US poultry producer Pilgrim’s Pride Corp. has seen quarterly losses widen on the back of higher feed costs.
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The company yesterday (29 January) booked a net loss of US$32.3m for its first quarter to 29 December. During the corresponding period last year, losses reached $8.7m.
A tax charge of around $13m weighed on the numbers but chairman Ken Pilgrim said a spike in feed costs had hit the business.
“Our feed-ingredient costs for the quarter, on a pro forma basis, rose 24%, or $157m, when compared to the same period a year ago,” Pilgrim said.
Net sales rose from $1.9bn a year ago to $2.1bn in the first quarter of fiscal 2008.
Pilgrim, meanwhile, warned that surging feed costs made it unlikely that the US chicken industry will grow at the 3% rate projected by the US Department of Agriculture this year.
