1292215--12/14/2006--Gold_Kist

related topics

{cost, regulation, environmental}

{cost, operation, labor}

{condition, economic, financial}

{product, liability, claim}

{customer, product, revenue}

{operation, natural, condition}

{system, service, information}

{personnel, key, retain}

{provision, law, control}

{acquisition, growth, future}

Industry cyclicality, especially fluctuations in the supply of broiler products, affects the prevailing market price of broiler products, our sales and our earnings. Fluctuations in commodity prices of feed ingredients materially affect our earnings. Whether or not the merger with Pilgrim is completed, the announcement and pendency of the merger could cause disruptions in our business, which could adversely affect our operations and results. Outbreaks of livestock diseases, particularly an outbreak of avian influenza among humans, could adversely affect our business. Significant competition in the broiler industry with other vertically integrated broiler companies, especially companies with greater resources, may make us unable to compete successfully in this industry, which would adversely affect our business. The loss of one of our large customers could have a material adverse effect on our results of operations. Foreign embargos, decreased export demand, oversupply of broiler products and competing products and bans on exported chicken and livestock would have an adverse effect on our business. Immigration legislation could cause our costs of doing business to increase or cause us to change the way in which we do business. We may experience difficulties with the implementation of our Enterprise Resource Planning ( ERP ) software and related manufacturing process changes. We have been, and may in the future be, subject to claims and liabilities under environmental, health, safety and other laws and regulations, which could be significant. If our products become contaminated, we may be subject to product liability claims and product recalls. We have anti-takeover defenses that could make it more difficult for another company to acquire control of Gold Kist or limit the price investors might be willing to pay for our stock. Increased water, energy and gas costs would increase our expenses and reduce our profitability. Increased costs of transportation would negatively affect our profitability. We are exposed to risks relating to product liability, product recalls, property damage and injury to persons for which insurance coverage is expensive, limited and potentially inadequate. Any acquisition we make could disrupt our business and harm our financial condition. The loss of key members of our management may adversely affect our business. The inability to maintain good relations with our employees could adversely affect our business. The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 could increase our costs of doing business.

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1292215--12/14/2006--Gold_Kist_Inc.