Skip to comments.Breaking- Pilgrim's Pride cutting 1,100 jobs, closing facilities (Enviro Ethanol Victim)
Posted on 03/12/2008 7:18:04 AM PDT by mnehring
Pilgrim's Pride Corporation on Wednesday announced it will close a chicken processing complex and six of its 13 distribution centers in the United States.
None of the impacted facilities are in Texas.
Company officials said the action was in response to what they deemed a crisis facing the U.S. chicken industry from soaring feed-ingredient costs resulting from corn-based ethanol production.
"Our Company and industry are struggling to cope with unprecedented increases in feed-ingredient costs this year due largely to the U.S. government's ill-advised policy of providing generous federal subsidies to corn-based ethanol blenders," said Clint Rivers, president and chief executive officer.
"The cost burden is already enormous, and it's growing even larger," Rivers said. "Based on current commodity futures markets, our company's total costs for corn and soybean meal to feed our flocks in fiscal 2008 would be more than $1.3 billion higher than what they were two years ago."
These actions are part of a plan to curtail losses amid record-high costs for corn, soybean meal and other feed ingredients and an oversupply of chicken in the United States. The closings, which are expected to begin immediately and will be completed by June, will result in the elimination of approximately 1,100 jobs. Additionally, the company announced that it is in the process of reviewing other production facilities for potential mix changes, closure and/or consolidation in response to current negative industry fundamentals.
Under the plan announced Wednesday, the Pilgrim's Pride will close its chicken processing complex in Siler City, N.C., which employs approximately 830 people. Pilgrim's Pride also plans to shut down distribution centers in Oskaloosa, Iowa; Plant City and Pompano Beach, Fla.; Jackson, Miss.; Nashville, Tenn.; and Cincinnati, Ohio.
The company will provide transition programs to employees to assist them in securing new employment, filing for unemployment and other applicable benefits, officials said.
The company expects to record asset impairment and other charges related to the facility closures of approximately $35 million, $21.7 million net of tax, or $0.33 per share, Rivers said.
"We simply must find ways to pass along these higher costs," Rivers said. "Additionally, we believe that the recent impact of food-based inflation, coupled with the need for food producers to continue to increase prices for their products, will further stimulate inflation, weaken consumer confidence and negatively affect demand for products in certain market channels."
Chickens coming home to roost ping....
No society ever survived by burning its food.
Another Unintended Consequence of a government program, in which the remedy only exacerbates the original problem. Of course, the BigAg states love it.
The gov’t needs to stay out of commercial enterprise. Period
More illegal aliens out of work...
...and how many illegals?........
you nailed it.
Of course, society won't 'DIE' because of burning the food.
Society may die because of government/elite/bureaucratic meddling in the market and trying to perfect the elusive command economy, but that's happened in hundreds of other instances throughout history.
Ethanol is choking off the chicken business!
for what it’s worth, lefties don’t like ethanol any more than we do. everybody hates it but the companies that get to look good making it, and the corn growers.
It sounds like by the time this is over we will be lucky to even have a chicken bone in every pot.
So much for a chicken in every pot. We need to “feed” the car in every garage.
All the meat processors are participating in EEV so the number of illegals working there is relatively small. Based on the numbers detected at the Swift Swat Raid, about 10%.
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