Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 3/7/11

House of Raeford Farms, Inc., one of the nation’s top 10 fully integrated poultry processors, announced it will decrease broiler production by 10 percent.

The company said it began in early February to reduce the number of egg sets and make other adjustments to improve profits and cash flow.

The unprecedented cost of corn which is the primary ingredient in poultry feed as well as indicators from USDA that corn supplies are at their tightest levels in 15 years “contributed significantly to this decision,” the company said in a statement. It also noted that corn use for ethanol has contributed to a near doubling of corn prices, “and expectations are that the costs will remain at elevated levels for the foreseeable future.”

The company said high unemployment continues to negatively influence foodservice sales resulting in an oversupply of chicken that has caused the market price to decrease dramatically.

“We decided that acting now was a responsible action for our company in light of continuing unstable economic conditions,” said CEO Bob Johnson. “Hopefully the chicken prices will begin to increase later this year. In addition, if Congress will take action to cut unreasonable government support for the ethanol industry, then grain prices should decrease to a more manageable pricing level.”

House of Raeford Farms is based in Rose Hill, N.C. with additional facilities in Georgia, Louisiana, North Carolina, and South Carolina.

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