USDA buys $35.9 million worth of broilers, parts

by Meat&Poultry Staff
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WASHINGTON – On Sept. 8, the US Department of Agriculture’s Agricultural Marketing Service bought 62,130,000 lbs. of whole broilers and broiler parts at a cost of $35,902,400 under the special bonus purchase program announced in mid August. Product distribution will be to domestic food nutrition assistance programs.

Awards were made to six of the 10 companies that submitted offers, AMS said. Products accepted ranged from whole broilers with giblets at 63 cents per lb. to leg quarters accepted at prices that ranged from 52 cents per lb. to 58 cents per lb. The highest priced product accepted was drumsticks at 69 cents per lb. Product deliveries are to begin in October and will extend through the first quarter of 2012.

AMS had allocated $40 million for the program and the difference between the $35,902,400 and $40 million will be used to cover transportation costs. Transportation costs will be added to the FOB prices that were accepted. Click here for the purchase announcement for RFP 2000000441 issued on Aug. 17.

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