US poultry Co-op builds feed storage unit
Virginia Poultry Growers Cooperative has opened a grain storage facility
to help in the struggle against rising feed costs. This facility will allow the
company to save money on transportation and purchase of corn.
Just north of Harrisonburg in Virginia, two 45 m (148 ft) high grain silos
store corn transported by rail from the Midwest. The first corn shipment was
received in mid April.
According to President and General Manager James Mason, with its new
storage capacity, VPGC also can negotiate its own prices for corn.
The VPGC processes 130,000 turkeys a week and sells its products to more
than 200 customers. However, input costs - price of corn and soybeans to feed
and grow a bird to 40 pounds (18 kg) - overshadow everything, said Mason.
"Our costs will be more than $35 million higher this year than the fiscal
year that ended in March," Mason said. "The grain storage facility is one way to
mitigate that cost."
Another way to mitigate the costs is to the number of birds on the farms by
10% and to process a slightly lighter bird. Those reductions will be spread
evenly over the co-op's 156 growers.
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