Question-and-Answer Session
[Operator Instructions]. Our first question is coming from Diane Geissler from Merrill Lynch. Your line is open.
Diane Geissler - Merrill Lynch
Hi, yes. Good morning.
Richard L. Bond - President and Chief Executive Officer
Good morning, Diane.
Diane Geissler - Merrill Lynch
I just want to sort of delve into the grain issue and cost recovery through pricing. This is something we see across the entire food space that you put in place pricing increases, then kind of grain runs beyond that and what are you doing to get ahead of the grains. I mean may be you could comment a little bit on, foodservice negotiations, how those went, are they still ongoing, what kind of price increases you are capturing in your negotiations? Any color on that would be appreciated.
Richard L. Bond - President and Chief Executive Officer
Well Diane, let me start out by saying, this is kind of unprecedented times, and unprecedented times require unprecedented activities. And in various segments of the business, we are really looking at it in different ways. You asked about foodservice, we are about 50% up the way through our foodservice contracts and our customers realize that we are experiencing this higher grain price, so I think they understand, while they don't necessarily like the fact that all this volatility in grain and higher grain costs are there.
There is a better understanding this time, and I don't think in necessary we are the only ones out there in this space, professing increase costs that we can't absorb. We have been able to hedge some of these, but as we have seen the additional cost in grains, we are literally doing whatever we have to do to go back and talk to our customers about these additional costs, which were unanticipated.
Diane Geissler - Merrill Lynch
Okay but can you give us any more detail about what kind of pricing increases you are seeing even at retail or in foodservice?
Richard L. Bond - President and Chief Executive Officer
Well, I can tell you that on a distribution side of the business, we announced to our customers here about 10 days ago, roughly a 7% increase in our price list for all of our distribution customers. We are working on similar type things on the retail side as well.
Diane Geissler - Merrill Lynch
And then I guess moving over to beef and the... your announcement on Friday, obviously you are doing some things internally to sort of deal with the overcapacity situation. I mean what is your confidence level that the rest of the industry will follow? I mean what you've mentioned in your press release I think was slaughter over capacity between 10 and 14 head per day. Obviously your plant was slaughtering considerably less than that amount, which would suggest that some movements needs to be made from the rest of the industry, I mean what is your confidence level that the industry will go along and will start to see some better results in beef?
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