The Pittsburg, Texas-based company announced Tuesday that it lost $5.8 million in its fiscal third quarter because of record high grain costs that make animal feed more expensive.
Reports said that Pilgrim’s Pride loss loss amounted to 75 cents per share compared with a profit of $62.6 million, or 94 cents per share a year earlier. Not including discontinued operations, the company says it lost 69 cents per share. This is despite revenue rising 5 percent to $2.21 billion from $2.10 billion in the quarter.
Pilgrim’s Pride founder Lonnie “Bo” Pilgrim has been a major voice in reducing the mandate for corn-based ethanol. Ethanol production has been blamed for a major part of the rise in the corn used for animal feed.
The company reportedly said that prices charged to consumers aren't rising fast enough because there's too much chicken on the market to sustain higher prices. The company has been making production cutbacks, but says prices are still too low.
Tyson earlier this week reported a drop in income due to higher feed costs.
Source: Associated Press