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Perdue Farms

From Alfawiki
Perdue Farms
Company typePrivate
IndustryPoultry processing, Grain
Founded1920; 106 years ago (1920)
FounderArthur Perdue, Pearl Perdue
Headquarters
Salisbury
,
United States
Area served
United States
Key people
Kevin McAdams (CEO), Jim Perdue (Chairman)
ProductsPoultry, Pork, Grain products
OwnerPerdue family
ParentFPP Family Investments, Inc.
Websiteperduefarms.com

Perdue Farms serves as the parent organization for Perdue Foods and Perdue AgriBusiness, with its main offices located in Salisbury, Maryland. Perdue Foods stands as a prominent processor of poultry and pork products across the United States, while Perdue AgriBusiness is recognized among the nation's leading grain enterprises. In 2021, the company achieved annual revenues of $8 billion.

Founding and wartime period

Established in 1920 by Arthur Perdue and his wife Pearl, the enterprise initially operated a modest flock of chickens and focused on selling table eggs. By 1925, the company had constructed its first hatchery and shifted its business model towards providing layer chicks to local farmers. Arthur’s son, Frank Perdue, entered the business in 1939 at the age of 19 after leaving college.

Expansion after World War II

Operating under the name A.W. Perdue & Son, Frank Perdue assumed control in the 1950s and spearheaded growth through agreements with regional farmers to raise and process poultry. The company also inaugurated a second hatchery in North Carolina to support its expanding poultry production.

Complete vertical integration

Perdue broadened its operations into grain and oilseed sectors by developing grain storage facilities and launching Maryland’s first soybean processing plant. The opening of its initial poultry processing facility in Salisbury in 1968 marked the achievement of full vertical integration, enabling comprehensive oversight from egg production and feed supply to final product marketing. This approach increased profitability by minimizing dependence on third-party processors and allowed for product differentiation beyond commodity markets.

In 1991, Jim Perdue, son of Frank Perdue, took over as Chairman, continuing the family’s leadership into a third generation.

Contemporary developments

By 2013, Perdue ranked as the third-largest broiler producer in the United States, holding approximately 7% of the market share behind Pilgrim's Pride and Tyson Foods.

In 2010, Perdue reorganized under FPP Family Investments, Inc., a holding company owned by the Perdue family that oversees Perdue Farms along with subsidiaries such as Perdue AgriBusiness (grain operations), FPP Business Services (shared service functions), and Coleman Natural Foods. Additional affiliates support areas including breeding (Heritage Breeders, LLC), livestock protein production (Venture Milling), animal feed components (Perdue Fats and Proteins, LLC), renewable energy initiatives (Perdue BioEnergy, LLC), and organic fertilizer manufacturing (Perdue AgriRecycle).

The company’s strategic focus prioritizes antibiotic-free poultry production. In 2007, it removed human antibiotics from all feed products and introduced the Harvestland brand, which expanded to generate $200 million in sales by 2014. That same year, Perdue discontinued antibiotic use in hatcheries entirely and extended "antibiotic-free" claims across multiple product categories.

In March 2017, Randy Day advanced from Chief Operating Officer to Chief Executive Officer—the fourth individual to hold this position—while Jim Perdue remained as chairman. Day retired in July 2023, with COO Kevin McAdams appointed as his successor.

Criticism and disputes

Perdue has been subject to scrutiny concerning animal welfare practices at its production facilities. The National Chicken Council standards it adheres to have been criticized for permitting prolonged deprivation of light, food, and water for birds, as well as for methods such as suspending animals upside-down prior to slaughter. In 2010, the Humane Society of the United States initiated lawsuits against Perdue over product labels claiming "purely all-natural" and "humanely raised," arguing these assertions misrepresented actual living conditions for chickens. Despite these legal challenges, Perdue asserts that its protocols surpass industry norms, including enhanced air quality monitoring systems, live-bird handling video surveillance, and USDA inspections of farms and hatcheries.

Additionally, in 2010 the Assateague Coastal Trust filed suit against Perdue alleging violations of the Clean Water Act related to chicken manure runoff contaminating Chesapeake Bay. The case was resolved in Perdue’s favor in 2012 after the environmental organization was unable to establish a direct link between pollution and the company’s operations.

Reports from the 1980s indicate that Perdue allegedly sought assistance from Mafia leader Paul Castellano to oppose unionization attempts at its plants, according to findings from a federal labor corruption commission investigation.

External links

  • (Perdue Farms official site)
  • (Perdue corporate site)