Millions of Alabama Chickens Killed by TornadoesPilgrim's Pride Widens High food co

[etuHad4]

http://online.wsj.com/article/SB10001424...17898.html

Alabama officials estimate that up to 25% of the poultry houses in the state were destroyed or damaged by Wednesday's devastating tornadoes, likely killing millions of birds.

State government officials in Alabama, the No.3 chicken-producing state behind Arkansas and Georgia, said Thursday that preliminary reports indicate about 200 poultry houses were destroyed and another 180 were damaged by the fierce storms.

Alabama agricultural officials are having a difficult time gauging the damage because many rural roads were impassable Thursday. Likewise, electricity is out and telephone systems are down in many areas.

"We do anticipate the number of poultry mortalities to be substantial, and we are currently working with poultry companies, along with their growers, to determine all damages," said Dr. Tony Frazier, Alabama's State Veterinarian. Chicken farming is a multibillion-dollar industry in Alabama, where a typical poultry house contains about 20,000 birds.

The Alabama Poultry and Egg Association is estimating that 5 million chickens probably died in the tornadoes, which slammed the northern part of the state, where the industry is centered. That alone isn't enough to disrupt chicken supplies nationally. The state usually produces about 21.5 million chickens in a week. The U.S. produces roughly 9 billion chickens annually.

Industry officials caution that Alabama's bird losses could swell if many farmers aren't able to quickly re-establish water supplies. The tornadoes damaged many rural water systems.

"Power outages and loss of drinking water could worsen an already critical situation for poultry producers and meat processors," said John McMillan, commissioner of the Alabama Department of Agriculture & Industries, in a statement.

Chicken processor Peco Foods Inc. said Thursday its headquarters in storm-ravaged Tuscaloosa escaped damage, and that there weren't any employees injured on its property. But the Peco Foods processing plant in that city absorbed enough damage to keep it out of commission for several weeks.

Closely-held Peco Foods' Tuscaloosa plant is located in an industrial park that was extensively damaged by the storms. A Peco Foods executive said Thursday the company plans to operate its other processing plants – four are located in Mississippi -- longer hours to compensate for the temporary closure of its Alabama complex.

Tyson Foods Inc., the nation's largest chicken processor, said Thursday that its two processing plants in Alabama weren't damaged by the storms, but were idled Wednesday by power shortages. Tyson said its Blountsville plant has regained power but that its Albertville plant remained dark Thursday.

A production manager who works at Tyson Foods' Albertville plant was injured when a tree fell on his house. He was treated at a hospital and released, the company said.

Tyson, which has its headquarters in Springdale, Ark., said Thursday that it plans to begin distributing water and food Friday to north Alabama employees and to farmers who raise its chickens under contract in the area.

"Our plan is to assist our growers as much as possible with clean up efforts and ensure the affected birds are properly handled," said Tyson Foods spokesman Gary Mickelson.

Pilgrim's Pride Corp., the nation's second-largest chicken processor, said its plants in Guntersville, Ala., and Boaz, Ala., remained closed Thursday due to loss of power.

Brazilian meat concern JBS S.A. owns 67.3% of Pilgrim's Pride.




UPDATE

http://online.wsj.com/article/BT-CO-2011...10368.html

(Updates and recasts with details from Pilgrim's conference call, analyst comment and additional background.)

Pilgrim's Pride Corp.'s (PPC) first-quarter loss widened, as higher inventory levels and feed costs offset sales growth.

The world's second-largest poultry producer liquidated inventories in the face of weak prices, but expects to produce more pounds of chicken this year than last year. Investors have been closely-watching how producers manage supplies as chicken prices remain weak even as feed costs surge.

"The marketplace continues to be challenging," Pilgrim Chief Executive Bill Lovette said ...

[ohoh7]

This also has happened here in North Carolina, along with the eggs, being tossed every wheres. To top all of that off, I heard a few pig farms and Turkey farms were hit bad as well. So we can be expecting higher prices for some meats. I am sure many green houses were hit as well as small farms that grow local vegetables.