text: Livestock slaughtered by the Company is purchased by Company buyers and commission dealers at sale barns and terminal markets or under long-term 
  supply contracts at locations principally in Minnesota, Illinois, Iowa, Nebraska, Colorado and South Dakota. The cost of livestock and the utilization of the 
  Company's facilities are affected by both the level and the methods of pork production in the United States. The hog production industry has been rapidly 
  moving to very large, vertically integrated, year-round confinement operations operating under long-term supply agreements. This has resulted in fewer 
  hogs being available on the spot cash market, which decreases the supply of hogs on the open market and can severely diminish the utilization of 
  slaughter facilities and increase the cost of the raw materials they produce. The Company, along with others in the industry, uses long-term supply 
  contracts to manage the effects of this trend and to assure a stable supply of raw materials while minimizing extreme fluctuations in costs over the long- 
  term. This may result in costs for live hogs that are either higher or lower than the spot cash market depending on the relationship of the cash spot 
  market to contract prices. Contract costs are fully reflected in the Company's reported financial results. In fiscal 2003, the Company purchased 79 percent 
  of its hogs under long-term supply contracts. 