**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**____________________**

**FORM      10-K**

**____________________**

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

**For      the fiscal year ended **
**October      1, 2005**

**OR**

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

**PILGRIM’S      PRIDE CORPORATION**

| 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:                     |
|------------------------------------------------------------------------------------------------|
| **Title                of each class**                                                         | **Name                of each exchange on which registered** |
| Common                Stock, Par Value $0.01                                                   | New                York Stock Exchange |
| Securities                registered pursuant to Section 12(g) of the Act:                None |

----

----

**PILGRIM’S      PRIDE CORPORATION**

**FORM      10-K**

**TABLE      OF CONTENTS**

| **PART                  I**                                                                                                                                |                                                                                                                                                                    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                       |                                                                                                                                                                    | Page |
| Item                  1.                                                                                                                                   | Business                                                                                                                                                                | 4 |
| Item                  1A.                                                                                                                                  | Risk                  Factors                                                                                                                                           | 24 |
| Item                  1B.                                                                                                                                  | Unresolved                  Staff Comments                                                                                                                              | 31 |
| Item                  2.                                                                                                                                   | Properties                                                                                                                                                              | 31 |
| Item                  3.                                                                                                                                   | Legal                  Proceedings                                                                                                                                      | 32 |
| Item                  4.                                                                                                                                   | Submission                  of Matters to a Vote of Security Holders                                                                                                    | 33 |
|                                                                                                                                                       |                                                                                                                                                                    |   |
| **PART                  II**                                                                                                                               |                                                                                                                                                                    |
| Item                  5.                                                                                                                                   | Market                  for Registrant’s Common Equity, Related Stockholder Matters and Issuer                  Purchases of Equity Securities                    | 34 |
| Item                  6.                                                                                                                                   | Selected                  Financial Data                                                                                                                                | 36 |
| Item                  7.                                                                                                                                   | Management’s                  Discussion and Analysis of Financial Condition and Results of                  Operations                                           | 39 |
| Item                  7A.                                                                                                                                  | Quantitative                  and Qualitative Disclosures about Market Risk                                                                                             | 61 |
| Item                  8.                                                                                                                                   | Financial                  Statements and Supplementary Data (see Index to Financial Statements                  and                  Schedules                  below) | 62 |
| Item                  9.                                                                                                                                   | Changes                  in and Disagreements with Accountants on Accounting and Financial                                                                              | 62 |
|                                                                                                                                                       | Disclosure                                                                                                                                                              | 62 |
| Item                  9A.                                                                                                                                  | Controls                  and Procedures                                                                                                                                | 62 |
| Item                  9B.                                                                                                                                  | Other                  Information                                                                                                                                      | 65 |
|                                                                                                                                                       |                                                                                                                                                                    |   |
| **PART                  III**                                                                                                                              |                                                                                                                                                                    |
| Item                  10.                                                                                                                                  | Directors                  and Executive Officers of the Registrant                                                                                                     | 65 |
| Item                  11.                                                                                                                                  | Executive                  Compensation                                                                                                                                 | 65 |
| Item                  12.                                                                                                                                  | Security                  Ownership of Certain Beneficial Owners and Management and RelatedStockholder                  Matters                                         | 65 |
| Item                  13.                                                                                                                                  | Certain                  Relationships and Related Transactions                                                                                                         | 65 |
| Item                  14.                                                                                                                                  | Principal                  Accountant Fees and Services                                                                                                                 | 66 |
|                                                                                                                                                       |                                                                                                                                                                    |   |
| **PART                  IV**                                                                                                                               |                                                                                                                                                                    |
| Item                  15.                                                                                                                                  | Exhibits                  and Financial Statement Schedules                                                                                                             | 66 |
| Signatures                                                                                                                                                 |                                                                                                                                                                    | 73 |
|                                                                                                                                                       |                                                                                                                                                                    |   |
| **INDEX                  TO FINANCIAL STATEMENTS AND SCHEDULES**                                                                                           |                                                                                                                                                                    |
| Report                  of Independent Registered Public Accounting                  Firm                                                                  | 75                                                                                                                                                                      |
| Consolidated                  Balance Sheets as of October 1, 2005 and                  October 2, 2004                                                    | 76                                                                                                                                                                      |
| Consolidated                  Statements of Income for each of the three                  years ended October                  1, 2005                     | 77                                                                                                                                                                      |
| Consolidated                  Statements of Stockholders’ Equity for each of                  the three years ended October                  1, 2005 | 78                                                                                                                                                                      |
| Consolidated                  Statements of Cash Flows for each of the three                  years ended October                  1, 2005                 | 82                                                                                                                                                                      |
| Notes                  to Consolidated Financial                  Statements                                                                               | 79                                                                                                                                                                      |
| Schedule                  II - Valuation and Qualifying Accounts for each                  of the three years ended October                  1, 2005       | 101                                                                                                                                                                     |
|                                                                                                                                                       |                                                                                                                                                                    |

----

**PART        I**

**Item        1. Business**

**(a)        General Development of Business **

*Overview        *

*Recent        Business Acquisition*

----

*Strategy*

** **
***Capitalize        on significant scale with leading industry position and brand recognition.***

*-*
***Capitalize        on attractive U.S. prepared foods market.***

***Emphasize        customer-driven research and technology.***

----

***Enhance        U.S. fresh chicken profitability through value-added, branded products.***
*** ***

***Improve        operating efficiencies and increase capacity on a cost-effective basis.***

***Continue        to seek strategic acquisitions.***

***Continue        to penetrate the growing Mexican market.***

| -   | ***Capitalize                      on export opportunities.***                      We                      intend to continue to focus on international opportunities                      to complement                      our U.S. chicken operations and capitalize on attractive export                      markets.                      Although according to the USDA, the export of U.S. chicken                      products                      decreased 3.1% from 2000 through 2004, we believe U.S. chicken                      exports                      will grow as worldwide demand increases for high-grade, low-cost                      protein                      sources. According to USDA data, the export market for chicken                      is expected                      to grow at a compounded annual growth rate of 2.7% from 2004                      to 2009 and                      15.7% from 2004 to 2005 alone. Historically, we have targeted                      international markets to generate additional demand for our                      chicken dark                      meat, which is a natural by-product of our U.S. operations                      given our                      concentration on prepared foods products and the U.S. customers’ general                      preference for white meat. As part of this initiative, we have                      created a                      significant international distribution network into several                      markets,                      including Mexico, which we now utilize not only for dark meat                      distribution, but also for various higher margin prepared foods                      and other                      poultry products. We employ both a direct international sales                      force and                      export brokers. Our key international markets include Eastern                      Europe,                      including Russia, the Far East and Mexico. We believe that                      we have                      substantial opportunities to expand our sales to these markets                      by                      capitalizing on direct international distribution channels                      supplemented by                      our existing export broker relationships. Our export sales                      accounted for                      approximately 8.2% of our U.S. Chicken sales for fiscal                      2005. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**(c)              Narrative Description of Business**

*Products                and Markets*

----

----

|                                                  |   |                                      |   | *Fiscal                          Year Ended* |   |
|-------------------------------------------------------|--------|-------------------------------------------|--------|----------------------------------------------|--------|
|                                                  |   |                                      |   | Oct.                          1, 2005        |   | Oct.                          2, 2004(a) |   | Sept.                          27, 2003 |   | Sept.                          28, 2002 |   | Sept.                          29, 2001(b) |   |
|                                                  |   |                                      |   | *(52                          weeks)*        |   | *(53                          weeks)* |   | *(52                          weeks)* |   | *(52                          weeks)* |   | *(52                          weeks)* |   |
| **U.S.                          Chicken Sales:**      |   | *(in                          thousands)* |
| Prepared                          Foods:              |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foodservice                                           |   |                                      |   |                                         | $      | 1,622,901 |   | $ | 1,647,904 |   | $ | 731,331 |   | $ | 659,856 |   | $ | 632,075 |   |
| Retail                                                |   |                                      |   |                                         |   | 283,392 |   |   | 213,775 |   |   | 163,018 |   |   | 158,299 |   |   | 103,202 |   |
| Total                          Prepared Foods         |   |                                      |   |                                         |   | 1,906,293 |   |   | 1,861,679 |   |   | 894,349 |   |   | 818,155 |   |   | 735,277 |   |
|                                                  |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fresh                          Chicken:               |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foodservice                                           |   |                                      |   |                                         |   | 1,509,189 |   |   | 1,328,883 |   |   | 474,251 |   |   | 448,376 |   |   | 387,624 |   |
| Retail                                                |   |                                      |   |                                         |   | 612,081 |   |   | 653,798 |   |   | 257,911 |   |   | 258,424 |   |   | 224,693 |   |
| Total                          Fresh Chicken          |   |                                      |   |                                         |   | 2,121,270 |   |   | 1,982,681 |   |   | 732,162 |   |   | 706,800 |   |   | 612,317 |   |
|                                                  |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Export                          and Other:            |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Export:                                               |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prepared                          Foods               |   |                                      |   |                                         |   | 59,473 |   |   | 34,735 |   |   | 26,714 |   |   | 30,528 |   |   | 18,912 |   |
| Chicken                                               |   |                                      |   |                                         |   | 303,150 |   |   | 212,611 |   |   | 85,087 |   |   | 93,575 |   |   | 105,834 |   |
| Total                          Export(C)              |   |                                      |   |                                         |   | 362,623 |   |   | 247,346 |   |   | 111,801 |   |   | 124,103 |   |   | 124,746 |   |
| Other                          Chicken By Products    |   |                                      |   |                                         |   | 21,083 |   |   | (c | ) |   | (c | ) |   | (c | ) |   | (c | ) |
| Total                          Export and Other       |   |                                      |   |                                         |   | 383,706 |   |   | 247,346 |   |   | 111,801 |   |   | 124,103 |   |   | 124,746 |   |
| Total                          U.S. Chicken           |   |                                      |   |                                         |   | 4,411,269 |   |   | 4,091,706 |   |   | 1,738,312 |   |   | 1,649,058 |   |   | 1,472,340 |   |
|                                                  |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Mexico                          Chicken Sales:**    |   |                                      |   |                                         |   | 403,353 |   |   | 362,442 |   |   | 349,305 |   |   | 323,769 |   |   | 303,433 |   |
| Total                          Chicken Sales          |   |                                      |   |                                         |   | 4,814,622 |   |   | 4,454,148 |   |   | 2,087,617 |   |   | 1,972,827 |   |   | 1,775,773 |   |
|                                                  |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **U.S.                          Turkey Sales:**       |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prepared                          Foods:              |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foodservice                                           |   |                                      |   |                                         |   | 61,209 |   |   | 80,927 |   |   | 89,957 |   |   | 134,651 |   |   | 88,012 |   |
| Retail                                                |   |                                      |   |                                         |   | 37,653 |   |   | 37,384 |   |   | 29,141 |   |   | 54,638 |   |   | 48,681 |   |
| Total                          Prepared Foods         |   |                                      |   |                                         |   | 98,862 |   |   | 118,311 |   |   | 119,098 |   |   | 189,289 |   |   | 136,693 |   |
|                                                  |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fresh                          Turkey:                |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foodservice                                           |   |                                      |   |                                         |   | 12,699 |   |   | 39,749 |   |   | 48,448 |   |   | 36,119 |   |   | 18,618 |   |
| Retail                                                |   |                                      |   |                                         |   | 88,088 |   |   | 116,905 |   |   | 125,411 |   |   | 107,582 |   |   | 71,647 |   |
| Total                          Fresh Turkey           |   |                                      |   |                                         |   | 100,787 |   |   | 156,654 |   |   | 173,859 |   |   | 143,701 |   |   | 90,265 |   |
|                                                  |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Export                          and Other:            |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Export:                                               |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prepared                          Foods               |   |                                      |   |                                         |   | 981 |   |   | 1,949 |   |   | 2,128 |   |   | 2,858 |   |   | 2,434 |   |
| Turkey                                                |   |                                      |   |                                         |   | 3,307 |   |   | 9,338 |   |   | 10,593 |   |   | 12,270 |   |   | 9,443 |   |
| Total                          Export(C)              |   |                                      |   |                                         |   | 4,288 |   |   | 11,287 |   |   | 12,721 |   |   | 15,128 |   |   | 11,877 |   |
| Other                          Turkey By Products     |   |                                      |   |                                         |   | 901 |   |   | (c | ) |   | (c | ) |   | (c | ) |   | (c | ) |
| Total                          Export and Other       |   |                                      |   |                                         |   | 5,189 |   |   | 11,287 |   |   | 12,721 |   |   | 15,128 |   |   | 11,877 |   |
| Total                          U.S. Turkey Sales      |   |                                      |   |                                         |   | 204,838 |   |   | 286,252 |   |   | 305,678 |   |   | 348,118 |   |   | 238,835 |   |
|                                                  |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Other                          Products:**          |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| United                          States                |   |                                      |   |                                         |   | 626,056 |   |   | 600,091 |   |   | 207,284 |   |   | 193,691 |   |   | 179,859 |   |
| Mexico                                                |   |                                      |   |                                         |   | 20,759 |   |   | 23,232 |   |   | 18,766 |   |   | 19,082 |   |   | 20,245 |   |
| Total                          Other Products         |   |                                      |   |                                         |   | 646,815 |   |   | 623,323 |   |   | 226,050 |   |   | 212,773 |   |   | 200,104 |   |
|                                                  |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                          Net Sales              |   |                                      |   |                                         | $      | 5,666,275 |   | $ | 5,363,723 |   | $ | 2,619,345 |   | $ | 2,533,718 |   | $ | 2,214,712 |   |
|                                                  |   |                                      |   |                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                          Chicken Prepared Foods |   |                                      |   |                                         | $      | 1,965,766 |   | $ | 1,896,414 |   | $ | 921,063 |   | $ | 848,683 |   | $ | 754,189 |   |
| Total                          Turkey Prepared Foods  |   |                                      |   |                                         |   | 99,843 |   |   | 120,260 |   |   | 121,226 |   |   | 192,147 |   |   | 139,127 |   |

