Thinkstock
10. Pilgrim's Pride Corp.

Robots Head for Chicken Plants as Pilgrim's Pride Eyes Cost Cuts

Aug. 4, 2017
The chicken processor aims to reduce labor intensity on the production line and address challenge of tight labor markets.

Working in the $60 billion U.S. chicken industry is often tough and grueling, with much of the processing done by hand. One of the nation’s largest suppliers wants to reduce labor intensity on the production line by introducing robots.

Pilgrim’s Pride Corp., the second-largest U.S. producer, is adding robotics and X-ray technology for processes such as deboning the front half of the birds, Chief Executive Officer Bill Lovette said Thursday on the company’s second-quarter earnings conference call. Pilgrim’s is working with Scott Technology Ltd., a New Zealand automation company controlled by Pilgrim’s corporate parent, Brazilian meat giant JBS SA.

The U.S. chicken industry has about 280,000 workers. Pilgrim’s has more than 40,000 people across the U.S., Mexico and Puerto Rico. The sector has faced criticism for the working conditions at some plants. At the same time, it’s dealing with tight labor markets in some regions and often struggles to hire and retain workers. Tyson Foods Inc., the country’s biggest producer, said in April it will improve pay and safety for more than 95,000 employees, after criticism by regulators and activists over working conditions.

Lovette said Pilgrim’s is accelerating the rate of wage increases this year while trying to “mitigate” issues at four plants. The company declined to provide further details.

Pilgrim’s, which reported higher-than-expected earnings for the quarter, also said on the call that it’s looking to acquire branded assets and reduce its reliance on its commodity-meat business.

By Shruti Date Singh

Popular Sponsored Recommendations

Lean Manufacturing in the Age of the Industrial Internet

Oct. 24, 2023
Read how advanced MES capabilities can help you improve your labor utilization, reduce WIP, and optimize your production. Download the white paper today.

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

Discover How an Eye Tracking Study Improves Training Procedures

Oct. 29, 2023
Did you know that your training processes can be streamlined by visualizing and analyzing key skills within your employee base? Find out how we use eye tracking to capture advanced...

How Digital Twin Technology is Empowering Manufacturers

Sept. 27, 2023
This FAQ delves into why this technology offers business value and considerations toward implementation.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!