April 14, 2008

Pilgrim's Pride considering closure of El Dorado facility
 

Pilgrim's Pride may close its poultry processing complex in El Dorado, Arkansas, due to high grain prices, company spokesman Ray Atkinson told Meatingplace.com.

Pilgrim's Pride had invested millions of dollars into the facility after acquiring it from ConAgra in 2002 but there has not been a return on investment, and the facility's costs are not competitive and productivity is poor, according to Atkinson.

Atkinson added that efficiency issues led to difficulty in filling orders on time and that the facility has not been able to attract new customers.

However, the company has not made an official decision therefore closure could be avoided if the facility's financial situation improves, said Atkinson.

Pilgrim's Pride is in discussions with the United Food and Commercial Workers Union to explore possible changes that could help to improve the fortunes of the El Dorado facility so that it do not have to close down.

Pilgrim's Pride in March had announced the closure of a processing facility and six distribution centres.

The rising ethanol industry and skyrocketing grain prices have pushed Pilgrim's Pride into mass closures, said Atkinson.