March 13, 2009

Pilgrim's Pride has rejected Foster Farms' US$40 million offer for its processing plant in Farmerville, North Louisiana, which is scheduled for closure.

A Pilgrim's Pride spokesman said chief executive Don Jackson indicated any sales would have to be for far more than US$40 million, of which Louisiana was willing to pitch in half in the form of incentives.

Pilgrim's Pride decision to shut the Farmerville plant will eliminate 1,300 jobs and affect 300 independent chicken growers, a hatchery in Athens, a hatchery in Choudrant and a feed mill in Arcadia.

Pilgrim's Pride has announced plans to idle three plants, including Farmerville, to help cut costs.

Meanwhile, 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.

California-based Foster Farms owns and operates hatcheries, chicken houses, feed mills and processing plants.