Live costs of increasing importance to poultry profitability

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• Great commentary Mark! Input costs are one thing - live production costs are another. In my opinion, the integrators need to curb production to reduce supply in the market. While painful to do - in the long run it is the only way to increase the price of RTC chicken. I would like to know how the pay rates for the farmers are negotiated...any insight?

  
  

  Posted ByJeff Miller_2 7/7/2011 9:26:27 AM

• Mike has done a good job of keeping up with Company expenses, but has done nothing to accurately keep up with poultry farmer's expenses. I'd suggest he do more "on farm" data gathering in the farmers cost of live production.
  For example: Heating costs per gal/propane have gone up 385%, electricity 30%, bedding 50%, etc. The costs "on farm" have risen whereas compensation has remained flat.
  Not only are the companies at risk due to rising cost of inputs, if compensation to farmers isn't raised to cover their increases in expense - Mike's warnings won't be of significance - as farmers will have to shut down for the same reasons. The company's pay rates to farmers won't be adequate to keep chicken hanging on the production lines.

  
  

  Posted ByMark Hudson 6/30/2011 3:34:48 PM