US poultry processor Pilgrim’s Pride has announced the sale of its Hinton, Virginia commodity turkey production facility and associated feed mill in Broadway, Virginia to Virginia Poultry Growers Cooperative (VPGC).
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The company said the sale is the final part of its previously announced turkey division restructuring. As announced last April, this restructuring is expected to have a positive impact on subsequent pre-tax earnings of approximately US$25-30m per year, reduce working capital employed in the turkey business by approximately $50m and decrease commodity sales in Pilgrim’s Pride’s turkey division by approximately $70m per year.
Pilgrim’s Pride said last April that challenging turkey industry conditions prompted its move toward more cost-effective operations and a shift to value-added, higher margin turkey products. Since that time, the company has introduced a Signature turkey line, a premium line-up of butter-basted turkey products. These are produced at the company’s facility in New Oxford, Pennsylvania.
The company said its turkey product mix is now two-thirds value-added and one-third branded fresh and frozen products, consistent with its broader strategies for both turkey and chicken.
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By GlobalData
