Pilgrims Pride Shutdown

[latech80]

Needless to say, this is going to have a devastating near-term effect on the local economy. Business growth in this immediate area has been sketchy at best, and this was before the IP shutdown in Bastrop. Union and Claiborne parishes, along with several southern counties in Arkansas will feel the effect, as well.

[PawDawg]

Nobody has mentioned the reason chicken feed prices went through the roof.

Try explaining or selling alternative energy sources to the folks in N.Cent La right now.

[honker22]

Pilgram isn't the only processor.

I know that but Raeford Farms hasnt taken on any new growers in 2-3 years... so unless someone else moves in

[Darbonnedawg]

PP has said there is an abundance of chicken . Therefore they are losing money. Tysons and Mrs Goldys both wanted to buy out this area of operation but they would not sell to their rivals.This is affecting alot of my friends and neighbors.The only thing I won't miss is the smell of chicken s--t.

[FishingBack]

See that salty....government induced operations are sucking it up and killing markets...

I eat lots of chicken...guess nobody else does hehe.

[olddog75]

The article mentioned "commodity chicken".......sounds like the large operators increased the size of their business until it got so big that they started producing WAY too much. (Can you say easy money?) Then the bird flu scare hit and demand went south. Probably the export market has collapsed too.

Obama was saying something about stopping subsidies to big farming operators.......maybe some folks were just raising chickens to get the gov't money???

SD, is there any gov't subsidy in the chicken business?

[saltydawg]

SD, is there any gov't subsidy in the chicken business?

olddawg, I would be the first to admit that I don't know diddly squat about the poultry biz or agricultural subidies. Found this article from a small farmer advocacy group that talks about chicken production.

http://www.inthesetimes.com/article/..._is_it_anyway/

[dawg80]

We have a large Pilgrims Pride complex in Natchitoches. Used to be ConAgra, but was bought out. Gee, what would our local government do if they lost that tax base? I know! The silly mayor would order fireworks be shot off, loud, lousy bands play on the riverfront stage, and of course, taxpayers to foot the bill.

[nadB]

olddawg, I would be the first to admit that I don't know diddly squat about the poultry biz or ................

It's a START ! ! ! ! ! !

[ChuckK3]

PP has said there is an abundance of chicken . Therefore they are losing money. Tysons and Mrs Goldys both wanted to buy out this area of operation but they would not sell to their rivals.This is affecting alot of my friends and neighbors.

Yep. As I understand it, Pilgrim's Pride decided NOT to hang a "for sale" sign on the Union Parish and Union County facilities, but rather, declare them "indefinitely idle" which in the legal realm means they are not obligated to sell to a competitor. If they close the plant, then Sanderson, Tyson, or someone else could step in and purchase the facility. Almost 2700 jobs...gone. The ripple effect is coming too as banks, supermarkets, Wal Mart, schools, home values, etc., begin to adjust to the lack of money in circulation.

The Farmerville plant is VERY up to date and modern...lots of money pumped into it. It's a shame that Pilgrim's has taken the position that "if we can't have it, NOBODY can have it" but I guess that's the nature of the business. This is a huge blow to North Central Louisiana and South Arkansas.

[saltydawg]

Yep. As I understand it, Pilgrim's Pride decided NOT to hang a "for sale" sign on the Union Parish and Union County facilities, but rather, declare them "indefinitely idle" which in the legal realm means they are not obligated to sell to a competitor. If they close the plant, then Sanderson, Tyson, or someone else could step in and purchase the facility. Almost 2700 jobs...gone. The ripple effect is coming too as banks, supermarkets, Wal Mart, schools, home values, etc., begin to adjust to the lack of money in circulation.

The Farmerville plant is VERY up to date and modern...lots of money pumped into it. It's a shame that Pilgrim's has taken the position that "if we can't have it, NOBODY can have it" but I guess that's the nature of the business. This is a huge blow to North Central Louisiana and South Arkansas.

Makes one stop and think what it means when the Nation loses 2 million jobs.

[olddog75]

olddawg, I would be the first to admit that I don't know diddly squat about the poultry biz or agricultural subidies. Found this article from a small farmer advocacy group that talks about chicken production.

http://www.inthesetimes.com/article/..._is_it_anyway/

Thanks for the link SD. Don't quite understand how the gov't paying framers because the price of grain is too low saves makes for cheaper prices. I don't believe that Tyson beneifted $2.6 billion over 8 years, those are goffy numbers, but not to argue.

The gov't subsidy of ethanol has had the reverse affect on grain prices. Tyson and Pilgram's are paying back now.

[Dwayne From Minden]

From what I have gathered -

PP operators (growers) has voer $500 million in debt in NORTH LA alone - several banks are shaking in their shoes right now, including Community Trust -

I know for a fact that here in Claiborne Parish PP is coming in and gasing alot of the broilers that have reached the age of maturity instead of sending them into processing -

I know several families that have $750K to $1 million plus tied up -

LaAg Credit (formerly PCA) will also take a hard hit -

My guess - within 5 years (probably) PP will come in and buy the foreclosed facilites (houses) for dimes on the dollar from the local banks and then put thier people in control instead of the local farm owner -

From all indicators, PP is deliberately trying to shrink the market right now - who cares if its at the expense of the small family operators

[Champ967]

SO -- what we have here is NOT well-meaning but ultimately clueless govt policy that has effectively served to stifle the free-market ...

What we have here is a deliberate conspiracy between big business and govt to systematically concentrate wealth in fewer hands.

Is that about right?

[nadB]

From what I have gathered -

PP operators (growers) has over $500 million in debt in NORTH LA alone - several banks are shaking in their shoes right now, including Community Trust -

Reckon they saw it coming ?? Reckon that's the real reason they took the TARP money ??

Man, this is some bad stuff happening. I mean, who would ever have thought the Smurfs would go bankrupt ?? Sure hope they don't shut down the mill in Hodge.