| x | ANNUAL REPORT PURSUANT TO SECTION      13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF  1934 |
|---|--------------------------------------------------------------------------------------------|

| ¨ | TRANSITION REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|--------|----------------------------------------------------------------------------------------------------|
|   |                                                                                               | For the transition period      from |   | to |   |   |

| Delaware                                                                                      | 75-1285071                                |
|-----------------------------------------------------------------------------------------------|-------------------------------------------|
| (State or other jurisdiction      of                                                          | (I.R.S. Employer Identification      No.) |
| incorporation or      organization)                                                           |                                      |
|                                                                                          |                                      |
| 4845 US Hwy 271 North                                                                         |                                      |
| Pittsburg, Texas                                                                              | 75686-0093                                |
| (Address of principal executive      offices)                                                 | (Zip  code)                               |
|                                                                                          |                                      |
| Registrant’s telephone number, including area      code:  (903)      434-1000 |
|                                                                                          |                                      |

| Securities registered pursuant to      Section 12(b) of the Act:  None                               |
|----------------------------------------------------------------------------------------------------------------|
|                                                                                                           |
| Securities registered pursuant to      Section 12(g) of the Act:  Common Stock, Par Value      $0.01 |

----

Index

----

Index

TABLE OFCONTENTS

| PART I                                                                                                                   | Page                                                                                                                         |
|--------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|
| Item      1.                                                                                                             | Business                                                                                                                     | 4 |
| Item      1A.                                                                                                            | RiskFactors                                                                                                                  | 22 |
| Item      1B.                                                                                                            | Unresolved Staff      Comments                                                                                               | 34 |
| Item      2.                                                                                                             | Properties                                                                                                                   | 34 |
| Item      3.                                                                                                             | Legal      Proceedings                                                                                                       | 35 |
| Item      4.                                                                                                             | Submission of Matters to a Vote of      Security Holders                                                                     | 38 |
|                                                                                                                     |                                                                                                                         |   |
| PART II                                                                                                                  |                                                                                                                         |
| Item      5.                                                                                                             | Market for Registrant’s Common Equity, Related      Stockholder Matters and Issuer Purchases of Equity      Securities |  39 |
| Item      6.                                                                                                             | Selected FinancialData                                                                                                       | 44 |
| Item      7.                                                                                                             | Management’s Discussion and Analysis of      Financial Condition and Results                                           | 48 |
|                                                                                                                     | of    Operations                                                                                                             |   |
| Item      7A.                                                                                                            | Quantitative and Qualitative      Disclosures about Market Risk                                                              | 75 |
| Item      8.                                                                                                             | Financial Statements and      Supplementary Data (see Index to Financial Statements      and                                 | 77 |
|                                                                                                                     | Schedules      below)                                                                                                        |   |
| Item      9.                                                                                                             | Changes in and Disagreements with      Accountants on Accounting and Financial                                               | 77 |
|                                                                                                                     | Disclosure                                                                                                                   |   |
| Item      9A.                                                                                                            | Controls and      Procedures                                                                                                 | 78 |
| Item      9B.                                                                                                            | Other      Information                                                                                                       | 82 |
|                                                                                                                     |                                                                                                                         |   |
| PART III                                                                                                                 |                                                                                                                         |
| Item      10.                                                                                                            | Directors and Executive Officers and Corporate      Governance                                                               | 83 |
| Item      11.                                                                                                            | Executive      Compensation                                                                                                  | 83 |
| Item      12.                                                                                                            | Security Ownership of Certain      Beneficial Owners and Management and Related                                              | 83 |
|                                                                                                                     | Stockholder      Matters                                                                                                     |   |
| Item      13.                                                                                                            | Certain Relationships and Related      Transactions,      and Director      Independence                                     | 83 |
| Item      14.                                                                                                            | Principal Accounting Fees and      Services                                                                                  | 84 |
|                                                                                                                     |                                                                                                                         |   |
| PART IV                                                                                                                  |                                                                                                                         |
| Item      15.                                                                                                            | Exhibits and Financial Statement      Schedules                                                                              | 85 |
| Signatures                                                                                                               |                                                                                                                         | 93 |
|                                                                                                                     |                                                                                                                         |   |
| INDEX TO FINANCIAL STATEMENTS AND      SCHEDULES                                                                         |                                                                                                                         |
| Report of      Independent Registered Public Accounting      Firm                                                        | 96                                                                                                                           |
| Consolidated Balance      Sheets as of September 27, 2008 and September 29, 2007                                         | 98                                                                                                                           |
| Consolidated      Statements of Operations for each of the three years      endedSeptember 27, 2008                      | 99                                                                                                                           |
| Consolidated      Statements of Stockholders’ Equity for each      of the three years      endedSeptember 27, 2008 | 100                                                                                                                          |
| Consolidated      Statements of Cash Flows for each of the three years      endedSeptember 27, 2008                      | 101                                                                                                                          |
| Notes to      Consolidated Financial Statements                                                                          | 102                                                                                                                          |
| Schedule      II—Valuation and Qualifying Accounts      for each of the three      years endedSeptember 27, 2008   | 153                                                                                                                          |

----

Index

| Item      1. | Business |
|--------------|----------|

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----

Index

----

Index

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Index

----

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|   | Products and      Markets |
|--------|---------------------------|

| (1) | Fresh      chicken products, which are refrigerated (non-frozen) whole or cut-up      chickens sold to the foodservice industry either pre-marinated or      non-marinated. Fresh chicken also includes prepackaged case-ready chicken,      which includes various combinations of freshly refrigerated, whole      chickens and chicken parts in trays, bags or other consumer packs labeled      and priced ready for the retail grocer's fresh meat    counter. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Prepared      chicken products, which are products such as portion-controlled breast      fillets, tenderloins and strips, delicatessen products, salads, formed      nuggets and patties and bone-in chicken parts. These products are sold      either refrigerated or frozen and may be fully cooked, partially cooked or      raw. In addition, these products are breaded or non-breaded and either      pre-marinated or non-marinated. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Export      and other chicken products, which are primarily parts and whole chicken,      either refrigerated or frozen for US export or domestic use, and prepared      chicken products for USexport. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| (1)   | Retail      customers, which are customers such as grocery store chains, wholesale      clubs and other retail distributors. We sell to our retail customers      branded, pre-packaged, cut-up and whole poultry, and fresh refrigerated or      frozen whole chicken and chicken parts in trays, bags or other consumer      packs. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Foodservice      customers, which are customers such as chain restaurants, food processors,      foodservice distributors and certain other institutions. We sell products      to our foodservice customers ranging from portion-controlled refrigerated      chicken parts to fully-cooked and frozen, breaded or non-breaded chicken      parts or formed products. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Export      and other product customers, who purchase chicken products for export to      Eastern Europe, including Russia; the Far East, including China; Mexico;      and other world markets. Our export and other chicken products, with the      exception of our exported prepared chicken products, consist of whole      chickens and chicken parts sold primarily in bulk, non-branded form,      either refrigerated to distributors in the US or frozen for distribution      to export markets. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1)   | Other      types of meat along with various other staples purchased and sold by our      distribution centers as a convenience to our chicken customers who      purchase through the distributioncenters. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The      production and sale of table eggs, commercial feeds and related items,      live hogs and proteins. |
|-----------------|--------------------------------------------------------------------------------------------------------------|

----

Index

|                           |   | 2008                |      |   | 2007(a)         |   |      | 2006            |   |   | 2005            |   |   | 2004(a)         |      |
|--------------------------------|--------|---------------------|-----------|--------|-----------------|--------|-----------|-----------------|--------|--------|-----------------|--------|--------|-----------------|-----------|
|                           |   | (52      weeks)     |      |   | (52      weeks) |   |      | (52      weeks) |   |   | (52      weeks) |   |   | (53      weeks) |      |
| US      chicken:               |   | (In      thousands) |      |
| Prepared      chicken:         |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |
| Foodservice                    |   | $                   | 2,033,489 |   |            | $      | 1,897,643 |            |   | $      | 1,567,297       |   |   | $               | 1,622,901 |   |   | $ | 1,647,904 |   |
| Retail                         |   |                | 518,576   |   |            |   | 511,470   |            |   |   | 308,486         |   |   |            | 283,392   |   |   |   | 213,775 |   |
|                           |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Total      prepared chicken    |   |                | 2,552,065 |   |            |   | 2,409,113 |            |   |   | 1,875,783       |   |   |            | 1,906,293 |   |   |   | 1,861,679 |   |
|                           |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Fresh      chicken:            |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Foodservice                    |   |                | 2,550,339 |   |            |   | 2,280,057 |            |   |   | 1,388,451       |   |   |            | 1,509,189 |   |   |   | 1,328,883 |   |
| Retail                         |   |                | 1,041,446 |   |            |   | 975,659   |            |   |   | 496,560         |   |   |            | 612,081   |   |   |   | 653,798 |   |
|                           |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Total      fresh chicken       |   |                | 3,591,785 |   |            |   | 3,255,716 |            |   |   | 1,885,011       |   |   |            | 2,121,270 |   |   |   | 1,982,681 |   |
|                           |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Export      and other:         |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Export:                        |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Prepared      chicken          |   |                | 94,795    |   |            |   | 83,317    |            |   |   | 64,338          |   |   |            | 59,473    |   |   |   | 34,735 |   |
| Fresh      chicken             |   |                | 818,239   |   |            |   | 559,429   |            |   |   | 257,823         |   |   |            | 303,150   |   |   |   | 212,611 |   |
|                           |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Total      export(c)           |   |                | 913,034   |   |            |   | 642,746   |            |   |   | 322,161         |   |   |            | 362,623   |   |   |   | 247,346 |   |
| Other      chicken by-products |   |                | 20,163    |   |            |   | 20,779    |            |   |   | 15,448          |   |   |            | 21,083    |   |   | (b) |   |
|                           |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Total      export and other    |   |                | 933,197   |   |            |   | 663,525   |            |   |   | 337,609         |   |   |            | 383,706   |   |   |   | 247,346 |   |
|                           |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Total      US chicken          |   |                | 7,077,047 |   |            |   | 6,328,354 |            |   |   | 4,098,403       |   |   |            | 4,411,269 |   |   |   | 4,091,706 |   |
|                           |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Mexico      chicken            |   |                | 543,583   |   |            |   | 488,466   |            |   |   | 418,745         |   |   |            | 403,353   |   |   |   | 362,442 |   |
|                           |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Total      chicken             |   |                | 7,620,630 |   |            |   | 6,816,820 |            |   |   | 4,517,148       |   |   |            | 4,814,622 |   |   |   | 4,454,148 |   |
|                           |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Other      products:           |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| US                             |   |                | 869,850   |   |            |   | 661,115   |            |   |   | 618,575         |   |   |            | 626,056   |   |   |   | 600,091 |   |
| Mexico                         |   |                | 34,632    |   |            |   | 20,677    |            |   |   | 17,006          |   |   |            | 20,759    |   |   |   | 23,232 |   |
|                           |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Total      other products      |   |                | 904,482   |   |            |   | 681,792   |            |   |   | 635,581         |   |   |            | 646,815   |   |   |   | 623,323 |   |
|                           |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Total      net sales           |   | $                   | 8,525,112 |   |            | $      | 7,498,612 |            |   | $      | 5,152,729       |   |   | $               | 5,461,437 |   |   | $ | 5,077,471 |   |
|                           |   |                |      |   |            |   |      |            |   |   |            |   |   |            |      |   |   |   |   |   |
| Total      prepared chicken    |   | $                   | 2,646,860 |   |            | $      | 2,492,430 |            |   | $      | 1,940,121       |   |   | $               | 1,965,766 |   |   | $ | 1,896,414 |   |

| (a) | The      Gold Kist acquisition on December 27, 2006 and the ConAgra Chicken      acquisition on November 23, 2003 have been accounted for as      purchases. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The      Export and other      category historically included the sales of certain chicken by-products      sold in international markets as well as the export of chicken products.      Prior to 2005, by-product sales were not specifically identifiable within      the Export and      other category. Accordingly, a detail breakout is not available      prior to such time; however, the Company believes that the relative split      between these categories as shown in 2005 would not be dissimilar in      2004. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Export      items include certain chicken parts that have greater value in the      overseas markets than in theUS. |
|-----|---------------------------------------------------------------------------------------------------------------------|

----

Index

|                                                   |   | 2008   |   |   | 2007(a) |   |   | 2006   |   |   | 2005   |   |   | 2004(a) |   |
|--------------------------------------------------------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| Prepared      chicken:                                 |   |   |   |   |    |   |   |   |   |   |   |   |   |    |   |
| Foodservice                                            |   |   | 28.8   | %      |    |   | 30.1   | %      |   |   | 38.2   | %      |   |    | 36.8   | % |   |   | 40.3 | % |
| Retail                                                 |   |   | 7.3    | %      |    |   | 8.1    | %      |   |   | 7.5    | %      |   |    | 6.4    | % |   |   | 5.2 | % |
|                                                   |   |   |   |   |    |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |
| Total      prepared chicken                            |   |   | 36.1   | %      |    |   | 38.2   | %      |   |   | 45.7   | %      |   |    | 43.2   | % |   |   | 45.5 | % |
|                                                   |   |   |   |   |    |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |
| Fresh      chicken:                                    |   |   |   |   |    |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |
| Foodservice                                            |   |   | 36.0   | %      |    |   | 36.0   | %      |   |   | 33.9   | %      |   |    | 34.2   | % |   |   | 32.5 | % |
| Retail                                                 |   |   | 14.7   | %      |    |   | 15.4   | %      |   |   | 12.1   | %      |   |    | 13.9   | % |   |   | 16.0 | % |
|                                                   |   |   |   |   |    |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |
| Total      fresh chicken                               |   |   | 50.7   | %      |    |   | 51.4   | %      |   |   | 46.0   | %      |   |    | 48.1   | % |   |   | 48.5 | % |
|                                                   |   |   |   |   |    |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |
| Export      and other:                                 |   |   |   |   |    |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |
| Export:                                                |   |   |   |   |    |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |
| Prepared      chicken                                  |   |   | 1.3    | %      |    |   | 1.3    | %      |   |   | 1.6    | %      |   |    | 1.3    | % |   |   | 0.8 | % |
| Fresh      chicken                                     |   |   | 11.6   | %      |    |   | 8.8    | %      |   |   | 6.3    | %      |   |    | 6.9    | % |   |   | 5.2 | % |
|                                                   |   |   |   |   |    |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |
| Total      export(c)                                   |   |   | 12.9   | %      |    |   | 10.1   | %      |   |   | 7.9    | %      |   |    | 8.2    | % |   |   | 6.0 | % |
| Other      chicken by-products                         |   |   | 0.3    | %      |    |   | 0.3    | %      |   |   | 0.4    | %      |   |    | 0.5    | % |   | (b) |   |
|                                                   |   |   |   |   |    |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |
| Total      export and other                            |   |   | 13.2   | %      |    |   | 10.4   | %      |   |   | 8.3    | %      |   |    | 8.7    | % |   |   | 6.0 | % |
|                                                   |   |   |   |   |    |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |
| Total      US chicken                                  |   |   | 100.0  | %      |    |   | 100.0  | %      |   |   | 100.0  | %      |   |    | 100.0  | % |   |   | 100.0 | % |
|                                                   |   |   |   |   |    |   |   |   |   |   |   |   |   |    |   |   |   |   |   |   |
| Total      prepared chicken as a percent of US chicken |   |   | 37.4   | %      |    |   | 39.5   | %      |   |   | 47.3   | %      |   |    | 44.5   | % |   |   | 46.3 | % |

| (a) | The      Gold Kist acquisition on December 27, 2006 and the ConAgra Chicken      acquisition on November 23, 2003 have been accounted for as      purchases. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | The      Export and other      category historically included the sales of certain chicken by-products      sold in international markets as well as the export of chicken products.      Prior to 2005, by-product sales were not specifically identifiable within      the Export and      other category. Accordingly, a detail breakout is not available      prior to such time; however, the Company believes that the relative split      between these categories as shown in 2005 would not be dissimilar in      2004. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Export      items include certain chicken parts that have greater value in the      overseas markets than in the US. |
|-----|----------------------------------------------------------------------------------------------------------------------|

----

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----

Index

| ·   | There      has been significant growth in the number of foodservice operators      offering chicken on their menus and in the number of chicken items      offered. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Foodservice      operators are increasingly purchasing prepared chicken products, which      allow them to reduce labor costs while providing greater product      consistency, quality and variety across all restaurant      locations. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Index

| ·   | There      is a strong need among larger foodservice companies for a limited-source      supplier base in the prepared chicken market. A viable supplier must be      able to ensure supply, demonstrate innovation and new product development      and provide competitive pricing. We have been successful in our objective      of becoming a supplier of choice by being the primary or secondary      prepared chicken supplier to many large foodservice companies      because: |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      are vertically integrated, giving us control over our supply of chicken      and chicken parts; |
|--------------------|---------------------------------------------------------------------------------------------------------|

|  ·   | Our      further processing facilities, with a wide range of capabilities, are      particularly well suited to the high-volume production as well as      low-volume custom production runs necessary to meet both the capacity and      quality requirements of the foodservice market;  and |
|--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  ·   | We      have established a reputation for dependable quality, highly responsive      service and excellent technicalsupport. |
|--------------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | As      a result of the experience and reputation developed with larger customers,      we have increasingly become the principal supplier to mid-sized      foodservice organizations. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      in-house product development group follows a customer-driven research and      development focus designed to develop new products to meet customers’      changing needs. Our research and development personnel often work directly      with institutional customers in developing products for these      customers. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      are a leader in utilizing advanced processing technology, which enables us      to better meet our customers’ needs for product innovation, consistent      quality and cost efficiency. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name                     |   | Age |   | Positions                                                       |
|--------------------------|--------|-----|--------|-----------------------------------------------------------------|
| Lonnie      "Bo" Pilgrim |   | 80  |   | Senior      Chairman of the Board                               |
| Lonnie      Ken Pilgrim  |   | 50  |   | Chairman      of the Board                                      |
| J.      Clinton Rivers   |   | 49  |   | President,      Chief Executive Officer, and Director           |
| Richard      A. Cogdill  |   | 48  |   | Chief      Financial Officer, Secretary, Treasurer and Director |
| Robert      A. Wright    |   | 54  |   | Chief      Operating Officer                                    |
| William      K. Snyder   |   | 49  |   | Chief      Restructuring Officer                                |

----

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Item 1A.

----

Index

| ·   | Actions      and decisions of our creditors and other third parties with interests in      our Chapter 11 proceedings may be inconsistent with our    plans; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      ability to obtain court approval with respect to motions in the Chapter 11      proceedings prosecuted from time totime; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      ability to develop, prosecute, confirm and consummate a plan of      reorganization with respect to the Chapter 11  proceedings; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      ability to obtain and maintain commercially reasonable terms with vendors      and service providers; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | Our      ability to maintain contracts that are critical to our      operations; |
|--------------------|----------------------------------------------------------------------------------|

| ·   | Our      ability to retain management and other key individuals;  and |
|--------------------|-----------------------------------------------------------------------|

| ·   | Risks      associated with third parties seeking and obtaining court approval to      terminate or shorten the exclusivity period for us to propose and confirm      a plan of reorganization, to appoint a Chapter 11 trustee or to      convert the cases to Chapter 7cases. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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 traded on the Pink Sheets. The trading of ourcommon stock over the counter negatively impacts the trading price of our commonstock and the levels of liquidity available to our stockholders. 
In addition, securities that trade on the Pink Sheets are noteligible for margin loans and make our common stock subject to the provisions ofRule 15g-9 of the Securities Exchange Act of 1934, commonly referred to as the"penny stock rule." In connection with the delisting of our stock, 
there may also be other negative implications, including the potentialloss of confidence in our Company by suppliers, customers and employees and theloss of institutional investor interest in our common stock.

| ·   | Makes      it more difficult for us to satisfy our obligations under our debt      securities; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | Increases      our vulnerability to general adverse economic  conditions; |
|--------------------|---------------------------------------------------------------------------|

| ·   | Limits      our ability to obtain necessary financing and to fund future working      capital, capital expenditures and other general corporate      requirements; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Requires      us to dedicate a substantial portion of our cash flow from operations to      payments on our indebtedness, thereby reducing the availability of our      cash flow to fund working capital, capital expenditures and for other      general corporate purposes; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Limits      our flexibility in planning for, or reacting to, changes in our business      and the industry in which weoperate; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | Places      us at a competitive disadvantage compared to our competitors that have      less debt; |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | Limits      our ability to pursue acquisitions and sell assets;  and |
|--------------------|----------------------------------------------------------------------|

| ·   | Limits,      along with the financial and other restrictive covenants in our      indebtedness, our ability to borrow additional funds. Failing to comply      with those covenants could result in an event of default or require      redemption of indebtedness. Either of these events could have a material      adverse effect on us. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Index

 that cash flows and available borrowings under the DIPCredit Agreement are not 
sufficient to meet our liquidityrequirements, we may be required to seek additional financing. There can be noassurance that such additional financing would be available or, if available,offered on acceptable terms. Failure to secure any necessary additionalfinancing would have a material adverse impact on our operations. For additionalinformation on our liquidity, see Item 7. “Management’s Discussion andAnalysis of Financial Condition and Results of Operations—Liquidity and CapitalResources.”

AssetImpairments.  The Company may be required to record animpairment on its long-lived assets.

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| ·   | Price; |
|--------------------|--------|

| ·   | Product      quality; |
|--------------------|-----------------------|

| ·   | Product      development; |
|--------------------|---------------------------|

| ·   | Brand      identification; |
|--------------------|----------------------------|

| ·   | Breadth      of product line; and |
|--------------------|-----------------------------------|

| ·   | Customer      service. |
|--------------------|------------------------|

----

Index

| ·   | Transitioning      and preserving Gold Kist's customer, contractor, supplier and other      important third-partyrelationships; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | Integrating      corporate and administrativeinfrastructures; |
|--------------------|---------------------------------------------------------------|

| ·   | Coordinating      sales and marketing functions; |
|--------------------|--------------------------------------------------|

| ·   | Minimizing      the diversion of management's attention from ongoing business      concerns; |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | Coordinating      geographically separate organizations;and |
|--------------------|-------------------------------------------------------------|

| ·   | Retaining      key employees. |
|--------------------|-------------------------------|

----

Index

| ·   | Currency      exchange rate fluctuations; |
|--------------------|-------------------------------------------|

| ·   | Trade      barriers; |
|--------------------|----------------------|

| ·   | Exchange      controls; |
|--------------------|-------------------------|

| ·   | Expropriation;      and |
|--------------------|-------------------------|

| ·   | Changes      in laws and policies, including those governing foreign-owned      operations. |
|--------------------|---------------------------------------------------------------------------------------------|

----

Index

----

Index

----

Index

Item 1B.

Item 2

----

Index

Item 3.

----

Index

----

Index

----

Index

Item 4.

----

Index

|   | Item 5.Market for the Registrant’s Common Equity, Related      Stockholder Matters and Issuer Purchases of Equity    Securities |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|    |   | 2008      Prices |   |   | 2007      Prices |   |   | Dividends |   |
|---------|--------|------------------|--------|--------|------------------|--------|--------|-----------|--------|
| Quarter |   | High             |   |   | Low              |   |   | High      |   |   | Low |   |   | 2008 |   |   | 2007 |   |
|    |   |             |   |   |             |   |   |      |   |   |   |   |   |   |   |   |   |   |
| First   |   | $                | 35.98  |   |             | $      | 22.52  |      |   | $ | 29.54 |   |   | $ | 23.64 |   |   | $ | 0.0225 |   |   | $ | 0.0225 |   |
| Second  |   | $                | 28.96  |   |             | $      | 20.38  |      |   | $ | 33.19 |   |   | $ | 28.59 |   |   | $ | 0.0225 |   |   | $ | 0.0225 |   |
| Third   |   | $                | 27.15  |   |             | $      | 12.90  |      |   | $ | 38.17 |   |   | $ | 32.77 |   |   | $ | 0.0225 |   |   | $ | 0.0225 |   |
| Fourth  |   | $                | 18.16  |   |             | $      | 3.26   |      |   | $ | 40.59 |   |   | $ | 32.29 |   |   | $ | 0.0225 |   |   | $ | 0.0225 |   |

----

Index

----

Index

|                                   |   |         11/21/03 |   |   | 10/2/04 |   |   | 10/1/05 |   |   | 9/30/06 |   |   | 9/29/07 |   |   | 9/27/08 |   |
|----------------------------------------|--------|----------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                                   |   |                                                     |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
| Pilgrim’s      Pride Corporation |   | $                                                        | 100.00 |   |    | $      | 190.89 |    |   | $      | 254.14  |   |   | $       | 197.18 |   |    | $      | 251.08 |   |   | $ | 25.79 |   |
| Russell      2000                      |   | $                                                        | 100.00 |   |    | $      | 113.10 |    |   | $      | 129.73  |   |   | $       | 142.61 |   |    | $      | 160.21 |   |   | $ | 160.21 |   |
| Peer      Group                        |   | $                                                        | 100.00 |   |    | $      | 112.59 |    |   | $      | 131.40  |   |   | $       | 127.35 |   |    | $      | 140.41 |   |   | $ | 110.00 |   |

----

Index

|                                        |   | 9/27/03 |   |   | 11/20/03 |   |   | 10/2/04 |   |   | 10/1/05 |   |   | 9/30/06 |   |   | 9/29/07 |   |   | 9/27/08 |   |
|---------------------------------------------|--------|---------|--------|--------|----------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                                        |   |    |   |   |     |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
| Pilgrim's      Pride Corporation Class A(1) |   | $       | 100.00 |   |     | $      | 106.95 |    |   | $      | 212.12  |   |   | $       | 282.40 |   |    | $      | 219.11 |    |   | $ | 279.00 |   |   | $ | 28.65 |   |
| Pilgrim's      Pride Corporation Class B(1) |   | $       | 100.00 |   |     | $      | 107.94 |    |   | $      | 211.79  |   |   | $       | 281.96 |   |    | $      | 218.77 |    |   | $ | 278.57 |   |   | $ | 28.61 |   |
| Russell      2000                           |   | $       | 100.00 |   |     | $      | 107.93 |    |   | $      | 122.74  |   |   | $       | 140.79 |   |    | $      | 154.77 |    |   | $ | 173.86 |   |   | $ | 154.19 |   |
| Peer      Group                             |   | $       | 100.00 |   |     | $      | 110.95 |    |   | $      | 123.52  |   |   | $       | 144.17 |   |    | $      | 139.71 |    |   | $ | 154.04 |   |   | $ | 120.69 |   |

| (1)   | On November 21, 2003, each share      of the Company’s then outstanding Class A common      stock and Class B common stock was reclassified into one share of new common      stock, which is now      the only authorized class of the Company’s common    stock. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                                        |   | 9/27/03 |   |   | 11/20/03 |   |
|---------------------------------------------|--------|---------|--------|--------|----------|--------|
|                                        |   |    |   |   |     |   |
| Pilgrim's      Pride Corporation Class A(1) |   | $       | 100.00 |   |     | $      | 106.95 |   |
| Pilgrim's      Pride Corporation Class B(1) |   | $       | 100.00 |   |     | $      | 107.94 |   |
| Russell      2000                           |   | $       | 100.00 |   |     | $      | 107.93 |   |
| Peer      Group                             |   | $       | 100.00 |   |     | $      | 110.95 |   |

| (1)   | On November 21, 2003, each share      of the Company’s then outstanding Class A common      stock and Class B common stock was reclassified into one share of new common      stock, which is now the only authorized class of the Company’s common    stock. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

