By Alicia Karapetian on 4/11/2008 for Meatingplace.com
High costs for grains continue to squeeze the nation's largest chicken processor, Pilgrim's Pride Corp., which may close its processing complex in El Dorado, Ark., company spokesman Ray Atkinson told Meatingplace.com.
"We have invested millions of dollars in that facility after purchasing it from ConAgra [in 2002] and have not seen a return on our investment," Atkinson said. "The plant's costs are not competitive, and productivity is well below similar facilities."
Atkinson added that efficiency issues have led the complex — which employs 1,620 workers — to have difficulty filling orders on time, but declined to divulge the facility's capacity.
The El Dorado plant processes fresh case ready tray pack products, but, according to Atkinson, has not been able to attract new customers.
Pilgrim's Pride in March announced the closure of its Siler City, N.C., processing complex and six distribution centers, which resulted in some 1,100 layoffs. (See Pilgrim's Pride cuts 1100 jobs, shutters 7 facilities on Meatingplace.com, March 12, 2008.)
The company at that time said it was continually reviewing other facilities for possible product mix changes and/or plant closures. "It's all about ethanol and grain prices," Atkinson said. "It's putting us in this spot."
Atkinson did emphasize, however, that the company has not made an official decision about El Dorado, and closure could be avoided if the facility's financial situation turns around in short order. "We don't want to have to close down the complex," he said. "But we need to see significant and immediate changes in operating efficiency or that will be our only choice."
Pilgrim's Pride also is engaging in discussions with the United Food and Commercial Workers Union to explore possible changes that could help improve the financial situation at the El Dorado complex.
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