Perdue Farms

History

Origin and war era

The company was founded in 1920 by Arthur Perdue{{cite book | url-access = registration |access-date = 2014-01-07 |archive-url = https://web.archive.org/web/20140107161319/http://www.perduefarms.com/Our_Story/ |archive-date = 2014-01-07 |url-status = dead

Post-war growth

The company was incorporated as A.W. Perdue & Son and Frank Perdue assumed leadership in the 1950s. 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.

Full integration

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

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

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

Modern history

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.

In 2010, the corporate structure of Perdue Farms changed. 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.

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.

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.

In March 2017, Jim Perdue, chairman of Perdue Farms, announced Randy Day would be promoted from COO to CEO. Day would be the fourth CEO in the company's history. Perdue would remain as the chairman of the board of directors. Day retired as CEO in July 2023, and would be succeeded by Perdue's chief operating officer Kevin McAdams.

Criticisms and controversies

Perdue has been criticized for its factories' lack of adherence to some basic animal-welfare practices.{{cite news|last=Wheeler|first=Timothy|title=Perdue sued for claiming its chickens raised 'humanely'

Perdue has also been criticized for allegedly polluting the Chesapeake Bay. 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. 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.

It has been reported that in the 1980s, Perdue twice sought assistance from then-Mafia boss Paul Castellano to fend off a union's effort to represent workers at his company, according to a federal commission on labor corruption.

References

References

1. (November 23, 2021). "Perdue Farms". (Forbes.
2. (April 12, 2019). "Perdue Farms confirms 118 employees laid off". [[The Daily Times (Salisbury, Maryland)]].
3. "2013 Tyson Fact Book".
4. (March 2023)
5. (March 2023)
6. [http://es.perdue.com/company/about/products_services.html "Our Products and Services Perdue Farms"].{{Dead link. (March 2018)
7. Strom, Stephanie. (July 31, 2015). "Perdue Sharply Cuts Antibiotic Use in Chickens and Jabs at Its Rivals". The New York Times.
8. "Perdue Farms announces new CEO". Delmarva Daily Times.
9. (July 12, 2023). "ISU grad Kevin McAdams named CEO of Perdue Farms, fourth-largest U.S. chicken producer". Des Moines Register.
10. Warner, Melanie. (21 May 2010). "Perdue's "Humanely-Raised" Chicken: The Latest Misleading Food Claim". CBS News.
11. (4 December 2014). "Abusing Chickens We Eat". The New York Times.
12. (29 November 2010). "Humanely Raised? Challenging Perdue's Claims".
13. (1 April 2013). "Court Allows Lawsuit Over Perdue's "Humane" Claims to Proceed".
14. (24 October 2013). "Second Class Action Lawsuit Filed Challenging Perdue's "Humane" Claims".
15. Fahrenthold, David. (2 March 2010). "Perdue, poultry farm sued for polluting Chesapeake Bay". The Washington Post.
16. Wheeler, Timothy. (20 December 2012). "Eastern Shore farmers, Perdue win pollution lawsuit". The Baltimore Sun.
17. Ronald J. Ostrow. (January 26, 1986). "More Businesses Dealing With Mob, Panel Says". [[Los Angeles Times]].