The bankruptcy of a California poultry producer is showing in detail how the Midwestern drought is still rippling through the U.S. economy.
Citing the soaring cost of grains used in animal feed, family-owned Zacky Farms LLC filed for Chapter 11 bankruptcy protection Monday and said it plans to put itself on the block.
The company, founded in 1928, said its finances have been strained because it is spending $1.8 million a week to feed its 1.9 million turkeys and 600,000 chickens.
Zacky is a relatively small poultry producer, with $146 million in sales last year. But its troubles reflect the sharply rising production costs afflicting the nation's poultry and livestock industries. Those costs, which already have pushed consumer food prices higher, may trigger more bankruptcies and speed industry consolidation.
For more, see: Midwest Drought Claims Poultry Producer