Blog: Dean BestWashington swoops to help US poultry producers

Dean Best | 17 August 2011

In recent days, we've detailed how the US poultry sector is suffering from high input prices and weak consumer demand.

Add soaring feed costs to low demand for poultry products (which has caused an over-supply of chicken and prices to drop) and you have severe pressure on processors' margins.

Even the largest players have felt the pain. Last week, Tyson Foods reported a slump in quarterly profits on the back of sliding earnings from poultry. In the three months to 2 July, Tyson's poultry profits were US$28m. In the same period last year, they were $186m.

Last month, rival processor Pilgrim's Pride said it would close a plant in Dallas, a move that could lead to around 1,000 jobs being lost.

Pilgrim's Pride, which is controlled by Brazilian meat giant JBS, said it needed to improve how it uses its production capacity amid "record-high" feed costs and an over-supply of chicken.

What's more, the announcement came as Pilgrim's Pride reported a $128.1m loss for the second quarter of its financial year.

However, reports in the US say that the US Department of Agriculture is set to make a special purchase of poultry products worth $40m.

According to the Chicago Tribune, the USDA made a similar move last year when it purchased $30m of products. In 2008, it snapped up $42m worth of chicken.

The products are used for the USDA's food assistance programmes but, it is hoped, others far away from America's soup kitchens will feel the benefit.


BLOG

Danone closes WhiteWave, who will acquire Stonyfield?

Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...

BLOG

Premier Foods pension news offers cheer but challenges remain

Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....

BLOG

Another reshuffling of pack at Hain Celestial

Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....

BLOG

FrieslandCampina looking to sell final non-dairy asset

FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....

just-food homepage



Forgot your password?