Perdue Farms

1
Perdue Farms
2
Industry opportunities

• Nutritional and economic benefits of poultry
  expanding market
• Lifestyle changes that create a demand for value
  added, processed products
• Growth of food service market acquisition of
  Gol-Pak
• International markets Partnership in Shanghai

3
Industry Threats

• Competitive and consolidating industry (Tyson
  Foods, Pilgrims Pride offer stiff competition)
• Large buyers (retail chains) exert pressures on
  price
• Demand uncertainty
• Import taxes and tariffs in overseas markets
• Regulation and scrutiny by EPA, FDA, OSHA, INS
  and animal rights organizations
• Chesapeake Bay densely populated by poultry
  producers difficult to address environmental
  concerns

4
Structure and culture

• Role of Perdue family good leadership
• Communication of values people, products and
  profitability
• Centralized functional structure ensures
  co-ordination and control
• Scope for employees to be involved in operational
  issues
• Employee opportunities (education, training) and
  benefits ensure motivation and morale

5
Perdue Farms

• Poultry industry facing a crunch over the last
  two years
• Russia (largest importer) started cultivating own
  industry
• Russia U.S. dispute blocked American exporters
  from market for six months
• Avian flu epidemic in Virginia led to Japanese
  embargoes on chicken
• Perdue closing processing plant in North Carolina
  and canceling contracts with growers in Virginia
  and N.C.
• Perdues processing plant in Virginia fined
  80,000 in water pollution case

Source The Sun, Virginian Pilot, New York Times