Pilgrim’s Pride Corp., the world’s largest chicken company, has reported a move back into profit for its third quarter as sales reached record levels.
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However, the company’s CEO, O.B. Goolsby Jr, has warned of rising chicken feed costs thanks to the increased use of corn in biofuel production
The company said net income reached US$62.6m on record sales of $2.1bn for the third fiscal quarter ended June 30.
“We are pleased with our improved financial performance in the third quarter, particularly in light of continued high costs for feed ingredients,” said O.B. Goolsby Jr., Pilgrim’s Pride president and CEO.
Looking ahead, Goolsby said that he believes that feed-ingredient costs will continue to pose one of the biggest operating challenges for the US chicken industry.
“There is no question that high feed costs are with us for the long-term, thanks to what many believe is the nation’s misguided public policy that subsidises production of corn-based ethanol. It’s important to note that next year the agriculture industry once again will have to find millions of additional acres for corn – on top of this year’s record plantings – just to meet increased production demand for ethanol.
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By GlobalData“While American consumers may one day realise some marginal benefit from cheaper prices at the fuel pump, they undoubtedly will continue to pay more for food items at their neighbourhood grocery store or favourite restaurant.”
Goolsby added that the company’s Mexican operations returned to profitability in the third quarter and added that the company was making good progress with the Gold Kist integration.