----

----

|                                                                                      |   | *Fiscal                        Year Ended* |   |
|-------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                                                      |   |  Oct.                        1, 2005  |   |  Oct                        2, 2004(a) |   |  Sept.                        27, 2003 |   |  Sept.                        28, 2002 |   | Sept.                        29, 2001(b) |   |
| **U.S.                        Chicken Sales:**                                            |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prepared                        Foods:                                                    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foodservice                                                                               |   |                                       | 36.8   |   |   | 40.3 |   |   | 42.1 |   |   | 39.9 |   |   | 42.9 |   |
| Retail                                                                                    |   |                                       | 6.4    |   |   | 5.2 |   |   | 9.4 |   |   | 9.6 |   |   | 7.0 |   |
| Total                        Prepared Foods                                               |   |                                       | 43.2   | % |   | 45.5 | % |   | 51.5 | % |   | 49.5 | % |   | 49.9 | % |
|                                                                                      |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fresh                        Chicken:                                                     |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foodservice                                                                               |   |                                       | 34.2   |   |   | 32.5 |   |   | 27.3 |   |   | 27.2 |   |   | 26.3 |   |
| Retail                                                                                    |   |                                       | 13.9   |   |   | 16.0 |   |   | 14.8 |   |   | 15.7 |   |   | 15.3 |   |
| Total                        Fresh Chicken                                                |   |                                       | 48.1   | % |   | 48.5 | % |   | 42.1 | % |   | 42.9 | % |   | 41.6 | % |
|                                                                                      |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Export                        and Other:                                                  |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Export:                                                                                   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prepared                        Foods                                                     |   |                                       | 1.3    |   |   | 0.8 |   |   | 1.5 |   |   | 1.9 |   |   | 1.3 |   |
| Chicken                                                                                   |   |                                       | 6.9    |   |   | 5.2 |   |   | 4.9 |   |   | 5.7 |   |   | 7.2 |   |
| Total                        Export(c)                                               |   |                                       | 8.2    |   |   | 6.0 |   |   | 6.4 |   |   | 7.6 |   |   | 8.5 |   |
| Other                        Chicken By Products                                     |   |                                       | 0.5    |   |   | (c | ) |   | (c | ) |   | (c | ) |   | (c | ) |
| Total                        Export and Other                                        |   |                                       | 8.7    | % |   | 6.0 | % |   | 6.4 | % |   | 7.6 | % |   | 8.5 | % |
| Total                        U.S. Chicken                                                 |   |                                       | 100.0  | % |   | 100.0 | % |   | 100.0 | % |   | 100.0 | % |   | 100.0 | % |
|                                                                                      |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                        Chicken Prepared Foods as a percentage of U.S. Chicken  |   |                                       | 44.5   | % |   | 46.3 | % |   | 53.0 | % |   | 51.4 | % |   | 51.2 | % |
|                                                                                      |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **U.S.                        Turkey Sales:**                                             |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prepared                        Foods:                                                    |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foodservice                                                                               |   |                                       | 29.8   |   |   | 28.2 |   |   | 29.5 |   |   | 38.7 |   |   | 36.8 |   |
| Retail                                                                                    |   |                                       | 18.4   |   |   | 13.1 |   |   | 9.5 |   |   | 15.7 |   |   | 20.4 |   |
| Total                        Prepared Foods                                               |   |                                       | 48.2   | % |   | 41.3 | % |   | 39.0 | % |   | 54.4 | % |   | 57.2 | % |
|                                                                                      |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fresh                        Turkey:                                                      |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foodservice                                                                               |   |                                       | 6.2    |   |   | 13.9 |   |   | 15.8 |   |   | 10.4 |   |   | 7.8 |   |
| Retail                                                                                    |   |                                       | 43.0   |   |   | 40.8 |   |   | 41.0 |   |   | 30.9 |   |   | 30.0 |   |
| Total                        Fresh Turkey                                                 |   |                                       | 49.2   | % |   | 54.7 | % |   | 56.8 | % |   | 41.3 | % |   | 37.8 | % |
|                                                                                      |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Export                        and Other:                                                  |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Export:                                                                                   |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prepared                        Foods                                                     |   |                                       | 0.5    |   |   | 0.7 |   |   | 0.7 |   |   | 0.8 |   |   | 1.0 |   |
| Turkey                                                                                    |   |                                       | 1.6    |   |   | 3.3 |   |   | 3.5 |   |   | 3.5 |   |   | 4.0 |   |
| Total                        Export(c)                                                    |   |                                       | 2.1    |   |   | 4.0 |   |   | 4.2 |   |   | 4.3 |   |   | 5.0 |   |
| Other                        Turkey By Products                                           |   |                                       | 0.5    |   |   | (c | ) |   | (c | ) |   | (c | ) |   | (c | ) |
| Total                        Export and Other                                             |   |                                       | 2.6    | % |   | 4.0 | % |   | 4.2 | % |   | 4.3 | % |   | 5.0 | % |
| Total                        U.S. Turkey                                                  |   |                                       | 100.0  | % |   | 100.0 | % |   | 100.0 | % |   | 100.0 | % |   | 100.0 | % |
|                                                                                      |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                        Turkey Prepared Foods as a percentage of U.S. Turkey         |   |                                       | 48.7   | % |   | 42.0 | % |   | 39.7 | % |   | 55.2 | % |   | 58.2 | % |
|                                                                                      |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

**UNITED        STATES**

**Product        Types**

*Chicken        Products*

***Prepared        Foods Overview.***

***Fresh        Chicken Overview.***

***Export        and Other Chicken Products Overview.***

----

*   Turkey          Products*

***Prepared        Foods Overview.***

***Fresh        Turkey Overview.***

***Export        and Other Turkey Products Overview.***

----

**Markets        for Chicken Products**

***Foodservice.***

*Foodservice        - Prepared Foods. *

*First,*

*Second,*

*Third,*

----

*                     Fourth,*

*Fifth,*

*Sixth*

*Foodservice          - Fresh Chicken.*

***Retail.***

----

*Retail          - Prepared Foods.*

*Retail          - Fresh Chicken.*

***Export          and Other Chicken Products.***

**Markets          for Turkey Products**

***Foodservice.***

----

*Foodservice            - Prepared Foods.*

*Foodservice            - Fresh Turkey.*

***Retail.***

*Retail            - Prepared Foods.*

*Retail            - Fresh Turkey*

**Markets            for Other Products **

----

----

**MEXICO**

**Background**

**Product              Types**

**Markets**

**Foreign              Operations Risks**

----

**GENERAL**

**Competitive            Conditions**

----

**Key            Customers**

**Regulation            and Environmental Matters**

**Employees            and Labor Relations**

**Financial            Information About Foreign Operations**

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**Available            Information; NYSE CEO Certification**

**Executive            Officers**

| **Name**                                 | **Age** | **Positions**                                                         |
|------------------------------------------|---------|-----------------------------------------------------------------------|
| Lonnie                      "Bo" Pilgrim | 77      | Chairman                      of the Board                            |
| Clifford                      E. Butler  | 63      | Vice                      Chairman of the Board                       |
| O.B.                      Goolsby, Jr.   | 58      | President,                      Chief Executive Officer, and Director |
| Richard                      A. Cogdill  | 45      | Chief                      Financial Officer                          |
|                                     |    | Secretary,                      Treasurer and Director                |
| J.                      Clinton Rivers   | 46      | Chief                      Operating Officer                          |
| Robert                      A. Wright    | 51      | Executive                      Vice President of                      |
|                                     |    | Sales                      and Marketing                              |

*Lonnie            "Bo" Pilgrim*

*Clifford            E. Butler*

*O.B.            Goolsby, Jr.*

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*Richard            A. Cogdill*

*J.            Clinton Rivers *

*Robert            A. Wright *

**Item            1A. Risk Factors**

**Forward            Looking Statements**

**Risk            Factors **

*Cyclicality            and Commodity Prices. *

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*Livestock            and Poultry Disease, including Avian Influenza. *

*Contamination            of Products*

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*Listeria            monocytogenes*
*Salmonella            *
*E.coli*

*Product            Liability*

*Listeria            monocytogenes.*

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*Insurance.            *

*Government            Regulation*

*Significant            Competition*

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*Loss            of Key Customers. *

*Potential            Acquisitions*

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*Assumption            of Unknown Liabilities in Acquisitions. *

*Leverage.*

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

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

| ·   | Require                      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; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Limit                      our flexibility in planning for, or reacting to, changes in                      our business                      and the industry in which we operate;   |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| ·   | Limit,                      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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*Foreign                Operations Risks*

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*Control            of Voting Stock*

**Item            1B. Unresolved Staff Comments**

**Item            2. Properties**

*Operating            Facilities*

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*Other            Facilities and Information*

**Item            3. Legal Proceedings**

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**Item            4. Submission of Matters to a Vote of Security            Holders**

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**PART            II**

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

*Quarterly            Stock Prices and Dividends*

|                                      |   | Prices                      2005 |   | Prices                      2004 |   | Dividends |   |
|-------------------------------------------|--------|----------------------------------|--------|----------------------------------|--------|-----------|--------|
| Quarter                                   |   |                             | High   |                             |   | Low       |   |   | High |   |   | Low |   |   | 2005 |   |   | 2004 |   |
|                                      |   |                             |   |                             |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| PPC                      Common Stock     |   |                             |
| First                                     |   | $                                | 35.00  |                             | $      | 25.76     |   | $ | 18.50 |   | $ | 13.44 |   | $ | .015 |   | $ | .015 |   |
| Second                                    |   |                             | 39.85  |                             |   | 28.84     |   |   | 23.10 |   |   | 16.17 |   |   | .015 |   |   | .015 |   |
| Third                                     |   |                             | 38.61  |                             |   | 33.32     |   |   | 29.88 |   |   | 21.10 |   |   | .015 |   |   | .015 |   |
| Fourth                                    |   |                             | 40.23  |                             |   | 30.91     |   |   | 32.09 |   |   | 23.02 |   |   | .015 |   |   | .015 |   |
|                                      |   |                             |   |                             |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Class                      B Common Stock |   |                             |
| First                                     |   | $                                | --     |                             | $      | --        |   | $ | 14.39 |   | $ | 12.50 |   | $ | -- |   | $ | -- |   |
| Second                                    |   |                             | --     |                             |   | --        |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
| Third                                     |   |                             | --     |                             |   | --        |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
| Fourth                                    |   |                             | --     |                             |   | --        |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|                                      |   |                             |
| Class                      A Common Stock |   |                             |
| First                                     |   | $                                | --     |                             | $      | --        |   | $ | 14.55 |   | $ | 12.53 |   | $ | -- |   | $ | -- |   |
| Second                                    |   |                             | --     |                             |   | --        |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
| Third                                     |   |                             | --     |                             |   | --        |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
| Fourth                                    |   |                             | --     |                             |   | --        |   |   | -- |   |   | -- |   |   | -- |   |   | -- |   |
|                                      |   |                             |

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*Issuer            Purchases of Equity Security*

|    Period            |   |  Total                      Number of Shares Purchased (1) |       |  Average                      Price Paid per Share |   | Total                      Number ofShares                      Purchased as Part of PubliclyAnnounced                      Program (2) |   | Number                      of SharesRemaining                      to be Purchased Under the Program (2) |       |
|-------------------------------------|--------|-----------------------------------------------------------------|------------|---------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|------------|
| July                      3 - Aug 3 |   |                                                            | 15,443,054 |                                                    | $      | 31.23735                                                                                                                                |   |                                                                                                      | 15,443,054 |   |   | -- |   |
| Aug                      4 - Sept 3 |   |                                                            | --         |                                                    |   | --                                                                                                                                      |   |                                                                                                      | --         |   |   | -- |   |
| Sept                      4 - Oct 1 |   |                                                            | --         |                                                    |   | --                                                                                                                                      |   |                                                                                                      | --         |   |   | -- |   |
| Total                               |   |                                                            | 15,443,054 |                                                    | $      | 31.23735                                                                                                                                |   |                                                                                                      | 15,443,054 |   |   | -- |   |

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**Item            6.** **Selected            Financial Data**

