March 7, 2009

Louisiana has formed a task force to find a buyer for Pilgrim's Pride infrastructure in the state to mitigate the company's decision to close its local processing operations.

The closure will eliminate 1,300 jobs and the task force will now seek a buyer for Pilgrim's Pride infrastructure that includes processing and protein conversion plants in Farmerville, hatcheries in Choudrant and Athens, and a feed mill in Arcadia.

Nearly 300 independent poultry growers, many with US$1 million or more invested in their chicken houses, will be severely impacted unless a new owner can be found.

Pilgrim's Pride will accept between US$65 million and US$70 million for the northeastern Louisiana plants, Agriculture Commissioner Mike Strain said, citing the company's chief executive Don Jackson.

A group of buyers had reportedly offered US$10 million for Pilgrim's Pride El Dorado, Arkansas facility but the offer was rejected.

Pilgrim's Pride will not sell off cheap yet having to face a new competitor, according to Strain.

Strain said northeastern Louisiana chicken growers are exploring the possibility of forming a co-operative and buying the Louisiana plant themselves, but they may need the state to participate in the financing for that to happen and there are many factors to consider.

Strain said the task force is also lobbying lenders to delay foreclosing on the chicken growers as the state searches for a buyer.

Louisiana's Economic Development Secretary Stephen Moret's staff is surveying all companies that could buy the operations, Strain said.

Pilgrim's Pride said that it will close its northeastern Louisiana and southern Arkansas operations in 60 to 75 days.