April 15, 2008

Pilgrim's Pride to reduce chicken production by 5 percent
 

Pilgrim's Pride has felt the strong impact of feed grain inflation, as it announced its plans to reduce weekly chicken production by 5 percent.

Total feed costs for Pilgrim's Pride fiscal year that ends in September is estimated to be at an astronomical US$1.3 billion higher than 2006.

The cutback will take full effect in June, and would include the closure of its chicken processing plant in Siler City, North Carolina.

To offset soaring grain prices, Pilgrim's Pride has sold its turkey business, and has announced the closure of six distribution centres.

Pilgrim's Pride is currently also considering the closure of its chicken processing plant in El Dorado, Arkansas. The company's plans to cut production come after similar announcements from Fieldale Farms, Simmons Foods and Cagle's.