.

On January 1, 2022, Seaboard sold a 50% interest in Seaboard de Mexico to Triumph Foods, LLC, a partner in the Pork segment’s other joint ventures, for cash proceeds of approximately $9 million, net of cash sold.

Combined financial information for the Pork segment’s non-consolidated affiliates was as follows:



Pork Segment			December 31,
(Millions of dollars)			2024			2023			2022
Net sales		$	2,376		$	2,205		$	2,417
Net income		$	52		$	65		$	48
Total assets		$	608		$	604		$	615
Total liabilities		$	302		$	299		$	312
Total equity		$	306		$	305		$	303

The CT&M segment has investments in foreign businesses conducting flour, maize and feed milling, baking operations, protein production and processing, and agricultural commodity trading. The CT&M segment supplies commodities to the majority of its milling affiliates. As of December 31, 2024, the location and percentage ownership of CT&M’s affiliates were as follows: Botswana (50%), Democratic Republic of the Congo (50%), The Gambia (50%), Kenya (18.47%-49%), Lesotho (50%), Mauritania (33.33%), Senegal (49%), South Africa (50%), Tanzania (11.76%-49%), Uganda (23.50%-49%) and Zambia (49%) in Africa; Colombia (40%-42%), Ecuador (25%-50%), and Peru (50%) in South America; Jamaica (50%) and Haiti (23.33%) in the Caribbean; Turkey (25%) in Europe; and Canada (45%) in North America. As of December 31, 2024, the CT&M segment’s carrying value of certain investments in affiliates was more than its share of the affiliates’ book value by $24 million and is attributable primarily to goodwill.

During 2022, the CT&M segment sold a 20% interest in its U.S. protein and commodity trading company to the majority owner for cash proceeds of $12 million. During 2024, the segment sold its remaining 20% interest in this investment for cash proceeds of $13 million. During 2023, the CT&M segment lost significant influence of its Moroccan investments and since then, such investments are accounted for under the cost method of accounting.

Combined financial information for the CT&M segment’s non-consolidated affiliates was as follows. The information is impacted by the transactions discussed above.



CT&M Segment		December 31,
(Millions of dollars)		2024				2023			2022
Net sales		$	1,597		$	3,088		$	3,186
Net income (loss)		$	50		$	(79)		$	40
Total assets		$	779		$	960		$	1,848
Total liabilities		$	411		$	569		$	1,250
Total equity		$	368		$	391		$	598

The Turkey segment represents Seaboard’s investment of 52.5% in Butterball. Seaboard does not have control of Butterball and all significant corporate governance matters are equally shared between Seaboard and its partner in Butterball. Within total assets, Butterball had indefinite-lived trade name intangible assets of $111 million and goodwill of $61 million as of December 31, 2024 and 2023.

Butterball’s financial information was as follows:



Turkey Segment		December 31,
(Millions of dollars)		2024				2023			2022
Net sales		$	1,883		$	2,025		$	2,050
Operating income		$	86		$	182		$	202
Net income		$	71		$	166		$	196
Total assets		$	1,131		$	1,120		$	1,081
Total liabilities		$	409		$	408		$	406
Total equity		$	722		$	712		$	675

Other includes a port terminal business in the Caribbean (21.02%), investments in two energy-related businesses in the Dominican Republic (45% and 50%), and two sugar-related businesses in Argentina (50%). Combined financial information for these non-consolidated affiliates was as follows:



Other			December 31,
(Millions of dollars)			2024			2023			2022
Net sales		$	74		$	69		$	91
Net income		$	21		$	22		$	21
Total assets		$	311		$	248		$	271
Total liabilities		$	82		$	75		$	66
Total equity		$	229		$	173		$	205