In The News
April 14, 2008


Poultry News, Meatingplace.com
Pilgrim's Pride cutting production
By Alicia Karapetian

In its latest move to combat record feed costs, Pilgrim's Pride Corp., the nation's largest chicken processor, on Monday announced that it will reduce weekly chicken processing by about 5 percent.

The Pittsburg, Texas-based company said the reduction started with egg sets earlier this month and would take full effect in June. The production cut will remain in effect until average industry margins return to more normalized levels.

The cut includes the impact of the closure of Pilgrim's Pride's Siler City, N.C., plant, which was announced in March. That closure represents about 2 percent of Pilgrim's Pride's total volume. (See Pilgrim's Pride cuts 1100 jobs, shutters 7 facilities on Meatingplace.com, March 12, 2008.)

"We believe the cuts we are enacting will strike a better balance between production and demand and strengthen our competitive position," President and CEO Clint Rivers said in a statement.

Pilgrim's Pride is the fourth poultry processor in two weeks to announce production cuts. Baldwin, Ga.-based Fieldale Farms, Siloam Springs, Ark.-based Simmons Foods and Atlanta-based Cagle's Inc. have also decided to reduce production.

In addition to closing its Siler City, N.C., plant, Pilgrim's Pride also has acknowledged the possible closure of its processing complex in El Dorado, Ark., but has yet to make an official decision. (See Pilgrim's Pride may close El Dorado facility on Meatingplace.com, April 11, 2008.)

Shares of Pilgrim's Pride on Monday were up 69 cents in midday trading, reaching $19.79 on the New York Stock Exchange. Meanwhile, competitor Sanderson Farms Inc. saw its shares jump $2.97, reaching $39.97, or 8 percent, on the Nasdaq. Shares of Tyson Foods Inc. were up 18 cents, reaching $17.03, during midday trading on the New York Stock Exchange.