PILGRIM'S PRIDE CORPORATION
Light Breed
Commercial Egg Grower Contract
This contract entered into between Pilgrim's Pride Corporation and Pilgrim
Poultry G. P., hereinafter called Pilgrim's and grower, respectively,
this 7th day of May, 1997 for about 1,500,000 pullets for the production
of commercial eggs. This agreement shall be automatically extended from one
year to the next unless canceled by either party with six (6) months notice.
1. Pilgrim's will furnish the chickens, feed, medication, vaccines,
disinfectant, insecticide for bird treatment, labor for beak trim when
necessary, and other items necessary for production of said flock.
2. Grower will furnish housing, equipment, labor, utilities, other
essentials and keep accurate records. Amount and type will be prescribed
by Pilgrim's. (It is understood that this will include an approved egg
handling and storage room equipped with an approved temperature and
humidity control, a method of sanitary disposal of birds and will keep no
other birds on farm.)
3. Grower will make ready the house and equipment, clean the house, and do
other things necessary, as prescribed by Pilgrim's, before receiving the
birds.
4. The producer agrees to notify Pilgrim's of any emergency, unusual
conditions, situation or irregularity concerning the flock. Pilgrim's is
authorized to use their best judgment in remedying as far as possible the
condition or conditions, even to the extent of disposing of the entire
flock.
5. Grower agrees to select, separate and cull the eggs produced by this
flock, in accordance with requirements and specifications of Pilgrim's .
6. Eggs shall be cleaned and/or oiled only by methods approved by Pilgrim's.
7. Grower must provide all-weather roads to feed tanks and catch-out doors.
8. Title to the chickens and all feed and medication remain the property
of Pilgrim's at all times.
9. Pilgrim's will move or market chickens and /or eggs when and where it
appears to be the best advantage. Pilgrim's will receive proceeds from
sale of chickens and/or eggs.
▇▇.▇▇ times of adverse weather conditions, such as extreme heat and cold,
grower agrees to make a special effort to minimize death losses from lack
of heat, lack of cooling and/or lack of water.
11.A Pilgrim serviceman or other agent shall have the right at anytime to
enter the premises of grower where said birds are located and check with
grower, inspect said chickens and environmental conditions, to see that
reasonable care is being given chickens.
Grower agrees to follow growing programs as instructed by Pilgrim's
servicemen. This is understood to mean all management, vaccination,
worming, medication, and other recommendations.
12. It is expressly understood and agreed by the parties that each is an
independent contractor and that neither party, its agents or employees,
shall be considered to be the employees or the agents of the other party
for any purpose whatsoever.
13. Contract pay will be made in accordance with Schedule A attached.
We, the undersigned, agree to carry out the above Contract.
PILGRIM'S PRIDE CORPORATION GROWER
\s\ ▇▇▇▇▇ ▇▇▇▇▇▇ \s\ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
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SCHEDULE A
1. The grower shall receive a pullet grower payment of $0.0116 per bird per
week from the time the birds are placed in the grower's house until the
grower pay for egg production is equal to or greater than the pullet
payment. In cases where hens are force molted, beginning when the feed is
first withdrawn, a payment of $0.0242 per hen per week for all hens
reaching 50% production after the molt has been completed. Payment will
be made on the basis of paragraph 1 or 2, whichever is greater. The pay
will be made on a monthly basis.
2. Grower payment after birds reach 50% production shall be on a monthly
basis as follows: Pilgrim's accounting period ends at midnight Saturday
and consists of two (2) four-week months and one (1) five-week month for
each three (3) calendar months, the five week months being March, June,
September and December. Payment will be made within ten (10) days after
the period ends.
A. Grade A or better quality eggs $0.075 per dozen
B. Undergrades $0.020 per dozen
C. If eggs are sold ungraded, payment will be made on previous egg
pick up when eggs were graded.
D. Molted Flocks will be paid an additional $0.0232 per dozen .
3. After the flock is marketed and sufficient time has elapsed to complete
calculations, a bonus shall be paid as follows:
A. Bonus for Feed Conversion:
POUNDS FEED/DOZ. PAYMENT/DOZ
3.20 - 3.29 $0.0250
3.30 - 3.39 $0.0225
3.40 - 3.49 $0.0200
3.50 - 3.59 $0.0175
3.60 - 3.69 $0.0150
3.70 - 3.79 $0.0125
3.80 - 3.89 $0.0090
3.90 - 3.99 $0.0060
4.00 - 4.09 $0.0045
4.10 - 4.19 $0.0030
4.20 - 4.29 $0.0015
B. Bonus based on Eggs per Hen Houses:
EGGS/HEN HOUSED PAYMENT/DOZ
265 $0.0100
260 $0.0080
255 $0.0060
250 $0.0050
245 $0.0040
240 $0.0030
235 $0.0020
230 $0.0010
It is understood that no more than one bonus will be payable under
paragraph 3-A and no more than one bonus under paragraph 3-B.
4. Bonus calculations will be made on a period of 52 weeks after the birds
reach 50% production. These calculations will be made on a per flock
basis. The bonus calculations will be made on total eggs received by
Pilgrim's provided they run 90% Grade A. If the eggs for the entire
period run below 90% Grade A, all undergrades in excess of 10% will be
subtracted from total eggs received before bonus calculations are made.
Revised May 5, 1997
