April 4, 2008

Fieldale Farms to reduce poultry production by 5 percent
 

Georgia-based poultry processor Fieldale Farms has announced its decision to reduce poultry production by 5 percent.
 

A 5 percent production cut at Fieldale represents about 160,000 head per week.

The decision was made because the company had not been able to keep pace with the soaring feed prices, stated Gus Arrendale, executive vice president of Fieldale Farms.

Corn prices were further pushed up when a recent USDA planting report showed that farmers intended to plant less corn and more soy.

The company also had difficulties passing cost increases to the food service and retail customers, as their competitors would place their prices lower than Fieldale's, said Tom Hensley, executive vice president of Fieldale Farms.

Fieldale has been absorbing the increases in feed costs, and the company is hoping that the production cut could relieve them from the price pressure as well as balancing the supply and demand equation.

Other companies including Pilgrim's Pride, Maple Leaf have each shut down a poultry plant in the US due to rising costs.