Item 6

| (In      thousands, except ratios and per share data)                |   | Eleven      Years Ended September 27, 2008 |       |   |
|----------------------------------------------------------------------|--------|--------------------------------------------|------------|--------|
|                                                                 |   | 2008(a)                                    |       |   |   | 2007(a)(b) |   |   |   | 2006(a) |   |   |   | 2005(a) |   |   |
|                                                                 |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      Statement Data:                                          |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      sales                                                       |   | $                                          | 8,525,112  |   |   |   | $ | 7,498,612 |   |   |   | $ | 5,152,729 |   |   |   | $ | 5,461,437 |   |   |
| Gross      profit (loss)(e)                                          |   |                                       | (163,495   | )      |   |   |   | 592,730 |   |   |   |   | 297,083 |   |   |   |   | 751,317 |   |   |
| Goodwill      impairment                                             |   |                                       | 501,446    |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |
| Operating      income (loss)(e)                                      |   |                                       | (1,057,696 | )      |   |   |   | 237,191 |   |   |   |   | 11,105 |   |   |   |   | 458,351 |   |   |
| Interest      expense, net                                           |   |                                       | 131,627    |   |   |   |   | 118,542 |   |   |   |   | 38,965 |   |   |   |   | 42,632 |   |   |
| Loss      on early extinguishment of debt                            |   |                                       | —    |   |   |   |   | 26,463 |   |   |   |   | — |   |   |   |   | — |   |   |
| Income      (loss) from continuing operations before income taxes(e) |   |                                       | (1,187,093 | )      |   |   |   | 98,835 |   |   |   |   | (26,626 | ) |   |   |   | 427,632 |   |   |
| Income      tax expense (benefit)(f)                                 |   |                                       | (194,921   | )      |   |   |   | 47,319 |   |   |   |   | 1,573 |   |   |   |   | 147,543 |   |   |
| Income      (loss) from continuing operations(e)                     |   |                                       | (992,172   | )      |   |   |   | 51,516 |   |   |   |   | (28,199 | ) |   |   |   | 279,819 |   |   |
| Net      income (loss)(e)                                            |   |                                       | (998,581   | )      |   |   |   | 47,017 |   |   |   |   | (34,232 | ) |   |   |   | 264,979 |   |   |
| Ratio      of earnings to fixed charges(g)                           |   | (g)                                        |       |   |   |   | 1.63 | x |   |   | (g) |   |   |   |   | 7.69 | x |   |
|                                                                 |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per      Common Share Data:(h)                                       |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) from continuing operations                        |   | $                                          | (14.31     | )      |   |   | $ | 0.77 |   |   |   | $ | (0.42 | ) |   |   | $ | 4.20 |   |   |
| Net      income (loss)                                               |   |                                       | (14.40     | )      |   |   |   | 0.71 |   |   |   |   | (0.51 | ) |   |   |   | 3.98 |   |   |
| Cash      dividends                                                  |   |                                       | 0.09       |   |   |   |   | 0.09 |   |   |   |   | 1.09 |   |   |   |   | 0.06 |   |   |
| Book      value                                                      |   |                                       | 5.07       |   |   |   |   | 17.61 |   |   |   |   | 16.79 |   |   |   |   | 18.38 |   |   |
|                                                                 |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      Sheet Summary:                                          |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Working      capital surplus (deficit)                               |   | $                                          | (1,262,242 | )      |   |   | $ | 395,858 |   |   |   | $ | 528,837 |   |   |   | $ | 404,601 |   |   |
| Total      assets                                                    |   |                                       | 3,298,709  |   |   |   |   | 3,774,236 |   |   |   |   | 2,426,868 |   |   |   |   | 2,511,903 |   |   |
| Notes      payable and current maturities of long-term debt          |   |                                       | 1,874,469  |   |   |   |   | 2,872 |   |   |   |   | 10,322 |   |   |   |   | 8,603 |   |   |
| Long-term      debt, less current maturities                         |   |                                       | 67,514     |   |   |   |   | 1,318,558 |   |   |   |   | 554,876 |   |   |   |   | 518,863 |   |   |
| Total      stockholders’ equity                                |   |                                       | 351,741    |   |   |   |   | 1,172,221 |   |   |   |   | 1,117,328 |   |   |   |   | 1,223,598 |   |   |
|                                                                 |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      Flow Summary:                                              |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from operating activities                            |   | $                                          | (680,726   | )      |   |   | $ | 464,010 |   |   |   | $ | 30,329 |   |   |   | $ | 493,073 |   |   |
| Depreciation      and amortization(i)                                |   |                                       | 240,305    |   |   |   |   | 204,903 |   |   |   |   | 135,133 |   |   |   |   | 134,944 |   |   |
| Impairment      of goodwill and other assets                         |   |                                       | 514,630    |   |   |   |   | — |   |   |   |   | 3,767 |   |   |   |   | — |   |   |
| Purchases      of investment securities                              |   |                                       | (38,043    | )      |   |   |   | (125,045 | ) |   |   |   | (318,266 | ) |   |   |   | (305,458 | ) |   |
| Proceeds      from sale or maturity of investment securities         |   |                                       | 27,545     |   |   |   |   | 208,676 |   |   |   |   | 490,764 |   |   |   |   | — |   |   |
| Acquisitions      of property, plant and equipment                   |   |                                       | (152,501   | )      |   |   |   | (172,323 | ) |   |   |   | (143,882 | ) |   |   |   | (116,588 | ) |   |
| Business      acquisitions, net of equity consideration(b)(c)(d)     |   |                                       | —    |   |   |   |   | (1,102,069 | ) |   |   |   | — |   |   |   |   | — |   |   |
| Cash      flows from financing activities                            |   |                                       | 797,743    |   |   |   |   | 630,229 |   |   |   |   | (38,750 | ) |   |   |   | 18,860 |   |   |
|                                                                 |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Data:                                                     |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EBITDA(j)                                                            |   | $                                          | (820,878   | )      |   |   | $ | 414,139 |   |   |   | $ | 143,443 |   |   |   | $ | 599,274 |   |   |
|                                                                 |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Key      Indicators (as a percent of net sales):                     |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit (loss)(e)                                          |   |                                       | (1.9       | )      | % |   |   | 7.9 |   | % |   |   | 5.8 |   | % |   |   | 13.8 |   | % |
| Selling,      general and administrative expenses                    |   |                                       | 4.4        |   | % |   |   | 4.7 |   | % |   |   | 5.6 |   | % |   |   | 5.4 |   | % |
| Operating      income (loss)(e)                                      |   |                                       | (12.4      | )      | % |   |   | 3.2 |   | % |   |   | 0.2 |   | % |   |   | 8.4 |   | % |
| Interest      expense, net                                           |   |                                       | 1.5        |   | % |   |   | 1.6 |   | % |   |   | 0.8 |   | % |   |   | 0.8 |   | % |
| Income      (loss) from continuing operations(e)                     |   |                                       | (11.6      | )      | % |   |   | 0.7 |   | % |   |   | (0.5 | ) | % |   |   | 5.1 |   | % |
| Net      income (loss)(e)                                            |   |                                       | (11.7      | )      | % |   |   | 0.6 |   | % |   |   | (0.7 | ) | % |   |   | 4.9 |   | % |

----

Index

| Eleven      Years Ended September 27, 2008 |      |   |
|--------------------------------------------|-----------|--------|
| 2004(a)(c)                                 |      |   |   | 2003(a) |   |   |   | 2002(a) |   |   |   | 2001(a)(d) |   |   |   | 2000 |   |   |   | 1999 |   |   |   | 1998 |   |   |
| (53      weeks)                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (53      weeks) |   |   |   |   |   |   |
|                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                                          | 5,077,471 |   |   |   | $ | 2,313,667 |   |   |   | $ | 2,185,600 |   |   |   | $ | 1,975,877 |   |   |   | $ | 1,499,439 |   |   |   | $ | 1,357,403 |   |   |   | $ | 1,331,545 |   |   |
|                                       | 611,838   |   |   |   |   | 249,363 |   |   |   |   | 153,599 |   |   |   |   | 197,561 |   |   |   |   | 165,828 |   |   |   |   | 185,708 |   |   |   |   | 136,103 |   |   |
|                                       | —   |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |
|                                       | 385,968   |   |   |   |   | 137,605 |   |   |   |   | 48,457 |   |   |   |   | 90,253 |   |   |   |   | 80,488 |   |   |   |   | 109,504 |   |   |   |   | 77,256 |   |   |
|                                       | 48,419    |   |   |   |   | 30,726 |   |   |   |   | 24,199 |   |   |   |   | 25,619 |   |   |   |   | 17,779 |   |   |   |   | 17,666 |   |   |   |   | 20,148 |   |   |
|                                       | —   |   |   |   |   | — |   |   |   |   | — |   |   |   |   | 1,433 |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |
|                                       | 332,899   |   |   |   |   | 144,482 |   |   |   |   | 28,267 |   |   |   |   | 62,728 |   |   |   |   | 62,786 |   |   |   |   | 90,904 |   |   |   |   | 56,522 |   |   |
|                                       | 127,142   |   |   |   |   | 37,870 |   |   |   |   | (2,475 | ) |   |   |   | 21,051 |   |   |   |   | 10,442 |   |   |   |   | 25,651 |   |   |   |   | 6,512 |   |   |
|                                       | 205,757   |   |   |   |   | 106,612 |   |   |   |   | 30,742 |   |   |   |   | 41,677 |   |   |   |   | 52,344 |   |   |   |   | 65,253 |   |   |   |   | 50,010 |   |   |
|                                       | 128,340   |   |   |   |   | 56,036 |   |   |   |   | 14,335 |   |   |   |   | 41,137 |   |   |   |   | 52,344 |   |   |   |   | 65,253 |   |   |   |   | 50,010 |   |   |
|                                       | 6.22      | x      |   |   |   | 4.37 | x |   |   |   | 1.21 | x |   |   |   | 1.80 | x |   |   |   | 3.04 | x |   |   |   | 4.33 | x |   |   |   | 2.96 | x |   |
|                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                                          | 3.28      |   |   |   | $ | 2.59 |   |   |   | $ | 0.75 |   |   |   | $ | 1.01 |   |   |   | $ | 1.27 |   |   |   | $ | 1.58 |   |   |   | $ | 1.21 |   |   |
|                                       | 2.05      |   |   |   |   | 1.36 |   |   |   |   | 0.35 |   |   |   |   | 1.00 |   |   |   |   | 1.27 |   |   |   |   | 1.58 |   |   |   |   | 1.21 |   |   |
|                                       | 0.06      |   |   |   |   | 0.06 |   |   |   |   | 0.06 |   |   |   |   | 0.06 |   |   |   |   | 0.06 |   |   |   |   | 0.05 |   |   |   |   | 0.04 |   |   |
|                                       | 13.87     |   |   |   |   | 10.46 |   |   |   |   | 9.59 |   |   |   |   | 9.27 |   |   |   |   | 8.33 |   |   |   |   | 7.11 |   |   |   |   | 5.58 |   |   |
|                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                                          | 383,726   |   |   |   | $ | 211,119 |   |   |   | $ | 179,037 |   |   |   | $ | 203,350 |   |   |   | $ | 124,531 |   |   |   | $ | 154,242 |   |   |   | $ | 147,040 |   |   |
|                                       | 2,245,989 |   |   |   |   | 1,257,484 |   |   |   |   | 1,227,890 |   |   |   |   | 1,215,695 |   |   |   |   | 705,420 |   |   |   |   | 655,762 |   |   |   |   | 601,439 |   |   |
|                                       | 8,428     |   |   |   |   | 2,680 |   |   |   |   | 3,483 |   |   |   |   | 5,099 |   |   |   |   | 4,657 |   |   |   |   | 4,353 |   |   |   |   | 5,889 |   |   |
|                                       | 535,866   |   |   |   |   | 415,965 |   |   |   |   | 450,161 |   |   |   |   | 467,242 |   |   |   |   | 165,037 |   |   |   |   | 183,753 |   |   |   |   | 199,784 |   |   |
|                                       | 922,956   |   |   |   |   | 446,696 |   |   |   |   | 394,324 |   |   |   |   | 380,932 |   |   |   |   | 342,559 |   |   |   |   | 294,259 |   |   |   |   | 230,871 |   |   |
|                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                                          | 272,404   |   |   |   | $ | 98,892 |   |   |   | $ | 98,113 |   |   |   | $ | 87,833 |   |   |   | $ | 130,803 |   |   |   | $ | 81,452 |   |   |   | $ | 85,016 |   |   |
|                                       | 113,788   |   |   |   |   | 74,187 |   |   |   |   | 70,973 |   |   |   |   | 55,390 |   |   |   |   | 36,027 |   |   |   |   | 34,536 |   |   |   |   | 32,591 |   |   |
|                                       | 45,384    |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |
|                                       | —   |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |
|                                       | —   |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |
|                                       | (79,642   | )      |   |   |   | (53,574 | ) |   |   |   | (80,388 | ) |   |   |   | (112,632 | ) |   |   |   | (92,128 | ) |   |   |   | (69,649 | ) |   |   |   | (53,518 | ) |   |
|                                       | (272,097  | )      |   |   |   | (4,499 | ) |   |   |   | — |   |   |   |   | (239,539 | ) |   |   |   | — |   |   |   |   | — |   |   |   |   | — |   |   |
|                                       | 96,665    |   |   |   |   | (39,767 | ) |   |   |   | (21,793 | ) |   |   |   | 246,649 |   |   |   |   | (24,769 | ) |   |   |   | (19,634 | ) |   |   |   | (32,498 | ) |   |
|                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                                          | 486,268   |   |   |   | $ | 239,997 |   |   |   | $ | 112,852 |   |   |   | $ | 136,604 |   |   |   | $ | 115,356 |   |   |   | $ | 142,043 |   |   |   | $ | 108,268 |   |   |
|                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       | 12.1      |   | % |   |   |         10.8 |   | % |   |   | 7.0 |   | % |   |   | 10.0 |   | % |   |   | 11.1 |   | % |   |   | 13.7 |   | % |   |   | 10.2 |   | % |
|                                       | 4.3       |   | % |   |   | 4.8 |   | % |   |   | 4.8 |   | % |   |   | 5.4 |   | % |   |   | 5.7 |   | % |   |   | 5.6 |   | % |   |   | 4.4 |   | % |
|                                       | 7.6       |   | % |   |   | 5.9 |   | % |   |   | 2.2 |   | % |   |   | 4.6 |   | % |   |   | 5.4 |   | % |   |   | 8.1 |   | % |   |   | 5.8 |   | % |
|                                       | 1.0       |   | % |   |   | 1.3 |   | % |   |   | 1.1 |   | % |   |   | 1.3 |   | % |   |   | 1.2 |   | % |   |   | 1.3 |   | % |   |   | 1.5 |   | % |
|                                       | 4.1       |   | % |   |   | 4.6 |   | % |   |   | 1.4 |   | % |   |   | 2.1 |   | % |   |   | 3.5 |   | % |   |   | 4.8 |   | % |   |   | 3.8 |   | % |
|                                       | 2.1       |   | % |   |   | 2.4 |   | % |   |   | 0.7 |   | % |   |   | 2.1 |   | % |   |   | 3.5 |   | % |   |   | 4.8 |   | % |   |   | 3.8 |   | % |

----

Index

| (a)    | In      March 2008, the Company sold certain assets of its turkey business. We are      reporting our operations with respect to this business as a discontinued      operation for all periods presented.                                                                                                                                                                                                                                               |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (b)    | The      Company acquired Gold Kist Inc. on December 27, 2006 for $1.139 billion.      For financial reporting purposes, we have not included the operating      results and cash flows of Gold Kist in our consolidated financial      statements for the period      from December 27, 2006 through December 30, 2006. The operating      results and cash flows of Gold Kist from December 27, 2006 through      December 30, 2006 were not material. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (c)    | The      Company acquired the ConAgra Chicken division on November 23, 2003 for      $635.2 million including the non-cash value of common stock issued of      $357.5 million. The acquisition has been accounted for as a purchase and      the results of operations for this acquisition have been included in our      consolidated results of operations since the acquisition    date.                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (d)    | The      Company acquired WLR Foods on January 27, 2001 for $239.5 million and the      assumption of $45.5 million of indebtedness. The acquisition has been      accounted for as a purchase and the results of operations for this      acquisition have been included in our consolidated results of operations      since the acquisition date.                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (e)    | Gross      profit, operating income and net income include the following      non-recurring recoveries, restructuring charges and other unusual items      for each of the years presented:                                                                                                                                                                                                                                                              |

|                                                                |   | 2008               |    |   | 2005   |   |    | 2004   |   |   | 2003    |   |
|---------------------------------------------------------------------|--------|--------------------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
| Effect      on gross profit and operating income:                   |   | (In      millions) |    |
| Operational      restructuring charges                              |   | $                  | (13.1   | )      |   | $      | — |   |   | $      | — |   |   | $ | — |   |
| Non-recurring      recoveries for recall insurance                  |   | $                  | — |   |   | $      | — |   |   | $      | 23.8    |   |   | $ | — |   |
| Non-recurring      recoveries for avian influenza                   |   | $                  | — |   |   | $      | — |   |   | $      | — |   |   | $ | 26.6 |   |
| Non-recurring      recoveries for vitamin and methionine litigation |   | $                  | — |   |   | $      | — |   |   | $      | 0.1     |   |   | $ | 19.9 |   |
|                                                                |   |               |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Additional      effect on operating income:                         |   |               |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Goodwill      impairment                                            |   | $                  | (501.4  | )      |   | $      | — |   |   | $      | — |   |   | $ | — |   |
| Administrative      restructuring charges                           |   |               | (16.2   | )      |   | $      | — |   |   | $      | — |   |   | $ | — |   |
|                                                                |   |               |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Other      income for litigation settlement                         |   | $                  | — |   |   | $      | 11.7    |   |   | $      | — |   |   | $ | — |   |
| Other      income for vitamin and methionine litigation             |   | $                  | — |   |   | $      | — |   |   | $      | 0.9     |   |   | $ | 36.0 |   |

| In      addition, the Company estimates its losses related to the October 2002      recall (excluding insurance recoveries) and the 2002 avian influenza      outbreak negatively affected gross profit and operating income in each of      the years presented as follows (inmillions): |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         |   | 2004 |    |   | 2003   |   |   | 2002 |   |
|----------------------------------------------|--------|------|---------|--------|--------|--------|--------|------|--------|
| Recall      effects (estimated)              |   | $    | (20.0   | )      |   | $      | (65.0  | )    |   | $ | — |   |
| Losses      from avian influenza (estimated) |   | $    | — |   |   | $      | (7.3   | )    |   | $ | (25.6 | ) |

| (f)    | Income      tax benefit recognized in 2008 resulted primarily from net operating      losses incurred in 2008 which are offset by the tax effect of goodwill      impairment and valuation allowances. Income tax expense recognized in 2006      included $25.8 million associated with the restructuring of the Mexico      operations and subsequent repatriation of foreign earnings under the      American Jobs Creation Act of 2004. Income tax expense recognized in 2003      included a non-cash tax benefit of $16.9 million associated with the      reversal of a valuation allowance on net operating losses in the Company’s      Mexico operations. Income tax benefit recognized in 2002 included a tax      benefit of $11.9 million from changes in Mexican tax  laws. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (g)    | For      purposes of computing the ratio of earnings to fixed charges, earnings      consist of income before income taxes plus fixed charges (excluding      capitalized interest). Fixed charges consist of interest (including      capitalized interest) on all indebtedness, amortization of capitalized      financing costs and that portion of rental expense that we believe to be      representative of interest. Earnings were inadequate to cover fixed      charges by $1.2 billion and $30.9 million in 2008 and 2006,      respectively.                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (h)    | Historical      per share amounts represent both basic and diluted and have been restated      to give effect to a stock dividend issued on July 30, 1999. The stock      reclassification on November 21, 2003 that resulted in the new common      stock traded as PPC did not affect the number of shares      outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (i)    | Includes      amortization of capitalized financing costs of approximately $4.9 million,      $6.6 million, $2.6 million, $2.3 million, $2.0 million,      $1.5 million, $1.4 million, $1.9 million, $1.2 million, $1.1 million,      and $1.0 million in 2008, 2007, 2006, 2005, 2004, 2003, 2002, 2001, 2000,      1999, and 1998, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

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Index

| (j) | “EBITDA”      is defined as the sum of income (loss) from continuing operations plus      interest, taxes, depreciation and amortization. EBITDA is presented      because it is used by us and we believe it is frequently used by      securities analysts, investors and other interested parties, in addition      to and not in lieu of results prepared in conformity with accounting      principles generally accepted in the US (“GAAP”), to compare the      performance of companies. EBITDA is not a measurement of financial      performance under GAAP and should not be considered as an alternative to      cash flow from operating activities or as a measure of liquidity or an      alternative to net income as indicators of our operating performance or      any other measures of performance derived in accordance with      GAAP. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                |   | 2008                |     |   | 2007   |   |    | 2006   |   |   | 2005    |   |   | 2004   |    |
|-----------------------------------------------------|--------|---------------------|----------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                                |   | (In      thousands) |     |
| Income      (loss) from continuing operations       |   | $                   | (992,172 | )      |   | $      | 51,516  |   |   | $      | (28,199 | )      |   | $      | 279,819 |   |   | $ | 205,757 |   |
|                                                |   |                |     |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Add:                                                |   |                |     |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Interest      expense, net                          |   |                | 131,627  |   |   |   | 118,542 |   |   |   | 38,965  |   |   |   | 42,632  |   |   |   | 48,419 |   |
| Income      tax expense (benefit)                   |   |                | (194,921 | )      |   |   | 47,319  |   |   |   | 1,573   |   |   |   | 147,543 |   |   |   | 127,142 |   |
| Depreciation      and amortization(i)               |   |                | 239,535  |   |   |   | 203,316 |   |   |   | 133,710 |   |   |   | 131,601 |   |   |   | 106,901 |   |
|                                                |   |                |     |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Minus:                                              |   |                |     |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Amortization      of capitalized financing costs(i) |   |                | 4,947    |   |   |   | 6,554   |   |   |   | 2,606   |   |   |   | 2,321   |   |   |   | 1,951 |   |
|                                                |   |                |     |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| EBITDA                                              |   |                | (820,878 | )      |   |   | 414,139 |   |   |   | 143,443 |   |   | $      | 599,274 |   |   | $ | 486,268 |   |
|                                                |   |                |     |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Add:                                                |   |                |     |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Goodwill      impairment                            |   |                | 501,446  |   |   |   | — |   |   |   | — |   |   |   |    |   |   |   |   |   |
| Restructuring      charges                          |   |                | 29,239   |   |   |   | — |   |   |   | 3,767   |   |   |   |    |   |   |   |   |   |
| Loss      on early extinguishment of debt           |   |                | —  |   |   |   | 26,463  |   |   |   | — |   |   |   |    |   |   |   |   |   |
|                                                |   |                |     |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Adjusted      EBITDA                                |   | $                   | (290,193 | )      |   | $      | 440,602 |   |   | $      | 147,210 |   |   |   |    |   |   |   |   |   |

|                                                |   | 2003                |    |   | 2002   |   |    | 2001   |   |   | 2000    |   |   | 1999   |    |   | 1998   |   |
|-----------------------------------------------------|--------|---------------------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|
|                                                |   | (In      thousands) |    |
| Income      (loss) from continuing operations       |   | $                   | 106,612 |   |   | $      | 30,742  |   |   | $      | 41,677  |   |   | $      | 52,344  |   |   | $      | 65,253 |   |   | $ | 50,010 |   |
|                                                |   |                |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Add:                                                |   |                |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest      expense, net                          |   |                | 30,726  |   |   |   | 24,199  |   |   |   | 25,619  |   |   |   | 17,779  |   |   |   | 17,666 |   |   |   | 20,148 |   |
| Income      tax expense (benefit)                   |   |                | 37,870  |   |   |   | (2,475  | )      |   |   | 21,051  |   |   |   | 10,442  |   |   |   | 25,651 |   |   |   | 6,512 |   |
| Depreciation      and amortization(i)               |   |                | 66,266  |   |   |   | 61,803  |   |   |   | 50,117  |   |   |   | 36,027  |   |   |   | 34,536 |   |   |   | 32,591 |   |
|                                                |   |                |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Minus:                                              |   |                |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Amortization      of capitalized financing costs(i) |   |                | 1,477   |   |   |   | 1,417   |   |   |   | 1,860   |   |   |   | 1,236   |   |   |   | 1,063 |   |   |   | 993 |   |
|                                                |   |                |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| EBITDA                                              |   | $                   | 239,997 |   |   | $      | 112,852 |   |   |   | 136,604 |   |   | $      | 115,356 |   |   | $      | 142,043 |   |   | $ | 108,268 |   |
|                                                |   |                |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Add:                                                |   |                |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Loss      on early extinguishment of debt           |   |                |    |   |   |   |    |   |   |   | 1,433   |   |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                |   |                |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Adjusted      EBITDA                                |   |                |    |   |   |   |    |   |   | $      | 138,037 |   |   |   |    |   |   |   |   |   |   |   |   |   |

----

Index

Item 7

| ·   | Feed      ingredient costs increased substantially to unprecedented levels between      the first quarter of 2007 and the end of 2008 principally because of      increasing demand for these products around the world and alternative uses      of these products, such as ethanol and biodiesel production. The following      table compares the highest prices reached on nearby futures for one bushel      of corn and one ton of soybean meal during the past four years and for      each quarter in 2008: |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                |   | Corn   |   |   | Soybean      Meal |   |
|---------------------|--------|--------|--------|--------|-------------------|--------|
| 2008:               |   |   |   |   |              |   |
| Fourth      Quarter |   | $      | 7.50   |   |              | $      | 455.50 |   |
| Third      Quarter  |   |   | 7.63   |   |              |   | 427.90 |   |
| Second      Quarter |   |   | 5.70   |   |              |   | 384.50 |   |
| First      Quarter  |   |   | 4.57   |   |              |   | 341.50 |   |
| 2007                |   |   | 4.37   |   |              |   | 286.50 |   |
| 2006                |   |   | 2.68   |   |              |   | 204.50 |   |
| 2005                |   |   | 2.63   |   |              |   | 238.00 |   |

