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Wednesday, August 13, 2008

Pilgrim's Pride Cut-Backs

Yesterday afternoon, Pilgrims Pride announced that they were closing two processing plants in Arkansas and Louisiana. The plant closings are expected to eliminate 600 jobs. In the last six months, Pilgrim's Pride has cut over 2,300 jobs. The company insists that the job cuts are to strengthen the bottom line.
Clint Rivers, CEO of Pilgrims Pride, also said, "We believe that the actions announced, while painful, are needed to position Pilgrim's Pride to emerge from this down cycle as a much stronger, more efficient competitor."
Current market prices in the United States over the summer are at $1.33 per pound, down slightly from the prior five year average of $1.63 per pound. This announcement was made as food prices have risen nearly 10% since last year.