Dip Frangos Cuts Production By 12.5%

Dip Frangos, subsidiary of Diplomata Group, a chicken factory from the southern state of Parana, has announced a cut of 12.5% of production.

Production cuts are a result of higher prices of corn as well as lower demand for the white meat. According to executive-director, Othmar Rempel, the company will lower its number of chickens from 120,000 chickens to 105,000 chickens. The reductions are to take place within the next 45 days.

The cut of production will also result in the loss of approximately 100 jobs at the Capanema, Parana plant. However, Rempel claims their will not be any job losses. He states that the company will simply not rehire any new workers over the next 45 days. According to him, the company has high turnover with approximately 8% of workers leaving every month. Today, Dip employees 953 workers at the plant.

In 2016, Dip is expected to have revenues of R$225 million in chicken.


Read more at Supermercado Moderno (in Portuguese) Dip Frangos Cuts Production