Pilgrim's Pride reports $120.8 million loss due to animal feed costs, storms

Pilgrim's Pride reported a first-quarter loss of $120.8 million due to high animal feed and fuel costs, winter storms and inventory reductions, according to the company.
The loss is a significant increase from the first quarter of 2010, when the company reported a loss of $45.5 million. Pilgrim's said it has implemented efforts to reduce costs by $400 million, due in part to a predicted $500-million increase in poultry feed costs for 2011. "We will continue to look at further price increases," said CEO Bill Lovette.
Damage from recent storms in the U.S. Southeast will temporarily reduce chicken production, causing further troubles, said Pilgrim's. Roughly 100 of the company's 16,400 chicken houses were damaged or destroyed, and power was knocked out to two processing plants.

Cobb Germany conference held at new venue

The Cobb Germany conference was held at the Remes Hotel, built near Poznan for the Euro 2012 football tournament.
Various Cobb executives spoke at the event, covering such topics as feed efficiency in chicken production, the global situation for the poultry market, profitability in broiler breeder production and auto vaccines. Cobb 500 performance results for Poland were also announced and Aneta and Pawel Tylka, the top flock owners, received a diploma and statue in acknowledgement.

Allen plans to sell facilities

A report in the Washington Examiner said Allen Family Foods plans to sell assets to Amick Farms LLC. The deal, expected to close by the end of June, includes a Maryland chicken production facility and hatchery, plus a feed mill located in Delaware.
Allen expects to expand another of its processing plants in Cordova, Md. Amick said it plans to continue running its South Carolina plant while expanding operations at the facility it’s buying from Allen in Hurlock, Md.

Cargill to build chicken facility in Russia

Cargill Inc. said it will build a chicken processing facility at its Efremov, Russia location. The $30 million facility expects to produce 18,000 tons more of processed chicken products for the Russian market and employ 75 people.
The company anticipates construction to start in fall 2010 with the facility operational by the end of 2011. The facility will supply chicken products, including Chicken McNuggets, for McDonald’s restaurants in Russia. The chicken meat will be sourced from a number of selected Russian producers.

Poultry partnership works toward new processing facility in New Brunswick

Sunnymel, a partnership between poultry processor Olymel and chicken producer Groupe Westco, are moving forward on a CAN$30M poultry slaughtering plant in Clair, New Brunswick, Canada, according to the Manitoba Cooperator. They recently added 100 acres and two buildings to the site they purchased for the facility in October 2009.
Unforeseen obstacles have arisen as the companies work on the plant. Sunnymel had arranged to send chickens to Quebec for slaughter during construction, but the New Brunswick government has ordered that poultry raised in the province must be slaughtered within the province at New Brunswick’s only federally inspected facility, which is owned by competitor Nadeau Poultry Farm, the Manitoba Cooperator reported. Sunnymel plans to mount a legal challenge to the directive, according to the paper.