MAY 12, 2010
www.gfb.org
Vol. 28 No. 19
PILGRIM’S PRIDE TO RESTART PRODUCTION AT DOUGLAS PLANT Believing that consumer demand for chicken is increasing, Pilgrim’s Pride announced last week that it will reopen its plant in Douglas by January 2011, a move expected to create more than 1,000 jobs. The Douglas operation was one of three plants shut down as part of Pilgrim’s Pride’s reorganization under bankruptcy in February 2009. Plans call for two other plants to be reopened by spring 2012. The company also shut down plants in El Dorado, Ark., and Farmerville, La., last year, a collection of moves that reduced the company’s chicken production by 10 percent and eliminated 3,000 jobs. At a time when Georgia’s revenues continue to plummet and lost jobs seem slow to return, the company’s decision to add jobs was welcome news in Atlanta. In addition to the 1,000 jobs in Douglas, 3,000 jobs will be supported by the move, according to a statement from Gov. Sonny Perdue. Now a subsidiary of Brazilian meat producing conglomerate JBS SA, Pilgrim’s Pride reported first-quarter losses of $45.5 million. But with increased chicken use in the foodservice sector, Chief Executive Officer Don Jackson foresees growing demand for chicken. He said in published reports that the plan to reopen the Douglas facility is consistent with the company’s strategy to plan its production in response to forecasted demand. “Although production is slightly higher than a year ago, supplies remain fairly tight,” Jackson said. “Feed costs appear to have stabilized and there are growing signs that the economy is improving. With many retailers and foodservice operators planning to feature chicken in the months ahead, demand is strengthening.” Pilgrim’s entered bankruptcy in 2008 while facing soaring feed and fuel costs combined with declining demand in both restaurant sales and export markets and a high debt load related in part to its purchase of Goldkist. JBS SA paid $800 million for 64 percent of Pilgrim’s stocks in December 2009 and quickly moved to install a new board of directors, with former chairman Lonnie “Bo” Pilgrim the lone holdover on the board. Pilgrim’s used the cash from the sale to pay down its debt. The remaining 36 percent of its stock was distributed to existing shareholders. In January 2010, the company cut 230 corporate positions, including some in Atlanta, in a move designed to streamline administrative operations.