Net sales for the third quarter were up 2.2% versus the prior year third quarter reflecting an 11.9% increase in pounds sold and a reduction in sales price per pound of 6.9 cents. Quoted market prices of products for the third quarter of fiscal 2011 versus the same period last year were mixed: boneless breast increased 4.8%, tenders decreased 4.5%, wings decreased 20.8%, drums decreased 22.8%, leg quarters increased 7.7%, and whole birds without giblets were quoted 26.2% higher. Discounting from these quoted markets was prevalent especially towards the end of the quarter, as our industry increased production in excess of 4% as reported by USDA increased egg sets and chick placements.
Cost of sales for the third quarter of fiscal 2011 of $71.2 million increased 6.3% as compared to prior year third quarter, reflecting an increase of pounds processed of 10.6% largely influenced by the gain in the bird size processed at Cagle’s Pine Mountain Valley facility. Feed ingredient prices for broilers processed in the third quarter of fiscal 2011, which represented 39% of the total cost of sales, increased 18.6% as compared to the third quarter of fiscal 2010.