Question-and-Answer Session
Operator
Thank you. Ladies and gentlemen at this time, we will open the floor for questions. (Operator Instructions). Our first question will come from Eric Katzman, Deutsche Bank
Eric Katzman - Deutsche Bank
Hi good morning everybody.
Rick Cogdill
Good morning Eric
Eric Katzman - Deutsche Bank
There is a little bit surprise to see that your production was only down 1.3% in pounds and is there a reason why that internally that it took longer to bring the number down as you indicated for the fiscal fourth quarter?
Clint Rivers
Eric, I would say you got to consider back to the quarter we are comparing against and when you compare back to the third quarter last year, that was the period of time we had our deepest production cuts for the prior year. So, you are comparing to a quarter where production was already down to a lower level. Now I think that is the primary reason for it.
Eric Katzman - Deutsche Bank
Okay and then as you are no doubt are aware yesterday Tyson suggested that there could be some type of what say potential recovery in breast meat pricing in the December quarter given what is going on. I mean do you share that kind of cautious optimism and what do you think would make this Q as breast prices at that point?
Clint Rivers
Well, I can not predict very well, when that is going to occur, only that we have seen some more reduction in egg sets in recent weeks and if that continues one would think that that would have to drive some market improvement. However, I would also say that demand appears to be off a little bit from what we would expect because I do not think any others would have expected us to be at $1.33 breast market at this time a year. So, I think it is hard to predict going forward but as the industry responds with needed production cuts, we should get to that point, typically we do see production or demand fall off in the fall and so we have got to take that into account as well because we think demand is down somewhat now, it could be down further in the fall as well and so the production cut needs to be to deeper level that it has been obviously so. However, hopefully all that will occur in and we can see some strengthening in breast prices as we go into the winter.
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