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News 423 views update:Apr 11, 2008

US poultry processors cut production

Due to rising feed costs and weak domestic market, Simmons Foods poultry processor will cut chicken production by 6% as of this month.

The Ark.-based processor, which operates two slaughter plants, will reduce the number of birds running through each facility, as well as lower bird weight.
"Recent US chicken market price levels have not allowed processors to recover from the spiralling costs of corn and soy meal," said Simmons Prepared Foods President David Jackson. "This increased cost burden has yet to be reflected in domestic poultry prices."
The move will allow the company to focus on its value-added product customer base while minimising exposure to commodity markets, added Simons.
Another poultry processor to announce a cut in production is Ga.-based Fieldale Farms, which announced a 5% company-wide production cut.
 
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