US poultry integrator files for bankruptcy
91-year-old US poultry integrator, Allen's Family Foods, of Seaford, Delaware, has filed for Chapter 11 (reorganisation) bankruptcy, setting in motion 60 days of business restructuring and industry changes.
CEO and President Robert Turley said the increase in corn from $3.50 to $8.50 was to blame, with poultry feed being it's highest input cost.
The company has 28 grow-out farms plus contracts with 271 producers between the Delmarva and North Carolina. Its 2,273 employees pack about 8-million pounds of poultry a week.
It has been reported that Mountaire Farms of Delaware, and its new Seaford Milling Company affiliate announced an asset purchase agreement to acquire all Allen company assets, but this will require approval of the US Bankruptcy Court in Wilmington.
Status of the grower contracts has not yet been determined. But Mountaire officials have indicated they'll be expanding production at two Delaware facilities to another 400,000 birds per week.
An auction is scheduled at the end of this month to sell remaining Allen Family Foods' assets.
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