Cagle's Inc. reported a net loss of $5.7 million for the quarter ended July 2, 2011, compared to net income of $3.5 million for the quarter ended July 3, 2010.

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Cagle's and the industry's profitability continue to be challenged by high feed costs accentuated by broiler markets pressured by overproduction, said the company. By the end of August, Cagle's will have executed a further cutback in production at its Pine Mountain Valley plant that will result in the company processing 22% less head than capacity. Towards the end of July the poultry industry had begun to react in similar fashion, with egg sets 6% less than the same period in 2010. These industry cutbacks, said Cagle's, should have a positive effect on markets and final margins in the coming months.