Processing Magazine

Pilgrim''s Pride to stop production at two plants

August 11, 2008
According to the Associated Press, chicken producer Pilgrim''s Pride Corp. will stop production at processing plants in Arkansas and Louisiana in a bid to boost profits. The production cutback will also mean the loss of 600 positions. Ending production at the Clinton, Ark., plant will result in a 1.25 percent cut in company''s chicken production heading into fall. Processing at the Bossier City, La., plant will shift to other facilities. Pilgrim''s Pride has been attempting to cut back production to restrict supply and lower chicken prices. With the cost of grain -- a key ingredient in animal feed -- rising in the past year, margins at chicken companies like Pilgrim''s Pride have suffered. The company is hoping that higher chicken prices may raise revenue enough to offset some of the higher costs. This latest production cut comes after the company closed a plant in North Carolina and seven distribution centers. Combined with those cuts, the company said it has now eliminated nearly 2,300 positions.