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update:Apr 11, 2008
US poultry processors cut production
Due to rising feed costs and weak domestic market,
Simmons Foods poultry processor will cut chicken production by 6% as of this
month.
The Ark.-based processor, which operates two slaughter plants, will reduce
the number of birds running through each facility, as well as lower bird
weight.
"Recent US chicken market price levels have not allowed processors to
recover from the spiralling costs of corn and soy meal," said Simmons Prepared
Foods President David Jackson. "This increased cost burden has yet to be
reflected in domestic poultry prices."
The move will allow the company to focus on its value-added product
customer base while minimising exposure to commodity markets, added
Simons.
Another poultry processor to announce a cut in production is Ga.-based
Fieldale Farms, which announced a 5% company-wide production cut.
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