T. Scott Boatright, Reporter
04-14-2009
For poultry growers for the Pilgrim’s Pride chicken plant in Farmerville, no news isn’t good news. Not necessarily bad, but not good when you’re not sure where your next paycheck will be coming from, if it comes at all.
That’s the situations those workers find themselves in as they watch the ongoing ordeal surrounding the impending sale of the facility to Foster Farms of Livingston, Calif.
And if that sale somehow doesn’t go through, it’ll be back to the drawing board for hundreds of growers with their livelihoods at stake.
Hopefully, much will be answered at some point today. A status conference was slated to be held before a Fort Worth, Texas, bankruptcy court overseeing the Pilgrim’s Pride proceedings.
The state of Louisiana pitched in to help Foster Farms’ efforts to buy the plant, matching the company’s $40 million to push its bid to a $80 million total offer. After being turned down twice in earlier offers, that $80 million looked to be the magic number as Pilgrim’s Pride on March 20 tentatively agreed to sell the Farmerville facilities and resources to Foster Farms.
But while Foster Farms has signed off on its end of a purchase agreement, Pilgrim’s Pride has yet to ink on a dotted line.
That could be because the company is waiting for the OK from the bankruptcy judge, but as I mentioned, no news isn’t good news for growers left in the lurch in northeast Louisiana.
State Sen. Mike Walsworth admits he’s starting to feel a little fidgety waiting to see if the sale goes through.
“The purchase agreement is sitting on (Pilgrim’s Pride’s) desk,’’ Walsworth said. “The state is more or less the banker in the deal. It’s basically between Foster and Pilgrim’s now. These two have to make an agreement. I do think it will happen, but I’m nervous because we’re outside the negotiations.’’
One day after the potential sale to Foster Farms was announced, Gov. Bobby Jindal, who worked long and hard to try to ensure that workers and growers from the Farmerville facility would maintain their livelihoods, admitted that there was still a long way to go to finalize the process.
“This isn’t any time to sit back and feel comfortable,” Jindal said, holding up a T-shirt presented to him by a group of Farmerville growers. “These shirts say ‘Fightin’ Farmers’ — that’s the way we have to be today. Yes, we’ve come a long way, but we still have a long way to go.
“We have to convince the bankruptcy court to accept the buyout offer. Then Foster Farms will want to come in and review the facilities and contracts before signing a purchase agreement.”
One hurdle has been cleared — Foster Farms has signed off on the purchase agreement and looks good to go on the deal. But the bankruptcy court still has to OK the sale, then Pilgrim’s Pride also must sign off on its end of the purchase agreement.
Then comes possibly the hardest part of all, getting state lawmakers to change state laws involving the mega-fund Jindal plans to use to pay for the state’s portion to buy out Pilgrim’s Pride. State Rep. Karen Peterson of New Orleans in March questioned the state’s involvement in the potential sale, signaling that there could be a backlash from legislators from the southern part of the state.
“I think there’s certainly the possibility of resistance from south Louisiana legislators who feel this is a north Louisiana bailout,” state Rep. Rick Gallot of Grambling said. “But you have to look at the big picture. I supported spending to help keep the Saints and Hornets here a few years ago, because I saw the benefits received by the entire state.
“You never know when it’s going to be your turn.”
Workers and growers for the Farmerville facility only hope their turn at being able to return to making their living comes soon. Time is of the essence as bank accounts continue to dwindle.
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