ATLANTA, June 20, 2011 /PRNewswire/ -- Cagle's, Inc.
(CGL.A) reported that it will discontinue second shift operations
at its Pine Mountain Valley
poultry plant effective on, or within two weeks after, August 19, 2011. The lay-off will result in the
loss of approximately 300 positions.
The Pine Mountain Valley
operation currently processes 520,000 head per week and employs 640
workers. The plant was successfully converted to a deboning
operation in May 2010 at which time
it was processing 630,000 head per week. In the fall of 2010 feed
prices increased over 34% principally due to corn prices which were
up over 75% versus last year. In addition, boneless breast
markets experienced a downturn of over 10% as compared to the same
period last year. As a result of the higher feed cost and lower
boneless markets, effective November
2010 the Pine Mountain
plant volume was reduced twenty percent to operating two shifts
four days per week. With this layoff the company expects to operate
one full shift five days per week processing 320,000 head and
improving the weekly take home pay of its remaining employees.
Cagle's, Inc.
/s/ J. Douglas Cagle
J. Douglas Cagle
Chairman, Chief Executive Officer
and President
This press release contains forward-looking statements based
on management's current views and assumptions. Actual results and
events may differ. For a discussion of these matters, please refer
to the "Forward-Looking Statements" in Item 7 of the Company's
SEC Form 10-K Annual Report and please refer to the cautionary
statement found in Management's Discussion and Analysis of
Financial Condition and Results of Operations in Part I,
Item 2 of the Quarterly Report on SEC Form 10-Q for the
Company's third quarter ended January 1,
2011.
SOURCE Cagle's, Inc.