| *(In                        thousands, except ratios and per share data)*                  |   | *Eleven                        Years Ended October 1, 2005* |      |
|--------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|-----------|
|                                                                                       |   | 2005                                                        |      | 2004(a)(b) |   | 2003 |   | 2002 |   |
|                                                                                       |   |                                                        |      | (53                        weeks) |   |   |   |   |   |
| **Income                        Statement Data:**                                          |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |
| Net                        sales                                                           |   | $                                                           | 5,666,275 |   | $ | 5,363,723 |   | $ | 2,619,345 |   | $ | 2,533,718 |   |
| Gross                        profit(d)                                                     |   |                                                        | 745,199   |   |   | 529,039 |   |   | 200,483 |   |   | 165,165 |   |
| Operating                        income(d)                                                 |   |                                                        | 435,812   |   |   | 265,314 |   |   | 63,613 |   |   | 29,904 |   |
| Interest                        expense, net                                               |   |                                                        | 43,932    |   |   | 52,129 |   |   | 37,981 |   |   | 32,003 |   |
| Income                        (loss) before income taxes(d)                                |   |                                                        | 403,523   |   |   | 208,535 |   |   | 63,235 |   |   | 1,910 |   |
| Income                        tax expense (benefit)(e)                                     |   |                                                        | 138,544   |   |   | 80,195 |   |   | 7,199 |   |   | (12,425 | ) |
| Net                        income (loss)(d)                                                |   |                                                        | 264,979   |   |   | 128,340 |   |   | 56,036 |   |   | 14,335 |   |
| Ratio                        of earnings to fixed charges(f)                               |   |                                                        | 7.19x     |   |   | 4.08x |   |   | 2.24x |   |   | (f | ) |
| **Per                        Common Share Data:(g)**                                       |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |
| Net                        income (loss)                                                   |   | $                                                           | 3.98      |   | $ | 2.05 |   | $ | 1.36 |   | $ | 0.35 |   |
| Cash                        dividends                                                      |   |                                                        | 0.06      |   |   | 0.06 |   |   | 0.06 |   |   | 0.06 |   |
| Book                        value                                                          |   |                                                        | 18.31     |   |   | 13.87 |   |   | 10.46 |   |   | 9.59 |   |
| **Balance                        Sheet Summary:**                                          |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |
| Working                        capital                                                     |   | $                                                           | 404,601   |   | $ | 383,726 |   | $ | 211,119 |   | $ | 179,037 |   |
| Total                        assets                                                        |   |                                                        | 2,511,903 |   |   | 2,245,989 |   |   | 1,257,484 |   |   | 1,227,890 |   |
| Notes                        payable and current maturities of long-term debt              |   |                                                        | 8,603     |   |   | 8,428 |   |   | 2,680 |   |   | 3,483 |   |
| Long-term                        debt, less current maturities                             |   |                                                        | 518,863   |   |   | 535,866 |   |   | 415,965 |   |   | 450,161 |   |
| Total                        stockholders’ equity                                    |   |                                                        | 1,223,598 |   |   | 922,956 |   |   | 446,696 |   |   | 394,324 |   |
| **Cash                        Flow Summary:**                                              |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |
| Operating                        cash flow                                                 |   | $                                                           | 493,073   |   | $ | 272,404 |   | $ | 98,892 |   | $ | 98,113 |   |
| Depreciation                        & amortization(h)                                  |   |                                                        | 134,944   |   |   | 113,788 |   |   | 74,187 |   |   | 70,973 |   |
| Purchases                        of investment securities                                  |   |                                                        | 305,458   |   |   | -- |   |   | -- |   |   | -- |   |
| Capital                        expenditures                                                |   |                                                        | 116,588   |   |   | 79,642 |   |   | 53,574 |   |   | 80,388 |   |
| Business                        acquisitions, net of equity consideration(a)(c)            |   |                                                        | --        |   |   | 272,097 |   |   | 4,499 |   |   | -- |   |
| Financing                        activities, net provided by (used in)                     |   |                                                        | 18,860    |   |   | 96,665 |   |   | (39,767 | ) |   | (21,793 | ) |
| **Other                        Data:**                                                     |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |
| EBITDA(i)                                                                                  |   | $                                                           | 580,078   |   | $ | 372,501 |   | $ | 173,926 |   | $ | 103,469 |   |
| **Key                        Indicators (as a percentage of net sales):**                  |   |                                                        |      |   |   |   |   |   |   |   |   |   |   |
| Gross                        profit(d)                                                     |   |                                                        | 13.2      | % |   | 9.9 | % |   | 7.7 | % |   | 6.5 | % |
| Selling,                        general and administrative                        expenses |   |                                                        | 5.5       | % |   | 4.8 | % |   | 5.2 | % |   | 5.3 | % |
| Operating                        income (loss)(d)                                          |   |                                                        | 7.7       | % |   | 4.9 | % |   | 2.4 | % |   | 1.2 | % |
| Interest                        expense, net                                               |   |                                                        | 0.9       | % |   | 1.0 | % |   | 1.5 | % |   | 1.3 | % |
| Net                        income (loss)(d)                                                |   |                                                        | 4.7       | % |   | 2.4 | % |   | 2.1 | % |   | 0.6 | % |

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| *Eleven                        Years Ended October 2, 2004* |
|-------------------------------------------------------------|
|                                                        | 2001(c) |   | 2000 |   | 1999 |   | 1998 |   | 1997 |   | 1996 |   | 1995 |   |
|                                                        |   |   |   |   | (53                        weeks) |   |   |   |   |   |   |   |   |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                                                           | 2,214,712 | $ | 1,499,439 | $ | 1,357,403 | $ | 1,331,545 | $ | 1,277,649 | $ | 1,139,310 | $ | 931,806 |   |
|                                                        | 213,950 |   | 165,828 |   | 185,708 |   | 136,103 |   | 114,467 |   | 70,640 |   | 74,144 |   |
|                                                        | 94,542 |   | 80,488 |   | 109,504 |   | 77,256 |   | 63,894 |   | 21,504 |   | 24,930 |   |
|                                                        | 30,775 |   | 17,779 |   | 17,666 |   | 20,148 |   | 22,075 |   | 21,539 |   | 17,483 |   |
|                                                        | 61,861 |   | 62,786 |   | 90,904 |   | 56,522 |   | 43,824 |   | (4,533) |   | 2,091 |   |
|                                                        | 20,724 |   | 10,442 |   | 25,651 |   | 6,512 |   | 2,788 |   | 2,751 |   | 10,058 |   |
|                                                        | 41,137 |   | 52,344 |   | 65,253 |   | 50,010 |   | 41,036 |   | (7,284) |   | (7,967) |   |
|                                                        | 2.13x |   | 3.04x |   | 4.33x |   | 2.96x |   | 2.57x |   | (f) |   | 1.07x |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                                                           | 1.00 | $ | 1.27 | $ | 1.58 | $ | 1.21 | $ | 0.99 | $ | (0.18) | $ | (0.19) |   |
|                                                        | 0.06 |   | 0.06 |   | 0.045 |   | 0.04 |   | 0.04 |   | 0.04 |   | 0.04 |   |
|                                                        | 9.27 |   | 8.33 |   | 7.11 |   | 5.58 |   | 4.41 |   | 3.46 |   | 3.67 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                                                           | 203,350 | $ | 124,531 | $ | 154,242 | $ | 147,040 | $ | 133,542 | $ | 88,455 | $ | 88,395 |   |
|                                                        | 1,215,695 |   | 705,420 |   | 655,762 |   | 601,439 |   | 579,124 |   | 536,722 |   | 497,604 |   |
|                                                        | 5,099 |   | 4,657 |   | 4,353 |   | 5,889 |   | 11,596 |   | 35,850 |   | 18,187 |   |
|                                                        | 467,242 |   | 165,037 |   | 183,753 |   | 199,784 |   | 224.743 |   | 198,334 |   | 182,988 |   |
|                                                        | 380,932 |   | 342,559 |   | 294,259 |   | 230,871 |   | 182,516 |   | 143,135 |   | 152,074 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                                                           | 87,833 | $ | 130,803 | $ | $81,452 | $ | 85,016 | $ | 49,615 | $ | 11,391 | $ | 32,712 |   |
|                                                        | 55,390 |   | 36,027 |   | 34,536 |   | 32,591 |   | 29,796 |   | 28,024 |   | 26,127 |   |
|                                                        | -- |   | -- |   | -- |   | -- |   | -- |   | -- |   | -- |   |
|                                                        | 112,632 |   | 92,128 |   | 69,649 |   | 53,518 |   | 50,231 |   | 34,314 |   | 35,194 |   |
|                                                        | 239,539 |   | -- |   | -- |   | -- |   | -- |   | -- |   | 36,178 |   |
|                                                        | 246,649 |   | (24,769) |   | (19,634) |   | (32,498) |   | 348 |   | 27,313 |   | 40,173 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| $                                                           | 146,166 | $ | 115,356 | $ | 142,043 | $ | 108,268 | $ | 94,782 | $ | 43,269 | $ | 44,455 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                        | 9.7 | % | 11.1 | % | 13.7 | % | 10.2 | % | 9.0 | % | 6.2 | % | 8.0 | % |
|                                                        | 5.4 | % | 5.7 | % | 5.6 | % | 4.4 | % | 4.0 | % | 4.3 | % | 5.3 | % |
|                                                        | 4.3 | % | 5.4 | % | 8.1 | % | 5.8 | % | 5.0 | % | 1.9 | % | 2.7 | % |
|                                                        | 1.4 | % | 1.2 | % | 1.3 | % | 1.5 | % | 1.7 | % | 1.9 | % | 1.9 | % |
|                                                        | 1.9 | % | 3.5 | % | 4.8 | % | 3.8 | % | 3.2 | % | (0.6) | % | (0.9) | % |

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| (a)    | 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.                       |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (b)    | On                      April 26, 2004, the Company announced a plan to restructure                      its turkey                      division, including the sale of some facilities in Virginia.                      The                      facilities were sold in the fourth quarter of fiscal 2004.                      In connection                      with the restructuring, the Company recorded in cost of                      sales-restructuring charges of approximately $64.2 million                      and $7.9                      million of other restructuring charges. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (c)    | 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.                                                                                  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (d)    | Gross                      profit, operating income and other income include the following                      non-recurring recoveries, restructuring charges and other unusual                      items                      for each of the years presented (in                      millions):                                                                                                                                                                                                                                                                                                     |

|                                                                                |   | 2005   |   | 2004   |   | 2003   |   | 2002   |   |
|-------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Effect                      on Gross Profit and Operating Income:                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                      of sales-restructuring                                    |   | $      | --     |   | $      | (64.2  | )      | $      | --     |   | $ | -- |   |
| Non-recurring                      recoveries recall insurance                      |   | $      | --     |   | $      | 23.8   |   | $      | --     |   | $ | -- |   |
| Non-recurring                      recoveries for avian influenza                   |   | $      | --     |   | $      | --     |   | $      | 26.6   |   | $ | -- |   |
| Non-recurring                      recoveries for vitamin and methionine litigation |   | $      | --     |   | $      | 0.1    |   | $      | 19.9   |   | $ | 0.8 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Additional                      effect on Operating Income:                         |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                      restructuring charges                                    |   | $      | --     |   | $      | (7.9   | )      | $      | --     |   | $ | -- |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                      income for litigation settlement                         |   | $      | 11.7   |   |   | --     |   |   | --     |   |   | -- |   |
| Other                      income for vitamin and methionine litigation             |   | $      | --     |   | $      | 0.9    |   | $      | 36.0   |   | $ | 4.3 |   |

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

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

| (e)    | Fiscal                      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. Fiscal 2002 included a tax benefit of $11.9                      million                      from changes in Mexican tax laws.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (f)    | 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 $4.1 million and $5.8 million in fiscal 2002 and                      1996,                      respectively.                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (g)    | 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (h)    | Includes                      amortization of capitalized financing costs of approximately                      $2.3 million,                      $2.0 million, $1.5 million, $1.4 million, $1.9 million, $1.2                      million, $1.1                      million, $1.0 million, $0.9 million, $1.8 million and $1.2                      million in                      fiscal years 2005, 2004, 2003, 2002, 2001, 2000, 1999, 1998,                      1997, 1996                      and 1995, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (i)    | “EBITDA”                      is defined as the sum of net income (loss) before 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 Generally                      Accepted Accounting Principles (GAAP) results, 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. |

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**A            reconciliation of net income to EBITDA is as follows (in            thousands):**

|                                                                |   | 2005     | 2004     | 2003                          | 2002                          | 2001                          | 2000                          | 1999                          | 1998                          | 1997                          | 1996                           | 1995                           |
|---------------------------------------------------------------------|--------|----------|----------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|--------------------------------|--------------------------------|
|                                                                |   |     |     |                          |                          |                          |                          |                          |                          |                          |                           |                           |
| **Net                      Income (loss)**                          |   | $264,979 | $128,340 | $                      56,036 | $                      14,335 | $                      41,137 | $                      52,344 | $                      65,253 | $                      50,010 | $                      41,036 | $                      (7,284) | $                      (7,967) |
| Add:                                                                |   |     |     |                          |                          |                          |                          |                          |                          |                          |                           |                           |
| Interest                      expense, net                          |   | 43,932   | 52,129   | 37,981                        | 32,003                        | 30,775                        | 17,779                        | 17,666                        | 20,148                        | 22,075                        | 21,539                         | 17,483                         |
| Income                      tax expense (benefit)                   |   | 138,544  | 80,195   | 7,199                         | (12,425)                      | 20,724                        | 10,442                        | 25,651                        | 6,512                         | 2,788                         | 2,751                          | 10,058                         |
| Depreciation                      and amortization(h)               |   | 134,944  | 113,788  | 74,187                        | 70,973                        | 55,390                        | 36,027                        | 34,536                        | 32,591                        | 29,796                        | 28,024                         | 26,127                         |
|                                                                |   |     |     |                          |                          |                          |                          |                          |                          |                          |                           |                           |
| Minus:                                                              |   |     |     |                          |                          |                          |                          |                          |                          |                          |                           |                           |
| Amortization                      of capitalized financing costs(h) |   | 2,321    | 1,951    | 1,477                         | 1,417                         | 1,860                         | 1,236                         | 1,063                         | 993                           | 913                           | 1,761                          | 1,246                          |
| EBITDA                                                              |   | $580,078 | $372,501 | $173,926                      | $103,469                      | $146,166                      | $115,356                      | $142,043                      | $108,268                      | $                      94,782 | $                      43,269  | $                      44,455  |

**Item            7. Management’s Discussion and Analysis of Financial            Condition and Results of Operations**

**§**
**Description            of the Company**

**§**
**Executive              Summary**

----

*Consolidated              Operating Results. *

|                                                                    |   |  Net                        Income |   |  Earnings                        per Share |   |
|-------------------------------------------------------------------------|--------|-----------------------------------------|--------|-------------------------------------------------|--------|
| For                        the fiscal year ended October 2, 2004        |   | $                                       | 128.3  |                                            | $      | 2.05 |   |
| Fiscal                        2004 Items Impacting Net Income:          |   |                                    |   |                                            |   |   |   |
| Turkey                        restructuring and related charges in 2004 |   |                                    | 44.3   |                                            |   | 0.71 |   |
| Non-recurring                        recoveries in 2004                 |   |                                    | (15.4  | )                                               |   | (0.25 | ) |
| Proforma                        fiscal 2004 acquisition                 |   |                                    | 14.5   |                                            |   | 0.11 |   |
| Lower                        effective income tax rate                  |   |                                    | 8.7    |                                            |   | 0.14 |   |
| Subtotal                                                                |   |                                    | 180.4  |                                            |   | 2.76 |   |
| Fiscal                        2005 Items Impacting Net Income:          |   |                                    |   |                                            |   |   |   |
| Breach                        of contract litigation                    |   |                                    | 7.5    |                                            |   | 0.11 |   |
| All                        other, primarily improved operations         |   |                                    | 77.1   |                                            |   | 1.11 |   |
| For                        the fiscal year ended October 1, 2005        |   | $                                       | 265.0  |                                            | $      | 3.98 |   |

