PILGRIM'S PRIDE CORPORATION
HEAVY BREED
BREEDER HEN GROWER CONTRACT
This contract entered into between Pilgrim's Pride Corporation and XXXXXX "BO"
PILGRIM (FM44,FM45,FM46), hereinafter called Pilgrim's and grower,
respectively, this 7TH day of MAY , 1997, for about 24,000 pullets
and 2,400 cockerels necessary to mate with said pullets for the production of
hatching eggs.
1. Pilgrim's will furnish the chickens, feed, medication, vaccines, labor for
blood testing and debeaking,
and other items necessary for production of a flock.
2. Grower will furnish housing, equipment, labor, litter, utilities, other
essentials, and keep accurate
records. Amount and type will be prescribed by Pilgrim's. This will also
include an approved egg
storage room equipped to control temperature and humidity.
3. Grower agrees to dispose of all dead birds and poultry house litter in
accordance with all federal,
state, and local laws, rules, and regulations.
4. Grower agrees to have no other poultry, fowl, or ratites other than those
that are property of Pilgrim's.
5. 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.
6. In order to assure a better job of spraying the house and floor,
Pilgrim's will furnish equipment and
labor for this operation. In addition, Pilgrim's will pay for one-half of
the cost of material for spraying
house and floor. Total charges to grower will not exceed $4.00 per 1,000
square foot of floor space.
7. Grower agrees to not administer any medications at any time to a flock
unless otherwise
recommended by the Company's service representative; and to abide by all
FDA rules and
regulations concerning the use of medications to said flock, and to abide
by all rules and regulations
of the FDA and EPA concerning the use of pesticides, insecticides or any
other chemical which may
be applied to the premises to which a flock may be in contact.
8. A Pilgrim's serviceman or other agent shall have the right at any time 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.
9. Grower shall allow Pilgrim's authorized tester to test a flock for any
disease or organism that would
make a flock undesirable for production of hatching eggs.
10. The grower agrees to notify Pilgrim's of any emergency, unusual
conditions, situations or irregularity
concerning a flock. Pilgrim's is authorized to use their best judgment
in remedying so far as
possible the condition or conditions, even to the extent of disposing of a
entire flock.
11. ALL EGGS, both hatching eggs and cull eggs, are the property of Pilgrim's
and are not to be sold or used
in any manner by grower at any time.
12. Grower agrees to grade, select, separate and cull the eggs produced by
this flock, in accordance with
requirements and specifications of Pilgrim's, and make eggs available for
pick up in separate
containers of the type directed. Hatching eggs (Class 1) shall weigh 21
ounces and up per dozen,
excluding double yolks. They shall be uniform as to size and shape, and
be free from any cracks, dirt,
thin shells, weak ends, or any deformity or irregularity. Eggs shall be
separated in accordance with
the following classes:
CLASS 1 - 21 ounces per dozen and up, excluding double yolks, and of the
quality mentioned above
in this paragraph for hatching eggs.
CLASS 2 - Cull eggs excluding double yolks
CLASS 3 - Double yolk eggs
CRACKED, EXTREMELY DIRTY, SOFT SHELL, AND EXTREMELY SMALL EGGS ARE TO BE
DESTROYED AT THE FARM.
13. Eggs shall be cleaned and/or sanitized only by methods approved by
Pilgrim's.
14. Grower must provide all-weather roads to feed tanks and catchout doors.
15. Title to the chickens, all feed, and medication remain the property of
Pilgrim's at all times.
16. Pilgrim 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.
17. In times of adverse weather conditions, such as extreme heat and extreme
cold grower agrees to make
a special effort to minimize death losses from lack of heat, lack of
cooling and/or lack of water.
18. 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 agents of the other
party for any purpose whatsoever.
19. All chickens on a farm will be settled as one unit regardless of the
number of houses.
20. A grower payment of 3.00 cents per bird per week will be made from the
time birds are moved into
breeder house until the payment based on paragraph 21 equals or exceeds
this payment. In no case
will payment be made on both paragraphs 20 and 21 at the same time.
21. This contract is non-transferable and shall remain in effect until
such time as either party gives the
other party fourteen (14) days notice of their desire to terminate the
contract.
22. An accounts payable to Pilgrim's is authorized to be deducted from
the Grower payment, unless
there arrangements have been made. Pilgrim's Pride Corporation
has engaged a group of banks to
provide financing for the poultry covered by this Agreement.
23. Grower payment after the birds are in production shall be on a
weekly basis in accordance with
Schedule A attached.
PILGRIM'S PRIDE CORPORATION GROWER
\s\ Xxxxxxx Xxxxxxx \s\ Xxxxxx Xxxxxxx
by:_____________________________ _________________________________
Schedule A
1. CLASS 1 EGGS - 29.25 cents PER DOZEN for conventional type houses
with fans and foggers. An
additional 2 cents PER DOZEN will be paid for evaporative cooled houses.
Evaporative cooling
must be operational by May 15th each summer and is to be operated as
directed by Pilgrim=s
representative. If evaporative cooled houses are not operated as
directed, grower will be paid 29.25
cents per dozen.
2. CLASS 2 EGGS - 6 cents PER DOZEN
3. CLASS 3 EGGS - 3 cents PER DOZEN
4. After a flock is marketed and sufficient time has elapsed to complete
calculations, a bonus shall be
paid on hatchability of Class 1 eggs.
Average % Salable Chicks Bonus payment per
HATCHED FROM ALL CLASS 1 EGGS SET* DOZEN CLASS 1 EGGS
83.00 - 83.99 0.50 cents
84.00 - 84.99 1.00 cents
85.00 - 85.99 1.50 cents
86.00 - 86.99 2.25 cents
87.00 - 87.99 3.00 cents
88.00 and above 4.00 cents
5. An additional bonus shall be paid grower after a flock is sold, and
sufficient time has elapsed to
complete calculations based on number of Class 1 eggs produced per hen
housed - calculated on 98%
of the females moved to the farm. For bonus calculation purposes, 98% of
the females moved is
__________________. For each egg per hen housed over and above 140,
grower shall receive an
additional 1.00 cent per egg.
6. A feed conversion bonus shall be paid grower after the flock is sold, and
sufficient time has elapsed
to complete calculations, based on pounds of feed per dozen of Class 1
eggs. This schedule is as
follows:
Pounds of Feed Bonus
PER DOZEN CLASS 1 PER DOZEN CLASS 1
7.01 - 7.25 1.00 cents
6.76 - 7.00 1.25 cents
6.51 - 6.75 1.50 cents
6.26 - 6.50 1.75 cents
6.01 - 6.25 2.00 cents
5.76 - 6.00 2.25 cents
Below 5.75 2.50 cents
page 2-Schedule A
1. Bonus calculations will be made on a period not to exceed 36 weeks
after birds of flock have reached
50%production. If birds are sold early due to excessive egg inventory,
projections will be made based on a standard production curve, and this
will be used as a basis for paying bonus on number of hatching eggs.
However, birds sold early due to a disease condition will not have any
bonuses paid.
No bonuses will be paid on flocks that do not produce at least 90%
of the 140 Class 1 eggs shown in
paragraph (23) above 126 (Class I eggs per hen housed).
