Hormel Foods’ multifaceted supply chain includes suppliers of hogs, turkeys, ingredients, packaging materials and transportation. 

20 By 30 Challenge Goals

As part of Hormel Foods’ 20 By 30 Challenge, the company strives to achieve the following goals by 2030:

• Maintain high standards for animal care and handling throughout its supply chain
• Advance antibiotic stewardship efforts and pilot an antibiotic use measurement and reporting system
• Continue to increase its purchasing spend annually with small and diverse businesses.

These ambitions help support UN Sustainable Development Goals 3, 8, 10 and 12.

Supplier Code of Conduct and Sourcing Policies

All of Hormel Foods’ suppliers are required to follow the company’s Supplier Code of Conduct to ensure the products and services received from them adhere to Hormel Foods’ commitments to responsible environmental and social performance. In partnership, the company delivers quality products and add value to society.

In addition, Hormel Foods works closely with its palm oil and South American beef suppliers to ensure they comply with these principles as well as additional requirements outlined. Hormel Foods made a commitment to source only sustainable palm oil that is fully traceable to the plantation level by the end of 2025. The company has made significant progress toward this commitment and reached 77% of its goal at the end of 2021. Hormel Foods will continue working with its suppliers to reach our 100% traceability goal.

If a supplier is found to be in violation of its Supplier Code of Conduct/sourcing policies, Hormel Foods requires the supplier to implement corrective actions. If appropriate corrective actions cannot be agreed to or are not made, Hormel Foods will suspend or discontinue purchases from the supplier. For more information about our palm oil and South American beef sourcing requirements, visit the Hormel Foods corporate website. 

Supplier Assessment

Hormel Foods has established supplier quality management (SQM), which evaluates its suppliers based on quality, delivery, service, technology and price. Ingredient suppliers are subject to additional measurements to further ensure quality and food safety. Suppliers that exceed the company’s established standards are eligible for the annual Hormel Foods Spirit of Excellence Awards. In 2021 alone, Hormel Foods recognized 61 suppliers for their performance.

In 2021, Hormel Foods implemented an online survey assessment process with its suppliers to evaluate their environmental, social and governance (ESG) performance. Third-party audits may be conducted based on the results of these assessments. Hormel Foods will report additional information about this initiative in future reports. The company also meets with top suppliers annually to evaluate their initiatives and review service metrics along with diverse business spend and sustainability. This includes environmental and social responsibility, as well as business drivers for the upcoming year. Hormel Foods reports its internal results through a third party for its customers.

As part of a commitment to supply chain sustainability management, Hormel Foods requires all ingredient suppliers to have third-party food safety audits. In addition, in 2021 the company conducted eight food safety supplemental audits. If suppliers are found to be noncompliant, appropriate action is taken — up to and including termination.

Hormel Foods values the long-standing relationships it has established and maintains with suppliers. In fact, in calendar year 2021 only 3% of purchases were from new suppliers.

Supplier Diversity Program

Hormel Foods aims to continue to increase its purchasing spend annually with small and diverse businesses. In addition to ensuring suppliers comply with the food safety standards recognized by the Global Food Safety Initiative (GFSI), the company makes a concerted effort to give diverse companies, such as small, women-owned, minority-owned and veteran-owned businesses, the opportunity to supply quality products that meet the company’s growing business needs. In calendar year 2021, Hormel Foods’ purchasing spend with small and diverse businesses was $1.3 billion. This amount includes independent family-owned hog farms. 

For additional information about Hormel Foods’ supply chain, visit its corporate website.

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