April 14, 2008, Pittsburg, Texas –To combat high feed costs, Pilgrim's Pride Corp. announced today that it plans to reduce weekly chicken processing by 5 per cent.
The 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.
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.
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