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Perdue Farms

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Perdue Farms
TypePrivate
IndustryMeat processing
Poultry farming
Founded1920
FounderArthur W. Perdue
Pearl Perdue[1]
HeadquartersSalisbury, Maryland
Key people
Jim Perdue, Chairman
Randy Day, CEO
ProductsPoultry, chicken, turkey, pork, grain
Revenue$8 billion (2021)[2]
Number of employees
21,000 (2019)[3]
ParentFPP Family Investments, Inc.
WebsitePerdueFarms.com

Perdue Farms is the parent company of Perdue Foods and Perdue AgriBusiness, based in Salisbury, Maryland. Perdue Foods is a major chicken, turkey, and pork processing company in the United States. Perdue AgriBusiness ranks among the top United States grain companies. Perdue Farms has 2021 annual sales of $8 billion.

History

Origin and war era

The company was founded in 1920 by Arthur Perdue[1] with his wife, Pearl Perdue, who had been keeping a small flock of chickens.[4] The company started out selling table eggs, then in 1925, Perdue built the company's first hatchery, and switched to selling layer chicks to farmers instead of eggs.[4] His son Frank Perdue joined the company in 1939 at age 19 after dropping out of college.[4]

Post-war growth

The company was incorporated as A.W. Perdue & Son and Frank Perdue assumed leadership in the 1950s.[1][4] The company also began contracting with local farmers to raise its birds and supplying chickens for processing as well as opening a second hatchery in North Carolina during this period.[4]

Full integration

Perdue entered the grain and oilseed business by building grain receiving and storage facilities and Maryland's first soybean processing plant.[4]

In 1968, the company began operating its first poultry processing plant in Salisbury.[4] This move had two effects: it gave Perdue Farms full vertical integration and quality control over every step from egg and feed to market,[4] as well as increasing profits which were being squeezed by processors.[1] This move enabled the company to differentiate its product, rather than selling a commodity.[1]

In 1991, Frank's son Jim Perdue was named Chairman, becoming the third generation of leaders from the Perdue family.[4]

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Arthur Perdue

Arthur Perdue

Arthur W. Perdue (1885–1977) was an American businessman and the founder of Perdue Farms along with his wife Pearl in 1920. The business was started in his backyard, and at the time only produced table eggs from chickens, but eventually grew into a $4.1 billion company.

Herd

Herd

A herd is a social group of certain animals of the same species, either wild or domestic. The form of collective animal behavior associated with this is called herding. These animals are known as gregarious animals.

Chicken

Chicken

The chicken is a domesticated junglefowl species, with attributes of wild species such as the grey and the Ceylon junglefowl that are originally from Southeast Asia. Rooster and cock are terms for adult male birds, and a younger male may be called a cockerel. A male that has been castrated is a capon. An adult female bird is called a hen, and a sexually immature female is called a pullet. Humans keep chickens primarily as a source of food or as pets. Traditionally they were also bred for cockfighting, which is still practiced in some places. Chickens domesticated for meat are broilers and for eggs are layers.

Egg as food

Egg as food

Humans and human ancestors have scavenged and eaten animal eggs for millions of years. Humans in Southeast Asia had domesticated chickens and harvested their eggs for food by 1500 BCE. The most widely consumed eggs are those of fowl, especially chickens. Eggs of other birds, including ostriches and other ratites, are eaten regularly but much less commonly than those of chickens. People may also eat the eggs of reptiles, amphibians, and fish. Fish eggs consumed as food are known as roe or caviar.

Hatchery

Hatchery

A hatchery is a facility where eggs are hatched under artificial conditions, especially those of fish, poultry or even turtles. It may be used for ex-situ conservation purposes, i.e. to breed rare or endangered species under controlled conditions; alternatively, it may be for economic reasons.

Farmer

Farmer

A farmer is a person engaged in agriculture, raising living organisms for food or raw materials. The term usually applies to people who do some combination of raising field crops, orchards, vineyards, poultry, or other livestock. A farmer might own the farm land or might work as a laborer on land owned by others. In most developed economies, a "farmer" is usually a farm owner (landowner), while employees of the farm are known as farm workers. However, in other older definitions a farmer was a person who promotes or improves the growth of plants, land or crops or raises animals by labor and attention.

Frank Perdue

Frank Perdue

Franklin Parsons Perdue, born in Salisbury, Maryland, was for many years the president and CEO of Perdue Farms, now one of the largest chicken-producing companies in the United States.

