Iowa Department of Agriculture and Land Stewardship Provides Update on the Circumstances Involving Pure Prairie Poultry, Inc.

Iowa Department of Agriculture and Land Stewardship Provides Update on the Circumstances Involving Pure Prairie Poultry, Inc.

DES MOINES, Iowa (Oct. 25, 2024) - On September 30, Pure Prairie Poultry, Inc. notified the Iowa Department of Agriculture and Land Stewardship that, due to their financial position, they were unable to purchase feed for approximately 1.3 million broiler chickens located at 13 Iowa farms.

Upon notification, the Department coordinated with state and federal agencies, as well as industry partners, to seek a possible solution. With no immediately available solution and citing significant potential animal welfare concerns, the Department, under its authority in Iowa Code Chapter 717, sought an emergency court order to take over the care, custody and control of the birds located within Iowa.

On October 2, the Department's emergency petition was granted, which authorized the Department to immediately provide for the feed and care of the birds. Pursuant to Iowa Code, a hearing was then scheduled for October 8 in order for the Court to approve a plan for the final disposition of the birds.

On that same day, October 2, Pure Prairie Poultry, Inc. also ceased operations at its Charles City processing plant and laid off its workers. With no processor readily available for the birds, the Department actively pursued numerous other processors and markets, and solicited offers for the purchase of the birds. Due to the structure of the broiler industry, large-scale processors have limited ability to increase their processing capacity utilizing the open market.

The Department was able to secure an initial offer to purchase all 1.3 million birds and had a tentative agreement in place for all birds to be processed as they reached market weight, pending court approval. The Department provided notice to the interested parties of the potential agreement. On October 7, the day before the scheduled hearing, attorneys for some of the other interested parties notified the Department that they would assert their lien rights and security interests in the chickens, including against the buyer's proceeds from the sale of the post-processed meat. Citing costs surrounding potential litigation due to the lien claims, the buyer backed away from their offer.

During the hearing on October 8, the parties agreed to allow additional time to find a resolution for the birds, with the Court continuing the hearing to October 11.

In the interim, the Department pursued other potential buyers and processors, and even explored whether the broilers could be processed and donated to help Iowans facing food insecurity. However, because of the continuing lien and claim risks combined with the timeliness, logistics and scale required, the Department was unable to find a processor available. After exhaustive efforts, no credible offers or proposals materialized.

The Court reconvened the hearing on October 11 and the Department detailed all the efforts made to secure an offer for the birds. The other parties to the matter were also unable to provide the Court with any offers for the birds. Given the unavailability of buyers and lack of processing capacity combined with the ever-increasing feed and yardage costs, as well as the taxing of Department staff resources managing broilers with no end-market, the Court granted the Department authorization to begin depopulation. The court required the Department to begin the depopulation process with the largest and least marketable birds in the unlikely event that a credible last-minute market solution could be found for some of the younger broilers. Though the Department believes depopulation should always be a last resort, it provides finality to this unfortunate circumstance, limits the ever-increasing costs to the taxpayers of Iowa and prevents any potential animal welfare issues.

In accordance with the court order, depopulation commenced on Thursday, October 17, utilizing humane methods and guidelines approved by the American Veterinary Medical Association (AVMA). The depopulation was overseen by licensed veterinarians employed by the Department. Depopulation of all Pure Prairie Poultry, Inc. birds located at Iowa farms concluded on Friday, October 25. Each farm is now utilizing composting as the means to dispose of the birds.

The Department will pursue all available avenues to recoup taxpayer costs from responsible parties, including through possible future legal remedies.