What Seneca Foods Corp. told the SEC could break it.

A relatively limited number of customers drive Seneca's sales — the top ten represented ~53% of net sales in fiscal 2025 (52% in 2024); loss of, or reduced orders from, a significant customer would materially harm results.

“The top ten customers represented approximately 53% and 52% of net sales for fiscal years 2025 and 2024, respectively. If we lose a significant customer or if sales to a significant customer materially decrease, our business, financial condition and results of operations may be materially and adversely affected.”

Seneca relies on roughly 4,010 seasonal employees during peak summer harvest at packaging plants in rural communities that may lack sufficient labor; a seasonal-labor shortage or minimum-wage increases during the critical harvest window would raise costs and disrupt operations.

“If there is a shortage of seasonal labor, or if there is an increase to minimum wage rates, this could have a negative impact on our cost of operations. Many of our packaging operations are located in rural communities that may not have sufficient labor pools, requiring us to hire employees from other regions.”

Seneca is extensively regulated by the FDA, USDA, FTC, EPA and OSHA, including the Food Safety Modernization Act's prevention-based standards and packaging requirements (e.g., its transition to BPANI can linings); new food-safety or labeling rules could impose added costs and operational changes.

“The Food Safety Modernization Act ("FSMA") was enacted with the goal of enabling the FDA to better protect public health by strengthening the food safety system. FSMA was designed to focus the efforts of the FDA on preventing food safety problems rather than relying primarily on reacting to problems after they occur.”

Seneca sources produce from more than 1,100 American farms and buys steel, ingredients and packaging from commodity processors/steel producers; volatile commodity, labor, fuel and transportation costs (and crop/weather-driven supply swings) squeeze margins when they can't be passed through to customers.

“The Company purchases other raw materials, including steel, ingredients and packaging materials from commodity processors, steel producers and packaging suppliers. Raw materials and other input costs, such as labor, fuel, utilities and transportation, are subject to fluctuations in price attributable to a number of factors.”