Pilgrim's Pride Reduces Production

4/15/2008

Pilgrim's Pride Corporation plans to reduce weekly chicken processing by approximately five percent in the second half of fiscal 2008, when compared to the same period a year ago, as part of its continuing effort to better balance supply and demand amid record-high costs for feed ingredients such as corn and soybean meal. The reduction began with eggs set earlier this month and should take full effect with weekly processing beginning in June. The company says the reduction will remain in effect until average industry margins return to more normalized levels. The five percent reduction includes the impact of the previously announced closing of the Pilgrim's Pride plant in Siler City, NC, which should be completed by June. "Soaring feed-ingredient costs fueled by the federal government's misguided ethanol policy has created a crisis in our industry, the true effects of which are only just now beginning to be felt by American consumers in the form of higher food prices," says Clint Rivers, president and chief executive officer, Pilgrim's Pride. "Over the past two weeks, a growing number of smaller chicken producers have announced production cutbacks in an effort to manage these unprecedented increases for corn and soybean meal, which are expected to add billions of dollars of cost to our industry this year."

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