Cagle's, Inc. reports that it will discontinue second shift operations at its Pine Mountain Valley poultry plant effective on, or within two weeks after, 19 August 2011. The lay-off will result in the loss of approximately 300 positions.

The Pine Mountain Valley operation currently processes 520,000 head per week and employs 640 workers. The plant was successfully converted to a deboning operation in May 2010, at which time it was processing 630,000 head per week. In the fall of 2010, feed prices increased over 34 per cent, principally due to corn prices which were up over 75 per cent versus last year. In addition, boneless breast markets experienced a downturn of over 10 per cent compared to the same period last year.

As a result of the higher feed cost and lower boneless markets, effective November 2010, the Pine Mountain plant volume was reduced 20 per cent to operating two shifts, four days per week. With this lay-off the company expects to operate one full shift five days per week, processing 320,000 head and improving the weekly take-home pay of its remaining employees.