North Carolina

North Carolina

North Carolina is a state in the Southeastern region of the United States. The state is the 28th largest and 9th-most populous of the United States. It is bordered by Virginia to the north, the Atlantic Ocean to the east, Georgia and South Carolina to the south, and Tennessee to the west. In the 2020 census, the state had a population of 10,439,388. Raleigh is the state's capital and Charlotte is its largest city. The Charlotte metropolitan area, with a population of 2,595,027 in 2020, is the most-populous metropolitan area in North Carolina, the 21st-most populous in the United States, and the largest banking center in the nation after New York City. The Raleigh-Durham-Cary combined statistical area is the second-largest metropolitan area in the state and 32nd-most populous in the United States, with a population of 2,043,867 in 2020, and is home to the largest research park in the United States, Research Triangle Park.

Vertical integration

Vertical integration

In microeconomics, management and international political economy, vertical integration is a term that describes the arrangement in which the supply chain of a company is integrated and owned by that company. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need. It contrasts with horizontal integration, wherein a company produces several items that are related to one another. Vertical integration has also described management styles that bring large portions of the supply chain not only under a common ownership but also into one corporation.

Jim Perdue

Jim Perdue

Jim Perdue is an American businessman. He has been the chairman and advertising spokesperson of Perdue Farms since 1991. He is a third generation leader of the company founded by his grandfather in 1920.

Perdue today

In 2013, Perdue was reportedly the third-largest American producer of broilers (chickens for eating) and was estimated as having 7% of the US chicken production market, behind Pilgrim's Pride and Tyson Foods.[5]

In 2010, the corporate structure of Perdue Farms changed.[6] A holding company, FPP Family Investments, Inc., owned by the Perdue family, became the controlling entity for Perdue Farms. The holding company also owns Perdue AgriBusiness, a grain operation; FPP Business Services, a shared business services company; and Coleman Natural Foods.[7]

Other subsidiaries include Heritage Breeders, LLC, which is responsible for developing the breed used by Perdue, and developing other lines of stock for sale to other poultry companies; Venture Milling, which creates proteins for livestock; Perdue Fats and Proteins, LLC, which sells pet and animal feed ingredients; Perdue BioEnergy, LLC, which works in the field of renewable energies; and Perdue AgriRecycle, which converts poultry litter into organic fertilizer products.[8]

In 2007, Perdue removed all human antibiotics from its feed and launched the Harvestland brand, under which it sold products that met the requirements for an “antibiotic-free” label. By 2014, Harvestland had grown to a $200 million business. In 2014, Perdue removed all antibiotics (including ionophores, which are antibiotics used in animals to promote growth, prevent disease and lower production costs) from its hatchery, and began using the “antibiotic free” labels on its Harvestland, Simply Smart and Perfect Portions products.[9]

In March 2017, Jim Perdue, chairman of Perdue Farms, announced Randy Day would be promoted from COO to CEO.[10] Day would be the fourth CEO in the company's history. Perdue would remain as the chairman of the board of directors.

Criticisms

Perdue has been criticized for its factories' lack of adherence to some basic animal-welfare practices.[11][12][13] The guidelines that Perdue follows, created by the National Chicken Council, have drawn criticism for allowing birds to be deprived of light, food, and water for long periods, and also for permitting animals to be hung upside-down by their ankles before slaughter.[12][14] In 2010, the Humane Society of the United States filed a lawsuit against Perdue for violating a New Jersey consumer fraud law by applying the labels "purely all-natural" and "humanely raised" to its products when reasonable consumers would not consider the conditions Perdue chickens are raised in “humane.”[12][15] The Humane Society filed a similar lawsuit in Florida in April 2013 after an appeal by Perdue to have a similar case rejected was turned down by a federal court.[16] In response, Perdue issued a statement claiming that its practice “exceeds the National Chicken Council guidelines in several areas, including monitoring air quality in the poultry house, video monitoring of live-bird handling areas at the processing plant and USDA audits of producer farms and...hatcheries.”[17]

Perdue has also been criticized for allegedly polluting the Chesapeake Bay.[18] In 2010, the Assateague Coastal Trust sued Perdue for violating the Clean Water Act by allegedly allowing excessive chicken manure to run into the bay.[18] The suit was later won by Perdue in October 2012, after the environmental group failed to establish that the waste runoff was from chicken houses.[19]

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Animal welfare

Animal welfare

Animal welfare is the well-being of non-human animals. Formal standards of animal welfare vary between contexts, but are debated mostly by animal welfare groups, legislators, and academics. Animal welfare science uses measures such as longevity, disease, immunosuppression, behavior, physiology, and reproduction, although there is debate about which of these best indicate animal welfare.

