Pilgrim’s Pride 1Q13 Earnings Call Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“The price of chicken is going to be driven by the balance of supply and demand for chicken, and not necessarily the price of corn.”

“I think that if you go back and look at the last 2 years, wing prices have been extremely high as compared to history. And as we know, high prices tend to cure high prices.”

“I would remind you that we have the technology in this country to rapidly plant our crop in a very, very short period of time. And I still believe there’s more than adequate time to get the acres planted that we expected to get planted. The good news is the subsoil moisture that we lost last year has been replenished. And once we do get the crop into the ground, we’re optimistic that we’re going to have a really good corn crop this year.”

“I think the industry is doing an admirable job in being disciplined on the supply side. And I think we’ve got a combination where we’ve combined that discipline with strong demand for product. And that’s why you’ve seen the pricing environment that we’re now enjoying. I don’t think that’s going to relent much this year. We’ll certainly get seasonal dips and seasonal increases as we always do. But we’re starting from a very, very strong base. As I said earlier, we haven’t seen the type of strength in pricing and demand, probably in the last 9 to 10 years.”

“I would remind you of, export demand is extremely strong for U.S. chicken the past 2 years, and I don’t think that’s going to wane either.”