USDA’s Agricultural Marketing Service (AMS) yesterday purchased 62,130,000 pounds of whole broilers and broiler parts at a cost of $35,902,400 under the special bonus purchase program announced in mid August. Distribution of these products will be to domestic food nutrition assistance programs.

AMS said awards were made to six of the ten companies that submitted offers.  Products accepted ranged from whole broilers with giblets at 63 cents per pound to leg quarters accepted at prices that ranged from 52 cents per pound to 58 cents per pound.  The highest priced product accepted was drumsticks at 69 cents per pound.  Delivery of the products are to begin in October and will extend through the first quarter of 2012.

AMS had allocated $40 million for the program and the difference between the $35,902,400 and $40 million will be used to cover transportation costs.  Delivery destinations were unknown at the time of the award yesterday.  Transportation costs will be added to the FOB prices that were accepted.  The purchase announcement for RFP 2000000441 issued on August 17 is available at www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELPRDC5093609 .

 

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