Corn, soybean meal, and wheat accounted for approximately 42.5, 34.0, and 5.6% of Pilgrim’s Pride Corporation feeding costs in 2019, respectively.

The company, a multinational food company, had at the end of last year a global network of approximately 5,200 producers, 38 feed factories, 49 hatcheries, 39 processing plants, 27 prepared food cooking plants, 24 distribution centers. , 10 processing facilities and 4 pet food plants.

Overall, food ingredient production is positively or negatively affected primarily by the global level of supply inventories, demand for food ingredients, US and foreign government agricultural policies, and weather patterns worldwide.

Pilgrim’s uses various raw materials in its operations, including corn, soybean meal, and wheat, along with various other ingredients from which the company produces its own formulated foods.

Corn and derivatives

The company’s reportable segments of the United States and Mexico use corn flour and soybeans as the main ingredients for food production; while its reportable segment in the UK and Europe uses wheat, soybean meal and barley as the main ingredients for food production.

On the other hand, Pilgrim’s purchases financial instruments derived from basic products, specifically futures and options traded on the stock exchange, in an attempt to mitigate the price risk related to its anticipated consumption of inputs of basic products for the next 12 months.

A 10% increase in the prices of corn, soybean meal, and soybean oil on December 29, 2019, and December 30, 2018 would have resulted in an increase of approximately $ 1.6 million and $ 2.1 million, respectively, at the fair value of its net commodity derivatives position, including cash margin, as of that date.

Live chicks

Pilgrim’s buys day-old chicks from some top breeders. These chicks, when mature, serve as the grandfather and progenitor of the broilers that these operations process for consumption.

If breeding stocks from its current suppliers are unavailable for any reason, the company believes it could obtain adequate breeding stocks from other suppliers in the regions in which it operates.

Live pigs

Pilgrim’s maintains a pig production base that represents just over 50% of the total number of pigs processed by the company each year.

In addition, the company’s pork operations obtain live pigs for slaughter within days of purchasing from many independent farmers across the UK.

Pilgrim’s: financial results

Live pigs from independent farmers account for just under 50% of the total number of pigs processed by the company each year. Although you generally expect an adequate supply of live pigs in the UK, there may be periods of imbalance in supply and demand.

Some of the major proprietary or licensed trademarks used by the company or its subsidiaries are Pilgrim’s, Just BARE, Gold’n Pump, Gold Kist, County Pride Chicken, Pierce Chicken, Pilgrim’s México, County Post, Savoro, To-Ricos , Del Dia, Moy Park and O’Kane.

JBS S.A. owns 78.31% of our outstanding common shares of Pilgrim’s.

As a vertically integrated company, it controls every phase of the production process, helping you better manage food safety and quality, as well as more effectively control margins and improve customer service.