United States-Sale of poultry plant looks good.

UNITED STATES-SALE OF POULTRY PLANT LOOKS GOOD.

Union Parish poultry growers and Pilgrim’s Pride employees shouldn’t worry just yet about a lack of movement on the possible sale of the company’s Farmerville chicken processing plant to a California-based company.

Despite concerns voiced at a parish Chamber of Commerce meeting Monday in which farmers expressed concerns to U.S. Sen. Mary Landrieu, the state’s top economic development official said Tuesday that he is "cautiously optimistic" that the deal is on track to be finalized in mid- to late May.

Economic Development Secretary Stephen Moret said Tuesday that state officials believe they will close the deal within the 45- to 60-day timeline initially set in mid-March.

"Both sides have gotten closer together, and we’re cautiously optimistic they will be able to get an agreement," Moret said.

Details on an asset purchase agreement between Pilgrim’s Pride and Foster Farms for the sale of the plant are being hammered out, Moret said.

However, state Sen. Mike Walsworth said he expects a delay in production because of the lag between closing the deal and the beginning of production when Foster Farms takes over.

Pilgrim’s Pride announced March 20 that it accepted an $80 million offer from Foster Farms for the plant, which Pilgrim’s intended to close this month, eliminating 1,300 direct jobs. Losing the plant would mean almost certain bankruptcy for another 300 independent chicken growers.

Gov. Bobby Jindal brokered the sale by committing $40 million in state funding to the purchase price and another $10 million for facility upgrades, which Foster Farms agreed to match.

"They’ve had very productive dialogue since the March 20 announcement," Moret said. "They’ve since been trying to hem out the details of the asset purchase agreement, and at the same time we’ve been working with Foster Farms to finalize the cooperative endeavor agreement with the state.

"Looking at the timeline, we’re still on track to potentially make that 45- to 60-day window. That was our best-case time frame."

Although Walsworth, R-West Monroe, misspoke Monday when he said Foster Farms has signed the agreement, Moret said both companies are still working through legal and financial details. No paperwork has been signed.

Moret said the state has been developing the language of its agreement with Foster Farms. He said state officials have been in daily contact with both companies since last month’s announcement.

"A lot of details ... have to be resolved, and we expect them to be resolved in the near future," Moret said. "So far, everything’s on track."

The agreement between Pilgrim’s Pride and Foster Farms must be completed before the state’s agreement with Foster Farms can be finalized. However, Moret said he expects both to be ready to present to the state Legislature during its spring session, which begins April 27.

Neither company has been willing to publicly discuss negotiations.

Landrieu, D-New Orleans, did little to assuage feelings in Farmerville when businesspeople and growers mentioned concern that the deal is not progressing.

"We’re hoping Pilgrim’s Pride is negotiating in good faith here to keep this plant in operation," Landrieu said. "This industry is so large and is such a part of the economy, the thought of it closing is really untenable.

"But if it doesn’t work out, I’ll be there to help you on something else."

Walsworth said he’s more worried about lag time during the exchange of ownership than a collapse of the agreement. He said some lag time is inevitable.

"We’re going to try to do everything we can to make sure the delay is a small as possible," Walsworth said. "We know there’s a critical time period for those who saw their last batch over a month and a half ago. That’s one reason we acted so quickly."