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. Poultry producers typically feed their birds corn and soybean meal, a protein source made from crushed soybeans.
Futures prices for corn, soybeans and soybean meal all set record highs over the summer at the Chicago Board of Trade as the worst drought in decades battered crops in the Midwest. Read More