----

Index

| ·   | While      chicken selling prices generally improved over the first 18 months of the      same period, prices did not improve sufficiently to offset the higher      costs of feed ingredients. More recently, prices have actually declined as      the result of weak demand for breast meat and a general oversupply of      chicken in the US. Although many producers within the industry, including      Pilgrim’s Pride, cut production in an effort to correct the oversupply      situation, the cuts were neither timely nor deep enough to cause      noticeable improvement to date. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company recognized losses on derivative financial instruments, primarily      futures contracts and options on corn and soybean meal, during 2008      totaling $38.3 million. In the fourth quarter of 2008, it recognized      losses on derivative financial instruments totaling $155.7 million. In      late June and July of 2008, management executed various derivative      financial instruments for August and September soybean meal and corn      prices because they were concerned that prices could escalate based on      various factors such as the recent flooding in the areas where these      grains were produced and recent trends in commodity prices. After entering      into these positions, the prices of the commodities decreased      significantly in July and August of 2008 creating these      losses. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As      the result of the downward pressure placed on earnings by the increased      cost of feed ingredients, weak demand for breast meat and the oversupply      of chicken and other animal-based proteins in the US, the Company      evaluated the carrying amount of its goodwill for potential impairment at      September 27, 2008. We obtained valuation reports as of September 27,      2008 that indicated the carrying amount of our goodwill should be fully      impaired based on current conditions. As a result, we recognized a pretax      impairment charge of $501.4 million during2008. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Because      of the current-year losses, the Company was in a cumulative loss position      in both the US and Mexico for the purpose of assessing the realizability      of its net deferred tax assets position. The Company did not believe it      had sufficient positive evidence to conclude that realization of its net      deferred tax assets position in the US and Mexico was more likely than not      to occur. Therefore, the Company increased its valuation allowance and      recognized related income tax expense of approximately $71.2 million      during 2008. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Index

| As      of or for the Year Ended                                                                        |   | September      27, 2008 |       |   | September      29, 2007(a) |   |      | September      30, 2006 |   |
|---------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|--------|----------------------------|--------|-----------|-------------------------|--------|
|                                                                                                    |   |                    |       |   | (In      thousands)        |   |      |                    |   |
| Net      sales to customers:                                                                            |   |                    |       |   |                       |   |      |                    |   |
| Chicken:                                                                                                |   |                    |       |   |                       |   |      |                    |   |
| United      States                                                                                      |   | $                       | 7,077,047  |   |                       | $      | 6,328,354 |                    |   | $ | 4,098,403 |   |
| Mexico                                                                                                  |   |                    | 543,583    |   |                       |   | 488,466   |                    |   |   | 418,745 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 7,620,630  |   |                       |   | 6,816,820 |                    |   |   | 4,517,148 |   |
| Other      Products:                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   |                    | 869,850    |   |                       |   | 661,115   |                    |   |   | 618,575 |   |
| Mexico                                                                                                  |   |                    | 34,632     |   |                       |   | 20,677    |                    |   |   | 17,006 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 904,482    |   |                       |   | 681,792   |                    |   |   | 635,581 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Total                                                                                                   |   | $                       | 8,525,112  |   |                       | $      | 7,498,612 |                    |   | $ | 5,152,729 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Operating      income (loss):                                                                           |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Chicken:                                                                                                |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States(b)                                                                                   |   | $                       | (1,135,370 | )      |                       | $      | 192,447   |                    |   | $ | 28,619 |   |
| Mexico                                                                                                  |   |                    | (25,702    | )      |                       |   | 13,116    |                    |   |   | (17,960 | ) |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | (1,161,072 | )      |                       |   | 205,563   |                    |   |   | 10,659 |   |
| Other      Products:                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   |                    | 98,863     |   |                       |   | 28,636    |                    |   |   | (1,192 | ) |
| Mexico                                                                                                  |   |                    | 4,513      |   |                       |   | 2,992     |                    |   |   | 1,638 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 103,376    |   |                       |   | 31,628    |                    |   |   | 446 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Total                                                                                                   |   | $                       | (1,057,696 | )      |                       | $      | 237,191   |                    |   | $ | 11,105 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Depreciation      and amortization(c)(d)(e):                                                            |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Chicken:                                                                                                |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   | $                       | 215,586    |   |                       | $      | 183,808   |                    |   | $ | 114,516 |   |
| Mexico                                                                                                  |   |                    | 10,351     |   |                       |   | 11,015    |                    |   |   | 11,305 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 225,937    |   |                       |   | 194,823   |                    |   |   | 125,821 |   |
| Other      Products:                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   |                    | 13,354     |   |                       |   | 8,278     |                    |   |   | 7,743 |   |
| Mexico                                                                                                  |   |                    | 244        |   |                       |   | 215       |                    |   |   | 146 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 13,598     |   |                       |   | 8,493     |                    |   |   | 7,889 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Total                                                                                                   |   | $                       | 239,535    |   |                       | $      | 203,316   |                    |   | $ | 133,710 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Total      assets(f):                                                                                   |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Chicken:                                                                                                |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   | $                       | 2,733,089  |   |                       | $      | 3,247,812 |                    |   | $ | 1,909,129 |   |
| Mexico                                                                                                  |   |                    | 372,952    |   |                       |   | 348,894   |                    |   |   | 361,887 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 3,106,041  |   |                       |   | 3,596,706 |                    |   |   | 2,271,016 |   |
| Other      Products:                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   |                    | 153,607    |   |                       |   | 104,644   |                    |   |   | 89,447 |   |
| Mexico                                                                                                  |   |                    | 5,542      |   |                       |   | 4,120     |                    |   |   | 1,660 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 159,149    |   |                       |   | 108,764   |                    |   |   | 91,107 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Total                                                                                                   |   | $                       | 3,265,190  |   |                       | $      | 3,705,470 |                    |   | $ | 2,362,123 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Acquisitions      of property, plant and equipment  (excluding business      acquisition)(g): |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Chicken:                                                                                                |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   | $                       | 148,811    |   |                       | $      | 164,449   |                    |   | $ | 133,106 |   |
| Mexico                                                                                                  |   |                    | 545        |   |                       |   | 1,633     |                    |   |   | 6,536 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 149,356    |   |                       |   | 166,082   |                    |   |   | 139,642 |   |
| Other      Products:                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   |                    | 2,815      |   |                       |   | 5,699     |                    |   |   | 3,567 |   |
| Mexico                                                                                                  |   |                    | 330        |   |                       |   | 40        |                    |   |   | 416 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 3,145      |   |                       |   | 5,739     |                    |   |   | 3,983 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Total                                                                                                   |   | $                       | 152,501    |   |                       | $      | 171,821   |                    |   | $ | 143,625 |   |

----

Index

| (a)    | The      Company acquired Gold Kist on December 27, 2006 for $1.139      billion.                                                                                                                                                                                                                   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                |
| (b)    | Includes      goodwill impairment of $501.4 million and restructuring charges of $29.3      million in 2008.                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                |
| (c)    | Includes      amortization of capitalized financing costs of approximately $4.9 million,      $6.6 million and $2.6 million in 2008, 2007 and 2006,      respectively.                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                |
| (d)    | Includes      amortization of intangible assets of $10.2 million, $8.1 million and $1.8      million recognized in 2008, 2007 and 2006 related primarily to the Gold      Kist and ConAgra Chicken acquisitions.                                                                                    |
|   |                                                                                                                                                                                                                                                                                                |
| (e)    | Excludes      depreciation costs incurred by our discontinued turkey business of $0.7      million, $1.6 million and $1.4 million during 2008, 2007 and 2006,      respectively.                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                |
| (f)    | Excludes      total assets of our discontinued turkey business of $33.5 million at      September 27, 2008, $68.8 million at September 29, 2007 and $64.7 million      at September 30, 2006.                                                                                                  |
|   |                                                                                                                                                                                                                                                                                                |
| (g)    | Excludes      acquisitions of property, plant and equipment by our discontinued turkey      business of $0.5 million and $0.3 million during 2007 and 2006,      respectively. Acquisitions of property, plant and equipment by our      discontinued turkey business during 2008 were  immaterial. |

|                                                                       |   | 2008   |   |          | 2007   |   |    | 2006          |   |
|----------------------------------------------------------------------------|--------|--------|--------|---------------|--------|--------|---------|---------------|--------|
| Net      sales                                                             |   |   | 100.0  |        % |   |   | 100.0   |        % |   |   | 100.0 |        % |
| Cost      of sales                                                         |   |   | 101.8  |        % |   |   | 92.1    |   % |   |   | 94.2 |        % |
| Operational      restructuring charges                                     |   |   | 0.1    |        % |   |   | — |        % |   |   | — |        % |
| Gross      profit (loss)                                                   |   |   | (1.9   | )      %      |   |   | 7.9     |        % |   |   | 5.8 |        % |
| Selling,      general and administrative (“SG&A”) expenses |   |   | 4.4    |        % |   |   | 4.7     |   % |   |   | 5.6 |        % |
| Goodwill      impairment                                                   |   |   | 5.9    |        % |   |   | — |        % |   |   | — |        % |
| Administrative      restructuring charges                                  |   |   | 0.2    |        % |   |   | — |        % |   |   | — |        % |
| Operating      income (loss)                                               |   |   | (12.4  | )      %      |   |   | 3.2     |        % |   |   | 0.2 |        % |
| Interest      expense, net                                                 |   |   | 1.5    |        % |   |   | 1.6     |        % |   |   | 0.8 |        % |
| Income      (loss) from continuing operations before income taxes          |   |   | (13.9  | )      %      |   |   | 1.3     |        % |   |   | (0.5 | )      % |
| Income      (loss) from continuing operations                              |   |   | (11.6  | )      %      |   |   | 0.7     |        % |   |   | (0.5 | )      % |
| Net      income (loss)                                                     |   |   | (11.7  | )      %      |   |   | 0.6     |        % |   |   | (0.7 | )      % |

----

Index

|        Source        |   |        2008                        |    |   | Change      from 2007 |   |
|---------------------------|--------|-----------------------------------------|---------|--------|-----------------------|--------|
|                      |   |                                    |    |   | Amount                |   |   | Percent |   |
|                      |   | (In      millions, except percent data) |    |
| Chicken:                  |   |                                    |    |   |                  |   |   |   |   |   |
| United      States        |   | $                                       | 7,077.0 |   |                  | $      | 748.7 |   |   |   | 11.8 | % | (a) |
| Mexico                    |   |                                    | 543.6   |   |                  |   | 55.1 |   |   |   | 11.3 | % | (b) |
|                      |   |                                    |    |   |                  |   |   |   |   |   |   |   |   |
| Total      chicken        |   |                                    | 7,620.6 |   |                  |   | 803.8 |   |   |   | 11.8 | % |   |
|                      |   |                                    |    |   |                  |   |   |   |   |   |   |   |   |
| Other      products:      |   |                                    |    |   |                  |   |   |   |   |   |   |   |   |
| United      States        |   |                                    | 869.9   |   |                  |   | 208.8 |   |   |   | 31.6 | % | (c) |
| Mexico                    |   |                                    | 34.6    |   |                  |   | 13.9 |   |   |   | 67.1 | % | (d) |
|                      |   |                                    |    |   |                  |   |   |   |   |   |   |   |   |
| Total      other products |   |                                    | 904.5   |   |                  |   | 222.7 |   |   |   | 32.7 | % |   |
|                      |   |                                    |    |   |                  |   |   |   |   |   |   |   |   |
| Total      net sales      |   | $                                       | 8,525.1 |   |                  | $      | 1,026.5 |   |   |   | 13.7 | % |   |
|                      |   |

| (a)    | US      chicken sales generated in 2008 increased 11.8% from US chicken sales      generated in 2007. Sales volume increased 8.6% primarily because of the      acquisition of Gold Kist on December 27, 2006. Net revenue per pound sold      increased 3.0% from the prior year.                                                                                                                                                                                    |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (b)    | Mexico      chicken sales generated in 2008 increased 11.3% from Mexico chicken sales      generated in 2007 primarily because of a 3.5% increase in revenue per      pound sold and a 7.6% increase in pounds sold. The increase in pounds sold      represents market penetration in Mexico’s avian influenza free states as      well as a shift in product mix toward live birds.                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (c)    | US      sales of other products generated in 2008 increased 31.6% from US sales of      other products generated in 2007 mainly as the result of improved pricing      on commercial eggs and protein conversion products and higher sales      volumes of protein conversion products. Protein conversion is the process      of converting poultry byproducts into raw materials for grease, animal      feed, biodiesel and feed-stock for the chemical  industry. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (d)    | Mexico      sales of other products generated in 2008 increased 67.1% from Mexico      sales of other products generated in 2007 principally because of both      higher sales volumes and higher selling prices for commercial      feed.                                                                                                                                                                                                                            |

|                                   |   |                                    |    |   | Change      from 2007 |   |    | Percent      of Net Sales |   |   |
|----------------------------------------|--------|-----------------------------------------|---------|--------|-----------------------|--------|---------|---------------------------|--------|--------|
| Components                             |   | 2008                                    |    |   | Amount                |   |    | Percent                   |   |   | 2008 |   |   | 2007 |   |   |
|                                   |   | (In      millions, except percent data) |    |   |
|                                   |   |                                    |    |   |                  |   |    |                      |   |   |   |   |   |   |   |   |
| Net      sales                         |   | $                                       | 8,525.1 |   |                  | $      | 1,026.5 |                      |   |   | 13.7 |        % |   |   | 100.0 |        % |   |   | 100.0 |        % |   |
| Cost      of sales                     |   |                                    | 8,675.5 |   |                  |   | 1,769.6 |                      |   |   | 25.6 |        % |   |   | 101.8 |        % |   |   | 92.1 |        % | (a) |
| Operational      restructuring charges |   |                                    | 13.1    |   |                  |   | 13.1    |                      |   | NM     |   |   |   | 0.1 |        % |   |   | — |        % | (b) |
|                                   |   |                                    |    |   |                  |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      loss                        |   | $                                       | (163.5  | )      |                  | $      | (756.2  | )                         |   |   | (127.6 | )      % |   |   | (1.9 | )      % |   |   | 7.9 |        % | (c) |
|                                   |

----

Index

| (a)    | Cost      of sales incurred by the US operations during 2008 increased $1,661.6      million from cost of sales incurred by the US operations during 2007. This      increase occurred because of incremental costs resulting from increased      feed ingredients and energy costs as well as the acquisition of Gold Kist      on December 27, 2006. We also experienced in 2008, and continue to      experience, increased production and freight costs related to operational      inefficiencies, labor shortages at several facilities and higher fuel      costs. We believe the labor shortages are attributable in part to      heightened publicity of governmental immigration enforcement efforts,      ongoing Company compliance efforts and continued changes in the Company’s      employment practices in light of recently published governmental best      practices and new labor hiring regulations. During 2008, the Company      recognized losses totaling $38.3 million on derivative financial      instruments executed to manage its exposure to changes in corn and soybean      meal prices. The aggregate loss recognized on derivative financial      instruments in 2007 was immaterial. Cost of sales incurred by the Mexico      operations during 2008 increased $108.0 million from cost of sales      incurred by the Mexico operations during 2007 primarily because of      increased feed ingredients costs. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (b)    | The      Company recognized operational restructuring charges, composed entirely of      non-cash asset impairment charges, in 2008 related to (i) the closing of      two operating complexes in Arkansas and North Carolina, (ii) the closing      of seven distribution centers in Florida (2), Iowa, Mississippi, Ohio,      Tennessee and Texas, and (iii) the idling of an operating complex in      Louisiana.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (c)    | Gross      loss as a percent of net sales generated in 2008 decreased 9.8 percentage      points from gross profit as a percent of sales generated in 2007 primarily      because of incremental costs resulting from increased feed ingredients,      energy, production and freight costs, charges related to 2008      restructuring actions and the Gold Kist acquisition partially offset by      improved selling prices.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| NM     | Not      meaningful.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

| Source                    |   |        2008                        |     |    | Change      from 2007 |   |
|---------------------------|--------|-----------------------------------------|----------|---------|-----------------------|--------|
|                      |   |                                    |     |    | Amount                |   |   | Percent |   |
|                      |   | (In      millions, except percent data) |     |
| Chicken:                  |   |                                    |     |    |                  |   |   |   |   |   |
| United      States        |   | $                                       | (1,135.4 | )       |                  | $      | (1,327.8 | ) |   |   | (690.0 | )       % |   |
| Mexico                    |   |                                    | (25.7    | )  |                  |   | (38.8 | ) |   |   | (296.2  | )       % |   |
|                      |   |                                    |     |    |                  |   |   |   |   |   |   |   |   |
| Total      chicken        |   |                                    | (1,161.1 | )       |                  |   | (1,366.6 | ) |   |   | (694.8 | )       % |   |
|                      |   |                                    |     |    |                  |   |   |   |   |   |   |   |   |
| Other      products:      |   |                                    |     |    |                  |   |   |   |   |   |   |   |   |
| United      States        |   |                                    | 98.9     |    |                  |   | 70.2 |   |   |   | 245.2  |         % |   |
| Mexico                    |   |                                    | 4.5      |    |                  |   | 1.5 |   |   |   | 50.0  |         % |   |
|                      |   |                                    |     |    |                  |   |   |   |   |   |   |   |   |
| Total      other products |   |                                    | 103.4    |    |                  |   | 71.7 |   |   |   | 226.9  |         % |   |
|                      |   |                                    |     |    |                  |   |   |   |   |   |   |   |   |
| Total      net sales      |   | $                                       | (1,057.7 | )       |                  | $      | (1,294.9 | ) |   |   | (545.9 | )       % |   |
|                      |

|                                      |   |                                    |     |   | Change      from 2007 |   |     | Percent      of Net Sales |   |   |
|-------------------------------------------|--------|-----------------------------------------|----------|--------|-----------------------|--------|----------|---------------------------|--------|--------|
| Components                                |   | 2008                                    |     |   | Amount                |   |     | Percent                   |   |   | 2008 |   |   | 2007 |   |   |
|                                      |   | (In      millions, except percent data) |     |   |
|                                      |   |                                    |     |   |                  |   |     |                      |   |   |   |   |   |   |   |   |
| Gross      profit (loss)                  |   | $                                       | (163.5   | )      |                  | $      | (756.2   | )                         |   |   | (127.6 | )      % |   |   | (1.9 | )      % |   |   | 7.9 |        % |   |
| SG&A      expenses                    |   |                                    | 376.6    |   |                  |   | 21.1     |                      |   |   | 5.9 |        % |   |   | 4.4 | % |   |   | 4.7 |        % | (a) |
| Goodwill      impairment                  |   |                                    | 501.4    |   |                  |   | 501.4    |                      |   | NM     |   |   |   | 5.9 |   |   |   | — |   | (b) |
| Administrative      restructuring charges |   |                                    | 16.2     |   |                  |   | 16.2     |                      |   | NM     |   |   |   | 0.2 | % |   |   | — |        % | (c) |
|                                      |   |                                    |     |   |                  |   |     |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      loss                       |   | $                                       | (1,057.7 | )      |                  | $      | (1,294.9 | )                         |   |   | (545.9 | )      % |   |   | (12.4 | )      % |   |   | 3.2 |        % | (d) |
|                                      |

----

Index

| (a)    | SG&A      expenses incurred by the US operations during 2008 increased 6.9% from      SG&A expenses incurred by the US operations during 2007 primarily      because of the acquisition of Gold Kist on December 27,    2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (b)    | As      the result of the downward pressure placed on earnings by increased feed      ingredients costs, weak demand for breast meat and the oversupply of      chicken and other animal-based proteins in the US, the Company evaluated      the carrying amount of its goodwill for potential impairment at September      27, 2008. We obtained valuation reports as of September 27, 2008 that      indicated the carrying amount of our goodwill should be fully impaired      based on current conditions. As a result, we recognized a pretax      impairment charge of $501.4 million during 2008.                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (c)    | The      Company incurred administrative restructuring charges, composed entirely      of cash-based severance, employee retention, lease commitment and other      facility closing charges, in 2008 related to (i) the closing of two      operating complexes in Arkansas and North Carolina, (ii) the closing of      seven distribution centers in Florida (2), Iowa, Mississippi, Ohio,      Tennessee and Texas, (iii) the idling of an operating complex in      Louisiana, (iv) the transfer of operations from an operating complex in      Arkansas to several of the Company’s other operating complexes, and (v)      the closing of an administrative office in Georgia. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (d)    | Operating      loss as a percent of net sales generated in 2008 decreased 15.6 percentage      points from operating income as a percent of sales generated in 2007      primarily because of deterioration in gross profit (loss) performance,      goodwill impairment recognized in 2008, charges related to 2008      restructuring actions and incremental SG&A expenses resulting from the      Gold Kist acquisition.                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| NM     | Not      meaningful.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

Index

|        Source        |   |        2007                        |    |   | Change      from 2006 |   |
|---------------------------|--------|-----------------------------------------|---------|--------|-----------------------|--------|
|                      |   |                                    |    |   | Amount                |   |   | Percent |   |
|                      |   | (In      millions, except percent data) |    |
| Chicken:                  |   |                                    |    |   |                  |   |   |   |   |   |
| United      States        |   | $                                       | 6,328.3 |   |                  | $      | 2,229.9 |   |   |   | 54.4 | % | (a) |
| Mexico                    |   |                                    | 488.5   |   |                  |   | 69.8 |   |   |   | 16.7 | % | (b) |
|                      |   |                                    |    |   |                  |   |   |   |   |   |   |   |   |
| Total      chicken        |   |                                    | 6,816.8 |   |                  |   | 2,299.7 |   |   |   | 50.9 | % |   |
|                      |   |                                    |    |   |                  |   |   |   |   |   |   |   |   |
| Other      products:      |   |                                    |    |   |                  |   |   |   |   |   |   |   |   |
| United      States        |   |                                    | 661.1   |   |                  |   | 42.5 |   |   |   | 6.9 | % | (c) |
| Mexico                    |   |                                    | 20.7    |   |                  |   | 3.7 |   |   |   | 21.6 | % | (d) |
|                      |   |                                    |    |   |                  |   |   |   |   |   |   |   |   |
| Total      other products |   |                                    | 681.8   |   |                  |   | 46.2 |   |   |   | 7.3 | % |   |
|                      |   |                                    |    |   |                  |   |   |   |   |   |   |   |   |
| Total      net sales      |   | $                                       | 7,498.6 |   |                  | $      | 2,345.9 |   |   |   | 45.5 | % |   |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)    | US      chicken sales generated in 2007 increased 54.4% from US chicken sales      generated in 2006 primarily as the result of a 41.1% increase in volume      due to the acquisition of Gold Kist on December 27, 2006, increases      in the average selling prices of chicken and, for legacy Pilgrim’s Pride      products, an improved product mix containing more higher-margin,      value-added products. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (b)    | Mexico      chicken sales generated in 2007 increased 16.7% from Mexico chicken sales      generated in 2006 due primarily to increases in production and a 21.2%      increase in pricing per pound sold.                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (c)    | US      sales of other products generated in 2007 increased 6.9% from US sales of      other products generated in 2007 primarily due to the acquisition of Gold      Kist on December 27, 2006 and improved pricing on protein conversion      products.                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (d)    | Mexico      sales of other products generated in 2007 increased 21.6% from Mexico      sales of other products generated in 2006 principally because of both      higher sales volumes and higher selling prices for commercial      feed.                                                                                                                                                                                    |

|               |   |                                    |    |   | Change      from 2006 |   |    | Percent      of Net Sales |   |   |
|--------------------|--------|-----------------------------------------|---------|--------|-----------------------|--------|---------|---------------------------|--------|--------|
| Components         |   | 2007                                    |    |   | Amount                |   |    | Percent                   |   |   | 2007 |   |   | 2006 |   |   |
|               |   | (In      millions, except percent data) |    |   |
|               |   |                                    |    |   |                  |   |    |                      |   |   |   |   |   |   |   |   |
| Net      sales     |   | $                                       | 7,498.6 |   |                  | $      | 2,345.9 |                      |   |   | 45.5 | % |   |   | 100.0 | % |   |   | 100.0 | % |   |
| Cost      of sales |   |                                    | 6,905.9 |   |                  |   | 2,050.2 |                      |   |   | 42.2 | % |   |   | 92.1 | % |   |   | 94.2 | % | (a) |
|               |   |                                    |    |   |                  |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      profit  |   | $                                       | 592.7   |   |                  | $      | 295.7   |                      |   |   | 99.5 | % |   |   | 7.9 | % |   |   | 5.8 | % | (b) |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)    | Cost      of sales incurred by the US operations in 2008 increased $2,007.7 million      due primarily to the acquisition of Gold Kist and increased quantities and      costs of energy and feed ingredients. We also experienced in 2007, and      continue to experience, increased production and freight costs related to      operational inefficiencies, labor shortages at several facilities and      higher fuel costs. We believe the labor shortages are attributable in part      to heightened publicity of governmental immigration enforcement efforts,      ongoing Company compliance efforts and continued changes in the Company’s      employment practices in light of recently published governmental best      practices and new labor hiring regulations. Cost of sales incurred by our      Mexico operations increased $42.5 million primarily due to increased feed      ingredient costs. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (b)    | Gross      profit as a percent of net sales generated in 2007 improved 2.1 percentage      points from gross profit as a percent of net sales generated in 2006 due      primarily to increased selling prices throughout the industry in response      to increased feed ingredientscosts.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

Index

| Source                    |   |        2007                        |   |   | Change      from 2006 |   |
|---------------------------|--------|-----------------------------------------|--------|--------|-----------------------|--------|
|                      |   |                                    |   |   | Amount                |   |   | Percent |   |
|                      |   | (In      millions, except percent data) |   |
| Chicken:                  |   |                                    |   |   |                  |   |   |   |   |   |
| United      States        |   | $                                       | 192.5  |   |                  | $      | 163.9 |   |   |   | 572.4 |        % |   |
| Mexico                    |   |                                    | 13.1   |   |                  |   | 31.0 |   |   |   | 173.0 |        % |   |
|                      |   |                                    |   |   |                  |   |   |   |   |   |   |   |   |
| Total      chicken        |   |                                    | 205.6  |   |                  |   | 194.96 |   |   |   | 1,828.5 |        % |   |
|                      |   |                                    |   |   |                  |   |   |   |   |   |   |   |   |
| Other      products:      |   |                                    |   |   |                  |   |   |   |   |   |   |   |   |
| United      States        |   |                                    | 28.6   |   |                  |   | 29.8 |   |   |   | 2,502.3 |         % |   |
| Mexico                    |   |                                    | 3.0    |   |                  |   | 1.4 |   |   |   | 82.7  |         % |   |
|                      |   |                                    |   |   |                  |   |   |   |   |   |   |   |   |
| Total      other products |   |                                    | 31.6   |   |                  |   | 31.2 |   |   |   | 6,691.5  |         % |   |
|                      |   |                                    |   |   |                  |   |   |   |   |   |   |   |   |
| Total      net sales      |   | $                                       | 237.2  |   |                  | $      | 226.1 |   |   |   | 2,035.9  |        % |   |
|                      |

|                   |   |                                    |   |   | Change      from 2006 |   |   | Percent      of Net Sales |   |   |    |
|------------------------|--------|-----------------------------------------|--------|--------|-----------------------|--------|--------|---------------------------|--------|--------|---------|
| Components             |   | 2007                                    |   |   | Amount                |   |   | Percent                   |   |   | 2007    |   |   | 2006 |   |   |   |
|                   |   | (In      millions, except percent data) |   |   |                  |
|                   |   |                                    |   |   |                  |   |   |                      |   |   |    |   |   |   |   |   |   |
| Gross      profit      |   | $                                       | 592.7  |   |                  | $      | 295.7  |                      |   |   | 99.5    |  % |   |   | 7.9 |  % |   |   | 5.8 |         % |   |   |
| SG&A      expenses |   |                                    | 355.5  |   |                  |   | 69.6   |                      |   |   | 24.3    |  % |   |   | 4.7 |  % |   |   | 5.6 |  % |   | (a) |
|                   |   |                                    |   |   |                  |   |   |                      |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income  |   | $                                       | 237.2  |   |                  | $      | 226.1  |                      |   |   | 2,035.9 |  % |   |   | 3.2 |  % |   |   | 0.2 |  % |   | (b) |

|   |
|--------|
| (a)    | SG&A      expenses incurred during 2007 increased from SG&A expenses incurred      during 2006 primarily because of the acquisition of Gold Kist on December      27, 2006. |
|   |   |
| (b)    | Operating      income as a percent of net sales generated in 2007 increased 3.0      percentage points from operating income as a percent of sales generated in      2006 primarily because of the acquisition of Gold Kist, increases in the      average selling prices of chicken, improved product mix and a reduction of      SG&A expenses as a percentage of net sales partially offset by      increased production and freight costs and the other factors described      above. |

