Question-and-Answer Session
Operator
Thank you, speakers. At this time, we will now open the floor for questions. (Operator Instructions). Our first question will come from Reza Vahabzadeh from Lehman Brothers.
Rick Cogdill
Hi, Reza.
Reza Vahabzadeh - Lehman Brothers
The SG&A expense line item in dollar amount was $9 million more than the preceding quarter and also higher than two or three quarter before that. Was there a specific driver for that or is this the new run rate?
Rick Cogdill
I think that there was a little bit higher than the last quarter, but they were just year-end adjustments that might had some effect at the end of the last quarter. We still expect the run rate to be in the high 4.x% to 5%. So, I think that's close to the run rate. Also, we have quite a few sales programs that are tied on (inaudible) rebates or whatever based on sales dollar value. So they tend to change the dollar value as sales changes as well. So I think that's the primary drivers.
Reza Vahabzadeh - Lehman Brothers
Got it. And then on the prepared business, I thought you mentioned your sales increased 12%, was that primarily price mix and price increases with volume being in low single digits?
Rick Cogdill
Yeah. Actually, most of that was volume. It was 12.5% and approximately 9% of that would have been volume and the revenue per pound was the balance.
Reza Vahabzadeh - Lehman Brothers
Got it. So your grain cost, not to mention fuel costs have increased since we last spoke. What type of price increase would you need from these levels to be able to offset, I mean occurrence stock market levels, is there a kind of ballpark figure 4% to 7% that would be in the right ballpark?
Rick Cogdill
It might be higher than that if you looked at all pounds. I mean you're doing with roughly $700 million -- as we said $700 million on, call it what, above 9 billion pounds of chicken. So you're somewhere in that 8% to 9% on all pounds, which will get you closer to 10%.
Reza Vahabzadeh - Lehman Brothers
Okay. And is there any production for industry data that you have seen or read about that would imply that there was any kind of a production slowdown or cutback by the industry or some players at least in the second half of this calendar year?
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