Pilgrim's Pride cutting 1,100 jobs. Was renewable fuels industry at fault?

[JohnWxy]

Pilgrim's Pride, the nations largest chicken producer, is closing 7 facilities and laying off 1,100 workers. PP blames Ethanol industry for driving up grain prices and thus cost of feed for their chickens.

Actually, according to Gary Karp, Exec. V.P. of Technomic, a food industry consulting firm in Chicago:

"an array of economic forces has led to the rapid rise in prices for corn, soybeans and other crops over the past year or so.

Worldwide grain supplies, hurt by poor weather, are at a 25-to-30-year low. The weaker U.S. dollar is making grain exports more attractive to other countries. Lastly, global demand for animal feed is soaring in developing nations, and the demand from the U.S. ethanol industry is putting even more pressure on prices."

as you can see, there are a number of factors, only one of which is demand for field corn for ethanol, involved in the rise of grain prices.

From USA Today, Thursday, Mar 13:

http://www.usatoday.com/money/industries/food/2008-03-12-pilgrims-pride_N.htm

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Pilgrim's Pride and other food producers blame the higher feed prices on U.S. government policies and subsidies that encourage ethanol production. Making the biofuel ethanol requires millions of bushels of corn, and that added demand is driving up prices for the grain.


But Gary Karp, executive vice president at Technomic, a food-industry consulting firm in Chicago, says that an array of economic forces has led to the rapid rise in prices for corn, soybeans and other crops over the past year or so.

Worldwide grain supplies, hurt by poor weather, are at a 25-to-30-year low. The weaker U.S. dollar is making grain exports more attractive to other countries. Lastly, global demand for animal feed is soaring in developing nations, and the demand from the U.S. ethanol industry is putting even more pressure on prices.

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Pilgrim's PRide operates 50 processing facilities and employs 54,500.

[Mojorabbit]

1. I only have four chickens

but the price of feed has gone thru the roof so I am sure it was a factor.

[madrchsod]

2. that sucks..the local store usually run special pricing

on pilgrim`s pride chickens. not the tastiest chickens but good for spicing up...

[shain from kane]

3. It's no longer chicken feed. n/t

[Parche]

4. They should NOT be using corn or feed for ethanol

Do like Brazil does, use the sugar cane stock, the excess, not the actual food....
:hi:

[JohnWxy]

5. let them drink ethanol, hic!

They do grow sugar cane in Louisiana and some other Southern states.