----

Index

----

Index

----

Index

|                                              |   | Facility           |    |   | Amount      |   |    | Amount    |   |   |
|---------------------------------------------------|--------|--------------------|---------|--------|-------------|--------|---------|-----------|--------|--------|
| Source      of Liquidity                          |   | Amount             |    |   | Outstanding |   |    | Available |   |   |
|                                              |   | (In      millions) |    |   |
| Cash      and cash equivalents                    |   | $                  | — |   |        | $      | — |      |   | $      | 61.6 |   |   |
| Investments      in available-for-sale securities |   | $                  | — |   |        |   | — |      |   | $      | 10.4 |   |   |
| Receivables      purchase agreement               |   | $                  | 300.0   |   |        | $      | 236.3   |      |   | $      | — |   | (a) |
| Debt      facilities:                             |   |               |    |   |        |   |    |      |   |   |   |   |   |
| Revolving      credit facilities                  |   | $                  | 351.6   |   |        | $      | 233.5   |      |   | $      | 32.1 |   | (b)(c) |
| Revolving/term      facility                      |   | $                  | 550.0   |   |        | $      | 415.0   |      |   | $      | 135.0 |   | (c) |
|                                              |   |               |    |   |        |   |    |      |   |   |   |   |   |

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| (a)    | The aggregate amount of      receivables sold plus the remaining receivables available for sale      declined from $300.0 million at September 29, 2007 to $236.3 million at September 27, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (b)    | At      September 27, 2008, the Company had $86.0 million in letters of credit      outstanding relating to normal business transactions that reduce the      amount of available liquidity under the revolving credit      facilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (c)    | The      Company entered into waiver agreements with certain of its lenders on      September 26, 2008. In connection with those agreements, the Company      agreed to have at all times during the term of those waiver agreements      undrawn commitments in an aggregate amount not less than $100 million,      which effectively reduced the aggregate available amount under these      facilities as of September 27, 2008 to approximately $67.1 million. On      October 10, 2008, the required lenders under the Company's credit      agreements agreed to reduce the required undrawn commitment holdback to      $75 million.  On October 26, 2008, the required lenders agreed      to further reduce the required undrawn commitment holdback to $35      million. |

----

Index

----

Index

----

Index

----

Index

----

Index

----

Index

----

Index

|                         |   | Payments      Due By Period |    |
|------------------------------|--------|-----------------------------|---------|
| Contractual      Obligations |   | Total                       |    |   | Less      than 1 year |   |   | 1-3      years |   |   | 3-5      years |   |   | More      than 5 years |   |
|                         |   | (In      millions)          |    |
| Long-term      debt(a)(b(c)) |   | $                           | 1,941.9 |   |   | $ | 2.4 |   |   | $ | 56.7 |   |   | $ | 203.4 |   |   | $ | 1,679.4 |   |
| Guarantee      fees(d)       |   |                        | 43.5    |   |   |   | 6.1 |   |   |   | 12.1 |   |   |   | 12.1 |   |   |   | 13.2 |   |
| Operating      leases        |   |                        | 130.7   |   |   |   | 43.6 |   |   |   | 62.1 |   |   |   | 23.3 |   |   |   | 1.7 |   |
| Purchase      obligations(e) |   |                        | 164.9   |   |   |   | 164.9 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Other      commitments(f)    |   |                        | 65.3    |   |   |   | — |   |   |   | 33.1 |   |   |   | 32.2 |   |   |   | — |   |
|                         |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                        |   | $                           | 2,346.3 |   |   | $ | 217.0 |   |   | $ | 164.0 |   |   | $ | 271.0 |   |   | $ | 1,694.3 |   |

| (a)   | Excludes      $86.0 million in letters of credit outstanding related to normal business      transactions. |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (b)   | As a result of the Chapter 11      filing, substantially all long-term debt became automatically and      immediately due and payable, subject to an automatic stay of any action to      collect, assert, or recover a claim against the Company and the      application of applicable bankruptcylaw. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Interest      rates on long-term debt were increased as a result of the Chapter 11      filing and the amounts that will actually be paid related to interest are      uncertain as they will be subject to the claims process in the bankruptcy      case. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Pursuant to the terms of the DIP      Credit Agreement, the      Company may not pay any guarantee fees without the consent of the lenders      party thereto. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Includes agreements to purchase      goods or services that are enforceable and legally binding on us and that      specify all significant terms, including fixed or minimum quantities to be purchased;      fixed, minimum, or variable price provisions; and the approximate timing      of the transaction. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | Includes unrecognized tax benefits      under FASB Interpretation No. 48, Accounting for Uncertainty in      Income Taxes– an      interpretation of FASB Statement No. 109 (“FIN 48”). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Index

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Index

----

Index

----

Index

Item 7A.

----

Index

----

Index

Item 8

Item 9

----

Index

Item 9A

----

Index

----

Index

----

Index

----

Index

Item 9B.

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Index

|   | PART      III |
|--------|---------------|

Item 10

Item11

| Item 12. | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters |
|----------|----------------------------------------------------------------------------------------------------------|

Item13.

----

Index

Item 14

----

Index

Item15

| (a)    |   | Financial      Statements                                                                                                                                                                                                 |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                      |
|   | (1)    | The      financial statements and schedules listed in the index to financial      statements and schedules on page 3 of this report are filed as part of      this report.                                                |
|   |   |                                                                                                                                                                                                                      |
|   | (2)    | All      other schedules for which provision is made in the applicable accounting      regulations of the SEC are not required under the related instructions or      are not applicable and therefore have been omitted. |
|   |   |                                                                                                                                                                                                                      |
|   | (3)    | The      financial statements schedule entitled “Valuation and Qualifying Accounts      and Reserves” is filed as part of this report on page  151.                                                           |
|   |   |                                                                                                                                                                                                                      |
| (b)    |   | Exhibits                                                                                                                                                                                                                  |

| 2.1    |   | Agreement      and Plan of Reorganization dated September 15, 1986, by and among      Pilgrim’s Pride Corporation, a Texas corporation; Pilgrim’s Pride      Corporation, a Delaware corporation; and Doris Pilgrim Julian, Aubrey Hal      Pilgrim, Paulette Pilgrim Rolston, Evanne Pilgrim, Lonnie “Bo” Pilgrim,      Lonnie Ken Pilgrim, Greta Pilgrim Owens and Patrick Wayne Pilgrim      (incorporated by reference from Exhibit 2.1 to the Company’s Registration      Statement on Form S-1 (No. 33-8805) effective November 14,      1986). |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 2.2    |   | Agreement      and Plan of Merger dated September 27, 2000 (incorporated by reference      from Exhibit 2 of WLR Foods, Inc.’s Current Report on Form 8-K      (No. 000-17060) dated September 28, 2000).                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 2.3    |   | Agreement      and Plan of Merger dated as of December 3, 2006, by and among the Company,      Protein Acquisition Corporation, a wholly owned subsidiary of the Company,      and Gold Kist Inc. (incorporated by reference from Exhibit 99.(D)(1) to      Amendment No. 11 to the Company’s Tender Offer Statement on Schedule TO      filed on December 5, 2006).                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.1    |   | Certificate      of Incorporation of the Company, as amended (incorporated by reference      from Exhibit 3.1 of the Company’s Annual Report on Form 10-K for the year      ended October 2, 2004).                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.2    |   | Amended      and Restated Corporate Bylaws of the Company (incorporated by reference      from Exhibit 4.4 of the Company’s Registration Statement on Form S-8 (No.      333-111929) filed on January 15, 2004).                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.1    |   | Certificate      of Incorporation of the Company, as amended (included as Exhibit      3.1).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.2    |   | Amended      and Restated Corporate Bylaws of the Company (included as      Exhibit 3.2).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

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Index

| 4.3    |   | Indenture,      dated November 21, 2003, between Pilgrim's Pride Corporation and The Bank      of New York as Trustee relating to Pilgrim’s Pride’s 9 1/4% Senior Notes      due 2013 (incorporated by reference from Exhibit 4.1 of the Company's      Registration Statement on Form S-4 (No. 333-111975) filed on January 16,      2004).                       |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.4    |   | Form      of 9 1/4% Note due 2013 (incorporated by reference from Exhibit 4.3 of the      Company's Registration Statement on Form S-4 (No. 333-111975) filed on      January 16, 2004).                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.5    |   | Senior      Debt Securities Indenture dated as of January 24, 2007, by and between the      Company and Wells Fargo Bank, National Association, as trustee      (incorporated by reference from Exhibit 4.1 to the Company’s Current      Report on Form 8-K filed on January 24, 2007).                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.6    |   | First      Supplemental Indenture to the Senior Debt Securities Indenture dated as of      January 24, 2007, by and between the Company and Wells Fargo Bank,      National Association, as trustee (incorporated by reference from Exhibit      4.2 to the Company’s Current Report on Form 8-K filed on January 24,      2007).                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.7    |   | Form      of 7 5/8% Senior Note due 2015 (incorporated by reference from Exhibit 4.3      to the Company’s Current Report on Form 8-K filed on January 24,      2007).                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.8    |   | Senior      Subordinated Debt Securities Indenture dated as of January 24, 2007, by      and between the Company and Wells Fargo Bank, National Association, as      trustee (incorporated by reference from Exhibit 4.4 to the Company’s      Current Report on Form 8-K filed on January 24, 2007).                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.9    |   | First      Supplemental Indenture to the Senior Subordinated Debt Securities      Indenture dated as of January 24, 2007, by and between the Company and      Wells Fargo Bank, National Association, as trustee (incorporated by      reference from Exhibit 4.5 to the Company’s Current Report on Form 8-K      filed on January 24, 2007).                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.10   |   | Form      of 8 3/8% Subordinated Note due 2017 (incorporated by reference from      Exhibit 4.6 to the Company’s Current Report on Form 8-K filed on January      24, 2007).                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 10.1   |   | Pilgrim’s      Industries, Inc. Profit Sharing Retirement Plan, restated as of July 1,      1987 (incorporated by reference from Exhibit 10.1 of the Company’s Form      8-K filed on July 1, 1992). …                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 10.2   |   | Senior      Executive Performance Bonus Plan of the Company (incorporated by reference      from Exhibit A in the Company’s Proxy Statement dated December 13, 1999).      …                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 10.3   |   | Aircraft      Lease Extension Agreement between B.P. Leasing Co. (L.A. Pilgrim,      individually) and Pilgrim’s Pride Corporation (formerly Pilgrim’s      Industries, Inc.) effective November 15, 1992 (incorporated by reference      from Exhibit 10.48 of the Company’s Quarterly Report on Form 10-Q for the      three months ended March 29, 1997). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |

----

Index

| 10.4   |   | Broiler      Grower Contract dated May 6, 1997 between Pilgrim’s Pride Corporation and      Lonnie “Bo” Pilgrim (Farm 30) (incorporated by reference from Exhibit      10.49 of the Company’s Quarterly Report on Form 10-Q for the three months      ended March 29, 1997).                    |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.5   |   | Commercial      Egg Grower Contract dated May 7, 1997 between Pilgrim’s Pride Corporation      and Pilgrim Poultry G.P. (incorporated by reference from      Exhibit 10.50 of the Company’s Quarterly Report on Form 10-Q for the      three months ended March 29, 1997).                             |
|   |   |                                                                                                                                                                                                                                                                                                                    |
| 10.6   |   | Agreement      dated October 15, 1996 between Pilgrim’s Pride Corporation and Pilgrim      Poultry G.P. (incorporated by reference from Exhibit 10.23 of the      Company’s Quarterly Report on Form 10-Q for the three months ended      January 2, 1999).                                       |
|   |   |                                                                                                                                                                                                                                                                                                                    |
| 10.7   |   | Heavy      Breeder Contract dated May 7, 1997 between Pilgrim’s Pride Corporation and      Lonnie “Bo” Pilgrim (Farms 44, 45 & 46) (incorporated by reference      from Exhibit 10.51 of the Company’s Quarterly Report on Form 10-Q for the      three months ended March 29, 1997).       |
|   |   |                                                                                                                                                                                                                                                                                                                    |
| 10.8   |   | Broiler      Grower Contract dated January 9, 1997 by and between Pilgrim’s Pride and      O.B. Goolsby, Jr. (incorporated by reference from Exhibit 10.25 of the      Company’s Registration Statement on Form S-1 (No. 333-29163) effective      June 27, 1997).                                |
|   |   |                                                                                                                                                                                                                                                                                                                    |
| 10.9   |   | Broiler      Grower Contract dated January 15, 1997 by and between Pilgrim’s Pride      Corporation and B.J.M. Farms (incorporated by reference from Exhibit 10.26      of the Company’s Registration Statement on Form S-1 (No. 333-29163)      effective June 27, 1997).                                  |
|   |   |                                                                                                                                                                                                                                                                                                                    |
| 10.10  |   | Broiler      Grower Agreement dated January 29, 1997 by and between Pilgrim’s Pride      Corporation and Clifford E. Butler (incorporated by reference from Exhibit      10.27 of the Company’s Registration Statement on Form S-1 (No. 333-29163)      effective June 27, 1997).                           |
|   |   |                                                                                                                                                                                                                                                                                                                    |
| 10.11  |   | Purchase      and Contribution Agreement dated as of June 26, 1998 between Pilgrim’s      Pride Funding Corporation and Pilgrim’s Pride Corporation (incorporated by      reference from Exhibit 10.34 of the Company’s Quarterly Report on Form      10-Q for the three months ended June 27, 1998). |
|   |   |                                                                                                                                                                                                                                                                                                                    |
| 10.12  |   | Guaranty      Fee Agreement between Pilgrim’s Pride Corporation and Pilgrim Interests,      Ltd., dated June 11, 1999 (incorporated by reference from Exhibit 10.24 of      the Company’s Annual Report on Form 10-K for the year ended      October 2, 1999).                                         |
|   |   |                                                                                                                                                                                                                                                                                                                    |
| 10.13  |   | Commercial      Property Lease dated December 29, 2000 between Pilgrim’s Pride Corporation      and Pilgrim Poultry G.P. (incorporated by reference from      Exhibit 10.30 of the Company’s Quarterly Report on Form 10-Q for the      three months ended December 30, 2000).                         |
|   |   |                                                                                                                                                                                                                                                                                                                    |

----

Index

| 10.14  |   | Amendment      No. 1 dated as of December 31, 2003 to Purchase and Contribution Agreement      dated as of June 26, 1998, between Pilgrim’s Pride Funding Corporation and      Pilgrim’s Pride Corporation (incorporated by reference from Exhibit 10.5      of the Company’s Quarterly Report on Form 10-Q filed February 4,      2004).                                                                                                                                                                                 |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.15  |   | Employee      Stock Investment Plan of the Company (incorporated by reference from      Exhibit 4.1 of the Company’s Registration Statement on Form S-8 (No.      333-111929) filed on January 15, 2004). …                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.16  |   | 2005      Deferred Compensation Plan of the Company (incorporated by reference from      Exhibit 10.1 of the Company’s Current Report on Form 8-K dated December      27, 2004). …                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.17  |   | Vendor      Service Agreement dated effective December 28, 2005 between Pilgrim's      Pride Corporation and Pat Pilgrim (incorporated by reference from Exhibit      10.2 of the Company's Current Report on Form 8-K dated January 6,      2006).                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.18  |   | Transportation      Agreement dated effective December 28, 2005 between Pilgrim's Pride      Corporation and Pat Pilgrim (incorporated by reference from Exhibit 10.3      of the Company's Current Report on Form 8-K dated January 6,      2006).                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.19  |   | Credit      Agreement by and among the Avícola Pilgrim’s Pride de México, S. de R.L.      de C.V. (the "Borrower"), Pilgrim's Pride Corporation, certain Mexico      subsidiaries of the Borrower, ING Capital LLC, and the lenders signatory      thereto dated as of September 25, 2006 (incorporated by reference from      Exhibit 10.1 of the Company's Current Report on Form 8-K filed on      September 28, 2006).                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.20  |   | 2006      Amended and Restated Credit Agreement by and among CoBank, ACB, Agriland,      FCS and the Company dated as of September 21, 2006 (incorporated by      reference from Exhibit 10.2 of the Company's Current Report on Form 8-K      filed on September 28, 2006).                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.21  |   | First      Amendment to the Pilgrim’s Pride Corporation Amended and Restated 2005      Deferred Compensation Plan Trust, dated as of November 29, 2006      (incorporated by reference from Exhibit 10.03 of the Company’s Current      Report on Form 8-K filed on December 05, 2006). …                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.22  |   | Agreement      and Plan of Merger dated as of December 3, 2006, by and among the Company,      Protein Acquisition Corporation, a wholly owned subsidiary of the Company,      and Gold Kist Inc. (incorporated by reference from Exhibit 99.(D)(1) to      Amendment No. 11 to the Company’s Tender Offer Statement on Schedule TO      filed on December 5, 2006).                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.23  |   | First      Amendment to Credit Agreement, dated as of December 13, 2006, by and among      the Company, as borrower, CoBank, ACB, as lead arranger and co-syndication      agent, and sole book runner, and as administrative, documentation and      collateral agent, Agriland, FCS, as co-syndication agent, and as a      syndication party, and the other syndication parties signatory thereto      (incorporated by reference from Exhibit 10.01 to the Company’s Current      Report on Form 8-K filed on December 19, 2006). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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Index

| 10.24  |   | Second      Amendment to Credit Agreement, dated as of January 4, 2007, by and among      the Company, as borrower, CoBank, ACB, as lead arranger and co-syndication      agent, and sole book runner, and as administrative, documentation and      collateral agent, Agriland, FCS, as co-syndication agent, and as a      syndication party, and the other syndication parties signatory thereto      (incorporated by reference from Exhibit 10.01 to the Company’s Current      Report on Form 8-K filed on January 9, 2007).                                           |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.25  |   | Fourth      Amended and Restated Secured Credit Agreement, dated as of February 8,      2007, by and among the Company, To-Ricos, Ltd., To-Ricos Distribution,      Ltd., Bank of Montreal, as agent, SunTrust Bank, as syndication agent,      U.S. Bank National Association and Wells Fargo Bank, National Association,      as co-documentation agents, BMO Capital Market, as lead arranger, and the      other lenders signatory thereto (incorporated by reference from Exhibit      10.01 of the Company’s Current Report on Form 8-K dated February 12,      2007). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.26  |   | Third      Amendment to Credit Agreement, dated as of February 7, 2007, by and among      the Company as borrower, CoBank, ACB, as lead arranger and co-syndication      agent, and the sole book runner, and as administrative, documentation and      collateral agent, Agriland, FCS, as co-syndication agent, and as a      syndication party, and the other syndication parties signatory thereto      (incorporated by reference from Exhibit 10.02 of the Company’s Current      Report on Form 8-K dated February 12, 2007).                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.27  |   | First      Amendment to Credit Agreement, dated as of March 15, 2007, by and among      the Borrower, the Company, the Subsidiary Guarantors, ING Capital LLC, and      the Lenders (incorporated by reference from Exhibit 10.01 of the Company’s      Current Report on Form 8-K dated March 20, 2007).                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.28  |   | Fourth      Amendment to Credit Agreement, dated as of July 3, 2007, by and among the      Company as borrower, CoBank, ACB, as lead arranger and co-syndication      agent, and the sole book runner, and as administrative, documentation and      collateral agent, Agriland, FCS, as co-syndication agent, and as      syndication party, and the other syndication parties signatory thereto      (incorporated by reference from Exhibit 10.1 of the Company's Quarterly      Report on Form 10-Q filed July 31, 2007).                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.29  |   | Retirement      and Consulting Agreement dated as of October 10, 2007, between the Company      and Clifford E. Butler (incorporated by reference from Exhibit 10.1 of the      Company’s Current Report on Form 8-K dated October 10, 2007). …                                                                                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.30  |   | Fifth      Amendment to Credit Agreement, dated as of August 7, 2007, by and among      the Company as borrower, CoBank, ACB, as lead arranger and co-syndication      agent, and the sole book runner, and as administrative, documentation and      collateral agent, Agriland, FCS, as co-syndication agent, and as      syndication party, and the other syndication parties signatory thereto      (incorporated by reference from Exhibit 10.39 of the Company’s Annual      Report on Form 10-K filed on November 19, 2007).                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

----

Index

| 10.31  |   | Sixth      Amendment to Credit Agreement, dated as of November 7, 2007, by and among      the Company as borrower, CoBank, ACB, as administrative agent, and the      other syndication parties signatory thereto (incorporated by reference      from Exhibit 10.1 of the Company’s Current Report on Form 8-K dated      November 13, 2007).                                                                      |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.32  |   | Ground      Lease Agreement effective February 1, 2008 between Pilgrim's Pride      Corporation and Pat Pilgrim (incorporated by reference from Exhibit 10.1      of the Company's Current Report on Form 8-K dated February 1,      2008).                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.33  |   | Seventh      Amendment to Credit Agreement, dated as of March 10, 2008, by and among      the Company as borrower, CoBank, ACB, as administrative agent, and the      other syndication parties signatory thereto (incorporated by reference      from Exhibit 10.1 to the Company's Current Report on Form 8-K filed on      February 20, 2008).                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.34  |   | First      Amendment to the Fourth Amended and Restated Secured Credit Agreement,      dated as of March 11, 2008, by and among the Company, To-Ricos, Ltd.,      To-Ricos Distribution, Ltd., Bank of Montreal, as administrative agent,      and the other lenders signatory thereto (incorporated by reference from      Exhibit 10.2 to the Company's Current Report on Form 8-K filed on February      20, 2008).         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.35  |   | Eighth      Amendment to Credit Agreement, dated as of April 30, 2008, by and among      the Company as borrower, CoBank, ACB, as administrative agent, and the      other syndication parties signatory thereto (incorporated by reference      from Exhibit 10.1 to the Company's Current Report on Form 8-K filed on May      5, 2008).                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.36  |   | Second      Amendment to the Fourth Amended and Restated Secured Credit Agreement,      dated as of April 30, 2008, by and among the Company, To-Ricos, Ltd.,      To-Ricos Distribution, Ltd., Bank of Montreal, as administrative agent,      and the other lenders signatory thereto (incorporated by reference from      Exhibit 10.2 to the Company's Current Report on Form 8-K filed on May 5,      2008).              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.37  |   | Change      to Company Contribution Amount Under the Amended and Restated 2005      Deferred Compensation Plan of the Company (incorporated by reference from      Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q filed July 30,      2008). …                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.38  |   | Limited Duration Waiver      of Potential Defaults and Events of Default under Credit Agreement dated      September 26, 2008 by and among Pilgrim's Pride Corporation, as      borrower, CoBank, ACB, as administrative agent, and the other syndication      parties signatory thereto (incorporated by reference from Exhibit      10.1 to the Company's Current Report on Form 8-K filed on September 29,      2008). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.39  |   | Limited Duration Waiver      Agreement dated as of September 26, 2008 by and among Pilgrim's Pride      Corporation, as borrower, Bank of Montreal, as administrative agent, and      certain other bank parties thereto (incorporated      by reference from Exhibit 10.2 to the Company's Current Report on Form 8-K      filed on September 29, 2008).                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                           |

----

Index

| 10.40  |   | Limited Duration Waiver      Agreement dated as of September 26, 2008 by and among Pilgrim's Pride      Corporation, Pilgrim's Pride Funding Corporation,      BMO Capital Markets Corp., as administrator, and Fairway Finance Company,      LLC (incorporated by reference from Exhibit 10.3 to the Company's      Current Report on Form 8-K filed on September 29,2008).                                                                             |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.41  |   | Amended and Restated      Receivables Purchase      Agreement dated as of September 26, 2008 among Pilgrim's Pride      Corporation, Pilgrim's Pride Funding Corporation, BMO Capital Markets      Corp., as administrator, and the various purchasers and purchaser agents      from time to time parties thereto (incorporated      by reference from Exhibit 10.4 to the Company's Current Report on Form 8-K      filed on September 29, 2008). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.42  |   | Amendment      No. 1 dated as of October 10, 2008 to Amended and Restated Receivables      Purchase Agreement, dated as of September 26, 2008 among Pilgrim's Pride      Corporation, Pilgrim's Pride Funding Corporation, BMO Capital Markets      Corp., as administrator, and the various purchasers and purchaser agents      from time to time parties thereto.*                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.43  |   | Amendment No. 2 to      Purchase and Contribution Agreement      dated as of September 26, 2008 among Pilgrim's Pride Funding Corporation      and Pilgrim's Pride Corporation (incorporated by reference from      Exhibit 10.5 to the Company's Current Report on Form 8-K filed on      September 29, 2008).                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.44  |   | Limited Duration Waiver      of Potential Defaults and Events of Default under Credit Agreement dated      October 26, 2008 by and among Pilgrim's Pride Corporation, as borrower,      CoBank, ACB, as administrative agent, and the other syndication parties      signatory thereto (incorporated      by reference from Exhibit 10.1 to the Company's Current Report on Form 8-K      filed on October 27, 2008).                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.45  |   | Limited Duration Waiver      Agreement dated as of October 26, 2008 by and among Pilgrim's Pride      Corporation, as borrower, Bank of Montreal, as      administrative agent, and certain other bank parties thereto      (incorporated by reference from Exhibit 10.2 to the Company's      Current Report on Form 8-K filed on October 27, 2008).                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.46  |   | Limited Duration Waiver      Agreement dated as of October 26, 2008 by and      among Pilgrim's Pride Corporation, Pilgrim's Pride Funding Corporation,      BMO Capital Markets Corp., as administrator, and Fairway Finance Company,      LLC (incorporated by reference from Exhibit 10.3 to the Company's      Current Report on Form 8-K filed on October 27, 2008).                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.47  |   | Form of Change in      Control Agreement dated as of October 21, 2008 between the Company and      certain of its executive officers (incorporated by reference from      Exhibit 10.4 to the Company's Current Report on Form 8-K filed on October      27, 2008). …                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.48  |   | First      Amendment to Limited Duration Waiver      of Potential Defaults and Events of Default under Credit Agreement dated      November 25, 2008 by and among Pilgrim's Pride Corporation, as      borrower, CoBank, ACB, as administrative agent, and the      other syndication parties signatory thereto.*                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

