Pilgrim’s Pride struggles with feed prices
Pilgrim’s Pride has posted a significant net loss in its 3rd quarter earnings, which it says is a result of rising feed costs.
The company reported a net loss from continuing operations of $48.3 mln on
net sales of $2.2 bln for the quarter which ended 28 June, compared to a net
profit of $63.3 mln on total sales of $2.1 bln during the same quarter in
2007.
“Like other producers, we simply have not been able to keep pace
with the extreme price volatility in the grain markets,” said Pilgrim’s Pride
president and CEO Clint Rivers.
Total feed ingredient costs in the
quarter rose $266 mln (41%) compared to 2007, estimating that its total feed
ingredient costs for fiscal 2008 will rise $900 mln.
“Over the past six
months, we have made some very tough, but necessary, decisions to position our
company as a stronger, more efficient competitor,” said Rivers, but adding that
at present there are no further plans consolidate or sell any other facilities.
He did acknowledge, however, that such decisions may be necessary in the
future.
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