US Pilgrim’s to cut production; blames ethanol

11 August 2008 23:28  [Source: ICIS news]

HOUSTON (ICIS news)--US chicken company Pilgrim’s Pride announced on Monday new production cutbacks due to high feed costs, which the company blamed on the effect that surging US ethanol production is having on grain prices. 

Pilgrim’s said it would idle a processing plant in Clinton, Arkansas, and another facility in Bossier City, Louisiana.

Both moves were expected to be completed within 60 days, the company said.

Pilgrim’s is a fierce critic of the US ethanol programme.

The company lamented a decision by the Environmental Protection Agency (EPA), which last week rejected a request by the state of Texas to waive a federal mandate for ethanol consumption.

“The EPA's disappointing decision…assures that high grain prices are here to stay for the foreseeable future,” the company said.

Pilgrim’s also blamed an oversupply of chicken on the market for its decision to cut production.

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By: William Lemos
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