Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from the line of Christine McCracken. Your line is open.
Christine McCracken - Cleveland Research Company
Good afternoon.
Irwin Simon
Good afternoon.
Christine McCracken - Cleveland Research Company
I wanted to dwell into the changes you are making relative to the Hain Pure Protein business, you talked about I guess converting the Plainville facility, I guess transferring that production to New Oxford. And your intention I guess the convert then the other facility to Plainville, I mean it's a [Cotia]. I am wondering, can you talk about if you already made these reductions or the timing around that conversion and whether or not, your CapEx kind of forecast includes the cost of transitioning to [Cotia]?
Irwin Simon
I don’t know, you are going to ask us question on poultry Christine, that okay. Actually it's a good question with good answers. The conversion from Plainville to Syracuse facility to the brand Plainville to new Oxford happened in January 1. And you heard me say there will be about $9 million in savings anybody (inaudible) and starts to run through the New Oxford facility.
In regards to the [Cotia] facility there is about $1 million in capital, that we will have to into Plainville and Syracuse facility to convert that to a [Cotia] facility in the biggest conversion as we still need process or harvest turkeys in that facility, now we are going to do both turkeys and chicken.
And we see a big opportunity as there was a major [Cotia] supplier who is gone into bankruptcy in another business and many, many, many of our retailers have assets for this and we will be one of the first [Cotia] antibiotic free chicken and turkey that goes there today and anybody on the phone is listening you know the prices of [Cotia]. So there is big shortage of demand out there for the product.
Christine McCracken - Cleveland Research Company
And then, I just want to follow up as you had mentioned that your outlook is for $3 corn I guess, later in the year. The curve right now I think would indicate something closer to $4. So, I'm a little curious why you are so optimistic and if you have any contracts may be that give you an added edge or is there something unique to your operations?
Irwin Simon
Well, I think we demand and I think sort of looking at soybean and 80% corn and the soybean and the mix that we see. We see demand as prices coming down and today, you can buy it today with a little over three and quarter if you pay big, when you buyout. So, that is as I sit with our guys when we see corn going. But even at $4, it's $2.50 a bush cheaper than what we are paying today. If a mass buy $1 or so much cheaper than we have been paying. I mean, we paid a lot higher in the first quarter. Going in for the March quarter, or even at the $5 range, so coming down to 4 will be great, I just think it's going to come to $3, $3.50.
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