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Breaking- Pilgrim's Pride cutting 1,100 jobs, closing facilities (Enviro Ethanol Victim)
Longview News Journal ^ | 03/12/08

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."


TOPICS: Breaking News; Business/Economy; US: Florida; US: Iowa; US: Mississippi; US: North Carolina; US: Ohio; US: Tennessee
KEYWORDS: agw; burningfood; chicken; energypolicy; ethanol; layoffs; pilgrimspride; poultry
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1 posted on 03/12/2008 7:18:07 AM PDT by mnehring
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To: mnehrling; TigerLikesRooster

Chickens coming home to roost ping....


2 posted on 03/12/2008 7:19:37 AM PDT by Uncle Ike (Sometimes I sets and thinks, and sometimes I jus' sets.........)
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To: mnehrling

No society ever survived by burning its food.


3 posted on 03/12/2008 7:21:10 AM PDT by edcoil (Go Great in 08 ... Slide into 09)
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To: mnehrling

Another Unintended Consequence of a government program, in which the remedy only exacerbates the original problem. Of course, the BigAg states love it.


4 posted on 03/12/2008 7:22:06 AM PDT by Always A Marine
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To: mnehrling
Yet again we see the law of unintended/unanticipated consequences rear it's ugly visage in mirth.

The gov’t needs to stay out of commercial enterprise. Period

5 posted on 03/12/2008 7:22:11 AM PDT by roaddog727 (BS does not get bridges built - the funk you see is the funk you do)
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To: mnehrling
"Feed me!!!!"


6 posted on 03/12/2008 7:22:16 AM PDT by avacado
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To: mnehrling

More illegal aliens out of work...


7 posted on 03/12/2008 7:22:22 AM PDT by CedarDave (John, When will you treat conservatives the way you do fellow senators John, Hillary and Barack?)
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To: mnehrling
Pilgrim's Pride will close its chicken processing complex in Siler City, N.C., which employs approximately 830 people.

...and how many illegals?........

8 posted on 03/12/2008 7:22:46 AM PDT by Red Badger ( We don't have science, but we do have consensus.......)
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To: CygnusXI; Normandy; Delacon; Fiddlstix; Defendingliberty; WL-law; Genesis defender; proud_yank; ...
 


9 posted on 03/12/2008 7:23:25 AM PDT by steelyourfaith
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To: edcoil

you nailed it.


10 posted on 03/12/2008 7:23:59 AM PDT by stainlessbanner
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To: avacado
Ironically, that is one of the two big industries here, Pilgrim's chicken and Letourneau super-size loaders.
11 posted on 03/12/2008 7:24:04 AM PDT by mnehring (The question isn't who is going to let me; it's who is going to stop me. - Ayn Rand)
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To: mnehrling
This new “addiction” to ethanol is having some serious consequences. And it's bound to get worse, considering the geniuses we have in charge.
12 posted on 03/12/2008 7:24:30 AM PDT by isrul (Help make koranimals an endangered species)
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To: edcoil
No society ever survived by burning its food.

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.

13 posted on 03/12/2008 7:24:49 AM PDT by sam_paine (X .................................)
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To: mnehrling

Ethanol is choking off the chicken business!


14 posted on 03/12/2008 7:24:58 AM PDT by Proverbs 3-5
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To: Uncle Ike

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.


15 posted on 03/12/2008 7:25:55 AM PDT by TINS
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To: CedarDave
I believe Pilgrim's did a big illegal purge February of last year after they got an $800Million fine for hiring illegals. Let me do some checking..
16 posted on 03/12/2008 7:26:09 AM PDT by mnehring (The question isn't who is going to let me; it's who is going to stop me. - Ayn Rand)
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To: mnehrling

It sounds like by the time this is over we will be lucky to even have a chicken bone in every pot.


17 posted on 03/12/2008 7:26:51 AM PDT by beltfed308 (Heller: The defining moment of our Republic)
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To: mnehrling

So much for a chicken in every pot. We need to “feed” the car in every garage.