*See              the discussion of events affecting the comparability of net income              amounts in“Results of Operations,” below.*

*Turkey              Restructuring and Related Charges in 2004. *

*For              further details, see Note C- Restructuring Charges and Non-recurring              Recoveries              to the consolidated financial statements included elsewhere herein              and “Results              of Operations.”*

*Non-recurring              Recoveries in 2004. *

*For              further details, see Note C- Restructuring Charges and Non-recurring              Recoveries              to the consolidated financial statements included elsewhere              herein.*

*Proforma              Fiscal 2004 Acquisition. *

*For              further details, see Note B - Business Acquisition to the consolidated              financial              statements included elsewhere herein.*

*Lower              Effective Income Tax Rate. *

*Breach              of Contract Litigation.*

----

*All            Other, Primarily Improved Operations. *

| §   | Increase                      in operating income related to U.S. chicken sales as a result                      of a 17%                      decrease in average feed costs when considered on a stable                      sales pricing                      and volume basis. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Increase                      in operating income related to Mexico chicken sales as a result                      of average                      sales prices increasing 15% and an 18% decrease in average                      feed                      costs. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Decrease                      in operating loss from turkey segment due primarily to the                      change in                      product mix created by the 2004 turkey                      restructuring. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Decrease                      in operating income from other product operations due to competitive                      pressures in the sale of table eggs, protein and non-poultry                      products sold                      by our distributions centers. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**§**
**Business            Environment**

----

**Business            Segments**

----

----

|                                                                 |   |  ***Fiscal                      Year Ended*** |      |
|----------------------------------------------------------------------|--------|----------------------------------------------------|-----------|
|                                                                 |   |  **October                      1, 2005**     |      | **October                      2, 2004****(a)(b)** |   | **September                      27, 2003****(a)** |   |
|                                                                 |   |  ***(In                      thousands)***    |      |
| **Net                      Sales to Customers:**                     |   |                                               |      |   |   |   |   |   |   |   |
| Chicken:                                                             |   |                                               |      |   |   |   |   |   |   |   |
| United                      States                                   |   | $                                                  | 4,411,269 |   | $ | 4,091,706 |   | $ | 1,738,312 |   |
| Mexico                                                               |   |                                               | 403,353   |   |   | 362,442 |   |   | 349,305 |   |
| Sub-total                                                            |   |                                               | 4,814,622 |   |   | 4,454,148 |   |   | 2,087,617 |   |
| Turkey                                                               |   |                                               | 204,838   |   |   | 286,252 |   |   | 305,678 |   |
| Other                      Products:                                 |   |                                               |      |   |   |   |   |   |   |   |
| United                      States                                   |   |                                               | 626,056   |   |   | 600,091 |   |   | 207,284 |   |
| Mexico                                                               |   |                                               | 20,759    |   |   | 23,232 |   |   | 18,766 |   |
| Sub-total                                                            |   |                                               | 646,815   |   |   | 623,323 |   |   | 226,050 |   |
| Total                                                                |   |                                               | 5,666,275 |   |   | 5,363,723 |   |   | 2,619,345 |   |
| **Operating                      Income (Loss):**                    |   |                                               |      |   |   |   |   |   |   |   |
| Chicken:                                                             |   |                                               |      |   |   |   |   |   |   |   |
| United                      States                                   |   | $                                                  | 405,662   |   | $ | 329,694 |   | $ | 60,507 |   |
| Mexico                                                               |   |                                               | 39,809    |   |   | (7,619 | ) |   | 12,557 |   |
| Sub-total                                                            |   |                                               | 445,471   |   |   | 322,075 |   |   | 73,064 |   |
| Turkey(c)                                                            |   |                                               | (22,539   | ) |   | (96,839 | ) |   | (73,992 | ) |
| Other                      Products:                                 |   |                                               |      |   |   |   |   |   |   |   |
| United                      States                                   |   |                                               | 8,250     |   |   | 35,969 |   |   | 14,300 |   |
| Mexico                                                               |   |                                               | 4,630     |   |   | 4,033 |   |   | 3,762 |   |
| Sub-total                                                            |   |                                               | 12,880    |   |   | 40,002 |   |   | 18,062 |   |
| Non-recurring                      recoveries(d)                     |   |                                               | --        |   |   | 76 |   |   | 46,479 |   |
| Total                                                                |   | $                                                  | 435,812   |   | $ | 265,314 |   | $ | 63,613 |   |
| **Depreciation                      and Amortization:****(e)**  |   |                                               |      |   |   |   |   |   |   |   |
| Chicken:                                                             |   |                                               |      |   |   |   |   |   |   |   |
| United                      States                                   |   | $                                                  | 114,131   |   | $ | 89,767 |   | $ | 50,215 |   |
| Mexico                                                               |   |                                               | 12,085    |   |   | 12,217 |   |   | 11,981 |   |
| Sub-total                                                            |   |                                               | 126,216   |   |   | 101,984 |   |   | 62,196 |   |
| Turkey                                                               |   |                                               | 3,343     |   |   | 6,887 |   |   | 7,921 |   |
| Other                      Products:                                 |   |                                               |      |   |   |   |   |   |   |   |
| United                      States                                   |   |                                               | 5,196     |   |   | 4,773 |   |   | 3,935 |   |
| Mexico                                                               |   |                                               | 189       |   |   | 144 |   |   | 135 |   |
| Sub-total                                                            |   |                                               | 5,385     |   |   | 4,917 |   |   | 4,070 |   |
| Total                                                                |   | $                                                  | 134,944   |   | $ | 113,788 |   | $ | 74,187 |   |
| **Total                      Assets:**                               |   |                                               |      |   |   |   |   |   |   |   |
| Chicken:                                                             |   |                                               |      |   |   |   |   |   |   |   |
| United                      States                                   |   | $                                                  | 2,059,579 |   | $ | 1,830,051 |   | $ | 799,967 |   |
| Mexico                                                               |   |                                               | 287,414   |   |   | 212,492 |   |   | 207,221 |   |
| Sub-total                                                            |   |                                               | 2,346,993 |   |   | 2,042,543 |   |   | 1,007,188 |   |
| Turkey                                                               |   |                                               | 77,319    |   |   | 122,163 |   |   | 193,349 |   |
| Other                      Products:                                 |   |                                               |      |   |   |   |   |   |   |   |
| United                      States                                   |   |                                               | 85,581    |   |   | 78,754 |   |   | 54,275 |   |
| Mexico                                                               |   |                                               | 2,010     |   |   | 2,529 |   |   | 2,672 |   |
| Sub-total                                                            |   |                                               | 87,591    |   |   | 81,283 |   |   | 56,947 |   |
| Total                                                                |   | $                                                  | 2,511,903 |   | $ | 2,245,989 |   | $ | 1,257,484 |   |
| **Capital                      Expenditures:**                       |   |                                               |      |   |   |   |   |   |   |   |
| Chicken:                                                             |   |                                               |      |   |   |   |   |   |   |   |
| United                      States                                   |   | $                                                  | 102,470   |   | $ | 54,433 |   | $ | 34,517 |   |
| Mexico                                                               |   |                                               | 4,924     |   |   | 8,640 |   |   | 9,218 |   |
| Sub-total                                                            |   |                                               | 107,394   |   |   | 63,073 |   |   | 43,735 |   |
| Turkey                                                               |   |                                               | 3,604     |   |   | 8,151 |   |   | 5,582 |   |
| Other                      Products:                                 |   |                                               |      |   |   |   |   |   |   |   |
| United                      States                                   |   |                                               | 5,448     |   |   | 8,395 |   |   | 4,257 |   |
| Mexico                                                               |   |                                               | 142       |   |   | 23 |   |   | -- |   |
| Sub-total                                                            |   |                                               | 5,590     |   |   | 8,418 |   |   | 4,257 |   |
| Total                                                                |   | $                                                  | 116,588   |   | $ | 79,642 |   | $ | 53,574 |   |

----

| (a)    | Certain                      historical amounts have been reclassified to conform with current                      year                      presentation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (b)    | The                      Company acquired the ConAgra chicken division on November 23,                      2003 for                      $635.2 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.                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (c)    | Included                      in fiscal 2004 are restructuring charges totaling $72.1 million                      offset                      somewhat by the non-recurring recovery of $23.8 million representing                      the                      gain recognized on the insurance proceeds received in connection                      with the                      October 2002 recall. In addition, the Company estimates its                      losses related                      to the October 2002 recall (excluding the insurance recovery                      described                      above) negatively affected gross profit and operating income                      by $20.0                      million in fiscal 2004 and $65.0 million in fiscal                      2003. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (d)    | Non-recurring                      recoveries which have not been allocated to the individual                      segments are as                      follows (in millions):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

|                                 |   | October                      2, 2004 |   |  September                      27, 2003 |   |
|--------------------------------------|--------|--------------------------------------|--------|-----------------------------------------------|--------|
| Avian                      influenza |   |                                 | --     |                                          |   | 26.6 |   |
| Vitamin                              |   |                                 | 0.1    |                                          |   | 1.6 |   |
| Methionine                           |   |                                 | --     |                                          |   | 18.3 |   |
|                                 |   |                                 |   |                                          |   |   |   |
| Total                                |   | $                                    | 0.1    |                                          | $      | 46.5 |   |
|                                 |   |                                 |   |                                          |   |   |   |

| (e) | Includes                      amortization of capitalized financing costs of approximately                      $2.3 million,                      $2.0 million and $1.5 million in fiscal years 2005, 2004 and                      2003,                      respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                    |   |   | October                        1, 2005 |   |   | October                        2,2004 |   |   | September                        27,2003 |   |
|--------------------------------------------------------------------|--------|--------|----------------------------------------|--------|--------|---------------------------------------|--------|--------|------------------------------------------|--------|
| Net                        sales                                   |   |   | 100.0                                  | %      |   | 100.0                                 | %      |   | 100.0                                    | %      |
| Cost                        and Expenses                           |   |   |                                   |   |   |                                  |   |   |                                     |   |
| Cost                        of sales                               |   |   | 86.8                                   |   |   | 89.4                                  |   |   | 94.1                                     |   |
| Cost                        of sales-restructuring                 |   |   | 0.0                                    |   |   | 1.2                                   |   |   | --                                       |   |
| Non-recurring                        recoveries                    |   |   | 0.0                                    |   |   | (0.4                                  | )      |   | (1.8                                     | )      |
| Gross                        profit                                |   |   | 13.2                                   |   |   | 9.9                                   |   |   | 7.7                                      |   |
| Selling,                        general and administrative expense |   |   | 5.5                                    |   |   | 4.8                                   |   |   | 5.2                                      |   |
| Other                        restructuring charges                 |   |   | 0.0                                    |   |   | 0.1                                   |   |   | --                                       |   |
| Operating                        income                            |   |   | 7.7                                    |   |   | 4.9                                   |   |   | 2.4                                      |   |
| Interest                        expense, net                       |   |   | 0.7                                    |   |   | 1.0                                   |   |   | 1.5                                      |   |
|                                                               |   |   |                                   |   |   |                                  |   |   |                                     |   |
| Income                        before income taxes                  |   |   | 7.1                                    |   |   | 3.9                                   |   |   | 2.4                                      |   |
| Net                        income                                  |   |   | 4.7                                    |   |   | 2.4                                   |   |   | 2.1                                      |   |
|                                                               |   |   |                                   |   |   |                                  |   |   |                                     |   |

**Results            of Operations**

----

----

***Fiscal            2005 Compared to Fiscal 2004***

*Net            Sales. *

|                                 |   | Fiscal                      Year Ended |   |                            |   |                             |   |       |   |
|--------------------------------------|--------|----------------------------------------|--------|---------------------------------|--------|----------------------------------|--------|------------|--------|
|                                 |   |                                   |   | October                      1, |   | Change                      from |   | Percentage |   |   |   |
| Source                               |   |                                   |   | 2005                            |   | Fiscal                      2004 |   | Change     |   |   |   |
|                                 |   |                                   |   |                            |   |                             |   |       |   |   |   |
| Chicken:                             |   |                                   |   |                            |   |                             |   |       |   |   |   |   |   |   |   |   |
| United                      States   |   |                                   |   |                            | $      | 4,411.2                          |   | $          | 319.5  |   |   | 7.8 | % |   | (a | ) |
| Mexico                               |   |                                   |   |                            |   | 403.4                            |   |       | 41.0   |   |   | 11.3 | % |   | (b | ) |
|                                 |   |                                   |   |                            | $      | 4,814.6                          |   | $          | 360.5  |   |   | 8.1 | % |   |   |   |
|                                 |   |                                   |   |                            |   |                             |   |       |   |   |   |   |   |   |   |   |
| Turkey                               |   |                                   |   |                            | $      | 204.8                            |   | $          | (81.5  | ) |   | (28.5 | )% |   | (c | ) |
|                                 |   |                                   |   |                            |   |                             |   |       |   |   |   |   |   |   |   |   |
| Other                      products: |   |                                   |   |                            |   |                             |   |       |   |   |   |   |   |   |   |   |
| United                      States   |   |                                   |   |                            | $      | 626.1                            |   | $          | 26.0   |   |   | 4.3 | % |   | (d | ) |
| Mexico                               |   |                                   |   |                            |   | 20.8                             |   |       | (2.4   | ) |   | (10.3 | )% |   | (e | ) |
|                                 |   |                                   |   |                            | $      | 646.9                            |   | $          | 23.6   |   |   | 3.8 | % |   |   |   |
|                                 |   |                                   |   |                            | $      | 5,666.3                          |   | $          | 302.6  |   |   | 5.6 | % |   |   |   |

| (a)    | U.S.                      chicken sales increased primarily due to the inclusion of the                      fiscal 2004                      acquisition, for 52 weeks in fiscal 2005 versus 45 weeks in                      fiscal                      2004.                                                                                                                                                                                                                                                                                                                                     |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (b)    | Mexico                      chicken sales after adjusting for a 52-week year in 2004 increased                      primarily due to a 14.8% increase in total revenue per pound                      produced,                      partially offset by a 1.3% decline in dressed pounds                      produced.                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (c)    | The                      decrease in turkey sales was due primarily to our fiscal 2004                      restructuring of our turkey operations. See Note C - Restructuring                      Charges                      and Non-Recurring Recoveries of the notes to consolidated financial                      statements included elsewhere herein. We estimate that commodity                      sales in                      our turkey division decreased by approximately $55 million                      in fiscal 2005                      as a result of this restructuring. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (d)    | U.S.                      sales of other products increased primarily due to the inclusion                      of the                      distribution centers of the fiscal 2004 acquisition for 52                      weeks in fiscal                      2005 versus 45 weeks in fiscal 2004. Also affecting the U.S.                      sales of                      other products was a decline in pricing for products at our                      commercial egg                      operations and our rendering plants.                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (e)    | Mexico                      other products sales decreased due to reduced sales volumes                      of our                      commercial feed.                                                                                                                                                                                                                                                                                                                                                                                                                                            |

