Chicken producer Pilgrim's Pride Corp (PPC.N) said it is likely to raise chicken prices as it works to pass on this year's higher feed costs.
The Greeley-Colorado based company on Friday reported a larger-than-expected quarterly loss to send it shares down more than 6 percent, as the higher feed costs, winter storms, and an inventory reduction effort hurt margins.
Damage from this week's storms and tornadoes in the Southeast will temporarily reduce U.S. chicken production, the company said in an investor conference call. About 100 of its chicken houses, out of about 16,400, were damaged or destroyed and power was knocked out to two processing plants.
Pilgrim's Pride, like other meat companies, has been trying to raise prices to cover higher costs for feed and fuel. In addition, the No. 2 U.S. chicken producer has been on a cost-cutting effort targeted to trim $400 million.
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