Food

Pilgrim's Pride Cuts 600 Jobs At Arkansas Plant

PITTSBURG, Texas (AP) ― Chicken producer Pilgrim's Pride Corp. said Tuesday it will cut 600 jobs at an Arkansas-based plant, saying the industry continues to face "unprecendented challenges."

Pilgrim's Pride will consolidate its tray-pack chicken business from its El Dorado, Ark.-based processing plant into six other facilities. The move will cut 600 jobs by Sept. 19.

The company said in April the plant was being reviewed as a target for possible consolidation or closing.

Pilgrim's Pride also plans within 60 days to close a distribution center in El Paso. The facility employs about 34 workers.

In the past year, the cost of animal feed has become more expensive because of rising prices for corn, a key ingredient, and some meat producers have cut back on production to help counter the higher costs.

"Since March, we have been conducting a thorough review of all our production facilities to ensure we are operating as efficiently as possible in response to the unprecedented challenges facing our company and our industry," said Clint Rivers, president and chief executive officer, in a statement.

Pilgrim's Pride doesn't expect to record material financial charges from the closings.

The company said the El Dorado facility will continue to operate as a supply plant.

Shares of Pilgrim's Pride slipped $1.89, or 2.2 percent, to $82.32 in morning trading.

(© 2008 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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