Index

| 10.49  |   | First      Amendment to Limited Duration Waiver Agreement dated as of      November 25, 2008 by and among Pilgrim's Pride Corporation, as      borrower, Bank of Montreal, as administrative agent, and certain other      bank parties thereto.*                      |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                        |
| 10.50  |   | First      Amendment to Limited Duration Waiver Agreement dated as of      November 25, 2008 by and among Pilgrim's Pride Corporation, Pilgrim's      Pride Funding Corporation, BMO Capital Markets Corp., as administrator,      and Fairway Finance Company, LLC. * |
|   |   |                                                                                                                                                                                                                                                                        |
| 10.51  |   | Waiver      Agreement and Second Amendment to Credit Agreement dated November 30,      2008, by and among the Company and certain non-debtor Mexico subsidiaries      of the Company, ING Capital LLC, as agent, and the lenders signatory      thereto.*              |
|   |   |                                                                                                                                                                                                                                                                        |
| 10.52  |   | Post-Petition      Credit Agreement dated December 2, 2008 by and among the Company, as      borrower, the US Subsidiaries, as guarantors, Bank of Montreal, as agent,      and the lenders party thereto.*                                                                 |
|   |   |                                                                                                                                                                                                                                                                        |
| 12     |   | Ratio      of Earnings to Fixed Charges for the years ended September 27, 2008,      September 29, 2007, September 30, 2006, October 1, 2005, October 2, 2004,      and September 27, 2003.*                                                                                |
|   |   |                                                                                                                                                                                                                                                                        |
| 21     |   | Subsidiaries      of Registrant.*                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                        |
| 23     |   | Consent      of Ernst & Young LLP.*                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                        |
| 31.1   |   | Certification      of Co-Principal Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.*                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                        |
| 31.2   |   | Certification      of Co-Principal Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.*                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                        |
| 31.3   |   | Certification      of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.*                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                        |
| 32.1   |   | Certification      of Co-Principal Executive Officer of Pilgrim's Pride Corporation pursuant      to Section 906 of the Sarbanes-Oxley Act of 2002.*                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                        |
| 32.2   |   | Certification      of Co-Principal Executive Officer of Pilgrim's Pride Corporation pursuant      to Section 906 of the Sarbanes-Oxley Act of 2002.*                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                        |
| 32.3   |   | Certification      of Chief Financial Officer of Pilgrim's Pride Corporation pursuant to      Section 906 of the Sarbanes-Oxley Act of2002.*                                                                                                                                |

|   | *Filed      herewith |
|--------|----------------------|

|   | …Represents      a management contract or compensation plan  arrangement |
|--------|--------------------------------------------------------------------------------|

----

Index

SIGNATURES

| By:    | /s/ Richard A. Cogdill                                |
|--------|-------------------------------------------------------|
|   | Richard      A. Cogdill                               |
|   | Chief      Financial Officer, Secretary and Treasurer |
|   | (Principal      Financial and AccountingOfficer)      |

----

Index

| Signature                                |   | Title                                                  |   | Date     |
|------------------------------------------|--------|--------------------------------------------------------|--------|----------|
|                                     |   |                                                   |   |     |
|                                     |   |                                                   |   |     |
| /s/      Lonnie “Bo” Pilgrim |   | Senior      Chairman of the Board                      |   | 12/11/08 |
| Lonnie      “Bo” Pilgrim     |   |                                                   |   |     |
|                                     |   |                                                   |   |     |
|                                     |   |                                                   |   |     |
| /s/      Lonnie Ken Pilgrim              |   | Chairman      of the Board                             |   | 12/11/08 |
| Lonnie      Ken Pilgrim                  |   |                                                   |   |     |
|                                     |   |                                                   |   |     |
|                                     |   |                                                   |   |     |
| /s/      J. Clinton Rivers               |   | President                                              |   | 12/11/08 |
| J.      Clinton Rivers                   |   | Chief      Executive Officer and Director              |   |     |
|                                     |   |                                                   |   |     |
|                                     |   |                                                   |   |     |
| /s/      Richard A. Cogdill              |   | Chief      Financial Officer, Secretary, Treasurer and |   | 12/11/08 |
| Richard      A. Cogdill                  |   | Director                                               |   |     |
|                                     |   | (Principal      Financial and Accounting Officer)      |   |     |
|                                     |   |                                                   |   |     |
| /s/      Charles L. Black                |   | Director                                               |   | 12/11/08 |
| Charles      L. Black                    |   |                                                   |   |     |
|                                     |   |                                                   |   |     |
|                                     |   |                                                   |   |     |
| /s/      Linda Chavez                    |   | Director                                               |   | 12/11/08 |
| Linda      Chavez                        |   |                                                   |   |     |
|                                     |   |                                                   |   |     |
|                                     |   |                                                   |   |     |
| /s/      S. Key Coker                    |   | Director                                               |   | 12/11/08 |
| S.      Key Coker                        |   |                                                   |   |     |
|                                     |   |                                                   |   |     |
|                                     |   |                                                   |   |     |
| /s/      Keith W. Hughes                 |   | Director                                               |   | 12/11/08 |
| Keith      W. Hughes                     |   |                                                   |   |     |
|                                     |   |                                                   |   |     |
|                                     |   |                                                   |   |     |
| /s/      Blake D. Lovette                |   | Director                                               |   | 12/11/08 |
| Blake      D. Lovette                    |   |                                                   |   |     |

----

Index

| Signature                      |   | Title    |   | Date     |
|--------------------------------|--------|----------|--------|----------|
|                           |   |     |   |     |
|                           |   |     |   |     |
| /s/      Vance C. Miller, Sr.  |   | Director |   | 12/11/08 |
| Vance      C. Miller, Sr.      |   |     |   |     |
|                           |   |     |   |     |
|                           |   |     |   |     |
| /s/      James G. Vetter, Jr.  |   | Director |   | 12/11/08 |
| James      G. Vetter, Jr.      |   |     |   |     |
|                           |   |     |   |     |
|                           |   |     |   |     |
| /s/      Donald L. Wass, Ph.D. |   | Director |   | 12/11/08 |
| Donald      L. Wass, Ph.D.     |   |     |   |     |
|                           |   |     |   |     |
|                           |   |     |   |     |

----

Index

Report 

----

Index

----

Index

Balance Sheets

|                                                                                                                                                                        |   | September      27, 2008                               |       |   | September      29, 2007 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|------------|--------|-------------------------|--------|
| Assets                                                                                                                                                                      |   | (In      thousands, except shares and per share data) |       |
| Current      assets:                                                                                                                                                        |   |                                                  |       |   |                    |   |
| Cash      and cash equivalents                                                                                                                                              |   | $                                                     | 61,553     |   |                    | $      | 66,168 |   |
| Investment      in available-for-sale securities                                                                                                                            |   |                                                  | 10,439     |   |                    |   | 8,153 |   |
| Trade      accounts and other receivables, lessallowance      for doubtful accounts                                                                                         |   |                                                  | 144,156    |   |                    |   | 114,678 |   |
| Inventories                                                                                                                                                                 |   |                                                  | 1,036,163  |   |                    |   | 925,340 |   |
| Income      taxes receivable                                                                                                                                                |   |                                                  | 21,656     |   |                    |   | 61,901 |   |
| Current      deferred taxes                                                                                                                                                 |   |                                                  | 54,312     |   |                    |   | 8,095 |   |
| Prepaid      expenses and other current assets                                                                                                                              |   |                                                  | 71,552     |   |                    |   | 47,959 |   |
| Assets      held for sale                                                                                                                                                   |   |                                                  | 17,370     |   |                    |   | 15,534 |   |
| Assets      of discontinued business                                                                                                                                        |   |                                                  | 33,519     |   |                    |   | 53,232 |   |
|                                                                                                                                                                        |   |                                                  |       |   |                    |   |   |   |
| Total      current assets                                                                                                                                                   |   |                                                  | 1,450,720  |   |                    |   | 1,301,060 |   |
|                                                                                                                                                                        |   |                                                  |       |   |                    |   |   |   |
| Investment      in available-for-sale securities                                                                                                                            |   |                                                  | 55,854     |   |                    |   | 46,035 |   |
| Other      assets                                                                                                                                                           |   |                                                  | 51,768     |   |                    |   | 60,113 |   |
| Identified      intangible assets, net                                                                                                                                      |   |                                                  | 67,363     |   |                    |   | 78,433 |   |
| Goodwill                                                                                                                                                                    |   |                                                  | —    |   |                    |   | 505,166 |   |
| Property,      plant and equipment, net                                                                                                                                     |   |                                                  | 1,673,004  |   |                    |   | 1,783,429 |   |
|                                                                                                                                                                        |   |                                                  |       |   |                    |   |   |   |
|                                                                                                                                                                        |   | $                                                     | 3,298,709  |   |                    | $      | 3,774,236 |   |
| Liabilities      and stockholders’ equity                                                                                                                             |   |                                                  |       |   |                    |   |   |   |
| Current      liabilities:                                                                                                                                                   |   |                                                  |       |   |                    |   |   |   |
| Accounts      payable                                                                                                                                                       |   | $                                                     | 378,887    |   |                    | $      | 398,512 |   |
| Accrued      expenses                                                                                                                                                       |   |                                                  | 448,823    |   |                    |   | 497,262 |   |
| Current      maturities of long-term debt                                                                                                                                   |   |                                                  | 1,874,469  |   |                    |   | 2,872 |   |
| Liabilities      of discontinued business                                                                                                                                   |   |                                                  | 10,783     |   |                    |   | 6,556 |   |
|                                                                                                                                                                        |   |                                                  |       |   |                    |   |   |   |
| Total      current liabilities                                                                                                                                              |   |                                                  | 2,712,962  |   |                    |   | 905,202 |   |
|                                                                                                                                                                        |   |                                                  |       |   |                    |   |   |   |
| Long-term      debt, less current maturities                                                                                                                                |   |                                                  | 67,514     |   |                    |   | 1,318,558 |   |
| Deferred      income taxes                                                                                                                                                  |   |                                                  | 80,755     |   |                    |   | 326,570 |   |
| Other      long-term liabilities                                                                                                                                            |   |                                                  | 85,737     |   |                    |   | 51,685 |   |
| Commitments      and contingencies                                                                                                                                          |   |                                                  | —    |   |                    |   | — |   |
| Stockholders’      equity:                                                                                                                                            |   |                                                  |       |   |                    |   |   |   |
| Preferred      stock, $.01 par value, 5,000,000 shares authorized; no shares      issued                                                                                    |   |                                                  | —    |   |                    |   | — |   |
| Common      stock, $.01 par value, 160,000,000 shares authorized; 74,055,733 and      66,555,733 shares issued and outstanding at year end 2008 and 2007,      respectively |   |                                                  |   740 |   |                    |   |   665 |   |
| Additional      paid-in capital                                                                                                                                             |   |                                                  | 646,922    |   |                    |   | 469,779 |   |
| Accumulated      earnings (deficit)                                                                                                                                         |   |                                                  | (317,082   | )      |                    |   | 687,775 |   |
| Accumulated      other comprehensive income                                                                                                                                 |   |                                                  | 21,161     |   |                    |   | 14,002 |   |
|                                                                                                                                                                        |   |                                                  |       |   |                    |   |   |   |
| Total      stockholders’ equity                                                                                                                                       |   |                                                  | 351,741    |   |                    |   | 1,172,221 |   |
|                                                                                                                                                                        |   |                                                  |       |   |                    |   |   |   |
|                                                                                                                                                                        |   | $                                                     | 3,298,709  |   |                    | $      | 3,774,236 |   |

----

Index

Statements of Operations

|                                                                                              |   | Three      Years Ended September 27, 2008  |       |
|---------------------------------------------------------------------------------------------------|--------|--------------------------------------------|------------|
|                                                                                              |   | 2008                                       |       |   | 2007 |   |   | 2006 |   |
|                                                                                              |   | (In      thousands, except per share data) |       |
| Net      sales                                                                                    |   | $                                          | 8,525,112  |   |   | $ | 7,498,612 |   |   | $ | 5,152,729 |   |
| Costs      and expenses:                                                                          |   |                                       |       |   |   |   |   |   |   |   |   |   |
| Cost      of sales                                                                                |   |                                       | 8,675,524  |   |   |   | 6,905,882 |   |   |   | 4,855,646 |   |
| Operational      restructuring charges                                                            |   |                                       | 13,083     |   |   |   | — |   |   |   | — |   |
|                                                                                              |   |                                       |       |   |   |   |   |   |   |   |   |   |
| Gross      profit (loss)                                                                          |   |                                       | (163,495   | ) |   |   | 592,730 |   |   |   | 297,083 |   |
|                                                                                              |   |                                       |       |   |   |   |   |   |   |   |   |   |
| Selling,      general and administrative expenses                                                 |   |                                       | 376,599    |   |   |   | 355,539 |   |   |   | 285,978 |   |
| Goodwill      impairment                                                                          |   |                                       | 501,446    |   |   |   | — |   |   |   | — |   |
| Administrative      restructuring charges                                                         |   |                                       | 16,156     |   |   |   | — |   |   |   | — |   |
|                                                                                              |   |                                       |       |   |   |   |   |   |   |   |   |   |
| Total      costs and expenses                                                                     |   |                                       | 9,582,808  |   |   |   | 7,261,421 |   |   |   | 5,141,624 |   |
|                                                                                              |   |                                       |       |   |   |   |   |   |   |   |   |   |
| Operating      income (loss)                                                                      |   |                                       | (1,057,696 | ) |   |   | 237,191 |   |   |   | 11,105 |   |
|                                                                                              |   |                                       |       |   |   |   |   |   |   |   |   |   |
| Other      expenses (income):                                                                     |   |                                       |       |   |   |   |   |   |   |   |   |   |
| Interest      expense                                                                             |   |                                       | 134,220    |   |   |   | 123,183 |   |   |   | 49,013 |   |
| Interest      income                                                                              |   |                                       | (2,593     | ) |   |   | (4,641 | ) |   |   | (10,048 | ) |
| Loss      on early extinguishment of debt                                                         |   |                                       | —    |   |   |   | 26,463 |   |   |   | — |   |
| Miscellaneous,      net                                                                           |   |                                       | (2,230     | ) |   |   | (6,649 | ) |   |   | (1,234 | ) |
|                                                                                              |   |                                       |       |   |   |   |   |   |   |   |   |   |
|                                                                                              |   |                                       | 129,397    |   |   |   | 138,356 |   |   |   | 37,731 |   |
|                                                                                              |   |                                       |       |   |   |   |   |   |   |   |   |   |
| Income      (loss) from continuing operations before income taxes                                 |   |                                       | (1,187,093 | ) |   |   | 98,835 |   |   |   | (26,626 | ) |
| Income      tax expense (benefit)                                                                 |   |                                       | (194,921   | ) |   |   | 47,319 |   |   |   | 1,573 |   |
|                                                                                              |   |                                       |       |   |   |   |   |   |   |   |   |   |
| Income      (loss) from continuing operations                                                     |   |                                       | (992,172   | ) |   |   | 51,516 |   |   |   | (28,199 | ) |
| Income      (loss) from operations of discontinued business, net oftax                            |   |                                       | (7,312     | ) |   |   | (4,499 | ) |   |   | (6,033 | ) |
| Gain      on disposal of discontinued business, net of tax                                        |   |                                       | 903        |   |   |   | — |   |   |   | — |   |
|                                                                                              |   |                                       |       |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                                                            |   | $                                          | (998,581   | ) |   | $ | 47,017 |   |   | $ | (34,232 | ) |
|                                                                                              |   |                                       |       |   |   |   |   |   |   |   |   |   |
| Net      income (loss) per common share—basic anddiluted:                                   |   |                                       |       |   |   |   |   |   |   |   |   |   |
| Continuing      operations                                                                        |   | $                                          | (14.31     | ) |   | $ | 0.77 |   |   | $ | (0.42 | ) |
| Discontinued      business                                                                        |   |                                       | (0.09      | ) |   |   | (0.06 | ) |   |   | (0.09 | ) |
|                                                                                              |   |                                       |       |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                                                            |   | $                                          | (14.40     | ) |   | $ | 0.71 |   |   | $ | (0.51 | ) |
|                                                                                              |   |
| The accompanying notes      are an integral part      of these Consolidated Financial Statements. |   |

----

Index

Stockholders’ Equity

|                                               |   |                                                  |       |    |   |        |      |   | Accumulated   |          |    |     |   |   |     |
|----------------------------------------------------|--------|-------------------------------------------------------|------------|---------|--------|-------------|-----------|--------|---------------|---------------|---------|----------|--------|--------|----------|
|                                               |   |                                                  | Additional |    |   | Accumulated |      |   | Other         |          |    |     |   |   |     |
|                                               |   | Common Stock                                          | Paid-In    |    |   | Earnings    |      |   | Comprehensive |          |    | Treasury |   |   |     |
|                                               |   | Shares                                                | Value      | Capital |   |        | (Deficit) |   |          | Income (Loss) |    |     | Stock  |   |     | Total |
|                                               |   | (In      thousands, except shares and per share data) |
| Balance      at October 1, 2005                    |   |                                                  | 66,826,833 |    |   | $           | 668       |   |          | $             | 471,344 |     |   | $      | 753,527  |   |   | $ | (373 | ) |   | $ | (1,568 | ) |   | $ | 1,223,598 |   |
|                                               |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                      |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   | (34,232  | ) |   |   |   |   |   |   |   |   |   |   | (34,232 | ) |
| Other      comprehensive income                    |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   | 507 |   |   |   |   |   |   |   | 507 |   |
|                                               |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      comprehensive loss                      |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   | (33,725 | ) |
|                                               |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cancellation      of treasury stock                |   |                                                  | (271,100   | )       |   |        | (3        | )      |          |          | (1,565  | )        |   |   |     |   |   |   |   |   |   |   | 1,568 |   |   |   | — |   |
| Cash      dividends declared($1.09      per share) |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   | (72,545  | ) |   |   |   |   |   |   |   |   |   |   | (72,545 | ) |
|                                               |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at September 30, 2006                 |   |                                                  | 66,555,733 |    |   |        | 665       |   |          |          | 469,779 |     |   |   | 646,750  |   |   |   | 134 |   |   |   | — |   |   |   | 1,117,328 |   |
|                                               |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                    |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   | 47,017   |   |   |   |   |   |   |   |   |   |   |   | 47,017 |   |
| Other      comprehensive income                    |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   | 13,868 |   |   |   |   |   |   |   | 13,868 |   |
|                                               |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      comprehensive income                    |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   | 60,885 |   |
|                                               |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends declared($.09      per share)  |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   | (5,992   | ) |   |   |   |   |   |   |   |   |   |   | (5,992 | ) |
|                                               |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at September 29, 2007                 |   |                                                  | 66,555,733 |    |   |        | 665       |   |          |          | 469,779 |     |   |   | 687,775  |   |   |   | 14,002 |   |   |   | — |   |   |   | 1,172,221 |   |
|                                               |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                      |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   | (998,581 | ) |   |   |   |   |   |   |   |   |   |   | (998,581 | ) |
| Other      comprehensive income                    |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   | 7,159 |   |   |   |   |   |   |   | 7,159 |   |
|                                               |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      comprehensive loss                      |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   | (991,422 | ) |
|                                               |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sale      of common stock                          |   |                                                  | 7,500,000  |    |   |        | 75        |   |          |          | 177,143 |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   | 177,218 |   |
| Cash      dividends declared($.09      per share)  |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   | (6,328   | ) |   |   |   |   |   |   |   |   |   |   | (6,328 | ) |
| Other                                              |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   | 52       |   |   |   |   |   |   |   |   |   |   |   | 52 |   |
|                                               |   |                                                  |       |    |   |        |      |   |          |          |    |     |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at September 27, 2008                 |   |                                                  | 74,055,733 |    |   | $           | 740       |   |          | $             | 646,922 |     |   | $      | (317,082 | ) |   | $ | 21,161 |   |   | $ | — |   |   | $ | 351,741 |   |

----

Index

Cash Flows

|                                                                                                    |   | Three      Years Ended September 27, 2008 |       |
|---------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|------------|
|                                                                                                    |   | 2008                                      |       |   | 2007 |   |   | 2006 |   |
|                                                                                                    |   | (In      thousands)                       |       |
| Cash      flows from operating activities:                                                              |   |                                      |       |   |   |   |   |   |   |
| Net      income (loss)                                                                                  |   | $                                         | (998,581   | ) |   | $ | 47,017 |   |   | $ | (34,232 | ) |
| Adjustments      to reconcile net income (loss) to cash provided by (used in) operating      activities |   |                                      |       |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                                      |   |                                      | 240,305    |   |   |   | 204,903 |   |   |   | 135,133 |   |
| Non-cash      loss on early extinguishment of debt                                                      |   |                                      | —    |   |   |   | 9,543 |   |   |   | — |   |
| Tangible      asset impairment                                                                          |   |                                      | 13,184     |   |   |   | — |   |   |   | 3,767 |   |
| Goodwill      impairment                                                                                |   |                                      | 501,446    |   |   |   | — |   |   |   | — |   |
| Loss      (gain) on property disposals                                                                  |   |                                      | (14,850    | ) |   |   | (446 | ) |   |   | 1,781 |   |
| Deferred      income taxes                                                                              |   |                                      | (195,944   | ) |   |   | 83,884 |   |   |   | 20,455 |   |
| Changes      in operating assets and liabilities, net of the effect of business      acquired           |   |                                      |       |   |   |   |   |   |   |   |   |   |
| Accounts      and other receivables                                                                     |   |                                      | (19,864    | ) |   |   | 247,217 |   |   |   | 31,121 |   |
| Income      taxes payable/receivable                                                                    |   |                                      | (1,552     | ) |   |   | 5,570 |   |   |   | (55,363 | ) |
| Inventories                                                                                             |   |                                      | (103,937   | ) |   |   | (129,645 | ) |   |   | (58,612 | ) |
| Prepaid      expenses and other current assets                                                          |   |                                      | (23,392    | ) |   |   | (2,981 | ) |   |   | (6,594 | ) |
| Accounts      payable and accrued expenses                                                              |   |                                      | (71,293    | ) |   |   | (5,097 | ) |   |   | (3,501 | ) |
| Other                                                                                                   |   |                                      | (6,248     | ) |   |   | 4,045 |   |   |   | (3,626 | ) |
|                                                                                                    |   |                                      |       |   |   |   |   |   |   |   |   |   |
| Cash      provided by (used in) operating activities                                                    |   |                                      | (680,726   | ) |   |   | 464,010 |   |   |   | 30,329 |   |
|                                                                                                    |   |                                      |       |   |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                              |   |                                      |       |   |   |   |   |   |   |   |   |   |
| Acquisitions      of property, plant and equipment                                                      |   |                                      | (152,501   | ) |   |   | (172,323 | ) |   |   | (143,882 | ) |
| Purchase      of investment securities                                                                  |   |                                      | (38,043    | ) |   |   | (125,045 | ) |   |   | (318,266 | ) |
| Proceeds      from sale or maturity of investment securities                                            |   |                                      | 27,545     |   |   |   | 208,676 |   |   |   | 490,764 |   |
| Business      acquisition, net of cash acquired                                                         |   |                                      | —    |   |   |   | (1,102,069 | ) |   |   | — |   |
| Proceeds      from property disposals                                                                   |   |                                      | 41,367     |   |   |   | 6,286 |   |   |   | 4,148 |   |
| Other,      net                                                                                         |   |                                      | —    |   |   |   | — |   |   |   | (506 | ) |
|                                                                                                    |   |                                      |       |   |   |   |   |   |   |   |   |   |
| Cash      provided by (used in) investing activities                                                    |   |                                      | (121,632   | ) |   |   | (1,184,475 | ) |   |   | 32,258 |   |
|                                                                                                    |   |                                      |       |   |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                              |   |                                      |       |   |   |   |   |   |   |   |   |   |
| Proceeds      from notes payable to banks                                                               |   |                                      | —    |   |   |   | — |   |   |   | 270,500 |   |
| Repayments      on notes payable to banks                                                               |   |                                      | —    |   |   |   | — |   |   |   | (270,500 | ) |
| Proceeds      from long-term debt                                                                       |   |                                      | 2,264,912  |   |   |   | 1,981,255 |   |   |   | 74,683 |   |
| Payments      on long-term debt                                                                         |   |                                      | (1,646,028 | ) |   |   | (1,368,700 | ) |   |   | (36,950 | ) |
| Changes      in cash management obligations                                                             |   |                                      | 13,558     |   |   |   | 39,231 |   |   |   | — |   |
| Sale      of common stock                                                                               |   |                                      | 177,218    |   |   |   | — |   |   |   | — |   |
| Debt      issue costs                                                                                   |   |                                      | (5,589     | ) |   |   | (15,565 | ) |   |   | (3,938 | ) |
| Cash      dividends paid                                                                                |   |                                      | (6,328     | ) |   |   | (5,992 | ) |   |   | (72,545 | ) |
|                                                                                                    |   |                                      |       |   |   |   |   |   |   |   |   |   |
| Cash      provided by (used in) financing activities                                                    |   |                                      | 797,743    |   |   |   | 630,229 |   |   |   | (38,750 | ) |
|                                                                                                    |   |                                      |       |   |   |   |   |   |   |   |   |   |
| Increase      (decrease) in cash and cash equivalents                                                   |   |                                      | (4,615     | ) |   |   | (90,236 | ) |   |   | 23,837 |   |
| Cash      and cash equivalents, beginning of year                                                       |   |                                      | 66,168     |   |   |   | 156,404 |   |   |   | 132,567 |   |
|                                                                                                    |   |                                      |       |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents, end of year                                                             |   | $                                         | 61,553     |   |   | $ | 66,168 |   |   | $ | 156,404 |   |
|                                                                                                    |   |                                      |       |   |   |   |   |   |   |   |   |   |
| Supplemental      Disclosure Information:                                                               |   |                                      |       |   |   |   |   |   |   |   |   |   |
| Cash      paid during the year for:                                                                     |   |                                      |       |   |   |   |   |   |   |   |   |   |
| Interest      (net of amount capitalized)                                                               |   | $                                         | 142,339    |   |   | $ | 104,394 |   |   | $ | 48,590 |   |
| Income      taxes paid                                                                                  |   | $                                         | 6,411      |   |   | $ | 11,164 |   |   | $ | 37,813 |   |
|                                                                                                    |   |                                      |       |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an      integral part of these Consolidated Financial Statements.            |   |

