Pilgrim's Pride Corp (NYSE: PPC), the largest chicken producer in the United States, has announced the increase of its second-quarter net loss.
The total sum of losses constitutes for now $111.4 million. The main chain of reasons is that record prices for corn and soybean influenced the cost rise of feeding chickens.
The drop affected the cost of shares. In the three months the company experienced the loss of $1.67 a share compares with a loss of 60 cents a year earlier.
In order to cope with the loss the company is reducing weekly chicken-processing capacity 5 percent. Though record costs for feed ingredients may still press the company's operating results in the second half of the budget year.
Pilgrim's Pride processes approximately 44 million birds per week resulting in almost 9 billion pounds of product per year, as well as 528 million table eggs.
The company traces its origins to a feed store opened in 1946 in Pittsburg, Texas by Lonnie "Bo" Pilgrim and his older brother, Aubrey. The brothers were known to give away free chicks with the bags of feed they sold, thereby expanding their business. Bo Pilgrim, wearing traditional Pilgrim dress, with a pet chicken named "Henrietta" under his arm, is featured in Pilgrim's Pride advertisements. Today, Pilgrim's Pride is vertically integrated, meaning the company has its own divisions for every process from "egg to table."