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Chick Processors Making Production Reductions,


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Posted by Don, Dueling Bubbas on April 09, 2008 at 14:19:12:

From MeatingPlace.com, a story about chicken processors reducing chicken production by processing fewer birds and ALSO by reducing weight of those birds processed.

All due to feed costs increasing and need to increase prices.

from http://www.meatingplace.com:
Simmons cutting chicken production

Citing high feed costs and a weak domestic market, Simmons Foods has announced that it will cut chicken production by 6 percent starting this month.

The Siloam Springs, Ark.-based processor, which operates two slaughter plants, will make the cut by both reducing the number of birds running through each facility and also reducing bird weight, company spokeswoman Kimmie Provost told Meatingplace.com.

BMO Capital Markets analyst Kenneth Zaslow welcomed Simmons' production cut, saying in a note to investors that production cuts across smaller companies in the chicken industry would be positive for chicken prices.

"We would not be surprised if there were more production cuts among the smaller chicken players, which together represent approximately 50 percent of the U.S. chicken industry," he wrote. "In our view, Simmons' announcement, which represents the second tangible piece of evidence that the chicken companies are beginning to flinch in the real-life version of the game of chicken, may be a signal of more production cuts to come."



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