18 posted on 03/12/2008 7:27:38 AM PDT by keepitreal
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To: Red Badger
"and how many illegals"

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%.

19 posted on 03/12/2008 7:27:57 AM PDT by Ben Ficklin
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To: isrul
IF we did go to ethanol, we should have learned from Brasil. They didn't convert their farmland to production, they cut down their rain-forests to grow the sugar cane. The enviros are in complete denial of that.
20 posted on 03/12/2008 7:28:16 AM PDT by mnehring (The question isn't who is going to let me; it's who is going to stop me. - Ayn Rand)
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To: stainlessbanner

No society ever survived once the liberals elements took over and over governed.


21 posted on 03/12/2008 7:28:43 AM PDT by Resolute Conservative
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To: TINS

And the politicians who would rather starve people than drill for oil. /rediculous


22 posted on 03/12/2008 7:32:39 AM PDT by DonnerT (To compromise integrity is to loose it!)
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To: mnehrling

Chicken feed; any news on hen’s teeth?


23 posted on 03/12/2008 7:32:51 AM PDT by Old Professer (The critic writes with rapier pen, dips it twice, and writes again.)
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To: mnehrling

Eat mor chikin!


24 posted on 03/12/2008 7:35:11 AM PDT by Sender (Sometimes I sits and thinks, and sometimes I just sits.)
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To: mnehrling

Chickens are coming home for Bo. He has hired illegals for years and had completely destroyed the NE Texas area where I live by importing all the illegal immigrants. He has permanently changed the face of many towns mainly Pittsburg and Mt. Pleasant to become slums with an even increasing gang problem in the schools and the smell of rendering chicken parts in the air. Until the last few years we were a quiet area great for raising kids now we have metal detectors in our 3A schools thanks to the criminal Mexicans he has brought into town and the overflow of our Pediatric Clinic and ER with non-paying, non-citizen moochers.

Even the Wal-mart has changed their buying scheme to bring in more ethnic items and you won’t hear much English spoken there . We refuse to shop in that town anymore and drive a hour way to shop for groceries and everything else.

Most people over-looked it since he gives to a lot of charities and is the #1 employer within 100 miles.


25 posted on 03/12/2008 7:37:37 AM PDT by Resolute Conservative
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To: mnehrling

Make no mistake, ALL of the big chicken processing companies are dependent on illegal labor. And to tell the truth, those are some of the few jobs this American doesn’t want to do.


26 posted on 03/12/2008 7:37:50 AM PDT by Sender (Sometimes I sits and thinks, and sometimes I just sits.)
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To: Sender
And to tell the truth, those are some of the few jobs this American doesn’t want to do.

Driving by the plants, I think I can agree with you on this. The smell, even a half a mile away, makes you never want to eat chicken again.

27 posted on 03/12/2008 7:38:58 AM PDT by mnehring (The question isn't who is going to let me; it's who is going to stop me. - Ayn Rand)
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To: Resolute Conservative
...and had completely destroyed the NE Texas area where I live...
I take it we are neighbors then..
28 posted on 03/12/2008 7:39:53 AM PDT by mnehring (The question isn't who is going to let me; it's who is going to stop me. - Ayn Rand)
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To: mnehrling
"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.

Some questioned it from the beginning, but there comes a point when common sense is so obvious that only the most ignorant could fail to see it.

Motives are questionable for continuing after that point.

29 posted on 03/12/2008 7:42:30 AM PDT by LucyJo
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To: LucyJo
Bush ought to issue an Executive Order for drilling in ANWAR, Arctic sea, Gulf of Mexico, CA and East coast offshore......and free up the low sulpher coal that the toon made into a national monument (to his stupidity).

AND...get some oil refineries built on closed military bases as was promised .

