In a recent press release (below), Pilgrim's Pride Corporation made it very clear that escalating feed costs are killing company profits. Pilgrim's Pride announced a quarterly loss of $32,3 million, and attributed it entirely to increased feed costs.

Based on available AGRASTIM test results, it is this investor's opinion that total conversion to AGRASTIM could save Pilgrim's Pride as much as $5.7/quarter in feed costs, alone. While those savings would not, in themselves, offset the recent quarterly losses, savings from decreased mortality and improved weight gain could. It is this investor's opinion that, based on available data, Pilgrim's Pride could save as much as $36.7 million, per quarter, through improved feed conversion and weight gain, and decreased mortality and producer condemns, by using AGRASTIM. Complete conversion to Agrastim feed additive, and elimination of growth promoting antibiotics could, in this investor's opinion, eliminate Pilgrim's Pride's quarterly shortfall and make them profitable by as much as $4.4 million per quarter.

In the press release, Pilgrim's Pride Chairman Ken Pilgrim said, "We will ....take whatever actions we feel are necessary to better balance our supply and demand and to position our company for sustained, profitable growth."

It's time to wake up and smell the coffee, Mr. Pilgrim.

-zties

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Pilgrim's Pride Corporation (NYSE: PPC) today reported a net loss of $32.3 million, or $0.49 per share, on net sales of $2.09 billion for the first fiscal quarter ended December 29, 2007, compared to a pro forma net loss of $42.9 million, or $0.64 per share, on pro forma net sales of $1.86 billion in the same period last year. The pro forma amounts assume the acquisition of Gold Kist Inc., which closed on December 27, 2006, was completed on September 30, 2006, and included in the operating results for the quarter. The results for the first quarter of fiscal 2008 include a non-recurring income tax charge of approximately $13.0 million, or $0.20 per share, related to an adjustment in deferred taxes as a result of a newly enacted tax law in Mexico. For the first quarter of fiscal 2007, the company reported a net loss of $8.7 million, or $0.13 per share, on total sales of $1.34 billion.

"Our results in the first quarter of fiscal 2008 reflect the significant challenge posed by higher feed-ingredient costs, which have climbed sharply over the past few months and currently show no signs of abating in 2008," said Ken Pilgrim, chairman and interim president of Pilgrim's Pride. "Our feed-ingredient costs for the quarter, on a pro forma basis, rose 24%, or $157 million, when compared to the same period a year ago. Those cost increases -- when coupled with labor shortages, higher production, freight and fuel costs during the quarter -- offset most of the improvements in market pricing and product mix."

He said the company's consumer retail business continued to post good growth as a result of increased penetration of supermarket meat and deli cases and new business from a number of large customers. In addition, export demand remained solid and the company was able to reduce its commodity pounds by upgrading product into higher-margin, value-added chicken items.

Looking ahead, Mr. Pilgrim said that based on the current commodity futures markets, the company's total feed-ingredient costs for fiscal 2008 would be up more than $700 million from last fiscal year. Mr. Pilgrim said he believes that surging feed costs make it unlikely that the U.S. chicken industry in 2008 will grow at the 3% rate projected by the U.S. Department of Agriculture last fall.

"Given the unprecedented run-up in feed-ingredient costs, we believe the industry will have to take a much closer look at production levels for 2008 and that overall production is not likely to grow at the rate previously projected by the USDA. We will continue to closely monitor industry fundamentals and take whatever actions we feel are necessary to better balance our supply and demand and to position our company for sustained, profitable growth," said Mr. Pilgrim.

About Pilgrim's Pride

Pilgrim's Pride Corporation is the largest chicken company in the United States and Puerto Rico and the second-largest in Mexico. Pilgrim's Pride employs approximately 55,000 people and operates 37 chicken processing and 12 prepared-foods facilities, with major operations in Texas, Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia, Mexico and Puerto Rico as well as other facilities in Arizona, Iowa, Mississippi, Ohio and Utah.

Pilgrim's Pride products are sold to foodservice, retail and frozen entree customers. The Company's primary distribution is through retailers, foodservice distributors and restaurants throughout the United States and Puerto Rico and in the Northern and Central regions of Mexico. For more information, please visit http://www.pilgrimspride.com/.