Georgia poultry producers see high costs, low profits

Georgia poultry producers are considering cuts in production to help offset continued increases in costs coupled with low profits, according to industry experts.
Feed corn prices have doubled in the last year, from $4 a bushel to $8 a bushel, according to Georgia poultry executives, and prices for fuel have also continued to rise. The price for chicken, however, has remained low. "The current financial picture for poultry is as serious as any the industry has faced in recent memory," said Mike Giles, president of the Georgia Poultry Federation. The solution, according to the industry, may be to cut the supply, causing poultry prices to rise and restoring some of the lost profits.
"Production has got to go down," said Mike Lacy, head of the poultry science department at the University of Georgia. "They can't continue to operate at a loss, and right now their costs of production are significantly greater than what they can get for the product at the grocery store."