Thursday, October 20, 2011

How many more food producers will go bankrupt before Washington D.C. realizes its ethanol subsidy is driving companies out of business?

Chicken producer Cagle's files Chapter 11

Atlanta Business Chronicle

Date: Thursday, October 20, 2011, 10:27am EDT

One of Georgia's oldest companies, chicken producer Cagle's Inc. , has filed for Chapter 11 protection.
The Atlanta-based company (AMEX: CGL-A), which has been in business for more than 60 years, said it will attempt to restructure its debt.
"Over the past few years, the poultry industry has been under severe stress due to historically high corn and soybean meal prices coupled with sagging chicken prices caused by an oversupply of broilers. As a result, Cagle’s has incurred significant operating losses that have depleted its liquidity and working capital position," the company said.
Allen Family Foods,Seeks Bankruptcy Protection
By Dawn McCarty - Jun 9, 2011 1:35 PM ET
Allen Family Foods Inc., a chicken producer based in Seaford,Delaware, filed for bankruptcy protection citing changes in the market for poultry.
The company listed both assets and debt in the range of $50 million to $100 million in Chapter 11 documents filed today in U.S. Bankruptcy Court in Wilmington, Delaware. Affiliates Allen’s Hatchery and JCR Enterprises also sought protection.
“A recent lag in the industry market has forced the company to reposition the business by reducing volume and diversifying its product line,” Vice President of Finance Brian Hildreth said in court papers.
Chicken processing plant files to sell assetsBy MARY PIEPER, Courier Lee News Service
Thursday, April 21, 2011 4:50 am

The owners of a closed chicken processing plant in Charles City have filed a motion in bankruptcy court to sell all its assets free and clear of liens.
Custom Poultry Processing LLC is proposing that an auction to sell its assets take place at 9 a.m. on May 26 in the courtroom for U.S. Bankruptcy Court for the Northern District of Iowa in Cedar Rapids.

Delaware Poultry Producer, Townsend files for bankruptcy

24 Dec 2010

Townsends Poultry in Georgetown, Delaware, USA, files voluntary Chapter 11 Petitions to address challenges in difficult market conditions. Operations will continue.
Townsends, Inc. and four wholly owned subsidiaries announced that they have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code. The company's operations are expected to continue during the bankruptcy process as it explores its strategic alternatives.

Do you suppose ANYONE in Washington D.C. is even noticing the "trend" in food company bankruptcies?

If they are, do you think they are smart enough to connect the dots and realize it might have something to do with them redirecting 40% of the corn grow in the U.S. into ethanol instead of into food?

Do you suppose they ever have to pick up a tab of their own when they go out to eat and realize that the cost of food is going up?

Or, maybe they don't really care, as long as their economic engineering is seen as politically correct?

Maybe, just maybe, they really don't care.  After all, if food gets too expensive, they'll just vote themselves a new cost of living increase.  I mean, we wouldn't want them scraping by on their measly $174,000 (congress) , $193,000 (congressional leadership) or $223,000 (Speaker of the House). 

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