1.3 Million Chickens Killed After Poultry Processor Goes Belly Up

The company ran out of money to feed the chickens.

Transcript

The Iowa Department of Agriculture and Land Stewardship (IDALS) announced that it received permission from a court to kill approximately 1.3 million broiler chickens previously owned by a Minnesota poultry processor. The department added that it concluded depopulation on October 25.

The decision comes after the chickens’ previous owner, Pure Prairie Poultry, filed for bankruptcy at the end of September, attributing their position to pandemic-influenced supply chain issues and low chicken prices. Minnesota and Iowa station KIMT News 3 reported that the company owed debtors between $100 million and $500 million.

Most Read on IEN:

According to a press release, Pure Prairie told the department that it could not purchase feed for the chickens at 13 contracted farms in Iowa. A few days later, the company ceased operations and laid off the workers at its processing plant in Charles City, Iowa.

This move left the contracted farmers to care for the chickens with their own money and no place to send them once they reached processing age.

The Minnesota Star Tribune reported that the bankruptcy filing and plant closure also stranded 300,000 birds in Minnesota and 170,000 in Wisconsin. The company euthanized about 139,000 of the Minnesota chickens and found other processing facilities or homes for the rest. The Wisconsin chickens avoided euthanization and found new homes.

On the same day of the plant closure, a court order granted the IDALS care, custody and control of the Iowa chickens. The department pursued other markets and processors, secured an initial offer to purchase the 1.3 million birds and even reached a tentative agreement. However, the buyer backed out, citing legal costs associated with potential litigation from lien claims from attorneys for other interested parties.

Another route involved processing the broilers and donating them to Iowa residents facing food insecurity, but the combination of ongoing lien and claim risks and logistics, timeliness and scale requirements led to no credible proposals or offers.

With no available buyers and processing capacity and the increasing yardage and feed costs, the IDALS received authorization to kill the birds, starting with the largest and least marketable should a last-minute solution present itself. 

The bankruptcy filing came about two years after the U.S. Department of Agriculture (USDA) announced a $39 million loan to Pure Prairie and a $7 million grant designed to support the company until the loan became accessible in April 2023. 

A group of lawmakers from the three states have sent a letter to the USDA requesting answers from the agency’s loan and grant process.

Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news.

More in Supply Chain