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.
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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.
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WEBVTT
X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0
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The Iowa Department of Agriculture and land
stewardship announced that it received
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permission from a court to kill approximately
1.3 million broiler chickens previously owned
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by a Minnesota poultry processor.
00:10.350 --> 00:13.569
The department added that it concluded
depopulation on October 25th.
00:13.579 --> 00:17.620
The decision comes after the chicken's previous
owner, Pure Prairie poultry filed for
00:17.629 --> 00:21.479
bankruptcy at the end of September, attributing
their position to pandemic influenced supply
00:21.489 --> 00:25.010
chain issues and low chicken prices.
Minnesota and Iowa Station.
00:25.020 --> 00:30.579
Kimt News three reported that the company owed
debtors between 100 million and $500 million.
00:30.590 --> 00:34.119
According to a press release, Pierre Prairie
told the department that it could not purchase
00:34.130 --> 00:36.919
feed for the chickens at 13 contracted farms in
Iowa.
00:36.930 --> 00:40.790
A few days later, the company ceased operations
and laid off the workers at its processing
00:40.799 --> 00:44.180
plant in Charles City, Iowa.
This move left the contracted farmers to care
00:44.189 --> 00:47.720
for the chickens with their own money and no
place to send them once they reached processing
00:47.729 --> 00:49.970
age.
The Minnesota Star Tribune reported that the
00:49.979 --> 00:55.409
bankruptcy filing and plant closure also
strained 300,000 birds in Minnesota and 170,000
00:55.419 --> 00:59.259
in Wisconsin.
The company euthanized about 139,000 of the
00:59.270 --> 01:03.060
Minnesota chickens and found other processing
facilities or homes for the rest.
01:03.459 --> 01:06.550
The Wisconsin chickens avoided euthanization
and found new homes.
01:06.559 --> 01:10.879
On the same day of the plant closure, a court
order granted the ID A Ls Care custody and
01:10.889 --> 01:14.029
control of the Iowa chickens.
The department pursued other markets and
01:14.040 --> 01:18.750
processors secured an initial offer to purchase
the 1.3 million birds and even reached a
01:18.760 --> 01:21.879
tentative agreement.
However, the buyer backed out citing legal
01:21.889 --> 01:26.265
costs associated with potential litigation from
lien claims from attorneys for other interested
01:26.276 --> 01:28.886
parties.
Another route involved processing the broilers
01:28.896 --> 01:31.736
and donating them to Iowa residents facing food
insecurity.
01:31.795 --> 01:35.865
But the combination of ongoing lien and claim
risks and logistics timeliness and scale
01:35.875 --> 01:40.725
requirements led to no credible proposals or
offers with no available buyers in processing
01:40.736 --> 01:43.146
capacity and the increased yardage and feed
costs.
01:43.155 --> 01:47.276
The ID A LS received an authorization to kill
the birds starting with the largest and least
01:47.286 --> 01:49.851
market should a last minute solution present
itself.
01:49.861 --> 01:53.431
The bankruptcy filing came about two years
after the US Department of Agriculture
01:53.442 --> 01:58.281
announced a $39 million loan to Pure Prairie
and a $7 million grant designed to support the
01:58.291 --> 02:01.412
company until the loan became accessible.
In April 2023.
02:01.421 --> 02:05.632
A group of lawmakers from the three states have
sent a letter to the USDA requesting answers
02:05.641 --> 02:07.452
from the agency's loan and grant process.
02:07.671 --> 02:09.572
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