House of Raeford Farms Inc. has announced a decrease in broiler production by 10%, along with a reduction in the number of egg sets and other adjustments to improve profits and cash flow.
The cost of corn and indicators from the U.S. Department of Agriculture that corn supplies are at their tightest levels in 15 years have contributed significantly to this decision, according to the company. In addition, high unemployment continues to negatively influence foodservice sales, resulting in an oversupply of chicken that has caused the market price to decrease dramatically. “We decided that acting now was a responsible action for our company in light of continuing unstable economic conditions,” said Bob Johnson, CEO. “Hopefully the chicken prices will begin to increase later this year."