text: Through HFIC, the Company markets its products in various locations throughout the world. Some of the larger markets include Australia, Canada, 
  China, England, Japan, Mexico and Micronesia. The distribution of export sales to customers is by common carrier, while the China operations own and 
  operate their own delivery system. The Company, through HFIC, has licensed companies to manufacture various Hormel products internationally on a 
  royalty basis, with the primary licensees being Tulip International of Denmark and CJ Corp. of South Korea. 
  
  **Raw Materials**
  
  The Company has, for the past several years, been concentrating on processed branded products for consumers with year-round demand to minimize 
  the seasonal variation experienced with commodity type products. Pork continues to be the primary raw material for Company products. Although hog 
  producers are moving toward larger, more efficient year-round confinement operations and supply contracts are becoming increasingly prevalent in the 
  industry, there is still a seasonal variation in the supply of fresh pork materials. The Company's expanding line of processed items has reduced but not 
  eliminated the sensitivity of Company results to raw material supply and price fluctuations. 