November 16, 2007

Pilgrim Pride to automate jobs for reduced costs

Pilgrim's Pride cited plans to increase automation and raise prices so as to offset the impact of escalating costs and labour shortages in its plants.

The Texas-based company struggled with US$189-million increase in feed ingredient costs in 2007.  If market conditions do not change, Pilgrim's Pride would be facing tougher times ahead with a US$345-million increase in feed costs.

Chief Executive O.B. Goolsby Jr., said that automation would be the primary focus in the company's capital investments for 2008. With labour-reducing technology, Goolsby said that they would be able to move more products efficiently and avert higher input costs.

J. Clinton Rivers, the company's COO said that automated equipment has been installed in selected plants to ease increased competition for workers.