Humane Society of the United States

Humane Society of the United States

The Humane Society of the United States (HSUS) is an American nonprofit organization that focuses on animal welfare and opposes animal-related cruelties of national scope. It uses strategies that are beyond the abilities of local organizations. It works on issues including pets, wildlife, farm animals, horses and other equines, and animals used in research, testing and education. As of 2001, the group's major campaigns targeted factory farming, animal blood sports, the fur trade, puppy mills, and wildlife abuse.

Chesapeake Bay

Chesapeake Bay

The Chesapeake Bay is the largest estuary in the United States. The Bay is located in the Mid-Atlantic region and is primarily separated from the Atlantic Ocean by the Delmarva Peninsula, including parts of the Eastern Shore of Maryland, the Eastern Shore of Virginia, and the state of Delaware. The mouth of the Bay at its southern point is located between Cape Henry and Cape Charles. With its northern portion in Maryland and the southern part in Virginia, the Chesapeake Bay is a very important feature for the ecology and economy of those two states, as well as others surrounding within its watershed. More than 150 major rivers and streams flow into the Bay's 64,299-square-mile (166,534 km2) drainage basin, which covers parts of six states and all of District of Columbia.

Clean Water Act

Clean Water Act

The Clean Water Act (CWA) is the primary federal law in the United States governing water pollution. Its objective is to restore and maintain the chemical, physical, and biological integrity of the nation's waters; recognizing the responsibilities of the states in addressing pollution and providing assistance to states to do so, including funding for publicly owned treatment works for the improvement of wastewater treatment; and maintaining the integrity of wetlands.

Source: "Perdue Farms", Wikipedia, Wikimedia Foundation, (2023, March 22nd), https://en.wikipedia.org/wiki/Perdue_Farms.

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References
  1. ^ a b c d e Schmetterer, Bob (2003). Leap: A Revolution in Creative Business Strategy. Hoboken, New Jersey: John Wiley & Sons. pp. 72–76. ISBN 978-0-471-22917-9.
  2. ^ "Perdue Farms". (Forbes. November 23, 2021. Retrieved July 2, 2022.
  3. ^ "Perdue Farms confirms 118 employees laid off". The Daily Times (Salisbury, Maryland). April 12, 2019. Retrieved April 14, 2019.
  4. ^ a b c d e f g h i "Our Story". Perdue Farms. Archived from the original on 2014-01-07. Retrieved 2014-01-07.
  5. ^ "2013 Tyson Fact Book" (PDF). Archived from the original (PDF) on March 28, 2014. Retrieved August 13, 2015.
  6. ^ The Daily Times Perdue Restructure to Allow for Growth
  7. ^ The Daily Times Salisbury Based Poultry Company Purchases Coleman
  8. ^ Perdue Farms Our Products and Services
  9. ^ Strom, Stephanie (July 31, 2015). "Perdue Sharply Cuts Antibiotic Use in Chickens and Jabs at Its Rivals". The New York Times. Retrieved August 12, 2015.
  10. ^ "Perdue Farms announces new CEO". Delmarva Daily Times. Retrieved 2017-03-09.
  11. ^ Warner, Melanie (21 May 2010). "Perdue's "Humanely-Raised" Chicken: The Latest Misleading Food Claim". CBS News. Retrieved 9 July 2014.
  12. ^ a b c Wheeler, Timothy (29 November 2010). "Perdue sued for claiming its chickens raised 'humanely'". The Baltimore Sun. Retrieved 9 July 2014.
  13. ^ Kristof, Nicholas (4 December 2014). "Abusing Chickens We Eat". The New York Times.
  14. ^ "Humanely Raised? Challenging Perdue's Claims" (Press release). 29 November 2010. Archived from the original on December 5, 2010. Retrieved 9 July 2014.
  15. ^ "Court Allows Lawsuit Over Perdue's "Humane" Claims to Proceed" (Press release). 1 April 2013. Retrieved 9 July 2014.
  16. ^ "Second Class Action Lawsuit Filed Challenging Perdue's "Humane" Claims" (Press release). 24 October 2013. Retrieved 9 July 2014.
  17. ^ "Perdue Farms responds to HSUS lawsuit" (Press release). 2 April 2013. Archived from the original on 23 July 2014. Retrieved 9 July 2014.
  18. ^ a b Fahrenthold, David (2 March 2010). "Perdue, poultry farm sued for polluting Chesapeake Bay". The Washington Post. Retrieved 9 July 2014.
  19. ^ Wheeler, Timothy (20 December 2012). "Eastern Shore farmers, Perdue win pollution lawsuit". The Baltimore Sun. Retrieved 10 July 2014.
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