CHICAGO (Reuters) - U.S. chicken company Sanderson Farms Inc said it does not intend to cut production even though some of its competitors may do so in reaction to difficult market conditions, caused in part by high feed prices.
"Our last quarter we reported a profit. We don't have any reason to cut back at this point," Joe Sanderson, Sanderson Farms' chief executive, told the Reuters Food Summit in Chicago on Tuesday.
However, Sanderson, who heads the fourth-largest U.S. chicken company, said other chicken companies may cut back.
"Some participants in our industry are losing money right now. Some are losing a lot of money," he said. "We already had one announcement of a plant closing down. It would not surprise me if there was more of that and some reductions in production ahead of us over the next 90 days."
Last week, Pilgrim's Pride Corp, (PPC.N: Quote, Profile, Research, Stock Buzz), the No. 1 U.S. chicken producer, said it was closing a processing facility and some distribution centers as it copes with soaring feed costs and an oversupply of chicken.
(For summit blog: summitnotebook.reuters.com/)
(Reporting by Bob Burgdorfer)
© Thomson Reuters 2008. All rights reserved.
| Japan Investment | Jul 01 - 2, 2008 | Country Summits |
| Global Real Estate | Jun 23 - 25, 2008 | Real Estate |
| Consumer and Retail | Jun 16 - 18, 2008 | Consumer Retail |
| Investment Outlook | Jun 09 - 12, 2008 | Financial Services / Exchanges |
| Global Energy | Jun 01 - 5, 2008 | Energy |
