Chicken producer Pilgrim's Pride Corp. said Tuesday it will cut 600 jobs at an Arkansas plant in response to record-high prices for feed.
Pilgrim's Pride will consolidate its tray-pack chicken business from its El Dorado, Ark. processing plant into six other facilities. The job cuts, which take place by Sept. 19., will eliminate about half of the work force in that plant.
The processing plant will be converted to a supply plant, which will send fresh chicken in bulk to other plants that produce prepared foods, Pilgrim's Pride spokesman Ray Atkinson said.
Pilgrim's Pride also plans to close a distribution center in El Paso, Texas within 60 days. The facility employs about 34 workers.
Animal feed has become more expensive in the past year because of rising prices for corn, a key ingredient, and some meat producers have cut back on production to help counter the higher costs.
Pilgrim's Pride doesn't expect to record material financial charges from the closings.
Shares of Pilgrim's Pride rose 62 cents, or 4.4 percent, to close at $14.57.
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