----

*Gross          Profit.*

|                                               |   |
|----------------------------------------------------|--------|
|                                               |   | Fiscal                        Year Ended |   |   |   |   |   |                               Percentage |   |                              Percentage |   |   |   |
| October                        1,                  |   |   | October                        1,  |   |   | Change                        from |   |   | Percentage |   |   | of                        Net Sales |   |   | of                        Net Sales |   |   |   |   |
| Components                                         |   |   | 2005 |   |   | Fiscal                        2004 |   |   | Change |   |   | Fiscal                        2005 |   |   | Fiscal                        2004 |   |   |   |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                        sales                   |   | $ | 5,666.3 |   | $ | 302.6 |   |   | 5.6 | % |   | 100.0 | % |   | 100.0 | % |   |   |   |
| Cost                        of sales               |   |   | 4,921.1 |   |   | 126.7 |   |   | 2.6 | % |   | 86.8 | % |   | 89.4 | % |   | (a | ) |
| Cost                        of sales-restructuring |   |   | -- |   |   | (64.2 | ) |   | -- |   |   | 0.0 | % |   | 1.2 | % |   | (b | ) |
| Non-recurring                        recoveries    |   |   | -- |   |   | 23.9 |   |   | -- |   |   | 0.0 | % |   | (0.4 | )% |   | (c | ) |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                        profit                |   | $ | 745.2 |   | $ | 216.2 |   |   | 40.9 | % |   | 13.2 | % |   | 9.9 | % |   |   |   |

| (a)    | Cost                    of sales in the U.S. chicken operations increased $180.0 million                    due                    primarily to the fiscal 2004 acquisition, offset partially by                    the cost of                    feed ingredient purchases averaging 17% lower in cost in fiscal                    2005                    compared to the prior year. Cost of sales in our turkey operations                    decreased significantly because of the restructuring of this                    division in                    fiscal 2004. Cost of sales in our Mexico operations decreased                    $13.2                    million primarily due to a 3.2% decline in production volumes                    after                    adjusting for a 52-week year in 2004, and a 17.5% decrease in                    average cost                    of feed ingredient purchases. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (b)    | On                    April 26, 2004, we announced a plan to restructure our turkey                    business to                    significantly reduce our production of commodity turkey meat                    and                    strengthen our focus on value-added turkey products. As part                    of our                    restructuring effort, we sold our Hinton, Virginia turkey commodity                    meat                    operations. In fiscal 2004 we recorded, as cost of sales-restructuring,                    approximately $64.2 million of asset impairment charges and inventory                    losses on discontinued products and, as other restructuring charges,                    $7.9                    million, primarily related to exit and severance costs.                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (c)    | Non-recurring                    recoveries in fiscal year 2004 consisted mainly of a $23.8 million                    gain                    from insurance proceeds related to our 2002 product recall.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

----

*Operating              Income.*

|                                                   |   |   | Fiscal Year                          Ended  |   |   |                                 |   |   |       |   |
|---------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|--------------------------------------|--------|--------|------------|--------|
|                                                   |   |   | October                          1,              |   |   | Change                          from |   |   | Percentage |   |
| Source                                            |   |   | 2005                                                  |   |   | Fiscal                          2004 |   |   | Change     |   |
|                                              |   |   |                                                  |   |   |                                 |   |   |       |   |
| Chicken:                                          |   |   |                                                  |   |   |                                 |   |   |       |   |
| United                          States            |   | $      | 405.7                                                 |   | $      | 76.0                                 |   |   | 23.1       | %      |
| Mexico                                            |   |   | 39.8                                                  |   |   | 47.4                                 |   |   | 623.7      | %      |
|                                              |   | $      | 445.5                                                 |   | $      | 123.4                                |   |   | 38.3       | %      |
| Turkey                                            |   | $      | (22.5                                                 | )      | $      | 74.3                                 |   |   | 76.8       | %      |
|                                              |   |   |                                                  |   |   |                                 |   |   |       |   |
| Other                          Products:          |   |   |                                                  |   |   |                                 |   |   |       |   |
| United                          States            |   | $      | 8.2                                                   |   | $      | (27.7                                | )      |   | (77.2      | )%     |
| Mexico                                            |   |   | 4.6                                                   |   |   | 0.6                                  |   |   | 15.0       | %      |
|                                              |   | $      | 12.8                                                  |   | $      | (27.1                                | )      |   | (67.9      | )%     |
| Non-recurring                          recoveries |   |   | --                                                    |   |   | (0.1                                 | )      |   | --         |   |
| Operating                          Income         |   | $      | 435.8                                                 |   | $      | 170.5                                |   |   | 64.3       | %      |

|                                                               |   |
|--------------------------------------------------------------------|--------|
|                                                               |   | Fiscal                        Year Ended |   |   |   |   |   | Percentage |   | Percentage |   |   |   |
|                                                               |   | October                        1, |   | Change                        from |   | Percentage |   | of                        Net Sales |   | of                        Net Sales |   |   |   |
| Components                                                         |   | 2005 |   | Fiscal                        2004 |   | Change |   | Fiscal                        2005 |   | Fiscal                        2004 |   |   |   |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                        profit                                |   | $ | 745.2 |   | $ | 216.2 |   |   | 40.9 | % |   | 13.2 | % |   | 9.9 | % |   |   |   |
| Selling,                        general and administrative expense |   |   | 309.4 |   |   | 53.6 |   |   | 21.0 | % |   | 5.5 | % |   | 4.8 | % |   | (a | ) |
| Other                        restructuring charges                 |   |   | -- |   |   | (7.9 | ) |   | -- |   |   | -- |   |   | 0.1 | % |   | (b | ) |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                        income                            |   | $ | 435.8 |   | $ | 170.5 |   |   | 64.3 | % |   | 7.7 | % |   | 4.9 | % |   | (c | ) |

| (a)    | Selling,                      general and administrative expense increased due to costs associated                      with                      increased sales of prepared foods because of the fiscal 2004                      acquisition                      and due to increases in costs associated with our profit-based                      retirement                      and compensation plans.                             |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (b)    | On                      April 26, 2004, we announced a plan to restructure our turkey                      division,                      including the sale or closure of some facilities in Virginia.                      Approximately $7.9 million related to exit and severance costs                      in                      connection with the restructuring were charged to other restructuring                      charges. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (c)    | The                      increase in operating income over fiscal 2004 is due primarily                      to lower                      feed ingredient pricing, the $72.1 million in turkey restructuring                      and                      other related restructuring charges sustained in fiscal 2004                      and the other                      items described above.                                      |

*Interest            Expense*

----

*Interest            Income*

*Income            Tax Expense*

----

***Fiscal        2004 Compared to Fiscal 2003***

*Net        Sales. *

|                             |   | Fiscal                  Year Ended |    | Change                            |   |       |   |   |   |   |   |
|----------------------------------|--------|------------------------------------|---------|-----------------------------------|--------|------------|--------|--------|--------|--------|--------|
|                             |   | October                  2,        |    | Fiscal                  from 2003 |   | Percentage |   |   |   |   |   |
| Source                           |   | 2004                               |    | Change                            |   |       |   |
|                             |   |                               |    |                              |   |       |   |   |   |   |   |
| Chicken:                         |   |                               |    |                              |   |       |   |   |   |   |   |   |   |   |   |   |
| United                  States   |   | $                                  | 4,091.7 |                              | $      | 2,353.4    |   |   | 135.4  | %      |   |   |   |   | (a | ) |
| Mexico                           |   |                               | 362.4   |                              |   | 13.1       |   |   | 3.8    | %      |   |   |   |   |   |   |
|                             |   | $                                  | 4,454.1 |                              | $      | 2,366.5    |   |   | 113.4  | %      |   |   |   |   |   |   |
| Turkey                           |   | $                                  | 286.3   |                              | $      | (19.4      | )      |   | (6.3   | )%     |   |   |   |   | (b | ) |
|                             |   |                               |    |                              |   |       |   |   |   |   |   |   |   |   |   |   |
| Other                  Products: |   |                               |    |                              |   |       |   |   |   |   |   |   |   |   |   |   |
| United                  States   |   | $                                  | 600.1   |                              | $      | 392.9      |   |   | 189.5  | %      |   |   |   |   | (c | ) |
| Mexico                           |   |                               | 23.2    |                              |   | 4.4        |   |   | 23.4   | %      |   |   |   |   |   |   |
|                             |   | $                                  | 623.3   |                              | $      | 397.3      |   |   | 175.7  | %      |   |   |   |   |   |   |
|                             |   | $                                  | 5,363.7 |                              | $      | 2,744.4    |   |   | 104.8  | %      |   |   |   |   |   |   |

| (a)    | U.S.                  chicken sales increased primarily due to the fiscal 2004 acquisition                  which                  we estimate contributed approximately $1.9 billion since the acquisition.                  Also affecting the U.S. chicken sales was an increase of 15.9%                  in total                  revenue per dressed pound produced, primarily due to significantly                  higher                  component market chicken prices during the year as compared to                  fiscal                  2003. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (b)    | The                  decrease in turkey sales was due to a decrease in turkey production                  created by a 15% reduction in turkey flocks beginning in July 2003,                  offset                  by an 8.9% increase in revenue per pound produced.                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (c)    | We                  estimate the fiscal 2004 acquisition contributed approximately                  $362                  million to sales of other products primarily due the acquired distribution                  business.                                                                                                                                                                                                                                                                                                                                   |

----

*Gross      Profit. *

|                                       |   | Fiscal                Year Ended |    |                       |   |       |   | Percentage                  |   | Percentage                  |   |   |   |
|--------------------------------------------|--------|----------------------------------|---------|----------------------------|--------|------------|--------|-----------------------------|--------|-----------------------------|--------|--------|--------|
|                                       |   | October                2,        |    | Change                from |   | Percentage |   | of                Net Sales |   | of                Net Sales |   |   |   |
| Components                                 |   | 2004                             |    | Fiscal                2003 |   | Change     |   | Fiscal                2004  |   | Fiscal                2003  |   |   |   |
|                                       |   |                             |    |                       |   |       |   |                        |   |                        |   |   |   |
| Net                sales                   |   | $                                | 5,363.7 |                       | $      | 2,744.4    |   |                        | 104.8  | %                           |   | 100.0  | %      |   | 100.0 | % |   |   |   |
| Cost                of sales               |   |                             | 4,794.4 |                       |   | 2,329.1    |   |                        | 94.5   | %                           |   | 89.4   | %      |   | 94.1 | % |   | (a | ) |
| Cost                of sales-restructuring |   |                             | 64.2    |                       |   | 64.2       |   |                        | --     |                        |   | 1.2    | %      |   | -- |   |   | (b | ) |
| Non-recurring                recoveries    |   |                             | (23.9   | )                          |   | 22.6       |   |                        | 48.6   | %                           |   | (0.4   | )%     |   | (1.8 | )% |   | (c | ) |
|                                       |   |                             |    |                       |   |       |   |                        |   |                        |   |   |   |   |   |   |   |   |   |
| Gross                profit                |   | $                                | 529.0   |                       | $      | 328.5      |   |                        | 163.8  | %                           |   | 9.9    | %      |   | 7.7 | % |   |   |   |

| (a)    | Cost                of sales in the U.S. operations increased $2,329.1 million due primarily                to the fiscal 2004 acquisition, as well as significantly higher feed                ingredient costs in fiscal 2004 compared to the prior year. Our Mexico                operations had a $41.7 million increase primarily due to higher feed                ingredient costs. Chicken component market prices reached their highest                level in the U.S. since 1999 during our fiscal 2004 third quarter.                Since                that time, the reference chicken component market prices declined                significantly. However, partially offsetting this decline in component                market chicken prices were declines in prices for corn and soybean                meal,                which comprised 24.8% of our consolidated cost of sales in fiscal                2004. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (b)    | On                April 26, 2004, we announced a plan to restructure our turkey business                to                significantly reduce our production of commodity turkey meat and                strengthen our focus on value-added turkey products. As part of our                restructuring effort, we sold our Hinton, Virginia turkey commodity                meat                operations. In fiscal 2004 we recorded, as cost of sales-restructuring,                approximately $64.2 million of asset impairment charges and inventory                losses on discontinued products and, as other restructuring charges,                $7.9                million, primarily related to exit and severance costs.                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (c)    | Non-recurring                recoveries in fiscal year 2004 consisted mainly of a $23.8 million                gain                from insurance proceeds related to our 2002 product recall. In fiscal                2003, we had non-recurring recoveries of $46.5 million consisting                of $26.6                million in payments                from the federal government to compensate producers for avian influenza                losses and $19.9 million related to the anti-trust lawsuits involving                vitamins and methionine.                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