30 posted on 03/12/2008 8:09:28 AM PDT by spokeshave (Hey GOP...NO money till border closed and criminal illegals deported)
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To: mnehrling

I don’t think most Americans have yet made the connection between soaring food prices and the half-witted, bought and paid for actions of their elected representatives in Washington. I had never seen any size eggs priced much above $1.00 per dozen, but now Extra Large are $2.50 per dozen. Flour has increased 50% or more, and significant increases in beef, chicken, etc., and most everything in the supermarket.

I wonder if it’d be possible to have a more stupid and incompetent government in Washington. It will be more than justified if they begin to feel outrage and wrath from their constituents, once they finally make the connections.


31 posted on 03/12/2008 8:09:48 AM PDT by Will88
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To: mnehrling

Why can’t they increase what they charge? All the other chicken processing firms must be dealing with food issues, increasing their costs by a similar amount.


32 posted on 03/12/2008 8:11:47 AM PDT by ConservativeMind
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To: Proverbs 3-5
Ethanol is choking off the chicken business!

Me and my chicken are choked up over this news.

33 posted on 03/12/2008 8:14:25 AM PDT by Responsibility2nd
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To: TINS

My van runs on regular unleaded.

There’s a new E85 station down the road. They offer E85 at $2.85/gallon.

Normally, my van gets 17/23 to the gallon.
If I had the E85 capable engine, (or do I actually need the FuelFlex engine to handle E85?) then my milage goes down to 12/16.

So, at $3.16/gallon which I filled up at yesterday morning, I would be able to fill up more cost-effectively with regular unleaded than this new E85 scam.

What’s the benefit? Less emissions? My van already has an emissions filter and is tested anually for excess emissions. (And as I found in Florida, if you pour a single bottle of isproypal alcohol into your fuel tank, you reduce your emissions for the duration of the test to be able to pass.)

Paul


34 posted on 03/12/2008 8:17:54 AM PDT by spacewarp (Gun control is a tight cluster grouping in the chest and one in the forehead.)
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To: Sender

“Make no mistake, ALL of the big chicken processing companies are dependent on illegal labor. And to tell the truth, those are some of the few jobs this American doesn’t want to do.”

I don’t buy that. My hometown has had a chicken processing plant since the late 1950s. It now employs around 900 and no Hispanics had ever lived in this area until about ten years ago. Even now, it’s a low percentage (about 2%), and they make up only a tiny portion of that plant’s work force.

But if illegals should be allowed to flood this area, I feel sure wages would fall and the workforce would become increasingly Hispanic, and the whites and blacks would gradually move to other work as they could find it.

These plants are dependent on illegal labor only where illegal labor has come in (or been brought in) and driven down wages and drive out the extant work force. Enforce the law and this won’t happen.

These companies have at times put up large, new plants in areas where they couldn’t possibly recruit the workforce needed. Then the illegals begin to stream in in large numbers. Enforce the law and that will also end.


35 posted on 03/12/2008 8:18:50 AM PDT by Will88
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To: Proverbs 3-5

LOL! Humor POTD!


36 posted on 03/12/2008 8:21:15 AM PDT by FreedomPoster (Guns themselves are fairly robust; their chief enemies are rust and politicians) (NRA)
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To: Always A Marine

As long as the agriculture doesn’t involve livestock. We are paying TRIPLE for ethanol subsidies. First we pay the taxes, then we have to purchase the ethanol that we ALREADY PAID FOR, and then we have to pay higher food costs!


37 posted on 03/12/2008 8:21:16 AM PDT by Blood of Tyrants (G-d is not a Republican. But Satan is definitely a Democrat.)
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To: mnehrling

Sorry but this still beats, sending our money to terrorists.


38 posted on 03/12/2008 8:22:10 AM PDT by Cringing Negativism Network
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To: CedarDave
More illegal aliens out of work....

Well that's ok, then. Screw Pilgrim's Pride.

