Pilgrim’s Pride Corporation’s feed has shown a downward trend in the inclusion of corn over the past three years.

The company uses raw materials such as corn, soybean meal and wheat to make its own feed. In addition, it uses other ingredients.

Pilgrim’s Feed

Pilgrim’s is engaged in producing, processing, marketing and distributing fresh, frozen and value-added chicken and pork products to retailers, distributors and food service operators. JBS S.A. controls 82.42% of its common stock.

The company operates in the United States, the United Kingdom, Europe, Mexico and more than 120 countries.

In 2024, corn, soybean meal and wheat accounted for approximately 85.2% of its feed costs. 

Shown here are the shares of these three inputs in Pilgrim’s total feed costs:

Corn

• 2021: 52.9.
• 2022: 46.1.
• 2023: 43.9.
• 2024: 42.2.

Soybean meal

• 2021: 41.0.
• 2022: 35.2.
• 2023: 38.1.
• 2024: 38.0

Wheat

• 2021: 6.0.
• 2022: 4.6.
• 2023: 4.1.
• 2024: 5.0.

Price volatility

The production of feed ingredients depends on several factors. Chief among them are global supply, international demand, agricultural policies in the United States and other countries, as well as weather conditions around the world.

To address these challenges, Pilgrim’s seeks to reduce the impact of price volatility. For this reason, it limits long-term contracts with fixed prices. It is also diversifying its portfolio of products and contracts. This strategy allows it to better adapt to market changes.

The company also uses derivative financial instruments. In this way, it manages the associated risks more effectively. It also maintains strong relationships with suppliers of grain and other key ingredients. As a result, it ensures a constant supply to meet its current needs.