Longview News Journal
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.".......
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