July 3, 2009

Foster Farms, which has recently took over the shuttered Pilgrim's Pride poultry processing plant in Farmerville, Louisiana, announced it will not extend contracts to all chicken growers who previously sold to Pilgrim's Pride in the region.

Independent growers had been providing chickens to both the Farmerville plant and another now-shuttered Pilgrim's Pride plant in Clinton, Arkansas, said Director of marketing services Ira Brill.

As Foster Farms brings the Farmerville plant up to full capacity, it expects to extend contracts to most Louisiana growers but the single plant will not be able to fully accommodate a grower base that was previously supplying two plants, said Brill.

Brill said the company would use factors such as cost, quality of chicken housing and distance from a feed mill and the processing plant in its decision to extend grower contracts.

Foster Farms plans to begin operations at the Farmerville plant on July 16.