Pilgrims Pride (PPC) risk factors, FY2025 10-K

Other

1. 01Industry cyclicality can affect our earnings, especially due to fluctuations in commodity prices of feed ingredients, chicken and pork
2. 02Profitability in the chicken and pork industries is materially affected by the commodity prices of feed ingredients and the market prices of chicken and pork, which are determined by supply and demand factors. As a result, the chicken and pork industries are subject to cyclical earnings fluctuations
3. 03Outbreaks of livestock diseases in general, and poultry and pig diseases in particular, including avian influenza and African swine fever, can significantly and adversely affect our ability to conduct our operations and the demand for our products
4. 04If our products become contaminated, we may be subject to product liability claims and product recalls. Such product liability claims or product recalls could adversely affect our business reputation, expose us to increased scrutiny by federal and state regulators and may not be fully covered by insurance
5. 05Our foreign operations and commerce in international markets pose special risks to our business and operations and subject us to additional regulatory frameworks and compliance costs
6. 06Competition in the chicken and pork industries with other vertically integrated chicken or pork companies may make us unable to compete successfully in this industry, which could adversely affect our business
7. 07Media campaigns related to food production, regulatory and customer focus on sustainability, and recent increased focus and attention by the U.S. government on market dynamics and other facets of the meat processing industry could expose us to additional costs or risks
8. 08Our operations are subject to general risks of litigation
9. 09We may not be able to successfully integrate the operations of companies we acquire or benefit from growth opportunities
10. 10The consolidation of customers and/or the loss of one or more of our largest customers could adversely affect our business
11. 11We depend on contract growers and independent producers to supply us with livestock
12. 12Changes in consumer preference could negatively impact our business
13. 13Climate change and related regulations may have a long-term adverse impact on our business and results of operations21% rewritten
14. 14Regulations, present and future, are constant factors affecting our business
15. 15Environmental, Health and Safety
16. 16Other jurisdictions in which we operate have adopted similar anti-corruption, anti-bribery and anti-kickback laws to which we are subject. Civil and criminal penalties may be imposed for violations of these laws
17. 17Our performance depends on favorable labor relations with our employees and our compliance with labor laws. Any deterioration of those relations or increase in labor costs due to our compliance with labor laws could adversely affect our business21% rewritten
18. 18Loss of skilled employees, labor shortages, or a material increase in employee turnover could have a significant negative impact on our business and adverse effects on our profitability79% rewritten
19. 19If we are unable to attract, hire or retain key team members, it could have a negative impact on our business, financial condition or results of operations46% rewritten
20. 20JBS USA beneficially owns a majority of our common stock and has the ability to control the vote on most matters brought before the holders of our common stock
21. 21We are subject to reputational risk in connection with U.S. and Brazilian civil and criminal actions and investigations involving our ultimate controlling shareholders, and these actions may materially adversely impact our business and prospects and damage our reputation and image
22. 22Our future financial and operating flexibility may be adversely affected by significant leverage
23. 23Impairment in the carrying value of goodwill or other identifiable intangible assets could negatively affect our operating results
24. 24Weak or unstable national or global economic conditions, including inflation, could negatively impact our business
25. 25Our business may be negatively impacted by economic or other consequences from Russia’s war against Ukraine and the sanctions imposed as a response to that action88% rewritten
26. 26Extreme weather, natural disasters or other events beyond our control as well as interruption by man-made problems such as power disruptions could negatively impact our business
27. 27Our use of artificial intelligence and machine learning may result in legal and regulatory risksNew