----

Index

NOTES

|   | NOTE      A—BUSINESS, CHAPTER 11 BANKRUPTCY FILINGS AND PROCESS, AND GOING CONCERN      MATTERS |
|--------|-------------------------------------------------------------------------------------------------------|

| ·   | Feed      ingredient costs increased substantially between the first quarter of 2007      and the end of 2008. While chicken selling prices generally improved over      the same period, prices did not improve sufficiently to offset the higher      costs of feed ingredients. More recently, prices have actually declined as      the result of weak demand for breast meat and a general oversupply of      chicken in the US. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company recognized losses on derivative financial instruments, primarily      futures contracts and options on corn and soybean meal, during 2008      totaling $38.3 million. In the fourth quarter of 2008, it recognized      losses on derivative financial instruments totaling $155.7 million. In      late June and July of 2008, management executed various derivative      financial instruments for August and September soybean meal and corn      prices. After entering into these positions, the prices of the commodities      decreased significantly in July and August of 2008 creating these      losses. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| ·   | The      Company evaluated the carrying amount of its goodwill for potential      impairment at September 27, 2008. We obtained valuation reports as of      September 27, 2008 that indicated the carrying amount of our goodwill      should be fully impaired based on current conditions. As a result, we      recognized a pretax impairment charge of $501.4 million during      2008. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company assessed the realizability of its net deferred tax assets position      and increased its valuation allowance and recognized additional income tax      expense of approximately $71.2 million during  2008. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Index

|                                              |   | Carrying      Amount |       |   | Fair      Value |   |  Reference |
|---------------------------------------------------|--------|----------------------|------------|--------|-----------------|--------|-----------------|
|                                              |   | (In      thousands)  |       |   |
| Cash      and cash equivalents                    |   | $                    | 61,553     |   |            | $      | 61,553          |   |   |
| Investments      in available-for-sale securities |   |                 | 66,293     |   |            |   | 66,293          |   | Note      H |
| Accounts      receivable                          |   |                 | 144,156    |   |            |   | 144,156         |   | Note      F |
| Derivative      financial instruments             |   |                 | (17,968    | )      |            |   | (17,968         | ) | Note      Q |
| Accounts      payable and accrued expenses        |   |                 | (827,710   | )      |            |   | (827,710        | ) | Note      K |
| Public      debt obligations                      |   |                 | (656,996   | )      |            |   | (371,206        | ) | Note      L |
| Non-public      credit facilities                 |   |                 | (1,284,987 | )      |            | (a)    |            | Note      L |
|                                              |   |                 |       |   |            |   |            |   |   |

| (a) | Management      also expects that the fair value of our non-public credit facilities has      also decreased, but cannot reliably estimate the fair value at this      time. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

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Index

----

Index

| Purchase      of 50,146,368 shares at $21.00 per share |   | $      | 1,053,074 |   |
|--------------------------------------------------------|--------|--------|-----------|--------|
| Premium      paid on retirement of debt                |   |   | 22,208    |   |
| Retirement      of share-based compensation awards     |   |   | 25,677    |   |
| Transaction      costs and fees                        |   |   | 37,740    |   |
|                                                   |   |   |      |   |
| Total      purchase price                              |   | $      | 1,138,699 |   |

----

Index

| Current      assets                          |   | $      | 418,583   |   |
|----------------------------------------------|--------|--------|-----------|--------|
| Property,      plant and equipment           |   |   | 674,444   |   |
| Goodwill                                     |   |   | 499,669   |   |
| Intangible      assets                       |   |   | 64,500    |   |
| Other      assets                            |   |   | 65,597    |   |
|                                         |   |   |      |   |
| Total      assets acquired                   |   |   | 1,722,793 |   |
|                                         |   |   |      |   |
| Current      liabilities                     |   |   | 269,619   |   |
| Long-term      debt, less current maturities |   |   | 140,674   |   |
| Deferred      income taxes                   |   |   | 93,509    |   |
| Other      long-term liabilities             |   |   | 80,292    |   |
|                                         |   |   |      |   |
| Total      liabilities assumed               |   |   | 584,094   |   |
|                                         |   |   |      |   |
| Total      purchase price                    |   | $      | 1,138,699 |   |

|                                                 |   | Estimated        |    |   | Amortization |   |
|------------------------------------------------------|--------|------------------|---------|--------|--------------|--------|
|                                                 |   | Fair Value       |    |   | Period       |   |
|                                                 |   | (In    millions) |    |   | (In years)   |   |
| Intangible assets subject to      amortization:      |   |             |    |   |         |   |
| Customer      relationships                          |   | $                | 51,000  |   |         |   | 13.0 |   |
| Trade name                                           |   |             | 13,200  |   |         |   | 3.0 |   |
| Non-compete      agreements                          |   |             | 300     |   |         |   | 3.0 |   |
|                                                 |   |             |    |   |         |   |   |   |
| Total intangible assets subject to      amortization |   |             | 64,500  |   |         |   |   |   |
|                                                 |   |             |    |   |         |   |   |   |
| Goodwill                                             |   |             | 499,669 |   |         |   |   |   |
|                                                 |   |             |    |   |         |   |   |   |
| Total intangible      assets                         |   | $                | 564,169 |   |         |   |   |   |
|                                                 |   |             |    |   |         |   |   |   |
| Weighted average amortization      period            |   |             |    |   |         |   | 10.9 |   |

| ·   | The      combined company would be positioned as the world’s leading chicken      producer and that position would provide us with enhanced abilities      to: |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Compete      more efficiently and provide even better customer  service; |
|--------------------|--------------------------------------------------------------------------|

| §   | Expand      our geographic reach and customerbase; |
|--------------------|----------------------------------------------------|

| §   | Further      pursue value-added and prepared chicken opportunities;  and |
|--------------------|--------------------------------------------------------------------------|

| §   | Offer      long-term growth opportunities for our stockholders, employees, and      growers. |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | The      combined company would be better positioned to compete in the industry      both internationally and in the US as additional consolidation      occurred. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                                                           |   | 2007                                                  |       |   | 2006           |   |
|----------------------------------------------------------------|--------|-------------------------------------------------------|------------|--------|----------------|--------|
|                                                           |   | Pro      forma                                        |       |   | Pro      forma |   |
|                                                           |   | (In      thousands, except shares and per share data) |       |
| Net      sales                                                 |   | $                                                     | 8,026,422  |   |           | $      | 7,269,182 |   |
| Depreciation      and amortization                             |   | $                                                     | 228,539    |   |           | $      | 221,512 |   |
| Operating      income (loss)                                   |   | $                                                     | 206,640    |   |           | $      | (45,482 | ) |
| Interest      expense, net                                     |   | $                                                     | 144,354    |   |           | $      | 123,726 |   |
| Income      (loss) from continuing operations before taxes     |   | $                                                     | 43,900     |   |           | $      | (163,049 | ) |
| Income      (loss) from continuing operations                  |   | $                                                     | 17,331     |   |           | $      | (112,538 | ) |
| Net      income (loss)                                         |   | $                                                     | 12,832     |   |           | $      | (118,571 | ) |
| Income      (loss) from continuing operations per common share |   | $                                                     | 0.26       |   |           | $      | (1.69 | ) |
| Net      income (loss) per common share                        |   | $                                                     | 0.19       |   |           | $      | (1.78 | ) |
| Weighted      average shares outstanding                       |   |                                                  | 66,555,733 |   |           |   | 66,555,733 |   |

----

Index

|                                                                 |   | 2008                |    |   | 2007   |   |    | 2006   |   |
|----------------------------------------------------------------------|--------|---------------------|---------|--------|--------|--------|---------|--------|--------|
|                                                                 |   | (In      thousands) |    |
| Net      sales                                                       |   | $                   | 86,261  |   |   | $      | 99,987  |   |   | $ | 82,836 |   |
|                                                                 |   |                |    |   |   |   |    |   |   |   |   |   |
| Loss      from operation of discontinued business before incometaxes |   | $                   | (11,746 | )      |   | $      | (7,228  | )      |   | $ | (9,691 | ) |
| Income      tax benefit                                              |   |                | (4,434  | )      |   |   | (2,729  | )      |   |   | (3,658 | ) |
|                                                                 |   |                |    |   |   |   |    |   |   |   |   |   |
| Loss      from operation of discontinued business, net of tax        |   | $                   | (7,312  | )      |   | $      | (4,499  | )      |   | $ | (6,033 | ) |
|                                                                 |   |                |    |   |   |   |    |   |   |   |   |   |
| Gain      on sale of discontinued business before income taxes       |   | $                   | 1,450   |   |   | $      | — |   |   | $ | — |   |
| Income      tax expense                                              |   |                | 547     |   |   |   | — |   |   |   | — |   |
|                                                                 |   |                |    |   |   |   |    |   |   |   |   |   |
| Gain      on sale of discontinued business, net of tax               |   | $                   | 903     |   |   | $      | — |   |   | $ | — |   |

|                                                                                 |   | September      27, 2008 |   |   | September      29, 2007 |   |
|--------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|------------------------------|--------|
|                                                                                 |   | (In      thousands)          |   |
| Trade      accounts and other receivables, less allowance for doubtful      accounts |   | $                            | 5,881  |   |                         | $      | 16,687 |   |
| Inventories                                                                          |   |                         | 27,638 |   |                         |   | 36,545 |   |
|                                                                                 |   |                         |   |   |                         |   |   |   |
| Assets      of discontinued business                                                 |   | $                            | 33,519 |   |                         | $      | 53,232 |   |
|                                                                                 |   |                         |   |   |                         |   |   |   |
| Accounts      payable                                                                |   | $                            | 7,737  |   |                         | $      | 3,804 |   |
| Accrued      expenses                                                                |   |                         | 3,046  |   |                         |   | 2,752 |   |
|                                                                                 |   |                         |   |   |                         |   |   |   |
| Liabilities      of discontinued business                                            |   | $                            | 10,783 |   |                         | $      | 6,556 |   |

----

Index

| ·   | Closed      two processing complexes in Arkansas and North  Carolina, |
|--------------------|-----------------------------------------------------------------------|

| ·   | Idled      a processing complex in Louisiana, |
|--------------------|-----------------------------------------------|

| ·   | Transferred      certain operations previously performed at a processing complex in      Arkansas to other complexes, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | Closed      seven distribution centers in Florida (2), Iowa, Mississippi, Ohio,      Tennessee and Texas, and |
|--------------------|---------------------------------------------------------------------------------------------------------------|

| ·   | Closed      an administrative office building inGeorgia. |
|--------------------|----------------------------------------------------------|

|                               |   | Impairment      Charge |   |
|------------------------------------|--------|------------------------|--------|
|                               |   | (In    thousands)      |   |
| Property, plant and      equipment |   | $                      | 10,210 |   |
| Inventories                        |   |                   | 2,021  |   |
| Intangible      assets             |   |                   | 852    |   |
|                               |   |                   |   |   |
| Total                              |   | $                      | 13,083 |   |

----

Index

|                                  |   | September      29, 2007 |     | 2008   |     | September      27, 2008 |
|---------------------------------------|--------|-------------------------|----------|--------|----------|-------------------------|
|                                  |   |                    | Accruals |   | Payments |                    |
|                                  |   | (In      thousands)     |
| Lease      continuation               | $      | —                 | $        | 4,778  | $        | 312                     | $ | 4,466 |
| Severance      and employee retention |   | —                 |     | 4,000  |     | 1,306                   |   | 2,694 |
| Grower      compensation              |   | —                 |     | 3,989  |     | —                 |   | 3,989 |
| Other      restructuring costs        |   | —                 |     | 3,389  |     | 1,727                   |   | 1,662 |
|                                  |   |                    |     |   |     |                    |   |   |
| Total                                 | $      | —                 | $        | 16,156 | $        | 3,345                   | $ | 12,811 |

|                                 |   | September      27, 2008 |    |   | September      29, 2007 |   |
|--------------------------------------|--------|-------------------------|---------|--------|-------------------------|--------|
|                                 |   | (In      thousands)     |    |
| Trade      accounts receivable       |   | $                       | 135,003 |   |                    | $      | 89,555 |   |
| Other      receivables               |   |                    | 13,854  |   |                    |   | 30,140 |   |
|                                 |   |                    |    |   |                    |   |   |   |
|                                 |   |                    | 148,857 |   |                    |   | 119,695 |   |
| Allowance      for doubtful accounts |   |                    | (4,701  | )      |                    |   | (5,017 | ) |
|                                 |   |                    |    |   |                    |   |   |   |
| Receivables,      net                |   | $                       | 144,156 |   |                    | $      | 114,678 |   |

----

Index

|                                                          |   | September      27,2008 |      |   | September      29,2007 |   |
|---------------------------------------------------------------|--------|------------------------|-----------|--------|------------------------|--------|
|                                                          |   | (In      thousands)    |      |
| Chicken:                                                      |   |                   |      |   |                   |   |
| Live      chicken and hens                                    |   | $                      | 385,511   |   |                   | $      | 343,185 |   |
| Feed      and eggs                                            |   |                   | 265,959   |   |                   |   | 223,631 |   |
| Finished      chicken products                                |   |                   | 365,123   |   |                   |   | 337,052 |   |
|                                                          |   |                   |      |   |                   |   |   |   |
| Total      chicken inventories                                |   |                   | 1,016,593 |   |                   |   | 903,868 |   |
|                                                          |   |                   |      |   |                   |   |   |   |
| Other      products:                                          |   |                   |      |   |                   |   |   |   |
| Commercial      feed, table eggs, retail farm store and other |   | $                      | 13,358    |   |                   | $      | 11,327 |   |
| Distribution      inventories (other than chicken products)   |   |                   | 6,212     |   |                   |   | 10,145 |   |
|                                                          |   |                   |      |   |                   |   |   |   |
| Total      other products inventories                         |   |                   | 19,570    |   |                   |   | 21,472 |   |
|                                                          |   |                   |      |   |                   |   |   |   |
| Total      inventories                                        |   | $                      | 1,036,163 |   |                   | $      | 925,340 |   |

|                           |   | September      27, 2008 |   |   | September      29, 2007 |   |
|--------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
| Current      investments:      |   | (In      thousands)     |   |
| Fixed      income securities   |   | $                       | 9,835  |   |                    | $      | 7,549 |   |
| Other                          |   |                    | 604    |   |                    |   | 604 |   |
|                           |   |                    |   |   |                    |   |   |   |
| Total      current investments |   | $                       | 10,439 |   |                    | $      | 8,153 |   |
|                           |   |                    |   |   |                    |   |   |   |
| Long-term      investments:    |   |                    |   |   |                    |   |   |   |
| Fixed      income securities   |   | $                       | 44,127 |   |                    | $      | 35,451 |   |
| Equity      securities         |   |                    | 9,775  |   |                    |   | 9,591 |   |
| Other                          |   |                    | 1,952  |   |                    |   | 993 |   |
|                           |   |                    |   |   |                    |   |   |   |
|                           |   | $                       | 55,854 |   |                    | $      | 46,035 |   |

----

Index

|                                    |   | Amount              |   |   | Percent |   |
|-----------------------------------------|--------|---------------------|--------|--------|---------|--------|
|                                    |   | (In      thousands) |   |   |    |   |
| Matures      in less than one year      |   | $                   | 9,835  |   |    |   | 18.2 | % |
| Matures      between one and two years  |   |                | 7,952  |   |    |   | 14.8 | % |
| Matures      between two and five years |   |                | 28,690 |   |    |   | 53.1 | % |
| Matures      in excess of five years    |   |                | 7,485  |   |    |   | 13.9 | % |
|                                    |   |                |   |   |    |   |   |   |
|                                    |   | $                   | 53,962 |   |    |   | 100.0 | % |

----

Index

|                                                        |   | Useful      Life(Years) |       |   | OriginalCost        |   |   | Accumulated      Amortization |   |   | Carrying      Amount |   |
|-------------------------------------------------------------|--------|-------------------------|------------|--------|---------------------|--------|--------|-------------------------------|--------|--------|----------------------|--------|
|                                                        |   |                    |       |   | (In      thousands) |   |
| September      27, 2008:                                    |   |                    |       |   |                |   |   |                          |   |   |                 |   |
| Trade      names                                            |   |                    | 3–15 |   |                | $      | 39,271 |                          |   | $      | (16,168              | )      |   | $ | 23,103 |   |
| Customer      relationships                                 |   |                    | 13         |   |                |   | 51,000 |                          |   |   | (6,865               | )      |   |   | 44,135 |   |
| Non-compete      agreement and other identified intangibles |   |                    | 3–15 |   |                |   | 300    |                          |   |   | (175                 | )      |   |   | 125 |   |
|                                                        |   |                    |       |   |                |   |   |                          |   |   |                 |   |   |   |   |   |
| Total      intangible assets                                |   |                    |       |   |                | $      | 90,571 |                          |   | $      | (23,208              | )      |   | $ | 67,363 |   |
|                                                        |   |                    |       |   |                |   |   |                          |   |   |                 |   |   |   |   |   |
| September      29, 2007:                                    |   |                    |       |   |                |   |   |                          |   |   |                 |   |   |   |   |   |
| Trade      names                                            |   |                    |       |   |                | $      | 39,271 |                          |   | $      | (10,007              | )      |   | $ | 29,264 |   |
| Customer      relationships                                 |   |                    |       |   |                |   | 51,000 |                          |   |   | (2,943               | )      |   |   | 48,057 |   |
| Non-compete      agreement and other identified intangibles |   |                    |       |   |                |   | 1,343  |                          |   |   | (231                 | )      |   |   | 1,112 |   |
|                                                        |   |                    |       |   |                |   |   |                          |   |   |                 |   |   |   |   |   |
| Total      identified intangible assets                     |   |                    |       |   |                | $      | 91,614 |                          |   | $      | (13,181              | )      |   | $ | 78,433 |   |

|                                               |   | September      27,2008 |       |   | September      29,2007 |   |
|----------------------------------------------------|--------|------------------------|------------|--------|------------------------|--------|
|                                               |   | (In      thousands)    |       |
| Land                                               |   | $                      | 111,567    |   |                   | $      | 114,365 |   |
| Buildings,      machinery and equipment            |   |                   | 2,465,608  |   |                   |   | 2,366,418 |   |
| Autos      and trucks                              |   |                   | 64,272     |   |                   |   | 59,489 |   |
| Construction-in-progress                           |   |                   | 74,307     |   |                   |   | 123,001 |   |
|                                               |   |                   |       |   |                   |   |   |   |
| Property,      plant and equipment, gross          |   |                   | 2,715,754  |   |                   |   | 2,663,273 |   |
|                                               |   |                   |       |   |                   |   |   |   |
| Accumulated      depreciation                      |   |                   | (1,042,750 | )      |                   |   | (879,844 | ) |
|                                               |   |                   |       |   |                   |   |   |   |
| Property,  plant      and equipment, net |   | $                      | 1,673,004  |   |                   | $      | 1,783,429 |   |

----

Index

|                               |   | September      27, 2008 |    |   | September      29, 2007 |   |
|------------------------------------|--------|-------------------------|---------|--------|-------------------------|--------|
|                               |   | (In      thousands)     |    |
| Compensation      and benefits     |   | $                       | 118,803 |   |                    | $      | 159,322 |   |
| Interest      and debt maintenance |   |                    | 35,488  |   |                    |   | 49,100 |   |
| Self      insurance                |   |                    | 170,787 |   |                    |   | 158,851 |   |
| Other                              |   |                    | 123,745 |   |                    |   | 129,989 |   |
|                               |   |                    |    |   |                    |   |   |   |
| Total                              |   | $                       | 448,823 |   |                    | $      | 497,262 |   |

----

Index

|                                                                                                                                                          | Final      Maturity |   | September      27, 2008 |             |   | September      29, 2007 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|-------------------------|------------------|--------|-------------------------|--------|
|                                                                                                                                                          |                |   | (In      thousands)     |             |
| Senior      unsecured notes, at 7 5/8%                                                                                                                        | 2015                |   | $                       | 400,000          |   |                    | $      | 400,000 |   |
| Senior      subordinated unsecured notes, at 8 3/8%                                                                                                           | 2017                |   |                    | 250,000          |   |                    |   | 250,000 |   |
| Secured      revolving credit facility with notes payable at LIBOR plus 1.25% to LIBOR      plus 2.75%                                                        |  2013          |   |                    | 181,900          |   |                    |   | — |   |
| Secured      revolving credit facility with notes payable at LIBOR plus 1.65% to LIBOR      plus 3.125%                                                       |  2011          |   |                    | 51,613           |   |                    |   | 26,293 |   |
| Secured      revolving/term credit facility with four notes payable at LIBOR plus a      spread, one note payable at 7.34% and one note payable at      7.56% |   2016    |   |                    |   1,035,250 |   |                    |   |   622,350 |   |
| Other                                                                                                                                                         | Various             |   |                    | 23,220           |   |                    |   | 22,787 |   |
|                                                                                                                                                          |                |   |                    |             |   |                    |   |   |   |
| Notes      payable and long-term debt                                                                                                                         |                |   |                    | 1,941,983        |   |                    |   | 1,321,430 |   |
|                                                                                                                                                          |                |   |                    |             |   |                    |   |   |   |
| Current      maturities of long-term debt                                                                                                                     |                |   |                    | (1,874,469       | )      |                    |   | (2,872 | ) |
|                                                                                                                                                          |                |   |                    |             |   |                    |   |   |   |
| Notes      payable and long-term debt, less current maturities                                                                                                |                |   | $                       | 67,514           |   |                    | $      | 1,318,558 |   |

----

Index

----

Index

----

Index

----

Index

----

Index

|    |   | 2008                |       |   | 2007   |   |   | 2006   |   |
|---------|--------|---------------------|------------|--------|--------|--------|--------|--------|--------|
|    |   | (In      thousands) |       |
| US      |   | $                   | (1,165,208 | )      |   | $      | 87,235 |   |   | $ | (10,026 | ) |
| Foreign |   |                | (21,885    | )      |   |   | 11,600 |   |   |   | (16,600 | ) |
|    |   |                |       |   |   |   |   |   |   |   |   |   |
| Total   |   | $                   | (1,187,093 | )      |   | $      | 98,835 |   |   | $ | (26,626 | ) |

|                 |   | 2008                |     |   | 2007   |   |    | 2006   |   |
|----------------------|--------|---------------------|----------|--------|--------|--------|---------|--------|--------|
|                 |   | (In      thousands) |     |
| Current:             |   |                |     |   |   |   |    |   |   |
| Federal              |   | $                   | 925      |   |   | $      | (35,434 | )      |   | $ | (20,294 | ) |
| Foreign              |   |                | (1,649   | )      |   |   | 1,573   |   |   |   | 5,130 |   |
| State      and other |   |                | 1,747    |   |   |   | (2,704  | )      |   |   | (3,718 | ) |
|                 |   |                |     |   |   |   |    |   |   |   |   |   |
| Total      current   |   |                | 1,023    |   |   |   | (36,565 | )      |   |   | (18,882 | ) |
| Deferred:            |   |                |     |   |   |   |    |   |   |   |   |   |
| Federal              |   |                | (212,151 | )      |   |   | 73,285  |   |   |   | 9,511 |   |
| Foreign              |   |                | 35,277   |   |   |   | (1,637  | )      |   |   | 10,221 |   |
| State      and other |   |                | (19,070  | )      |   |   | 12,236  |   |   |   | 723 |   |
|                 |   |                |     |   |   |   |    |   |   |   |   |   |
| Total      deferred  |   |                | (195,944 | )      |   |   | 83,884  |   |   |   | 20,455 |   |
|                 |   |                |     |   |   |   |    |   |   |   |   |   |
|                 |   | $                   | (194,921 | )      |   | $      | 47,319  |   |   | $ | 1,573 |   |

----

Index

|    |   | 2008                |       |   | 2007   |   |   | 2006   |   |
|---------|--------|---------------------|------------|--------|--------|--------|--------|--------|--------|
|    |   | (In      thousands) |       |
| US      |   | $                   | (1,165,208 | )      |   | $      | 87,235 |   |   | $ | (10,026 | ) |
| Foreign |   |                | (21,885    | )      |   |   | 11,600 |   |   |   | (16,600 | ) |
|    |   |                |       |   |   |   |   |   |   |   |   |   |
| Total   |   | $                   | (1,187,093 | )      |   | $      | 98,835 |   |   | $ | (26,626 | ) |

|                 |   | 2008                |     |   | 2007   |   |    | 2006   |   |
|----------------------|--------|---------------------|----------|--------|--------|--------|---------|--------|--------|
|                 |   | (In      thousands) |     |
| Current:             |   |                |     |   |   |   |    |   |   |
| Federal              |   | $                   | 925      |   |   | $      | (35,434 | )      |   | $ | (20,294 | ) |
| Foreign              |   |                | (1,649   | )      |   |   | 1,573   |   |   |   | 5,130 |   |
| State      and other |   |                | 1,747    |   |   |   | (2,704  | )      |   |   | (3,718 | ) |
|                 |   |                |     |   |   |   |    |   |   |   |   |   |
| Total      current   |   |                | 1,023    |   |   |   | (36,565 | )      |   |   | (18,882 | ) |
| Deferred:            |   |                |     |   |   |   |    |   |   |   |   |   |
| Federal              |   |                | (212,151 | )      |   |   | 73,285  |   |   |   | 9,511 |   |
| Foreign              |   |                | 35,277   |   |   |   | (1,637  | )      |   |   | 10,221 |   |
| State      and other |   |                | (19,070  | )      |   |   | 12,236  |   |   |   | 723 |   |
|                 |   |                |     |   |   |   |    |   |   |   |   |   |
| Total      deferred  |   |                | (195,944 | )      |   |   | 83,884  |   |   |   | 20,455 |   |
|                 |   |                |     |   |   |   |    |   |   |   |   |   |
|                 |   | $                   | (194,921 | )      |   | $      | 47,319  |   |   | $ | 1,573 |   |