----

*Operating      Income.*

|                                      |   |   | Fiscal                Year Ended  |   |   |                         |   |   |       |   |
|-------------------------------------------|--------|--------|----------------------------------------|--------|--------|------------------------------|--------|--------|------------|--------|
|                                           |   |   | October                  1,       |   |   | Change                  from |   |   | Percentage |   |
| Source                                    |   |   | 2004                                   |   |   | Fiscal                  2003 |   |   | Change     |   |
|                                      |   |   |                                   |   |   |                         |   |   |       |   |
| Chicken                                   |   |   |                                   |   |   |                         |   |   |       |   |
| United                  States            |   | $      | 329.7                                  |   | $      | 269.2                        |   |   | 445.0      | %      |
| Mexico                                    |   |   | (7.6                                   | )      |   | (20.2                        | )      |   | (160.3     | )%     |
|                                      |   | $      | 322.1                                  |   | $      | 249.0                        |   |   | 340.6      | %      |
| Turkey                                    |   | $      | (96.8                                  | )      | $      | (22.8                        | )      |   | 30.8       | %      |
|                                      |   |   |                                   |   |   |                         |   |   |       |   |
| Other                  Products           |   |   |                                   |   |   |                         |   |   |       |   |
| United                  States            |   | $      | 35.9                                   |   | $      | 21.7                         |   |   | 152.8      | %      |
| Mexico                                    |   |   | 4.0                                    |   |   | 0.2                          |   |   | 5.3        | %      |
|                                      |   | $      | 39.9                                   |   | $      | 21.9                         |   |   | 121.7      | %      |
| Non-recurring                  recoveries |   | $      | 0.1                                    |   | $      | (46.4                        | )      |   | (99.8      | )%     |
| Operating                  Income         |   | $      | 265.3                                  |   | $      | 201.7                        |   |   | 317.1      | %      |

|                                                           |   |
|----------------------------------------------------------------|--------|
|                                                           |   | Fiscal                    Year Ended |   |   |   |   |   |  Percentage |   |  Percentage |   |   |   |
|                                                           |   | October                    2, |   | Change                    from |   | Percentage |   | of                    Net Sales |   | of                    Net Sales |   |   |   |
| Components                                                     |   | 2004 |   | Fiscal                    2003 |   | Change |   | Fiscal                    2004 |   | Fiscal                    2003 |   |   |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                    profit                                |   | $ | 529.0 |   | $ | 328.5 |   |   | 163.8 | % |   | 9.9 | % |   | 7.7 | % |   |   |   |
| Selling,                    general and administrative expense |   |   | 255.8 |   |   | 118.9 |   |   | 86.9 | % |   | 4.8 |   |   | 5.2 | % |   | (a | ) |
| Other                    restructuring charges                 |   |   | 7.9 |   |   | 7.9 |   |   | -- |   |   | 0.1 |   |   | -- |   |   | (b | ) |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                    income                            |   | $ | 265.3 |   | $ | 201.7 |   |   | 317.1 | % |   | 4.9 | % |   | 2.4 | % |   | (c | ) |

| (a)    | Selling,                general and administrative expense increased $118.9 million due primarily                to the fiscal 2004 acquisition, but decreased as a percent of sales                primarily due to the fixed nature of certain expenses in relation                to                increased sales.                                                                                                                                                                                                                                                                                                                                                     |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (b)    | On                April 26, 2004, we announced a plan to restructure our turkey division,                including the sale or closure of some facilities in Virginia.                Approximately $7.9 million related to exit and severance costs in                connection with the restructuring were charged to other restructuring                charges.                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (c)    | Operating                income for U.S. chicken of $329.7 million is offset by operating                losses of                $7.6 million in Mexico and $96.8 million for turkey. The loss in                Mexico                compared to operating income of $12.6 million in fiscal 2003 is primarily                due to increased feed cost. The loss for turkey compared to a loss                of                $74.0 million in fiscal 2003 is primarily due to our restructuring                noted                above, the continuing effect of the 2002 recall and significant losses                on                commodity turkey sales. |

*Interest      Expense*

----

*Interest      Income.*

*Income      Tax Expense.*

**Liquidity      and Capital Resources**

| Facility                                                      |   |   |   |   |   | Available |   |   | Amount      |   |   | Available |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|-----------|--------|--------|-------------|--------|--------|-----------|--------|
| Source                  of Liquidity                          |   |   | Amount |   |   | Borrowing |   |   | Outstanding |   |   |      |   |
| (in                  millions)                                |   |   |   |   |   |      |   |   |        |   |   |      |   |
|                                                          |   |   |   |   |   |      |   |   |        |   |   |      |   |
| Cash                  and cash equivalents                    |   |   | --     |   |   | --        |   |   | --          |   | $      | 132.6     |   |
| Investments                  in available for sale securities |   |   | --     |   |   | --        |   |   | --          |   |   | 270.3     |   |
| Debt                  Facilities:                             |   |   |   |   |   |      |   |   |        |   |   |      |   |
| Revolving                  credit facilities                  |   |   | 168.0  |   |   | 133.8     |   |   | --          |   |   | 133.8     |   |
| Revolving/term                  facility                      |   |   | 500.0  |   |   | 500.0     |   |   | --          |   |   | 500.0     |   |
|                                                          |   |   |   |   |   |      |   |   |        |   |   |      |   |
| Receivables                  purchase                         |   |   |   |   |   |      |   |   |        |   |   |      |   |
| agreement                                                     |   |   | 125.0  |   |   | 125.0     |   |   | --          |   |   | 125.0     |   |
|                                                          |   |   |   |   |   |      |   |   |        |   |   |      |   |
| Total                  available                              |   |   |   |   |   |      |   |   |        |   | $      | 1,161.7   |   |

----

----

**Off-Balance      Sheet Arrangements**

----

**Contractual      Obligations and Guarantees**

|                                               |   | Payments                Due By Period |   |
|----------------------------------------------------|--------|---------------------------------------|--------|
|   Contractual                Obligations |   | Total                                 |   | Less                than 1 year |   | 1-3                years |   | 3-5                years |   | More                than 5 years |   |
| Long-term                debt(a)                   |   | $                                     | 527.5  |   | $ | 8.6 |   | $ | 17.9 |   | $ | 20.3 |   | $ | 480.7 |   |
| Guarantee                fees                      |   |                                  | 10.5   |   |   | 1.6 |   |   | 3.0 |   |   | 2.6 |   |   | 3.3 |   |
| Operating                leases                    |   |                                  | 99.4   |   |   | 29.4 |   |   | 42.5 |   |   | 20.4 |   |   | 7.1 |   |
| Purchase                obligations                |   |                                  | 21.1   |   |   | 21.1 |   |   | -- |   |   | -- |   |   | -- |   |
| Total                                              |   | $                                     | 658.5  |   | $ | 60.7 |   | $ | 63.4 |   | $ | 43.3 |   | $ | 491.1 |   |

| (a)   | Excludes                $34.2 million in letters of credit outstanding related to normal                business                transactions. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

**Critical      Accounting Policies and Estimates**

*General*

*Revenue      Recognition.*

*Inventory.*

----

*Valuation      of Marketable Securities.*

*Property,      Plant and Equipment.*
*Accounting      for the Impairment or Disposal of Long-Lived Assets and for Long-Lived Assets      to      be Disposed Of (SFAS 144)*

*Litigation      and Contingent Liabilities. *

*Accrued      Self Insurance*

----

*Purchase      Price Accounting.*

*Product      Recall Accounting.*

*Income      Taxes.*
*SFAS      No. 109, Accounting for Income Taxes*
*SFAS      No. 109*
**.      **

----

**Item      7A. Quantitative and Qualitative Disclosures about Market      Risk**

**Market      Risk Sensitive Instruments and Positions**

*Feed      Ingredients. *

*Foreign      Currency.*

*Interest      Rates.*

----

*Impact      of Inflation. *

**Item      8. Financial Statements and Supplementary      Data**

**Item      9. Changes in and Disagreements with Accountants on Accounting      and Financial Disclosure**

**Item      9A. Controls and Procedures**

----

**MANAGEMENT’S      REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

*Internal      Control-Integrated Framework *

----

**REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INTERNAL CONTROL OVER      FINANCIAL REPORTING**

*Management’s      Report on Internal Control Over Financial Reporting*
*Internal      Control - Integrated Framework*

----

**Item      9B. Other Information**

**PART      III**

**Item      10. Directors and Executive Officers of the      Registrant**

**Item      11.** **Executive      Compensation**

**Item      12.** **Security**

**Item      13.** **Certain      Relationships and Related Transactions**

----

**Item      14. Principal Accountant Fees and      Services**

**PART      IV**

**Item      15.** **Exhibits      and Financial Statement Schedules**

| (a)    |   | Financial                Statements                                                                                                                                                                                                                                    |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                   |
|   | (1)    | The                financial statements and schedules listed in the accompanying index                to                financial statements and schedules 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                104.                                                                      |
|   |   |                                                                                                                                                                                                                                                                   |
| (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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 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                      fiscal 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 as of August 9, 2001 by and between Pilgrim’s Pride Corporation and                      The Chase Manhattan Bank relating to Pilgrim’s Pride’s 9 5/8% Senior Notes                      Due 2011 (incorporated by reference from Exhibit 4.1 of the                      Company’s                      Current Report on Form 8-K (No. 001-09273) dated August 9,                      2001).                                                                                                                                                                                                                                                                                                  |

----

| 4.4         |   | First                        Supplemental Indenture dated as of August 9, 2001 by and                        between Pilgrim’s                        Pride Corporation and The Chase Manhattan Bank relating to                        Pilgrim’s                        Pride’s 9 5/8% Senior Notes Due 2011 (incorporated by reference                        from                        Exhibit 4.2 to the Company’s Current Report on Form 8-K (No. 001-09273)                        dated August 9, 2001).        |
|-------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.5         |   | Form                        of 9 5/8% Senior Note Due 2011 (incorporated by reference                        from Exhibit 4.3                        of the Company’s Current Report on Form 8-K (No. 001-09273) dated August                        9, 2001).                                                                                                                                                                                                                                                                             |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.6         |   | 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 ¼% 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).                                              |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.7         |   | Registration                        Rights Agreement, dated as of November 6, 2003, among Pilgrim's                        Pride                        Corporation and Credit Suisse First Boston LLC relating to                        Pilgrim’s                        Pride’s 9 ¼% Senior Notes due 2013 (incorporated by reference from Exhibit                        4.2 of the Company's Registration Statement on Form S-4 (No.                        333-111975)                        filed on January 16, 2004). |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 4.8         |   | Form                        of 9 ¼% 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).                                                                                                                                                                                                                                                  |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 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).                                                                                                                                                                                                                                                                                                                                                              |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 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  |   | Receivables                          Purchase Agreement between Pilgrim’s Pride Funding Corporation, as Seller,                          Pilgrim’s Pride Corporation, as Servicer, Pooled Accounts Receivable                          Capital Corporation, as Purchaser, and Nesbitt Burns Securities                          Inc., as                          Agent (incorporated by reference from Exhibit 10.33 of                          the Company’s                          Quarterly Report on Form 10-Q for the three months ended                          June 27,                          1998).                                                                                                                          |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.12  |   | 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).                                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.13  |   | 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 fiscal year ended                          October                          2, 1999).                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.14  |   | Broiler                          Production Agreement between Pilgrim's Pride Corporation                          and Lonnie “Bo”                          Pilgrim dated November 15, 2005 (incorporated by reference                          from Exhibit                          99.1 of the Company’s Current Report on Form 8-K dated November 10,                          2005).                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.15  |   | 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).                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.16  |   | Revolving                          Credit Agreement, made as of September 7, 2001 by and between                          Grupo                          Pilgrim’s Pride Funding S. de R.L. de C.V., Comerica Bank and Comerica                          Bank Mexico, S.A., Institucion de Banca Multiple (incorporated                          by                          reference from Exhibit 10.27 of the Company’s Annual Report on Form 10-K                          for the fiscal year ended September 29, 2001).                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.17  |   | Amendment                          No. 1 dated as of July 12, 2002 to Receivables Purchase                          Agreement dated as                          of June 26, 1998 among Pilgrim’s Pride Funding Corporation, the Company,                          Fairway Finance Corporation (as successor in interest to                          Pooled Accounts                          Receivable Capital Corporation) and BMO Nesbitt Burns Corp.                          (f/k/a Nesbitt                          Burns Securities Inc.). (incorporated by reference from                          Exhibit 10.32 of                          the Company’s Annual Report on Form 10-K filed on December 6,                          2002). |

----

| 10.18  |   | Retirement                            agreement dated November 11, 2002 between Pilgrim’s Pride Corporation and                            David Van Hoose (incorporated by reference from Exhibit                            10.34 of the                            Company’s Annual Report on Form 10-K filed on December 6,                            2002).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.19  |   | Amendment                            No. 3 dated as of July 18, 2003 to Receivables Purchase                            Agreement dated as                            of June 26, 1998 between Pilgrim’s Pride Funding Corporation (“Seller”),                            Pilgrim’s Pride Corporation as initial Servicer, Fairway Finance                            Corporation (as successor in interest to Pooled Accounts                            Receivable                            Capital Corporation) (“Purchaser”) and Harris Nesbitt Corporation as agent                            for the purchaser (incorporated by reference from Exhibit                            10.1 of the                            Company’s Quarterly Report on Form 10-Q filed July 23,                            2003). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.20  |   | Stock                            Purchase Agreement dated June 7, 2003 by and between                            Pilgrim’s Pride                            Corporation and ConAgra Foods, Inc. (the “Stock Purchase Agreement”)                            (incorporated by reference from Exhibit 99.2 of the Company’s Current                            Report on Form 8-K dated June 7, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.21  |   | Exhibit                            1.1(a) to the Stock Purchase Agreement - Applicable Accounting                            Principles                            (incorporated by reference from Exhibit 99.3 of the Company’s Current                            Report on Form 8-K dated June 7, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.22  |   | Exhibit                            1.1(b) to the Stock Purchase Agreement - Business Facilities                            (incorporated                            by reference from Exhibit 99.4 of the Company’s Current Report on Form 8-K                            dated June 7, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.23  |   | Exhibit                            1.1(c) to the Stock Purchase Agreement - ConAgra Supply                            Agreement                            (incorporated by reference from Exhibit 99.5 of the Company’s Current                            Report on Form 8-K dated June 7, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.24  |   | Exhibit                            1.1(d) to the Stock Purchase Agreement - Environmental                            License Agreement                            (incorporated by reference from Exhibit 99.6 of the Company’s Current                            Report on Form 8-K dated June 7, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.25  |   | Exhibit                            1.1(f) to the Stock Purchase Agreement - Molinos Supply                            Agreement                            (incorporated by reference from Exhibit 99.7 of the Company’s Current                            Report on Form 8-K dated June 7, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.26  |   | Exhibit                            1.1(g) to the Stock Purchase Agreement - Montgomery Supply                            Agreement                            (incorporated by reference from Exhibit 99.8 of the Company’s Current                            Report on Form 8-K dated June 7, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.27  |   | Exhibit                            1.1(i) to the Stock Purchase Agreement - Registration                            Rights Agreements                            (incorporated by reference from Exhibit 99.9 of the Company’s Current                            Report on Form 8-K dated June 7, 2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.28  |   | Exhibit                            1.1(m) to the Stock Purchase Agreement - Transition Trademark                            License                            Agreement (incorporated by reference from Exhibit 99.11                            of the Company’s                            Current Report on Form 8-K dated June 7,                            2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

