Pilgrim’s fully staffed amid industry worker shortage

While the greater U.S. poultry industry is facing a shortage of workers, that is not presently a problem being faced by Pilgrim’s Pride, Jayson Penn, the president and CEO of the company said on October 31.

Roy Graber Headshot
Jayson Penn, president and CEO of Pilgrim's Pride (Pilgrim's Pride)
Jayson Penn, president and CEO of Pilgrim's Pride (Pilgrim's Pride)

While the greater U.S. poultry industry is facing a shortage of workers, that is not presently a problem being faced by Pilgrim’s Pride, Jayson Penn, the president and CEO of the company said on October 31.

“With a shift in strategy, we are as a company fully staffed today,” Penn said while speaking during the company’s third quarter earnings call. “I couldn’t tell you that a year ago, or two years ago.”

The shift in strategy Penn mentioned was taking steps to make sure people were at the foundation of the business and increasing worker wages. He said over the past year, Pilgrim’s Pride has invested between $55 million and $60 million in increased wages. It has been a wise investment, Penn added.

“I will absolutely argue that one of the reasons for our improved margins is our people,” said Penn. “It’s actually driven more revenues than we’ve invested in our people.”

Pilgrim’s did see a meaningful year-over-year improvement in its financial picture during the third quarter. The company reported a net income of $110 million, up from a net income of $29.3 million during the third quarter of 2018.

Its net sales also increased when compared to the third quarter of 2018, going from net sales of about $2.698 billion to about $2.778 billion.

Penn became president and CEO of Pilgrim’s Pride in March 2019, succeeding Bill Lovette, who held that position since January 2011.

Mexican and European operations

Pilgrim’s Pride, which is the second largest poultry company in the United States, also has operations in Mexico and Europe.

Penn, in a press release, said its Mexican operations performed “in line with normal seasonality and significantly better than last year.”

It’s European operations, according to Penn, “have continued to make progress in mitigating input cost challenges, and are already generating better results” throughout the third quarter. He also spoke optimistically about the company’s recent acquisition of Tulip Limited, a U.K.-based pork company. Pilgrim’s closed on that acquisition on October 15, after the conclusion of the third quarter.

“The addition of the Tulip team further enhances our position as a leading global player by expanding our portfolio of prepared foods and brands while strengthening our leadership position in the U.K. market. It aligns with our strategic priorities as we continue growing our geographical footprint and extending our global reach into attractive new markets,” Penn said in the press release.

Page 1 of 33
Next Page