On September 16, 2009
Tyson Rival Pilgrim’s Pride Could Come Back Stronger Than Ever
The rumors were true — Brazil-based JBS is buying a 64 percent stake in bankrupt poultry company Pilgrim’s Pride for $800 million. JBS is the biggest producer of beef in the world, and with that company’s backing, Pilgrim’s Pride says it expects to pay off its creditors and exit bankruptcy by the end of the year. It filed for Chapter 11 last December. Dan Mitchell at Daily Bread speculated at the time that rival Tyson Foods may have played a part in Pilgrim’s Pride’s downfall. Even as chicken prices fell thanks to oversupply, Tyson declined to slow production, with CEO Richard Bond insisting, “we still believe that the demand-supply balance for us is still reasonably good.” As Mitchell pointed out,…
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