----

Index

|                                                                                 |   | 2008   |    |     | 2007   |   |    | 2006   |   |
|--------------------------------------------------------------------------------------|--------|--------|---------|----------|--------|--------|---------|--------|--------|
|                                                                                 |   |   |    |     |   |   |    |   |   |
| Federal      income tax rate                                                         |   |   | (35.0   | )      % |   |   | 35.0    | %      |   |   | (35.0 | )      % |
| State      tax rate, net                                                             |   |   | (2.2    | )        |   |   | 2.6     |   |   |   | — |   |
| Permanent      items                                                                 |   |   | 0.8     |     |   |   | 2.7     |   |   |   | — |   |
| Difference      in US statutory tax rate and foreign country effective tax      rate |   |   | 0.2     |     |   |   | (0.7    | )      |   |   | (1.4 | ) |
| Goodwill      impairment                                                             |   |   | 14.8    |     |   |   | — |   |   |   | — |   |
| Tax      credits                                                                     |   |   | (0.5    | )        |   |   | (7.4    | )      |   |   | (17.9 | ) |
| Tax      effect of American Jobs Creation Act repatriation                           |   |   | — |     |   |   | — |   |   |   | 93.1 |   |
| Currency      related differences                                                    |   |   | — |     |   |   | 3.5     |   |   |   | 11.5 |   |
| Change      in contingency / FIN 48 reserves                                         |   |   | 0.2     |     |   |   | 6.3     |   |   |   | (40.5 | ) |
| Change      in valuation allowance                                                   |   |   | 6.0     |     |   |   | — |   |   |   | — |   |
| Change      in tax rate                                                              |   |   | — |     |   |   | 3.0     |   |   |   | — |   |
| Other                                                                                |   |   | (0.7    | )        |   |   | 2.9     |   |   |   | (4.0 | ) |
|                                                                                 |   |   |    |     |   |   |    |   |   |   |   |   |
| Total                                                                                |   |   | (16.4   | )      % |   |   | 47.9    | %      |   |   | 5.8 | % |

|                                        |   | 2008                |    |   | 2007   |   |
|---------------------------------------------|--------|---------------------|---------|--------|--------|--------|
|                                        |   | (In      thousands) |    |
| Deferred      tax liabilities:              |   |                |    |   |   |   |
| Property      and equipment                 |   | $                   | 207,706 |   |   | $      | 256,341 |   |
| Inventories                                 |   |                | 84,261  |   |   |   | 109,410 |   |
| Prior      use of cash accounting           |   |                | 15,243  |   |   |   | 16,936 |   |
| Acquisition-related      items              |   |                | 13,832  |   |   |   | 14,820 |   |
| Deferred      foreign taxes                 |   |                | 30,361  |   |   |   | 25,002 |   |
| Identified      intangibles                 |   |                | 23,346  |   |   |   | 29,266 |   |
| Other                                       |   |                | 6,722   |   |   |   | 51,654 |   |
|                                        |   |                |    |   |   |   |   |   |
| Total      deferred tax liabilities         |   |                | 381,471 |   |   |   | 503,429 |   |
|                                        |   |                |    |   |   |   |   |   |
| Deferred      tax assets:                   |   |                |    |   |   |   |   |   |
| Net      operating losses                   |   |                | 212,421 |   |   |   | — |   |
| Foreign      net operating losses           |   |                | 50,824  |   |   |   | 41,257 |   |
| Credit      carry forwards                  |   |                | 20,322  |   |   |   | — |   |
| Expenses      deductible in different years |   |                | 142,619 |   |   |   | 143,697 |   |
|                                        |   |                |    |   |   |   |   |   |
| Subtotal                                    |   |                | 426,186 |   |   |   | 184,954 |   |
| Valuation      allowance                    |   |                | (71,158 | )      |   |   | — |   |
|                                        |   |                |    |   |   |   |   |   |
| Total      deferred tax assets              |   |                | 355,028 |   |   |   | 184,954 |   |
|                                        |   |                |    |   |   |   |   |   |
| Net      deferred tax liabilities           |   | $                   | 26,443  |   |   | $      | 318,475 |   |

----

Index

----

Index

|                                                 |   | 2008                |   |
|------------------------------------------------------|--------|---------------------|--------|
|                                                 |   | (In      thousands) |   |
| Unrecognized      tax benefits, beginning of year    |   | $                   | 58,557 |   |
| Increases      in tax positions for the current year |   |                | 3,716  |   |
| Increases      in tax positions for prior years      |   |                | 4,120  |   |
| Decreases      in tax positions for prior years      |   |                | (1,071 | ) |
|                                                 |   |                |   |   |
| Unrecognized      tax benefits, end of year          |   | $                   | 65,322 |   |

----

Index

----

Index

----

Index

| ·   | The      Pilgrim’s Pride Retirement Savings Plan (the “RS Plan”), a Section 401(k)      salary deferral plan, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Pilgrim’s Pride Retirement Plan for Union Employees (the “Union Plan”), a      defined benefit plan, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Pilgrim’s Pride Retirement Plan for El Dorado Union Employees (the “El      Dorado” Plan), a defined benefitplan, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      To-Ricos Employee Cash or Deferred Arrangement Profit Sharing Plan (the      “To-Ricos Plan”), a Section 1165(e) salary deferral plan,    and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Gold Kist Pension Plan (the “GK Pension Plan”), a defined benefit      plan. |
|--------------------|---------------------------------------------------------------------------------------------------|

----

Index

|                                                 |   | Pension      Benefits |    |   | Other      Benefits |   |
|------------------------------------------------------|--------|-----------------------|---------|--------|---------------------|--------|
|                                                 |   | 2008                  |    |   | 2007                |   |   | 2008 |   |   | 2007 |   |
| Change      in projected benefit obligation:         |   | (In      thousands)   |    |
| Projected      benefit obligation, beginning of year |   | $                     | 196,803 |   |                | $      | 9,882 |   |   | $ | 2,432 |   |   | $ | — |   |
| Service      cost                                    |   |                  | 1,246   |   |                |   | 2,029 |   |   |   | — |   |   |   | — |   |
| Interest      cost                                   |   |                  | 9,576   |   |                |   | 8,455 |   |   |   | 132 |   |   |   | 103 |   |
| Plan      participant contributions                  |   |                  | 29      |   |                |   | 61 |   |   |   | 79 |   |   |   | 681 |   |
| Actuarial      gains                                 |   |                  | (56,589 | )      |                |   | (12,933 | ) |   |   | (477 | ) |   |   | (41 | ) |
| Acquisitions                                         |   |                  | — |   |                |   | 218,623 |   |   |   | — |   |   |   | 2,689 |   |
| Prior      year service cost                         |   |                  | — |   |                |   | 237 |   |   |   | — |   |   |   | — |   |
| Benefits      paid                                   |   |                  | (23,553 | )      |                |   | (29,551 | ) |   |   | (273 | ) |   |   | (1,000 | ) |
| Other                                                |   |                  | (158    | )      |                |   | — |   |   |   | — |   |   |   | — |   |
|                                                 |   |                  |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Projected      benefit obligation, end of year       |   | $                     | 127,354 |   |                | $      | 196,803 |   |   | $ | 1,893 |   |   | $ | 2,432 |   |

|                                              |   | Pension      Benefits |    |   | Other      Benefits |   |
|---------------------------------------------------|--------|-----------------------|---------|--------|---------------------|--------|
|                                              |   | 2008                  |    |   | 2007                |   |   | 2008 |   |   | 2007 |   |
| Change      in plan assets:                       |   | (In      thousands)   |    |
| Fair      value of plan assets, beginning of year |   | $                     | 138,024 |   |                | $      | 6,252 |   |   | $ | — |   |   | $ | — |   |
| Acquisitions                                      |   |                  | — |   |                |   | 139,229 |   |   |   | — |   |   |   | — |   |
| Actual      return on plan assets                 |   |                  | (24,063 | )      |                |   | 11,571 |   |   |   | — |   |   |   | — |   |
| Contributions      by employer                    |   |                  | 2,543   |   |                |   | 10,462 |   |   |   | 194 |   |   |   | 319 |   |
| Plan      participant contributions               |   |                  | 29      |   |                |   | 61 |   |   |   | 79 |   |   |   | 681 |   |
| Benefits      paid                                |   |                  | (23,553 | )      |                |   | (29,551 | ) |   |   | (273 | ) |   |   | (1,000 | ) |
|                                              |   |                  |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Fair      value of plan assets, end of year       |   | $                     | 92,980  |   |                | $      | 138,024 |   |   | $ | — |   |   | $ | — |   |

|                                 |   | Pension      Benefits |    |   | Other      Benefits |   |
|--------------------------------------|--------|-----------------------|---------|--------|---------------------|--------|
|                                 |   | 2008                  |    |   | 2007                |   |   | 2008 |   |   | 2007 |   |
| Funded      status:                  |   | (In      thousands)   |    |
| Funded      status                   |   | $                     | (34,374 | )      |                | $      | (58,779 | ) |   | $ | (1,893 | ) |   | $ | (2,432 | ) |
| Unrecognized      prior service cost |   |                  | 121     |   |                |   | 237 |   |   |   | — |   |   |   | — |   |
| Unrecognized      net actuarial gain |   |                  | (30,714 | )      |                |   | (14,824 | ) |   |   | (670 | ) |   |   | (41 | ) |
|                                 |   |                  |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Accrued      benefit cost            |   | $                     | (64,967 | )      |                | $      | (73,366 | ) |   | $ | (2,563 | ) |   | $ | (2,473 | ) |

----

Index

|                                           |   | Pension      Benefits |    |   | Other      Benefits |   |
|------------------------------------------------|--------|-----------------------|---------|--------|---------------------|--------|
|                                           |   | 2008                  |    |   | 2007                |   |   | 2008 |   |   | 2007 |   |
| Amounts      recognized in the balance sheets: |   | (In      thousands)   |    |
| Accrued      benefit cost (current)            |   | $                     | (13,596 | )      |                | $      | (17,614 | ) |   | $ | (203 | ) |   | $ | (380 | ) |
| Accrued      benefit cost (long-term)          |   |                  | (20,778 | )      |                |   | (41,165 | ) |   |   | (1,690 | ) |   |   | (2,052 | ) |
| Long-term      deferred income taxes           |   |                  | (11,549 | )      |                |   | (4,942 | ) |   |   | (253 | ) |   |   | (16 | ) |
| Accumulated      other comprehensive income    |   |                  | (19,044 | )      |                |   | (9,645 | ) |   |   | (417 | ) |   |   | (25 | ) |
|                                           |   |                  |    |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Net      amount recognized                     |   | $                     | (64,967 | )      |                | $      | (73,366 | ) |   | $ | (2,563 | ) |   | $ | (2,473 | ) |

|                                    |   | Pension      Benefits |    |   | Other    Benefits |   |
|-----------------------------------------|--------|-----------------------|---------|--------|-------------------|--------|
|                                    |   | 2008                  |    |   | 2007              |   |   | 2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                    |   | (In    thousands)     |    |
| Servicecost                             |   | $                     | 1,246   |   |              | $      | 2,029 |   |   | $ | 2,242 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
| Interest    cost                        |   |                  | 9,576   |   |              |   | 8,455 |   |   |   | 458 |   |   |   | 132 |   |   |   | 103 |   |   |   | — |   |
| Estimated return on plan      assets    |   |                  | (10,200 | )      |              |   | (8,170 | ) |   |   | (454 | ) |   |   | — |   |   |   | — |   |   |   | — |   |
| Settlement    gain                      |   |                  | (6,312  | )      |              |   | (2,327 | ) |   |   | — |   |   |   | 153 |   |   |   | — |   |   |   | — |   |
| Amortization of prior service      cost |   |                  | 116     |   |              |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Effect of special      events           |   |                  | (158    | )      |              |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Amortization of net      gain           |   |                  | (125    | )      |              |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                    |   |                  |    |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net periodic benefit cost      (income) |   | $                     | (5,857  | )      |              | $      | (13 | ) |   | $ | 2,246 |   |   | $ | 285 |   |   | $ | 103 |   |   | $ | — |   |

----

Index

|                                                                              |   | Pension      Benefits |   |   | Other      Benefits |   |
|-----------------------------------------------------------------------------------|--------|-----------------------|--------|--------|---------------------|--------|
|                                                                              |   | 2008                  |   |   | 2007                |   |   | 2008 |   |   | 2007 |   |
| Weighted      average assumptions for benefit obligations at year end:            |   |                  |   |   |                |   |   |   |   |   |   |   |
| Discount      rate                                                                |   |                  | 7.38   | %      |                |   | 5.06 | % |   |   | 7.53 | % |   |   | 5.87 | % |
| Rate      of increase in compensation levels                                      |   |                  | 3.00   | %      |                |   | 3.00 | % |   | NA |   |   | NA |   |
| Weighted      average assumptions for net periodic cost for the year:             |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Discount      rate                                                                |   |                  | 5.08   | %      |                |   | 5.06 | % |   |   | 5.87 | % |   |   | 5.50 | % |
| Rate      of increase in compensation levels                                      |   |                  | 3.00   | %      |                |   | 3.00 | % |   | NA |   |   | NA |   |
| Expected      return on plan assets                                               |   |                  | 7.77   | %      |                |   | 7.75 | % |   |   | 7.75 | % |   |   | 7.75 | % |
| Assumed      health care cost trend rates:                                        |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Health      care cost trend rate assumed for next year                            |   | NA                    |   |   | NA                  |   |   |   | 9.00 | % |   |   | 8.00 | % |
| Rate      to which the cost trend rate gradually declines                         |   | NA                    |   |   | NA                  |   |   |   | 6.00 | % |   |   | 5.00 | % |
| Year      that the rate will reach the rate at which it is assumed to      remain |   | NA                    |   |   | NA                  |   |   | 2015 |   |   | 2014 |   |

|                             |   | 2008   |   |   | 2007   |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|
| Asset      allocation:           |   |   |   |   |   |   |
| Cash      and money market funds |   |   | 1      | %      |   |   | 2 | % |
| Equity      securities           |   |   | 68     | %      |   |   | 71 | % |
| Debt      securities             |   |   | 31     | %      |   |   | 27 | % |
|                             |   |   |   |   |   |   |   |   |
| Total      assets                |   |   | 100    | %      |   |   | 100 | % |

----

Index

|                                     |   |   | Pension      Benefits |    |   | Other      Benefits |   |
|------------------------------------------|--------|--------|-----------------------|---------|--------|---------------------|--------|
| Expected      benefit payments for year: |   |   | (In      thousands)   |    |
| 2009                                     |   |   | $                     | 13,596  |   |                | $      | 204 |   |
| 2010                                     |   |   |                  | 13,235  |   |                |   | 197 |   |
| 2011                                     |   |   |                  | 12,554  |   |                |   | 171 |   |
| 2012                                     |   |   |                  | 11,996  |   |                |   | 174 |   |
| 2013                                     |   |   |                  | 11,459  |   |                |   | 176 |   |
|          2014—2018  |   |   |                  |    | 51,807 |                |   |   | 887 |   |
|                                     |   |   |                  |    |   |                |   |   |   |   |
| Total                                    |   |   | $                     | 114,647 |   |                | $      | 1,809 |   |

|                                                                   |   | Pension      Benefits |    |   | Other      Benefits |   |
|------------------------------------------------------------------------|--------|-----------------------|---------|--------|---------------------|--------|
| Components      of accumulated other comprehensive income, before tax: |   | (In      thousands)   |    |
| Net      actuarial gain                                                |   | $                     | (30,714 | )      |                | $      | (670 | ) |
| Net      prior service cost                                            |   |                  | 121     |   |                |   | — |   |
|                                                                   |   |                  |    |   |                |   |   |   |
| Total                                                                  |   | $                     | (30,593 | )      |                | $      | (670 | ) |

|                                                                |   | Pension      Benefits |    |   | Other      Benefits |   |
|---------------------------------------------------------------------|--------|-----------------------|---------|--------|---------------------|--------|
| Changes      in accumulated other comprehensive income, before tax: |   | (In      thousands)   |    |
| Net      actuarial gain, beginning of year                          |   | $                     | (14,824 | )      |                | $      | (41 | ) |
| Amortization                                                        |   |                  | 125     |   |                |   | — |   |
| Curtailment      and settlement adjustments                         |   |                  | 6,312   |   |                |   | (153 | ) |
| Liability      gain                                                 |   |                  | (56,589 | )      |                |   | (477 | ) |
| Asset      loss                                                     |   |                  | 34,264  |   |                |   | — |   |
| Other                                                               |   |                  | (2      | )      |                |   | 1 |   |
|                                                                |   |                  |    |   |                |   |   |   |
| Net      actuarial gain, end of year                                |   | $                     | (30,714 | )      |                | $      | (670 | ) |
|                                                                |   |                  |    |   |                |   |   |   |
| Net      prior service cost, beginning of year                      |   | $                     | 237     |   |                | $      | — |   |
| Amortization                                                        |   |                  | (116    | )      |                |   | — |   |
|                                                                |   |                  |    |   |                |   |   |   |
| Net      prior service cost, end of year                            |   | $                     | 121     |   |                | $      | — |   |

----

Index

|                                                   |   | 2008                |    |   | 2007   |   |    | 2006   |   |
|--------------------------------------------------------|--------|---------------------|---------|--------|--------|--------|---------|--------|--------|
|                                                   |   | (In      thousands) |    |
| Loan      guaranty fees                                |   | $                   | 4,904   |   |   | $      | 3,592   |   |   | $ | 1,615 |   |
| Contract      grower pay                               |   |                | 1,008   |   |   |   | 885     |   |   |   | 976 |   |
| Lease      payments on commercial egg property         |   |                | 750     |   |   |   | 750     |   |   |   | 750 |   |
| Other      sales to major stockholder                  |   |                | 710     |   |   |   | 620     |   |   |   | 747 |   |
| Lease      payments and operating expenses on airplane |   |                | 456     |   |   |   | 507     |   |   |   | 492 |   |
| Live      chicken purchases from major stockholder     |   |                | — |   |   |   | — |   |   |   | 231 |   |

----

Index

----

Index

----

Index

----

Index

----

Index

| As      of or for the Year Ended                                                                        |   | September      27, 2008 |       |   | September      29, 2007(a) |   |      | September      30, 2006 |   |
|---------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|--------|----------------------------|--------|-----------|-------------------------|--------|
|                                                                                                    |   |                    |       |   | (In      thousands)        |   |      |                    |   |
| Net      sales to customers:                                                                            |   |                    |       |   |                       |   |      |                    |   |
| Chicken:                                                                                                |   |                    |       |   |                       |   |      |                    |   |
| United      States                                                                                      |   | $                       | 7,077,047  |   |                       | $      | 6,328,354 |                    |   | $ | 4,098,403 |   |
| Mexico                                                                                                  |   |                    | 543,583    |   |                       |   | 488,466   |                    |   |   | 418,745 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 7,620,630  |   |                       |   | 6,816,820 |                    |   |   | 4,517,148 |   |
| Other      Products:                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   |                    | 869,850    |   |                       |   | 661,115   |                    |   |   | 618,575 |   |
| Mexico                                                                                                  |   |                    | 34,632     |   |                       |   | 20,677    |                    |   |   | 17,006 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 904,482    |   |                       |   | 681,792   |                    |   |   | 635,581 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Total                                                                                                   |   | $                       | 8,525,112  |   |                       | $      | 7,498,612 |                    |   | $ | 5,152,729 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Operating      income (loss):                                                                           |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Chicken:                                                                                                |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States(b)                                                                                   |   | $                       | (1,135,370 | )      |                       | $      | 192,447   |                    |   | $ | 28,619 |   |
| Mexico                                                                                                  |   |                    | (25,702    | )      |                       |   | 13,116    |                    |   |   | (17,960 | ) |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | (1,161,072 | )      |                       |   | 205,563   |                    |   |   | 10,659 |   |
| Other      Products:                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   |                    | 98,863     |   |                       |   | 28,636    |                    |   |   | (1,192 | ) |
| Mexico                                                                                                  |   |                    | 4,513      |   |                       |   | 2,992     |                    |   |   | 1,638 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 103,376    |   |                       |   | 31,628    |                    |   |   | 446 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Total                                                                                                   |   | $                       | (1,057,696 | )      |                       | $      | 237,191   |                    |   | $ | 11,105 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Depreciation      and amortization(c)(d)(e):                                                            |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Chicken:                                                                                                |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   | $                       | 215,586    |   |                       | $      | 183,808   |                    |   | $ | 114,516 |   |
| Mexico                                                                                                  |   |                    | 10,351     |   |                       |   | 11,015    |                    |   |   | 11,305 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 225,937    |   |                       |   | 194,823   |                    |   |   | 125,821 |   |
| Other      Products:                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   |                    | 13,354     |   |                       |   | 8,278     |                    |   |   | 7,743 |   |
| Mexico                                                                                                  |   |                    | 244        |   |                       |   | 215       |                    |   |   | 146 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 13,598     |   |                       |   | 8,493     |                    |   |   | 7,889 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Total                                                                                                   |   | $                       | 239,535    |   |                       | $      | 203,316   |                    |   | $ | 133,710 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Total      assets(f):                                                                                   |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Chicken:                                                                                                |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   | $                       | 2,733,089  |   |                       | $      | 3,247,812 |                    |   | $ | 1,909,129 |   |
| Mexico                                                                                                  |   |                    | 372,952    |   |                       |   | 348,894   |                    |   |   | 361,887 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 3,106,041  |   |                       |   | 3,596,706 |                    |   |   | 2,271,016 |   |
| Other      Products:                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   |                    | 153,607    |   |                       |   | 104,644   |                    |   |   | 89,447 |   |
| Mexico                                                                                                  |   |                    | 5,542      |   |                       |   | 4,120     |                    |   |   | 1,660 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 159,149    |   |                       |   | 108,764   |                    |   |   | 91,107 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Total                                                                                                   |   | $                       | 3,265,190  |   |                       | $      | 3,705,470 |                    |   | $ | 2,362,123 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Acquisitions      of property, plant and equipment  (excluding business      acquisition)(g): |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Chicken:                                                                                                |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   | $                       | 148,811    |   |                       | $      | 164,449   |                    |   | $ | 133,106 |   |
| Mexico                                                                                                  |   |                    | 545        |   |                       |   | 1,633     |                    |   |   | 6,536 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 149,356    |   |                       |   | 166,082   |                    |   |   | 139,642 |   |
| Other      Products:                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| United      States                                                                                      |   |                    | 2,815      |   |                       |   | 5,699     |                    |   |   | 3,567 |   |
| Mexico                                                                                                  |   |                    | 330        |   |                       |   | 40        |                    |   |   | 416 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Subtotal                                                                                                |   |                    | 3,145      |   |                       |   | 5,739     |                    |   |   | 3,983 |   |
|                                                                                                    |   |                    |       |   |                       |   |      |                    |   |   |   |   |
| Total                                                                                                   |   | $                       | 152,501    |   |                       | $      | 171,821   |                    |   | $ | 143,625 |   |

----

Index

| (a)       | The      Company acquired Gold Kist on December 27, 2006 for $1.139      billion.                                                                                                                                                                                                                   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|      |                                                                                                                                                                                                                                                                                                |
| (b)       | Includes      goodwill impairment of $501.4 million and restructuring charges of $29.3      million in 2008.                                                                                                                                                                                        |
|      |                                                                                                                                                                                                                                                                                                |
| (c)  | Includes      amortization of capitalized financing costs of approximately $4.9 million,      $6.6 million and $2.6 million in 2008, 2007 and 2006,      respectively                                                                                                                               |
|      |                                                                                                                                                                                                                                                                                                |
| (d)  | Includes      amortization of intangible assets of $10.2 million, $8.1 million and $1.8      million recognized in 2008, 2007 and 2006 related primarily to the Gold      Kist and ConAgra Chicken acquisitions.                                                                                    |
|      |                                                                                                                                                                                                                                                                                                |
| (e)  | Excludes      depreciation costs incurred by our discontinued turkey business of $0.7      million, $1.6 million and $1.4 million during 2008, 2007 and 2006,      respectively.                                                                                                                    |
|      |                                                                                                                                                                                                                                                                                                |
| (f)  | Excludes      total assets of our discontinued turkey business of $33.5 million at      September 27, 2008, $68.8 million at September 29 2007 and $64.7 million      at September 30, 2006.                                                                                                   |
|      |                                                                                                                                                                                                                                                                                                |
| (g)  | Excludes      acquisitions of property, plant and equipment by our discontinued turkey      business of $0.5 million and $0.3 million during 2007 and 2006,      respectively. Acquisitions of property, plant and equipment by our      discontinued turkey business during 2008 were  immaterial. |

| 2008                                                       |   | First                                      |      |   | Second(a) |   |      | Third(b) |   |   | Fourth(c) |   |   | Year   |      |
|------------------------------------------------------------|--------|--------------------------------------------|-----------|--------|-----------|--------|-----------|----------|--------|--------|-----------|--------|--------|--------|-----------|
|                                                       |   | (In      thousands, except per share data) |      |
| Net      sales                                             |   | $                                          | 2,047,353 |   |      | $      | 2,100,794 |     |   | $      | 2,207,476 |   |   | $      | 2,169,489 |   |   | $ | 8,525,112 |   |
| Gross      profit (loss)                                   |   |                                       | 105,103   |   |      |   | (35,401   | )        |   |   | 53,211    |   |   |   | (286,408  | ) |   |   | (163,495 | ) |
| Operating      income (loss)                               |   |                                       | 670       |   |      |   | (143,629  | )        |   |   | (42,531   | )      |   |   | (872,206  | ) |   |   | (1,057,696 | ) |
| Loss      from continuing operations                       |   |                                       | (33,166   | )      |      |   | (111,501  | )        |   |   | (48,344   | )      |   |   | (799,161  | ) |   |   | (992,172 | ) |
| Income      (loss) from operation of discontinued business |   |                                       | 837       |   |      |   | (850      | )        |   |   | (4,437    | )      |   |   | (2,862    | ) |   |   | (7,312 | ) |
| Gain      on disposal of discontinued business             |   |                                       | —   |   |      |   | 903       |     |   |   | —   |   |   |   | —   |   |   |   | 903 |   |
| Net      loss                                              |   |                                       | (32,329   | )      |      |   | (111,448  | )        |   |   | (52,781   | )      |   |   | (802,023  | ) |   |   | (998,581 | ) |
| Per      share amounts:                                    |   |                                       |      |   |      |   |      |     |   |   |      |   |   |   |      |   |   |   |   |   |
| Continuing      operations                                 |   | $                                          | (0.50     | )      |      | $      | (1.67     | )        |   | $      | (0.69     | )      |   | $      | (10.79    | ) |   | $ | (14.31 | ) |
| Discontinued      business                                 |   |                                       | 0.01      |   |      |   | —   |     |   |   | (0.06     | )      |   |   | (0.04     | ) |   |   | (0.09 | ) |
| Net      loss                                              |   |                                       | (0.49     | )      |      |   | (1.67     | )        |   |   | (0.75     | )      |   |   | (10.83    | ) |   |   | (14.40 | ) |
| Dividends                                                  |   |                                       | 0.0225    |   |      |   | 0.0225    |     |   |   | 0.0225    |   |   |   | 0.0225    |   |   |   | 0.0900 |   |
| Number      of days in quarter                             |   |                                       | 91        |   |      |   | 91        |     |   |   | 91        |   |   |   | 91        |   |   |   | 364 |   |

| (a)    | The      company recognized restructuring charges of $17.7 million in the second      quarter of 2008.                                                                                                                                                         |   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                                                                                                                                                                           |   |
| (b)    | The      Company recognized gains on derivative financial instruments of $102.4      million in the third quarter of 2008.                                                                                                                                     |   |
|   |                                                                                                                                                                                                                                                           |   |
| (c)    | The      Company recognized goodwill impairment of $501.4 million, losses on      derivative financial instruments of $155.7 million, restructuring charges      of $8.1 million and valuation allowances of $34.6 million in the fourth      quarter of 2008. |   |