----

| 10.29  |   | Exhibit                              9.4.3 to the Stock Purchase Agreement - Retained Assets                              (incorporated by                              reference from Exhibit 99.14 of the Company’s Current Report on Form 8-K                              dated June 7, 2003).                                                                                                                                                                                                                                                                                                                                                                           |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.30  |   | Amendment                              No. 1 to Stock Purchase Agreement dated August 11,                              2003, between ConAgra                              Foods, Inc. and Pilgrim’s Pride Corporation (incorporated by reference                              from Exhibit 10.1 of the Company’s Current Report on Form 8-K dated August                              12, 2003).                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.31  |   | Amendment                              No. 2 to Stock Purchase Agreement dated August 20,                              2003, between ConAgra                              Foods, Inc. and Pilgrim’s Pride Corporation (incorporated by reference                              from Annex F of the Company’s Preliminary Proxy Statement filed October 6,                              2003).                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.32  |   | Agricultural                              Lease between Pilgrim’s Pride Corporation (Lessor) and Patrick W. Pilgrim                              (Tenant) dated May 1, 2003 (incorporated by reference                              from Exhibit 10.15                              of the Company’s Quarterly Report on Form 10-Q filed July 23,                              2003).                                                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.33  |   | First                              Amendment to the Revolving Credit Agreement made as                              of September 7, 2001                              by and between Grupo Pilgrim’s Pride Funding S. de R.L. de C.V., Comerica                              Bank Mexico, S.A., Institucion de Banca Multiple dated                              as of June 28, 2002                              (incorporated by reference from Exhibit 10.1 of the                              Company’s Quarterly                              Report on Form 10-Q/A filed August 12, 2003).                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.34  |   | Second                              Amendment to the Revolving Credit Agreement made as                              of September 7, 2001                              by and between Grupo Pilgrim’s Pride Funding S. de R.L. de C.V., Comerica                              Bank Mexico, S.A., Institucion de Banca Multiple dated                              as of September 10,                              2002 (incorporated by reference from Exhibit 10.2 of                              the Company’s                              Quarterly Report on Form 10-Q/A filed August 12, 2003).                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.35  |   | Third                              Amendment to the Revolving Credit Agreement made as                              of September 7, 2001                              by and between Grupo Pilgrim’s Pride Funding S. de R.L. de C.V., Comerica                              Bank Mexico, S.A., Institucion de Banca Multiple dated                              as of December 13,                              2002 (incorporated by reference from Exhibit 10.3 of                              the Company’s                              Quarterly Report on Form 10-Q/A filed August 12, 2003).                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.36  |   | Fourth                              Amendment to the Revolving Credit Agreement made as                              of September 7, 2001,                              by and between Grupo Pilgrim's Pride Funding S. de                              R.L. de C.V., Comerica                              Bank and Comerica Bank Mexico, S.A., Institucion de                              Banca Multiple dated                              as of November 18, 2003 (incorporated by reference                              from Exhibit 10.1 of                              the Company's Quarterly Report on Form 10-Q filed February                              4, 2004). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 10.37  |   | Fourth                              Amended and Restated Note Purchase Agreement dated                              November 18, 2003,                              among Pilgrim's Pride Corporation, John Hancock Life                              Insurance Company,                              ING Capital LLC and the other parties named therein                              (incorporated by                              reference from Exhibit 10.2 of the Company's Quarterly                              Report on Form 10-Q                              filed February 4, 2004).                                                                                 |

| 10.38 |   | Amendment                                No. 3 to Stock Purchase Agreement, dated November                                23, 2003, between                                Pilgrim's Pride Corporation and ConAgra Foods, Inc.                                (incorporated by                                reference from Exhibit 2.16 of the Company's Current                                Report on Form 8-K                                (No. 001-09273) dated December 8,                                2003). |
|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10.39        |   | Amendment                                  No. 4 dated as of December 31, 2003 to Receivables                                  Purchase Agreement                                  dated as of June 26, 1998, among Pilgrim's Pride                                  Funding Corporation,                                  Pilgrim's Pride Corporation as initial Servicer,                                  Fairway Finance Company,                                  LLC (as successor to Fairway Finance Corporation)                                  as purchaser and Harris                                  Nesbitt Corp. (f/k/a BMO Nesbitt Burns Corp.) as                                  agent for the purchaser                                  (incorporated by reference from Exhibit 10.4 of                                  the Company's Quarterly                                  Report on Form 10-Q filed February 4, 2004). |
|--------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.40        |   | 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).                                                                                                                                                                                                                                                                                                                            |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.41† |   | 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).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.42        |   | 2004                                  Amended and Restated Credit Agreement, dated as                                  of April 7, 2004, between                                  Pilgrim's Pride Corporation and CoBank, ACB, as                                  lead arranger and book                                  manager, and as administrative, documentation and                                  collateral agent and the                                  lenders from time to time parties thereto as lenders                                  (incorporated by                                  reference from Exhibit 10.1 of the Company's Quarterly                                  Report on Form 10-Q                                  filed May 4, 2004).                                                                                                                                                                     |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.43        |   | Third                                  Amended and Restated Secured Credit Agreement,                                  dated April 7, 2004,                                  between Pilgrim's Pride Corporation and Harris                                  Trust and Savings Bank,                                  individually and as agent, and the lenders from                                  time to time parties                                  thereto as lenders (incorporated by reference from                                  Exhibit 10.2 of the                                  Company's Quarterly Report on Form 10-Q filed May                                  4, 2004).                                                                                                                                                                                                                                                   |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.44        |   | Fifth                                  Amendment to Revolving Credit Agreement made as                                  of September 7, 2001, by                                  and among Grupo Pilgrim's Pride Funding S. de R.L.                                  de C.V., Comerica Bank                                  and Comerica Bank Mexico, S.A., Institucion de                                  Banca Multiple dated as of                                  September 7, 2004 (incorporated by reference from                                  Exhibit 10.1 of the                                  Company's Current Report on Form 8-K (No. 001-09273)                                  filed September 10,                                  2004).                                                                                                                                                                                  |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.45        |   | Purchase                                  and Amendment Agreement between Pilgrim's Pride                                  Corporation and ConAgra                                  Foods, Inc. dated August 3, 2005 (incorporated                                  by reference from Exhibit                                  10.1 of the Company’s Current Report on Form 8-K dated August 4,                                  2005).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.46        |   | 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).** ****…**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 10.47        |   | First                                  Amendment to Credit Agreement dated effective September                                  22, 2005, between                                  Pilgrim's Pride Corporation, CoBank ACB, as administrative                                  agent and a                                  syndication agent, and the other parties thereto.*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 12           |   | Ratio                                  of Earnings to Fixed Charges for the years ended                                  October 1, 2005, October                                  2, 2004, September 27, 2003, September 28, 2002,                                  and September 29, 2001.                                  *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|         |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| 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 of                                  2002.* |

***Filed          herewith**

**…**
**Represents          a management contract or compensation plan arrangement**

----

SIGNATURES

| By:    | /s/                Richard A. Cogdill  |
|--------|----------------------------------------|
|   | Richard                A. Cogdill      |
|   | Chief                Financial Officer |

----

| Signature                                            | Title                                                         | Date     |
|------------------------------------------------------|---------------------------------------------------------------|----------|
|                                                 |                                                          |     |
|                                                 |                                                          |     |
| /s/                  Lonnie “Bo” Pilgrim | Chairman                  of the Board                        | 11/18/05 |
| Lonnie                  “Bo” Pilgrim     |                                                          |     |
|                                                 |                                                          |     |
|                                                 |                                                          |     |
| /s/                  Clifford E. Butler              | Vice                  Chairman of the Board                   | 11/18/05 |
| Clifford                  E. Butler                  |                                                          |     |
|                                                 |                                                          |     |
|                                                 |                                                          |     |
| /s/                  O.B. Goolsby, Jr.               | President                                                     | 11/18/05 |
| O.B.                  Goolsby, Jr.                   | Chief                  Executive Officer                      |     |
|                                                 | Director                                                      |     |
|                                                 |                                                          |     |
|                                                 |                                                          |     |
| /s/                  Richard A. Cogdill              | Executive                  Vice President                     | 11/18/05 |
| Richard                  A. Cogdill                  | Chief                  Financial Officer                      |     |
|                                                 | Secretary                  and Treasurer                      |     |
|                                                 | Director                                                      |     |
|                                                 | (Principal                  Financial and Accounting Officer) |     |
|                                                 |                                                          |     |
|                                                 |                                                          |     |
| /s/                  Lonnie Ken Pilgrim              | Executive                  Vice President,                    | 11/18/05 |
| Lonnie                  Ken Pilgrim                  | Assistant                  to Chairman                        |     |
|                                                 | Director                                                      |     |
|                                                 |                                                          |     |
| /s/                  Charles L. Black                | Director                                                      | 11/18/05 |
| Charles                  L. Black                    |                                                          |     |
|                                                 |                                                          |     |
|                                                 |                                                          |     |
| /s/                  Linda Chavez                    | Director                                                      | 11/18/05 |
| Linda                  Chavez                        |                                                          |     |
|                                                 |                                                          |     |
|                                                 |                                                          |     |
| /s/                  S. Key Coker                    | Director                                                      | 11/18/05 |
| S.                  Key Coker                        |                                                          |     |
|                                                 |                                                          |     |
|                                                 |                                                          |     |
| /s/                  Keith W. Hughes                 | Director                                                      | 11/18/05 |
| Keith                  W. Hughes                     |                                                          |     |
|                                                 |                                                          |     |
|                                                 |                                                          |     |
| /s/                  Blake D. Lovette                | Director                                                      | 11/18/05 |
| Blake                  D. Lovette                    |                                                          |     |
|                                                 |                                                          |     |
|                                                 |                                                          |     |
| /s/                  Vance C. Miller, Sr.            | Director                                                      | 11/18/05 |
| Vance                  C. Miller, Sr.                |                                                          |     |
|                                                 |                                                          |     |
|                                                 |                                                          |     |
| /s/                  James G. Vetter, Jr.            | Director                                                      | 11/18/05 |
| James                  G. Vetter, Jr.                |                                                          |     |
|                                                 |                                                          |     |
|                                                 |                                                          |     |
| /s/                  Donald L. Wass, Ph.D            | Director                                                      | 11/18/05 |
| Donald                  L. Wass, Ph.D.               |                                                          |     |

----

**REPORT        OF INDEPENDENT REGISTERED PUBLIC ACCOUNTINGFIRM**

*Internal        Control - Integrated Framework*

----

Consolidated          Balance Sheets

| *(In                    thousands, except share and per share data)*                                                                                     |   |  *October                    1, 2005* |      | *October                    2, 2004* |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|-----------|--------------------------------------|--------|
| **Assets**                                                                                                                                               |   |                                       |      |                                 |   |   |   |
| **Current                    Assets:**                                                                                                                   |   |                                       |      |                                 |   |   |   |
| Cash                    and cash equivalents                                                                                                             |   | $                                          | 132,567   |                                 | $      | 38,165 |   |
| Trade                    accounts and other receivables, lessallowance                    for doubtful accounts                                          |   |                                       | 288,528   |                                 |   | 324,187 |   |
| Inventories                                                                                                                                              |   |                                       | 527,329   |                                 |   | 609,997 |   |
| Current                    deferred income taxes                                                                                                         |   |                                       | 25,107    |                                 |   | 6,577 |   |
| Other                    current assets                                                                                                                  |   |                                       | 25,884    |                                 |   | 38,302 |   |
| Total                    Current Assets                                                                                                                  |   |                                       | 999,415   |                                 |   | 1,017,228 |   |
|                                                                                                                                                     |   |                                       |      |                                 |   |   |   |
| **Investment                    in Available for Sale Securities**                                                                                       |   |                                       | 304,593   |                                 |   | -- |   |
| **Other                    Assets**                                                                                                                      |   |                                       | 53,798    |                                 |   | 50,086 |   |
| **Property,                    Plant and Equipment:**                                                                                                    |   |                                       |      |                                 |   |   |   |
| Land                                                                                                                                                     |   |                                       | 51,887    |                                 |   | 52,980 |   |
| Buildings,                    machinery and equipment                                                                                                    |   |                                       | 1,612,739 |                                 |   | 1,558,536 |   |
| Autos                    and trucks                                                                                                                      |   |                                       | 55,202    |                                 |   | 55,693 |   |
| Construction-in-progress                                                                                                                                 |   |                                       | 58,942    |                                 |   | 29,086 |   |
|                                                                                                                                                     |   |                                       | 1,778,770 |                                 |   | 1,696,295 |   |
| Less                    accumulated depreciation                                                                                                         |   |                                       | (624,673  | )                                    |   | (517,620 | ) |
|                                                                                                                                                     |   |                                       | 1,154,097 |                                 |   | 1,178,675 |   |
|                                                                                                                                                     |   | $                                          | 2,511,903 |                                 | $      | 2,245,989 |   |
| **Liabilities                    and Stockholders’ Equity**                                                                                        |   |                                       |      |                                 |   |   |   |
| **Current                    Liabilities:**                                                                                                              |   |                                       |      |                                 |   |   |   |
| Accounts                    payable                                                                                                                      |   | $                                          | 281,909   |                                 | $      | 314,565 |   |
| Accrued                    expenses                                                                                                                      |   |                                       | 288,106   |                                 |   | 256,064 |   |
| Income                    taxes payable                                                                                                                  |   |                                       | 16,196    |                                 |   | 54,445 |   |
| Current                    maturities of long-term debt                                                                                                  |   |                                       | 8,603     |                                 |   | 8,428 |   |
| Total                    Current Liabilities                                                                                                             |   |                                       | 594,814   |                                 |   | 633,502 |   |
|                                                                                                                                                     |   |                                       |      |                                 |   |   |   |
| **Long-Term                    Debt, Less Current Maturities**                                                                                           |   |                                       | 518,863   |                                 |   | 535,866 |   |
| **Deferred                    Income Taxes**                                                                                                             |   |                                       | 173,232   |                                 |   | 152,455 |   |
| **Minority                    Interest in Subsidiary**                                                                                                   |   |                                       | 1,396     |                                 |   | 1,210 |   |
|                                                                                                                                                     |   |                                       |      |                                 |   |   |   |
| **Commitments                    and Contingencies**                                                                                                     |   |                                       |      |                                 |   |   |   |
| **Stockholders’                    Equity:**                                                                                                       |   |                                       |      |                                 |   |   |   |
| Preferred                    stock, $.01 par value, 5,000,000 authorized shares; none                    issued                                          |   |                                       | --        |                                 |   | -- |   |
| Common                    stock - $.01 par value, 160,000,000 authorized shares; 66,826,833                    issued                    and outstanding |   |                                       | 668       |                                 |   | 668 |   |
| Additional                    paid-in capital                                                                                                            |   |                                       | 471,344   |                                 |   | 431,662 |   |
| Retained                    earnings                                                                                                                     |   |                                       | 753,527   |                                 |   | 492,542 |   |
| Accumulated                    other comprehensive (loss)                                                                                                |   |                                       | (373      | )                                    |   | (348 | ) |
| Less                    treasury stock, 271,100 shares                                                                                                   |   |                                       | (1,568    | )                                    |   | (1,568 | ) |
| Total                    Stockholders’ Equity                                                                                                      |   |                                       | 1,223,598 |                                 |   | 922,956 |   |
|                                                                                                                                                     |   | $                                          | 2,511,903 |                                 | $      | 2,245,989 |   |

