Pilgrim's Pride to idle Louisiana chicken plant in May

Pilgrim's Pride will idle its north Louisiana chicken processing plant on May 8, as negotiations over the sale of the facility to Foster Farms continue, a spokesman said Monday (Apr 27).

Spokesman Ray Atkinson said Pilgrim's Pride will proceed with its previous plans to idle the plant as it is impossible to know if or when a final agreement will be reached.

The idling of the plant will lay off 1,300 workers.

Last month, Pilgrim's Pride agreed to sell the plant to Foster Farmers for US$80 million, but Atkinson said no formal purchase agreement has been signed and any agreement will be subject to conditions and approvals, including that of a bankruptcy court.

State lawmakers must also approve incentives.

Foster Farms chief executive Ron Foster said the company is continuing its negotiations with Pilgrim's Pride and anticipates upgrading and adding to the capabilities of the plant.

The improvements, when operational and used in conjunction with the local workforce, will allow Foster Farms to build a strong sales base and lead to a return to full double shift capacity overtime after the purchase, Foster said, adding that the company plans to continue using local chicken growers.