February 20, 2009
Sanderson Farms expects feed costs to lower this year
US chicken producer Sanderson Farms said Thursday (Feb 19) that lower grain prices should reduce its fiscal 2009 feed costs by US$129 million from the previous year.
Despite the lower feed costs, the industry still needs to reduce chicken production to restore profits, chief executive Joe Sanderson said.
Last year marked a torrid period for the poultry industry as feed costs went to a record high, playing a part in Pilgrim's Pride's bankruptcy.
Sanderson said it may be well into 2010 before US consumers return to restaurants and there is not much expectation for demand, and improvements in the chicken market will have to come from supply cuts.
Meanwhile, PETA which owns shares in Sanderson Farms, wants the company to use controlled atmosphere killing for its poultry.
