According to the company, market prices for key chicken products were down while feed-ingredient costs were up, which combined with undesirable market conditions to affect profits. "Our second-quarter financial results reflect the significant challenges facing our industry this year from the combination of record-high feed costs, weaker-than-expected consumer demand and an oversupply of chicken," said Bill Lovette, president and CEO. "Pilgrim's total feed-ingredient purchases through the first six months of 2011 were more than $400 million higher than a year ago. At this time of year we are usually benefitting from stronger market pricing and increased demand from both foodservice and retail, but to date neither that demand nor pricing has materialized."
Pilgrim's reported a net loss of $248.9 million for the first six months of 2011. The company plans to focus on maximizing sales mix and cost-reduction efforts for the remainder of the fiscal year.