August 2, 2006

Pilgrim's Pride posts US$20 million loss
 

Pilgrim's Pride of Pittsburg, Texas, posted a loss of US$20.5 million, versus year-ago income of US$85.4 million.

Sales for the three months ended Jul 1 fell to $1.29 billion from $1.44 billion.

This news comes after rival Tyson reported a US$52 million loss for the quarter.

Fears of bird flu have affected US chicken exports, causing prices for chicken products to plunge. The oversupply of chicken in the marketplace has also brought down prices of pork and beef. Increased costs for energy, fuel and feed exerted further pressure on margins.

Although the company has cut back on production, lingering effects of lower export demand and higher inventories from last winter and early spring continued to hurt prices.

The company hopes recent increases in leg quarter and breast meat prices would continue as international demand for US chicken products improves and the full effect of the production cutbacks are realised, said Chief Executive O.B. Goolsby Jr.