June 22, 2011

 

Cagle's reduces jobs at poultry plant

 

 

Cagle's Inc. is blaming surging corn prices for a decision to remove a production shift at its Pine Mountain Valley, Georgia, poultry processing plant that will subsequently lead to 300 job losses.

 

The Atlanta-based company said the layoffs will take effect on or near August 19, but not more than two weeks after that date. The deboning facility's 640 workers currently process 520,000 chickens per week. Following the production cuts, Cagle's expects to operate one full shift five days per week and process about 320,000 chickens.

 

Cagle's, a family-run company that has been in business for 66 years, cited a 34% increase in feed costs since last fall for sparking the production cut, combined with a 10% drop in the sales of boneless breasts in the corresponding period. The company tried to offset these declines by reducing volume by 20% in November to two shifts four days per week.

 

Cagle's also operates a poultry processing plant in Collinsville, Alabama, a feed mill in Rockmart, Ga., and a hatchery in Dalton, Ga.

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