39 posted on 03/12/2008 8:30:25 AM PDT by 1rudeboy
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To: Resolute Conservative

I used to travel through a lot of those towns over the years, and I’m absolutely stunned how much they’ve changed... Pittsburg Tx, Center Tx, DeQueen, Ark., etc. It’s scarey, seeing so many once-quaint locales becoming so menacing and third-worldy. And, within such a short, short time-frame. One of the main reasons the whole amnesty/illegals situation has become such a number-one hot button political issue for me.


40 posted on 03/12/2008 8:34:41 AM PDT by greene66
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To: edcoil
No society ever survived by burning its food.

It's not so much that we're burning our food. We're growing our fuel.

But, hey, putting it that way doesn't sound nearly as clever and, for some, clever trumps truth.

41 posted on 03/12/2008 8:37:14 AM PDT by newgeezer (In the good old days, Amendment XIX was just a pandering politician's stupid idea.)
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To: Ben Ficklin
Pilgrim's Pride seems to take pride in hiring illegals and openly pushes for it.

http://www.topix.com/forum/dallas/TTMF8SI71DD79B2BH"

42 posted on 03/12/2008 8:44:19 AM PDT by stratboy
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To: Sender
We've got a hog processing plant about 20 miles from here. I used to pay sales visits to it.

I remember the first time I went there, I noticed the handrails and floors all seemed like they had been overly waxed. Turns out everything there was covered in a thin layer of pig fat.

The smell was so bad that I had to breathe though my mouth.

And yes, for a moment, I thought I had taken a wrong turn and ended up in Tijuana. Not many Caucasians there.
43 posted on 03/12/2008 8:45:23 AM PDT by reagan_fanatic (Brush your hair and comb your teeth, honey - Obama's comin' to town!!!)
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To: Sender

“And to tell the truth, those are some of the few jobs this American doesn’t want to do.”

I have said before W was right about this. If we deport all the illegals quickly the economy would dive. I say keep some on a reverse merit program, let those that want to do menial ag labor stay- they are paying the price for illegal entry by virtue of their drudgery. Those and their employers that are taking good trade jobs from Americans are kicked out.


44 posted on 03/12/2008 8:45:31 AM PDT by Rennes Templar ( Never underestimate the difficulty of changing false beliefs by facts.)
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To: mnehrling

I read somewhere that it actually requires a little more that one gallon of gas to produce one gallon of ethanol - Only in America.


45 posted on 03/12/2008 8:51:15 AM PDT by stratboy
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To: newgeezer

Pilgrim’s Pride recently purchased GoldKist and this may be a restructuring to make the company more efficient. Rather than take the hit themselves after assuring this would not happen during the purchases, why not blame it on the high corn prices and ethanol.
I am not saying he does not have a point, just not sure we are receiving the whole story.


46 posted on 03/12/2008 8:51:52 AM PDT by Maryland Man
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To: mnehrling
So, Mr. AlGore, What's it going to be: Save the world from Gorebal warming? Or, Save the world from starvation?

It will be interesting to see which choice will win out.

47 posted on 03/12/2008 8:55:30 AM PDT by R_Kangel (`.`)
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To: Rennes Templar

Why not take those receiving $$$ from the government not to work take the jobs of the illegals.

Americans do not want to do some of those jobs at the wages being paid because they are not required to do so. Eliminate some of the welfare programs and see if people are suddenly willing to do those jobs.


48 posted on 03/12/2008 8:55:40 AM PDT by Maryland Man
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To: mnehrling
"Since 2001, ethanol production has quadrupled from 1.6 billion gallons in 2000 to an estimated 6.4 billion gallons in 2007, with the vast majority coming from corn. In 2005, the United States became the world’s leading ethanol producer, and last year, the U.S. accounted for nearly half of worldwide ethanol production."Whitehouse

Children of the corn..

49 posted on 03/12/2008 9:08:55 AM PDT by JDPendry
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To: Maryland Man

“Eliminate some of the welfare programs and see if people are suddenly willing to do those jobs.”

Eggsactly.


50 posted on 03/12/2008 9:15:02 AM PDT by sweetiepiezer (DO NOT EAT the white snow.)
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