The plants that the company plans to idle within 60 to 75 days are located in Douglas, Ga.; El Dorado, Ark.; and Farmerville, La. These plants employ a total of approximately 3,000 people - or roughly 7 percent of the company’s total U.S. workforce. Pilgrim's Pride will provide transition programs to employees whose positions are eliminated to assist them in securing new employment, filing for unemployment and obtaining other applicable benefits. Approximately 430 independent contract growers who supply birds to these three plants also will be affected.
“The idling of these three plants is a painful reflection of the unprecedented challenges facing our company and our industry from an excess supply of chicken and weakening consumer demand resulting from a crippled economy,” said Don Jackson, president and chief executive officer. “Simply put, we are producing too much commodity chicken in what is a very weak market. The actions announced today will reduce our production of low-value, commodity meat that is a financial drain on the company without affecting any of our core business lines or customers.”