Feed cost increase beat Pilgrim's Pride’s performance

by Editor fleischwirtschaft.com
Thursday, July 31, 2008

A 41% increase in the cost of feed ingredients is mainly responsible for Pilgrim's Pride’s record loss in the third quarter.

The world’s largest poultry processor experienced a loss of $52,781,000 for the third quarter of fiscal by the end of June 2008. Sales for the third quarter of 2008 were $2,207,476,000 compared with $2,104,499,000 for the same period during 2007.

Total feed-ingredient costs in the quarter climbed $266 million compared to the previous year. Based on the actual costs incurred for the first three quarters of the fiscal year and current commodity futures markets for the remaining quarter, the company's total feed-ingredient costs for fiscal 2008 are estimated to be $900 million higher than the previous year.

For the first nine months of the fiscal year, Pilgrim’s Pride had a loss of $196,558,000 compared with net income of $13,829,000 for the same period during the previous year. Sales for the period were $6,355,623,000 compared with $5,383,641,000 during the first nine months of fiscal 2007.