Updated 1/09 8:45 p.m.

The following is a statement from Pilgrim's Pride:

The past year has proved to be tremendously difficult for Pilgrim’s Pride and the U.S. chicken industry as we confronted record-high feed ingredient costs, an oversupply of chicken, weak market pricing and softening consumer demand for chicken products amid a national recession and the financial meltdown in the capital markets. Our company alone lost nearly $1 billion in fiscal 2008 – the worst loss in our 63-year history. The vast majority of other chicken producers are also losing money.

On December 1, 2008, Pilgrim’s Pride voluntarily filed for relief under Chapter 11 of the U.S. Bankruptcy Code. The decision to reorganize under Chapter 11 was a difficult – but necessary – step as a result of the significant short-term operational and liquidity challenges facing our company.

Now more than ever, it is critical for us to find ways to reduce our costs and operate more efficiently. As we move through the reorganization process under Chapter 11, we face tough choices involving our operations, our employees and our growers. Some of the actions we must take are painful, especially when they involve eliminating jobs or grower contracts. However, we believe these actions are absolutely vital to help protect the greatest number of jobs and to ensure the future viability of our company.

We expect to emerge from this restructuring a stronger, more competitive company that is well positioned for growth and enhanced profitability.

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Updated 1/8 3:30 p.m.

More than a dozen farmers in our area say they are losing everything.

As Eyewitness News first reported, Pilgrim's Pride poultry plant in Live Oak is cutting more than 500 jobs, but the plant's closing means 19 area chicken growers are down on their luck, too.

These farmers say they aren't just losing business, they're losing their livelihoods.

One poultry grower has a 16-house farm in Madison County that produces 2,300,000 pounds of meat every 60 days.

Now that Pilgrim's Pride is ending his contract, this is what Jesus Martinez says is happening:

"I'm in the process right now of losing my farm, my house, everything I've worked for. Everything I've invested in is built on that farm."

Martinez is one of the 19 chicken farmers in Suwannee, Madison, Lafayette, Taylor and Hamilton Counties that Pilgrim's Pride poultry plant is terminating grow contracts with.

A spokesperson says the company is eliminating 505 positions at its Live Oak plant. Thus, reducing the need for live chickens and their growers.

One man said, "I lost everything now. I am 78 years old."

Ken Bartolotti is a poultry grower in Dowling Park, Suwannee County and says he's never seen anything like this in his 40 years in the business.

He said, "Didn't really want to see this now. I was going to retire on my own soon but now I'm being forced to retire early."

The Garcias's eight chicken houses in McAlpine in Suwannee County are already empty and they say they're left with a million dollar mortgage on the farm that they can't pay.

Bruno Garcia said, "You take everything by their faith and their metrics. They turn around and tell you, well this is how you did. Then when you start performing badly, they take away your chickens."

Lafayette County poultry grower Celena Vasallo said, "We do whatever they want. So they're the one that need to solve this problem; not just come and shut our houses down. We can't afford to lose everything we worked for our life."

Pilgrim's Pride--a Texas-based company that is the nation's largest chicken producer--filed for bankruptcy in December. Pilgrim's Pride spokesperson Ray Atkinson says the cuts were necessary to reduce costs and operate more efficiently. Eliminating jobs is a part of the company's plan to restore profitability.

Atkinson says the company has 158 grow contracts and says it made the decision on which to terminate based on performance.

Atkinson says he isn't sure if they will ever renew the contracts. He says the company regrets that the cuts are necessary and that they will do everything they can to help employees during the transition.

The farmers are meeting to discuss the issue and try to come up with some solutions.

The meeting is Thursday, Jan. 8th, at 5:00 p.m. at the farm of Bruno and Gillian Garcia. It is located at 18492 105th Rd. in McAlpine, Fla. in Suwannee County. Contact them at (386) 590-2811 for more information.
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More than a dozen farmers in our area say they are losing everything.

As Eyewitness News first reported, Pilgrim's Pride poultry plant in Live Oak is cutting more than 500 jobs, but the plant's closing means 19 area chicken growers are down on their luck, too.

These farmers say they aren't just losing business, they're losing their livelihoods.

One poultry grower has a 16-house farm in Madison County that produces 2,300,000 pounds of meat every 60 days.

Now that Pilgrim's Pride is ending his contract, this is what Jesus Martinez says is happening:

"I'm in the process right now of losing my farm, my house, everything I've worked for. Everything I've invested in is built on that farm."

Martinez is one of the 19 chicken farmers in Suwannee, Madison, Lafayette, Taylor and Hamilton Counties that Pilgrim's Pride poultry plant is terminating grow contracts with.

A spokesperson says the company is eliminating 505 positions at its Live Oak plant. Thus, reducing the need for live chickens and their growers.

One man said, "I lost everything now. I am 78 years old."

Ken Bartolotti is a poultry grower in Dowling Park, Suwannee County and says he's never seen anything like this in his 40 years in the business.

He said, "Didn't really want to see this now. I was going to retire on my own soon but now I'm being forced to retire early."

The Garcias's eight chicken houses in McAlpine in Suwannee County are already empty and they say they're left with a million dollar mortgage on the farm that they can't pay.

Bruno Garcia said, "You take everything by their faith and their metrics. They turn around and tell you, well this is how you did. Then when you start performing badly, they take away your chickens."

Lafayette County poultry grower Celena Vasallo said, "We do whatever they want. So they're the one that need to solve this problem; not just come and shut our houses down. We can't afford to lose everything we worked for our life."

Pilgrim's Pride spokesperson Ray Atkinson says the company has 158 grow contracts and says it made the decision on which to terminate based on performance.

Atkinson says he isn't sure if they will ever renew the contracts. He says the company regrets that the cuts are necessary and that they will do everything they can to help employees during the transition.

The farmers are meeting to discuss the issue and try to come up with some solutions.

The meeting is Thursday, Jan. 8th, at 5:00 p.m. at the farm of Bruno and Gillian Garcia. It is located at 18492 105th Rd. in McAlpine, Fla. in Suwannee County. Contact them at (386) 590-2811 for more information.