April 10, 2008

Simmons Foods to cut poultry production

Simmons Foods has announced a 6-percent cut in chicken production starting this month in face of high feed costs and a weak domestic market price.

Simmons will reduce chicken weight and the number of chickens in its two slaughter facilities, and the move should allow the company to focus on its value-added product business while minimising exposure to commodity markets.

Recent US chicken market prices are not able to recover the rising feed costs, although the increased cost burden is not yet reflected in domestic poultry prices, according to David Jackson, president of Simmons Prepared Foods.

Simmons is the second poultry processor to announce a production cut this month, with Fieldale Farms announcing a 5 percent production cut last week.

Based in Siloam Springs, Arkansas, Simmons Foods is a privately held poultry processor with operations in Arkansas, Missouri and Oklahoma.