By Alicia Karapetian on 4/11/2008 for Meatingplace.com
Cagle's Inc. late Thursday announced that it will immediately cut chicken production by 4 percent, making the Atlanta-based processor the third company to cut production in one week.
Cagle's joins Siloam Springs, Ark.-based Simmons Foods, which this week cut chicken production by 6 percent, and Baldwin, Ga.-based Fieldale Farms, which last week cut production by 5 percent.
All of the companies cited mounting feed costs as the impetus for the cuts.
"Current chicken prices have failed to reflect the tremendous increase in the cost of feed," Doug Cagle, president and CEO, said in a statement. "The cutback in production will not affect our customers with existing commitments but will reduce product being sold through less profitable commodity outlets."
Cagle's said its reduction will affect the number of birds processed at the company's Pine Mountain Valley, Ga., plant — one of two plants the company operates in the Southeast. No layoffs are planned as a result of the production decrease, the company said.
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