Note 3

Inventories

The following table is a summary of inventories at the end of each year:

	December 31,
(Thousands of dollars)	2012			2011
At lower of LIFO cost or market:
Live hogs and materials	$	258,638		$	228,624
Fresh pork and materials	31,495			29,426
	290,133			258,050
LIFO adjustment	(90,730		)	(57,783		)
Total inventories at lower of LIFO cost or market	199,403			200,267
At lower of FIFO cost or market:
Grains, oilseeds and other commodities	317,573			251,839
Sugar produced and in process	65,986			78,730
Other	73,606			63,449
Total inventories at lower of FIFO cost or market	457,165			394,018
Grain, flour and feed at lower of weighted average cost or market	100,296			50,645
Total inventories	$	756,864		$	644,930

The use of the LIFO method decreased 2012, 2011 and 2010 earnings by $20,098,000 ($16.70 per common share), $20,556,000 ($16.92 per common share) and $780,000 ($0.64 per common share), respectively. If the FIFO method had been used for certain inventories of the Pork segment, inventories would have been higher by $90,730,000 and $57,783,000 as of December 31, 2012 and 2011, respectively.