Hormel Divests Whole-Bird Turkey Operations Amid HPAI Pressures

Company sells Minnesota processing plant and feed mill to Life-Science Innovations as it shifts focus to branded turkey products.

Published on Feb. 22, 2026

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Hormel Foods Corp. has entered into an agreement to sell its whole-bird turkey business, including a processing plant and feed mill in Minnesota, to Life-Science Innovations (LSI). The move signals Hormel's continued shift away from commodity-driven volatility in the turkey sector, as the company looks to focus on its branded, value-added turkey portfolio while reducing exposure to live production risks like highly pathogenic avian influenza (HPAI) and feed cost fluctuations.

Why it matters

The sale reflects ongoing consolidation and specialization in the poultry industry, as companies evaluate their portfolio exposure to live production risks versus the stability of value-added processing. For turkey growers, the transition to LSI ownership introduces a new operational structure while preserving existing supply relationships in the near term.

The details

Under the agreement, LSI will assume supply contracts with third-party turkey growers and provide co-manufacturing services to Hormel through the end of fiscal 2026. This structure is designed to maintain continuity for growers and customers during the transition. LSI, headquartered in Willmar, Minnesota, operates in agriculture and technology services supporting poultry production and processing.

  • Hormel entered into the definitive agreement to sell its whole-bird turkey business on February 18, 2026.
  • The transaction is expected to close by the end of Hormel's second fiscal quarter, subject to regulatory approvals.

The players

Hormel Foods Corp.

A major American food company that produces a variety of meat and food products, including the Jennie-O turkey brand.

Life-Science Innovations (LSI)

A Minnesota-based company that operates in agriculture and technology services supporting poultry production and processing.

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What’s next

Further details on the transaction and its impact on Hormel's financial results are expected to be provided during the company's first-quarter earnings call on February 26, 2026.

The takeaway

This sale reflects the ongoing shifts in the poultry industry, as companies like Hormel look to reduce their exposure to the volatility of live production and focus more on branded, value-added products. The move also highlights the continued consolidation and specialization in the sector, as companies evaluate their portfolios and seek to optimize their operations.