----

Index

| 2007                                                       |   | First(a)                                   |      |   | Second |   |      | Third  |   |   | Fourth    |   |   | Year   |      |
|------------------------------------------------------------|--------|--------------------------------------------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|
|                                                       |   | (In      thousands, except per share data) |      |
| Net      sales                                             |   | $                                          | 1,291,957 |   |   | $      | 1,987,185 |   |   | $      | 2,104,499 |   |   | $      | 2,114,971 |   |   | $ | 7,498,612 |   |
| Gross      profit                                          |   |                                       | 62,238    |   |   |   | 84,049    |   |   |   | 234,825   |   |   |   | 211,618   |   |   |   | 592,730 |   |
| Operating      income (loss)                               |   |                                       | (4,902    | )      |   |   | (10,674   | )      |   |   | 136,896   |   |   |   | 115,871   |   |   |   | 237,191 |   |
| Income      (loss) from continuing operations              |   |                                       | (9,827    | )      |   |   | (39,018   | )      |   |   | 63,277    |   |   |   | 37,084    |   |   |   | 51,516 |   |
| Income      (loss) from operation of discontinued business |   |                                       | 1,091     |   |   |   | (1,059    | )      |   |   | (636      | )      |   |   | (3,895    | ) |   |   | (4,499 | ) |
| Net      income (loss)                                     |   |                                       | (8,736    | )      |   |   | (40,077   | )      |   |   | 62,641    |   |   |   | 33,189    |   |   |   | 47,017 |   |
| Per      share amounts:                                    |   |                                       |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |
| Continuing      operations                                 |   | $                                          | (0.15     | )      |   | $      | (0.59     | )      |   | $      | 0.95      |   |   | $      | 0.56      |   |   | $ | 0.77 |   |
| Discontinued      business                                 |   |                                       | 0.02      |   |   |   | (0.01     | )      |   |   | (0.01     | )      |   |   | (0.06     | ) |   |   | (0.06 | ) |
| Net      income (loss)                                     |   |                                       | (0.13     | )      |   |   | (0.60     | )      |   |   | 0.94      |   |   |   | 0.50      |   |   |   | 0.71 |   |
| Dividends                                                  |   |                                       | 0.0225    |   |   |   | 0.0225    |   |   |   | 0.0225    |   |   |   | 0.0225    |   |   |   | 0.0900 |   |
| Number      of days in quarter                             |   |                                       | 91        |   |   |   | 91        |   |   |   | 91        |   |   |   | 91        |   |   |   | 364 |   |
|                                                       |   |                                       |      |   |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |   |

| (a) | The      Company acquired Gold Kist on December 27, 2006 for $1.139 billion. For      financial reporting purposes, we have not included the operating results      and cash flows of Gold Kist in our consolidated financial statements for      the period from December 27, 2006 through December 30, 2006. The operating      results and cash flows of Gold Kist from December 27, 2006 through      December 30, 2006 were notmaterial. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| SCHEDULE II                                                                           |
|---------------------------------------------------------------------------------------|
| PILGRIM'S      PRIDE CORPORATION                                                      |
| VALUATION      AND QUALIFYING ACCOUNTS                                                |
|                                                                                  |
|                                                                                  |   |   |   |   | Additions |   |   |   |   |   |   |   |
|                                                                                  |   | Beginning      Balance |   |   | Charged      to Costs and Expenses |   |   | Charged      to Other Accounts |   |   |   |  Deductions      (b) |   |   | Ending      Balance |
|                                                                                  |   | (In      thousands) |
| Trade      Accounts and Other Receivables—Allowance      for Doubtful Accounts: |
| 2008                                                                                  |   | $ | 5,017 |   |   | $ | 1,956 |   |   | $ | — |   |   |   | $ | 2,272 |   |   | $ | 4,701 |   |
| 2007                                                                                  |   |   | 2,155 |   |   |   | 4,751 |   |   |   | 424 |   | (a) |   |   | 2,313 |   |   |   | 5,017 |   |
| 2006                                                                                  |   |   | 4,818 |   |   |   | (185 | ) |   |   | — |   |   |   |   | 2,478 |   |   |   | 2,155 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred      Tax Assets—Valuation      Allowance:                              |
| 2008                                                                                  |   | $ | 308 |   |   | $ | 70,850 |   |   | $ | — |   |   |   | $ | — |   |   | $ | 71,158 |   |
| 2007                                                                                  |   |   | — |   |   |   | — |   |   |   | 308 |   |   |   |   | — |   |   |   | 308 |   |
| 2006                                                                                  |   |   | — |   |   |   | — |   |   |   | — |   |   |   |   | — |   |   |   | — |   |
|                                                                                  |   |   |

| (a) | Adjustment      to balance established for accounts receivable acquired from Gold      Kist. |
|-----|----------------------------------------------------------------------------------------------|
| (b) | Uncollectible      accounts written off, net ofrecoveries.                                   |

----

Index

| 2.1    |   | Agreement      and Plan of Reorganization dated September 15, 1986, by and among      Pilgrim’s Pride Corporation, a Texas corporation; Pilgrim’s Pride      Corporation, a Delaware corporation; and Doris Pilgrim Julian, Aubrey Hal      Pilgrim, Paulette Pilgrim Rolston, Evanne Pilgrim, Lonnie “Bo” Pilgrim,      Lonnie Ken Pilgrim, Greta Pilgrim Owens and Patrick Wayne Pilgrim      (incorporated by reference from Exhibit 2.1 to the Company’s Registration      Statement on Form S-1 (No. 33-8805) effective November 14,      1986). |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 2.2    |   | Agreement      and Plan of Merger dated September 27, 2000 (incorporated by reference      from Exhibit 2 of WLR Foods, Inc.’s Current Report on Form 8-K      (No. 000-17060) dated September 28, 2000).                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 2.3    |   | Agreement      and Plan of Merger dated as of December 3, 2006, by and among the Company,      Protein Acquisition Corporation, a wholly owned subsidiary of the Company,      and Gold Kist Inc. (incorporated by reference from Exhibit 99.(D)(1) to      Amendment No. 11 to the Company’s Tender Offer Statement on Schedule TO      filed on December 5, 2006).                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.1    |   | Certificate      of Incorporation of the Company, as amended (incorporated by reference      from Exhibit 3.1 of the Company’s Annual Report on Form 10-K for the year      ended October 2, 2004).                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 3.2    |   | Amended      and Restated Corporate Bylaws of the Company (incorporated by reference      from Exhibit 4.4 of the Company’s Registration Statement on Form S-8 (No.      333-111929) filed on January 15, 2004).                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.1    |   | Certificate      of Incorporation of the Company, as amended (included as Exhibit      3.1).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.2    |   | Amended      and Restated Corporate Bylaws of the Company (included as      Exhibit 3.2).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.3    |   | Indenture,      dated November 21, 2003, between Pilgrim's Pride Corporation and The Bank      of New York as Trustee relating to Pilgrim’s Pride’s 9 1/4% Senior Notes      due 2013 (incorporated by reference from Exhibit 4.1 of the Company's      Registration Statement on Form S-4 (No. 333-111975) filed on January 16,      2004).                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.4    |   | Form      of 9 1/4% Note due 2013 (incorporated by reference from Exhibit 4.3 of the      Company's Registration Statement on Form S-4 (No. 333-111975) filed on      January 16, 2004).                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.5    |   | Senior      Debt Securities Indenture dated as of January 24, 2007, by and between the      Company and Wells Fargo Bank, National Association, as trustee      (incorporated by reference from Exhibit 4.1 to the Company’s Current      Report on Form 8-K filed on January 24, 2007).                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4.6    |   | First      Supplemental Indenture to the Senior Debt Securities Indenture dated as of      January 24, 2007, by and between the Company and Wells Fargo Bank,      National Association, as trustee (incorporated by reference from Exhibit      4.2 to the Company’s Current Report on Form 8-K filed on January 24,      2007).                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

----

Index

| 4.7    |   | Form      of 7 5/8% Senior Note due 2015 (incorporated by reference from Exhibit 4.3      to the Company’s Current Report on Form 8-K filed on January 24,      2007).                                                                                                                                                                                                   |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.8    |   | Senior      Subordinated Debt Securities Indenture dated as of January 24, 2007, by      and between the Company and Wells Fargo Bank, National Association, as      trustee (incorporated by reference from Exhibit 4.4 to the Company’s      Current Report on Form 8-K filed on January 24, 2007).                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.9    |   | First      Supplemental Indenture to the Senior Subordinated Debt Securities      Indenture dated as of January 24, 2007, by and between the Company and      Wells Fargo Bank, National Association, as trustee (incorporated by      reference from Exhibit 4.5 to the Company’s Current Report on Form 8-K      filed on January 24, 2007).                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 4.10   |   | Form      of 8 3/8% Subordinated Note due 2017 (incorporated by reference from      Exhibit 4.6 to the Company’s Current Report on Form 8-K filed on January      24, 2007).                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 10.1   |   | Pilgrim’s      Industries, Inc. Profit Sharing Retirement Plan, restated as of July 1,      1987 (incorporated by reference from Exhibit 10.1 of the Company’s Form      8-K filed on July 1, 1992). …                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 10.2   |   | Senior      Executive Performance Bonus Plan of the Company (incorporated by reference      from Exhibit A in the Company’s Proxy Statement dated December 13, 1999).      …                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 10.3   |   | Aircraft      Lease Extension Agreement between B.P. Leasing Co. (L.A. Pilgrim,      individually) and Pilgrim’s Pride Corporation (formerly Pilgrim’s      Industries, Inc.) effective November 15, 1992 (incorporated by reference      from Exhibit 10.48 of the Company’s Quarterly Report on Form 10-Q for the      three months ended March 29, 1997). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 10.4   |   | Broiler      Grower Contract dated May 6, 1997 between Pilgrim’s Pride Corporation and      Lonnie “Bo” Pilgrim (Farm 30) (incorporated by reference from Exhibit      10.49 of the Company’s Quarterly Report on Form 10-Q for the three months      ended March 29, 1997).                                                                           |
| 10.5   |   | Commercial      Egg Grower Contract dated May 7, 1997 between Pilgrim’s Pride Corporation      and Pilgrim Poultry G.P. (incorporated by reference from      Exhibit 10.50 of the Company’s Quarterly Report on Form 10-Q for the      three months ended March 29, 1997).                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 10.6   |   | Agreement      dated October 15, 1996 between Pilgrim’s Pride Corporation and Pilgrim      Poultry G.P. (incorporated by reference from Exhibit 10.23 of the      Company’s Quarterly Report on Form 10-Q for the three months ended      January 2, 1999).                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |
| 10.7   |   | Heavy      Breeder Contract dated May 7, 1997 between Pilgrim’s Pride Corporation and      Lonnie “Bo” Pilgrim (Farms 44, 45 & 46) (incorporated by reference      from Exhibit 10.51 of the Company’s Quarterly Report on Form 10-Q for the      three months ended March 29, 1997).                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                           |

----

Index

| 10.8   |   | Broiler      Grower Contract dated January 9, 1997 by and between Pilgrim’s Pride and      O.B. Goolsby, Jr. (incorporated by reference from Exhibit 10.25 of the      Company’s Registration Statement on Form S-1 (No. 333-29163) effective      June 27, 1997).                                                                    |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                        |
| 10.9   |   | Broiler      Grower Contract dated January 15, 1997 by and between Pilgrim’s Pride      Corporation and B.J.M. Farms (incorporated by reference from Exhibit 10.26      of the Company’s Registration Statement on Form S-1 (No. 333-29163)      effective June 27, 1997).                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                        |
| 10.10  |   | Broiler      Grower Agreement dated January 29, 1997 by and between Pilgrim’s Pride      Corporation and Clifford E. Butler (incorporated by reference from Exhibit      10.27 of the Company’s Registration Statement on Form S-1 (No. 333-29163)      effective June 27, 1997).                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                        |
| 10.11  |   | Purchase      and Contribution Agreement dated as of June 26, 1998 between Pilgrim’s      Pride Funding Corporation and Pilgrim’s Pride Corporation (incorporated by      reference from Exhibit 10.34 of the Company’s Quarterly Report on Form      10-Q for the three months ended June 27, 1998).                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                        |
| 10.12  |   | Guaranty      Fee Agreement between Pilgrim’s Pride Corporation and Pilgrim Interests,      Ltd., dated June 11, 1999 (incorporated by reference from Exhibit 10.24 of      the Company’s Annual Report on Form 10-K for the year ended      October 2, 1999).                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                        |
| 10.13  |   | Commercial      Property Lease dated December 29, 2000 between Pilgrim’s Pride Corporation      and Pilgrim Poultry G.P. (incorporated by reference from      Exhibit 10.30 of the Company’s Quarterly Report on Form 10-Q for the      three months ended December 30, 2000).                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                        |
| 10.14  |   | Amendment      No. 1 dated as of December 31, 2003 to Purchase and Contribution Agreement      dated as of June 26, 1998, between Pilgrim’s Pride Funding Corporation and      Pilgrim’s Pride Corporation (incorporated by reference from Exhibit 10.5      of the Company’s Quarterly Report on Form 10-Q filed February 4,      2004). |
|   |   |                                                                                                                                                                                                                                                                                                                                                        |
| 10.15  |   | Employee      Stock Investment Plan of the Company (incorporated by reference from      Exhibit 4.1 of the Company’s Registration Statement on Form S-8 (No.      333-111929) filed on January 15, 2004). …                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                        |
| 10.16  |   | 2005      Deferred Compensation Plan of the Company (incorporated by reference from      Exhibit 10.1 of the Company’s Current Report on Form 8-K dated December      27, 2004). …                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                        |
| 10.17  |   | Vendor      Service Agreement dated effective December 28, 2005 between Pilgrim's      Pride Corporation and Pat Pilgrim (incorporated by reference from Exhibit      10.2 of the Company's Current Report on Form 8-K dated January 6,      2006).                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                        |
| 10.18  |   | Transportation      Agreement dated effective December 28, 2005 between Pilgrim's Pride      Corporation and Pat Pilgrim (incorporated by reference from Exhibit 10.3      of the Company's Current Report on Form 8-K dated January 6,      2006).                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                        |

----

Index

| 10.19  |   | Credit      Agreement by and among the Avícola Pilgrim’s Pride de México, S. de R.L.      de C.V. (the "Borrower"), Pilgrim's Pride Corporation, certain Mexico      subsidiaries of the Borrower, ING Capital LLC, and the lenders signatory      thereto dated as of September 25, 2006 (incorporated by reference from      Exhibit 10.1 of the Company's Current Report on Form 8-K filed on      September 28, 2006).                                                                                                                                         |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.20  |   | 2006      Amended and Restated Credit Agreement by and among CoBank, ACB, Agriland,      FCS and the Company dated as of September 21, 2006 (incorporated by      reference from Exhibit 10.2 of the Company's Current Report on Form 8-K      filed on September 28, 2006).                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.21  |   | First      Amendment to the Pilgrim’s Pride Corporation Amended and Restated 2005      Deferred Compensation Plan Trust, dated as of November 29, 2006      (incorporated by reference from Exhibit 10.03 of the Company’s Current      Report on Form 8-K filed on December 05, 2006). …                                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.22  |   | Agreement      and Plan of Merger dated as of December 3, 2006, by and among the Company,      Protein Acquisition Corporation, a wholly owned subsidiary of the Company,      and Gold Kist Inc. (incorporated by reference from Exhibit 99.(D)(1) to      Amendment No. 11 to the Company’s Tender Offer Statement on Schedule TO      filed on December 5, 2006).                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.23  |   | First      Amendment to Credit Agreement, dated as of December 13, 2006, by and among      the Company, as borrower, CoBank, ACB, as lead arranger and co-syndication      agent, and sole book runner, and as administrative, documentation and      collateral agent, Agriland, FCS, as co-syndication agent, and as a      syndication party, and the other syndication parties signatory thereto      (incorporated by reference from Exhibit 10.01 to the Company’s Current      Report on Form 8-K filed on December 19, 2006).                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.24  |   | Second      Amendment to Credit Agreement, dated as of January 4, 2007, by and among      the Company, as borrower, CoBank, ACB, as lead arranger and co-syndication      agent, and sole book runner, and as administrative, documentation and      collateral agent, Agriland, FCS, as co-syndication agent, and as a      syndication party, and the other syndication parties signatory thereto      (incorporated by reference from Exhibit 10.01 to the Company’s Current      Report on Form 8-K filed on January 9, 2007).                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.25  |   | Fourth      Amended and Restated Secured Credit Agreement, dated as of February 8,      2007, by and among the Company, To-Ricos, Ltd., To-Ricos Distribution,      Ltd., Bank of Montreal, as agent, SunTrust Bank, as syndication agent,      U.S. Bank National Association and Wells Fargo Bank, National Association,      as co-documentation agents, BMO Capital Market, as lead arranger, and the      other lenders signatory thereto (incorporated by reference from Exhibit      10.01 of the Company’s Current Report on Form 8-K dated February 12,      2007). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

----

Index

| 10.26  |   | Third      Amendment to Credit Agreement, dated as of February 7, 2007, by and among      the Company as borrower, CoBank, ACB, as lead arranger and co-syndication      agent, and the sole book runner, and as administrative, documentation and      collateral agent, Agriland, FCS, as co-syndication agent, and as a      syndication party, and the other syndication parties signatory thereto      (incorporated by reference from Exhibit 10.02 of the Company’s Current      Report on Form 8-K dated February 12, 2007).     |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.27  |   | First      Amendment to Credit Agreement, dated as of March 15, 2007, by and among      the Borrower, the Company, the Subsidiary Guarantors, ING Capital LLC, and      the Lenders (incorporated by reference from Exhibit 10.01 of the Company’s      Current Report on Form 8-K dated March 20, 2007).                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.28  |   | Fourth      Amendment to Credit Agreement, dated as of July 3, 2007, by and among the      Company as borrower, CoBank, ACB, as lead arranger and co-syndication      agent, and the sole book runner, and as administrative, documentation and      collateral agent, Agriland, FCS, as co-syndication agent, and as      syndication party, and the other syndication parties signatory thereto      (incorporated by reference from Exhibit 10.1 of the Company's Quarterly      Report on Form 10-Q filed July 31, 2007).                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.29  |   | Retirement      and Consulting Agreement dated as of October 10, 2007, between the Company      and Clifford E. Butler (incorporated by reference from Exhibit 10.1 of the      Company’s Current Report on Form 8-K dated October 10, 2007). …                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.30  |   | Fifth      Amendment to Credit Agreement, dated as of August 7, 2007, by and among      the Company as borrower, CoBank, ACB, as lead arranger and co-syndication      agent, and the sole book runner, and as administrative, documentation and      collateral agent, Agriland, FCS, as co-syndication agent, and as      syndication party, and the other syndication parties signatory thereto      (incorporated by reference from Exhibit 10.39 of the Company’s Annual      Report on Form 10-K filed on November 19, 2007). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.31  |   | Sixth      Amendment to Credit Agreement, dated as of November 7, 2007, by and among      the Company as borrower, CoBank, ACB, as administrative agent, and the      other syndication parties signatory thereto (incorporated by reference      from Exhibit 10.1 of the Company’s Current Report on Form 8-K dated      November 13, 2007).                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.32  |   | Ground      Lease Agreement effective February 1, 2008 between Pilgrim's Pride      Corporation and Pat Pilgrim (incorporated by reference from Exhibit 10.1      of the Company's Current Report on Form 8-K dated February 1,      2008).                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.33  |   | Seventh      Amendment to Credit Agreement, dated as of March 10, 2008, by and among      the Company as borrower, CoBank, ACB, as administrative agent, and the      other syndication parties signatory thereto (incorporated by reference      from Exhibit 10.1 to the Company's Current Report on Form 8-K filed on      February 20, 2008).                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

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Index

| 10.34  |   | First      Amendment to the Fourth Amended and Restated Secured Credit Agreement,      dated as of March 11, 2008, by and among the Company, To-Ricos, Ltd.,      To-Ricos Distribution, Ltd., Bank of Montreal, as administrative agent,      and the other lenders signatory thereto (incorporated by reference from      Exhibit 10.2 to the Company's Current Report on Form 8-K filed on February      20, 2008).                              |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.35  |   | Eighth      Amendment to Credit Agreement, dated as of April 30, 2008, by and among      the Company as borrower, CoBank, ACB, as administrative agent, and the      other syndication parties signatory thereto (incorporated by reference      from Exhibit 10.1 to the Company's Current Report on Form 8-K filed on May      5, 2008).                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.36  |   | Second      Amendment to the Fourth Amended and Restated Secured Credit Agreement,      dated as of April 30, 2008, by and among the Company, To-Ricos, Ltd.,      To-Ricos Distribution, Ltd., Bank of Montreal, as administrative agent,      and the other lenders signatory thereto (incorporated by reference from      Exhibit 10.2 to the Company's Current Report on Form 8-K filed on May 5,      2008).                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.37  |   | Change      to Company Contribution Amount Under the Amended and Restated 2005      Deferred Compensation Plan of the Company (incorporated by reference from      Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q filed July 30,      2008). …                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.38  |   | Limited Duration Waiver      of Potential Defaults and Events of      Default under Credit Agreement dated September 26, 2008 by and among      Pilgrim's Pride Corporation, as borrower, CoBank, ACB, as administrative      agent, and the other syndication parties signatory thereto      (incorporated by reference from Exhibit 10.1 to the Company's      Current Report on Form 8-K filed on September 29,2008).                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.39  |   | Limited Duration Waiver      Agreement dated as of September 26, 2008 by and among Pilgrim's Pride      Corporation, as borrower, Bank of Montreal, as administrative      agent, and      certain other bank parties thereto (incorporated by reference from      Exhibit 10.2 to the Company's Current Report on Form 8-K filed on      September 29, 2008).                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.40  |   | Limited Duration Waiver      Agreement dated as of September 26, 2008 by and among Pilgrim's Pride Corporation,      Pilgrim's Pride Funding Corporation, BMO Capital Markets Corp., as      administrator, and Fairway Finance Company, LLC (incorporated by      reference from Exhibit 10.3 to the Company's Current Report on Form 8-K      filed on September 29, 2008).                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.41  |   | Amended and Restated      Receivables Purchase Agreement dated as of September 26, 2008 among      Pilgrim's Pride Corporation, Pilgrim's Pride Funding Corporation, BMO      Capital Markets Corp., as administrator, and the various purchasers and      purchaser agents from time to time      parties thereto (incorporated by reference from Exhibit 10.4 to the      Company's Current Report on Form 8-K filed on September 29,      2008). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |

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Index

| 10.42  |   | Amendment      No. 1 dated as of October 10, 2008 to Amended and Restated Receivables      Purchase Agreement, dated as of September 26, 2008 among Pilgrim's Pride      Corporation, Pilgrim's Pride Funding Corporation, BMO Capital Markets      Corp., as administrator, and the various purchasers and purchaser agents      from time to time parties thereto.*                                                 |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.43  |   | Amendment No. 2 to      Purchase and Contribution Agreement dated as of September 26, 2008 among      Pilgrim's Pride Funding Corporation and Pilgrim's Pride Corporation      (incorporated by reference from Exhibit 10.5 to the Company's      Current Report on Form 8-K filed on September 29,2008).                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.44  |   | Limited Duration Waiver      of Potential Defaults and Events of Default under Credit Agreement dated      October 26, 2008 by and among Pilgrim's Pride Corporation, as borrower,      CoBank, ACB, as administrative agent, and the other syndication      parties signatory thereto (incorporated by reference from Exhibit      10.1 to the Company's Current Report on Form 8-K filed on October 27,      2008). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.45  |   | Limited Duration Waiver      Agreement dated as of October 26, 2008 by and among Pilgrim's Pride Corporation,      as borrower, Bank of Montreal, as administrative agent, and certain other      bank parties thereto (incorporated by reference from Exhibit 10.2      to the Company's Current Report on Form 8-K filed on October 27,      2008).                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.46  |   | Limited Duration Waiver      Agreement dated as of October 26, 2008 by and among Pilgrim's Pride      Corporation, Pilgrim's Pride Funding Corporation, BMO Capital Markets      Corp., as administrator, and Fairway Finance Company, LLC      (incorporated by reference from Exhibit 10.3 to the Company's      Current Report on Form 8-K filed on October 27, 2008).                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.47  |   | Form of Change in      Control Agreement dated as of October 21, 2008 between the Company and      certain of its executive officers (incorporated by reference from      Exhibit 10.4 to the Company's Current Report on Form 8-K filed on October      27, 2008). …                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.48  |   | First      Amendment to Limited Duration Waiver      of Potential Defaults and Events of Default under Credit Agreement dated      November 25, 2008 by and among Pilgrim's Pride      Corporation, as borrower, CoBank,      ACB, as administrative agent, and the other syndication parties signatory      thereto.*                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.49  |   | First      Amendment to Limited Duration Waiver Agreement dated as of      November 25, 2008 by and among Pilgrim's Pride Corporation, as      borrower, Bank of Montreal, as administrative agent, and certain other      bank parties thereto.*                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.50  |   | First      Amendment to Limited Duration Waiver Agreement dated as of      November 25, 2008 by and among Pilgrim's Pride Corporation, Pilgrim's      Pride Funding Corporation, BMO Capital Markets Corp., as administrator,      and Fairway Finance Company, LLC. *                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.51  |   | Waiver      Agreement and Second Amendment to Credit Agreement dated November 30,      2008, by and among the Company and certain non-debtor Mexico subsidiaries      of the Company, ING Capital LLC, as agent, and the lenders signatory      thereto.*                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.52  |   | Post-Petition      Credit Agreement dated December 2, 2008 by and among the Company, as      borrower, the US Subsidiaries, as guarantors, Bank of Montreal, as agent,      and the lenders party thereto.*                                                                                                                                                                                                           |

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Index

|   |   |                                                                                                                                                                                         |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12     |   | Ratio      of Earnings to Fixed Charges for the years ended September 27, 2008,      September 29, 2007, September 30, 2006, October 1, 2005, October 2, 2004,      and September 27, 2003.* |
|   |   |                                                                                                                                                                                         |
| 21     |   | Subsidiaries      of Registrant.*                                                                                                                                                            |
|   |   |                                                                                                                                                                                         |
| 23     |   | Consent      of Ernst & Young LLP.*                                                                                                                                                      |
|   |   |                                                                                                                                                                                         |
| 31.1   |   | Certification      of Co-Principal Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.*                                                                        |
|   |   |                                                                                                                                                                                         |
| 31.2   |   | Certification      of Co-Principal Executive Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.*                                                                        |
|   |   |                                                                                                                                                                                         |
| 31.3   |   | Certification      of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.*                                                                               |
|   |   |                                                                                                                                                                                         |
| 32.1   |   | Certification      of Co-Principal Executive Officer of Pilgrim's Pride Corporation pursuant      to Section 906 of the Sarbanes-Oxley Act of 2002.*                                         |
|   |   |                                                                                                                                                                                         |
| 32.2   |   | Certification      of Co-Principal Executive Officer of Pilgrim's Pride Corporation pursuant      to Section 906 of the Sarbanes-Oxley Act of 2002.*                                         |
|   |   |                                                                                                                                                                                         |
| 32.3   |   | Certification      of Chief Financial Officer of Pilgrim's Pride Corporation pursuant to      Section 906 of the Sarbanes-Oxley Act of2002.*                                                 |

|   | *Filed      herewith |
|--------|----------------------|

|   | …Represents      a management contract or compensation plan  arrangement |
|--------|--------------------------------------------------------------------------------|

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Index