| See                    Notes to Consolidated Financial                    Statements |
|--------------------------------------------------------------------------------------|

----

Consolidated            Statements of Income

| *(In                        thousands, except per share data)*           |   |  *Three                        Years Ended October 1, 2005* |
|--------------------------------------------------------------------------|--------|------------------------------------------------------------------|
|                                                                     |   |                                                             | *2005* |   |   | *2004* |   |   | *2003* |   |
|                                                                     |   |                                                             |   |   |   |   |   |   |   |   |
| **Net                        Sales**                                     |   | $                                                                | 5,666,275 |   | $ | 5,363,723 |   | $ | 2,619,345 |   |
| **Cost                        and Expenses:**                            |   |                                                             |   |   |   |   |   |   |   |   |
| Cost                        of sales                                     |   |                                                             | 4,921,076 |   |   | 4,794,415 |   |   | 2,465,341 |   |
| Cost                        of sales-restructuring                       |   |                                                             | -- |   |   | 64,160 |   |   | -- |   |
| Non-recurring                        recoveries                          |   |                                                             | -- |   |   | (23,891 | ) |   | (46,479 | ) |
|                                                                     |   |                                                             | 4,921,076 |   |   | 4,834,684 |   |   | 2,418,862 |   |
|                                                                     |   |                                                             |   |   |   |   |   |   |   |   |
| Gross                        Profit                                      |   |                                                             | 745,199 |   |   | 529,039 |   |   | 200,483 |   |
|                                                                     |   |                                                             |   |   |   |   |   |   |   |   |
| Selling,                        general and administrative               |   |                                                             | 309,387 |   |   | 255,802 |   |   | 136,870 |   |
| Other                        restructuring charges                       |   |                                                             | -- |   |   | 7,923 |   |   | -- |   |
|                                                                     |   |                                                             | 309,387 |   |   | 263,725 |   |   | 136,870 |   |
|                                                                     |   |                                                             |   |   |   |   |   |   |   |   |
| Operating                        Income                                  |   |                                                             | 435,812 |   |   | 265,314 |   |   | 63,613 |   |
|                                                                     |   |                                                             |   |   |   |   |   |   |   |   |
| **Other                        Expenses (Income):**                      |   |                                                             |   |   |   |   |   |   |   |   |
| Interest                        expense                                  |   |                                                             | 49,585 |   |   | 54,436 |   |   | 38,821 |   |
| Interest                        income                                   |   |                                                             | (5,653 | ) |   | (2,307 | ) |   | (840 | ) |
| Foreign                        exchange (gain) loss                      |   |                                                             | (474 | ) |   | 205 |   |   | (359 | ) |
| Miscellaneous,                        net                                |   |                                                             | (11,169 | ) |   | 4,445 |   |   | (37,244 | ) |
|                                                                     |   |                                                             | 32,289 |   |   | 56,779 |   |   | 378 |   |
|                                                                     |   |                                                             |   |   |   |   |   |   |   |   |
| **Income                        Before Income Taxes**                    |   |                                                             | 403,523 |   |   | 208,535 |   |   | 63,235 |   |
| **Income                        Tax Expense**                            |   |                                                             | 138,544 |   |   | 80,195 |   |   | 7,199 |   |
| **Net                        Income**                                    |   | $                                                                | 264,979 |   | $ | 128,340 |   | $ | 56,036 |   |
|                                                                     |   |                                                             |   |   |   |   |   |   |   |   |
| **Net                        Income per Common Share-Basic and Diluted** |   | $                                                           |  3.98 |   | $ | 2.05 |   | $ | 1.36 |   |
|                                                                     |   |                                                             |   |   |   |
| See                        Notes to Consolidated Financial Statements    |   |                                                             |   |   |   |

----

Consolidated          Statements of Stockholders’Equity

| *(In                  thousands, except share data)*                                      |
|-------------------------------------------------------------------------------------------|
|                                                                                      |   |   |   |   |   | *Accumulated* |   |   |
|                                                                                      |   | *Shares                  of Common Stock* | *Total* | *Additional* |   | *Other* |   |   |
|                                                                                      |   |   |   |   | *Par* | *Paid-In* | *Retained* | *Comprehensive* | *Treasury* |   |
|                                                                                      |   | *PPC* | *Class                  A* | *Class                  B* | *Value* | *Capital* | *Earnings* | *Income                  (Loss)* | *Stock* | *Total* |
|                                                                                      |   |   |   |   |   |   |   |   |   |   |
|                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Balance                  at September 29, 2002                                            |   | -- | 13,794,529 | 27,589,250 | $414 | $79,625 | $314,626 | $1,227 | ($1,568) | $394,324 |
| Net                  income for year                                                      |   |   |   |   |   |   | 56,036 |   |   | 56,036 |
| Other                  comprehensive loss                                                 |   |   |   |   |   |   |   | (1,197) |   | (1,197) |
| Total                  comprehensive income                                               |   |   |   |   |   |   |   |   |   | 54,839 |
| Cash                  dividends declared ($.06                  per share)                |   |   |   |   |   |   | (2,467) |   |   | (2,467) |
|                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Balance                  at September 28, 2003                                            |   | -- | 13,794,529 | 27,589,250 | $414 | $79,625 | $368,195 | $30 | ($1,568) | $446,696 |
| Reclassification                  of Class A and Class B common stock to PPC common stock |   | 41,383,779 | (13,794,529) | (27,589,250) |   |   |   |   |   |   |
| Issuance                  of common stock for ConAgra chicken division acquisition        |   | 25,443,054 | -- | -- | 254 | 352,037 |   |   |   | 352,291 |
| Net                  income for year                                                      |   |   |   |   |   |   | 128,340 |   |   | 128,340 |
| Other                  comprehensive loss                                                 |   |   |   |   |   |   |   | (378) |   | (378) |
| Total                  comprehensive income                                               |   |   |   |   |   |   |   |   |   | 127,962 |
| Cash                  dividends declared ($.06                  per share)                |   |   |   |   |   |   | (3,993) |   |   | (3,993) |
|                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Balance                  at October 2, 2004                                               |   | 66,826,833 | -- | -- | $668 | $431,662 | $492,542 | ($348) | ($1,568) | $922,956 |
| Sale                  of common stock                                                     |   | 15,443,054 | -- | -- | 154 | 521,774 |   |   |   | 521,928 |
| Purchase                  and retirement of common                  stock                 |   | (15,443,054) | -- | -- | (154) | (482,092) |   |   |   | (482,246) |
| Net                  income for year                                                      |   |   |   |   |   |   | 264,979 |   |   | 264,979 |
| Other                  comprehensive loss                                                 |   |   |   |   |   |   |   | (25) |   | (25) |
| Total                  comprehensive income                                               |   |   |   |   |   |   |   |   |   | 264,954 |
| Cash                  dividends declared ($.06                  per share)                |   |   |   |   |   |   | (3,993) |   |   | (3,993) |
| Balance                  at October 1, 2005                                               |   | 66,826,833 | -- | -- | $668 | $471,344 | $753,527 | ($373) | ($1,568) | $1,223,598 |
|                                                                                      |   |   |   |   |   |   |   |   |   |

----

Consolidated      Statements of Cash Flows

| *(In                thousands)*                                                                            |   | *Three                Years Ended October 1, 2005* |   |
|------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                                                                       |   |                                               |   | *2005* |   | *2004* |   | *2003* |   |
| **Cash                Flows From Operating Activities:**                                                   |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                  |   |                                               |   |   | $ | 264,979 |   | $ | 128,340 |   | $ | 56,036 |   |
| Adjustments                to reconcile net income to cash provided by operating                activities |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                and amortization                                                               |   |                                               |   |   |   | 134,944 |   |   | 113,788 |   |   | 74,187 |   |
| Loss                on restructuring-asset impairment                                                      |   |                                               |   |   |   | -- |   |   | 45,384 |   |   | -- |   |
| Loss                on property disposals                                                                  |   |                                               |   |   |   | 4,326 |   |   | 5,605 |   |   | 572 |   |
| Deferred                income taxes                                                                       |   |                                               |   |   |   | 2,247 |   |   | 3,295 |   |   | (5,569 | ) |
| Changes                in operating assets and liabilities                                                 |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Accounts                and other receivables                                                              |   |                                               |   |   |   | 21,192 |   |   | (70,936 | ) |   | (41,673 | ) |
| Inventories                                                                                                |   |                                               |   |   |   | 82,669 |   |   | (73,445 | ) |   | (14,089 | ) |
| Other                current assets                                                                        |   |                                               |   |   |   | 20,800 |   |   | (28,763 | ) |   | 10,665 |   |
| Accounts                payable, income taxes payable and accrued expenses                                 |   |                                               |   |   |   | (38,861 | ) |   | 150,240 |   |   | 18,157 |   |
| Other                                                                                                      |   |                                               |   |   |   | 777 |   |   | (1,104 | ) |   | 606 |   |
| Cash                Provided by Operating Activities                                                       |   |                                               |   |   |   | 493,073 |   |   | 272,404 |   |   | 98,892 |   |
|                                                                                                       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| **Investing                Activities:**                                                                   |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Purchase                of investment securities                                                           |   |                                               |   |   |   | (305,458 | ) |   | -- |   |   | -- |   |
| Acquisitions                of property, plant and equipment                                               |   |                                               |   |   |   | (116,588 | ) |   | (79,642 | ) |   | (53,574 | ) |
| Business                acquisition, net of equity consideration                                           |   |                                               |   |   |   | -- |   |   | (272,097 | ) |   | (4,499 | ) |
| Proceeds                from property disposals                                                            |   |                                               |   |   |   | 4,963 |   |   | 4,583 |   |   | 1,779 |   |
| Other,                net                                                                                  |   |                                               |   |   |   | (524 | ) |   | (304 | ) |   | (635 | ) |
| Cash                Used in Investing Activities                                                           |   |                                               |   |   |   | (417,607 | ) |   | (347,460 | ) |   | (56,929 | ) |
|                                                                                                       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| **Financing                Activities:**                                                                   |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Purchases                for retirement of common stock                                                    |   |                                               |   |   |   | (482,246 | ) |   | -- |   |   | -- |   |
| Sale                of common stock                                                                        |   |                                               |   |   |   | 521,928 |   |   | -- |   |   | -- |   |
| Borrowing                for acquisition                                                                   |   |                                               |   |   |   | -- |   |   | 300,767 |   |   | -- |   |
| Proceeds                from notes payable to banks                                                        |   |                                               |   |   |   | -- |   |   | 96,000 |   |   | 278,000 |   |
| Repayments                on notes payable to banks                                                        |   |                                               |   |   |   | -- |   |   | (96,000 | ) |   | (278,000 | ) |
| Proceeds                from long-term debt                                                                |   |                                               |   |   |   | -- |   |   | 332,516 |   |   | 108,133 |   |
| Payments                on long-term debt                                                                  |   |                                               |   |   |   | (16,829 | ) |   | (523,634 | ) |   | (143,133 | ) |
| Issue                costs                                                                                 |   |                                               |   |   |   | -- |   |   | (8,991 | ) |   | (2,300 | ) |
| Cash                dividends paid                                                                         |   |                                               |   |   |   | (3,993 | ) |   | (3,993 | ) |   | (2,467 | ) |
| Cash                Provided By (Used In) Financing Activities                                             |   |                                               |   |   |   | 18,860 |   |   | 96,665 |   |   | (39,767 | ) |
|                                                                                                       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Effect                of exchange rate changes on cash and cash equivalents                                |   |                                               |   |   |   | 76 |   |   | (50 | ) |   | (503 | ) |
|                                                                                                       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Increase                in cash and cash equivalents                                                       |   |                                               |   |   |   | 94,402 |   |   | 21,559 |   |   | 1,693 |   |
| Cash                and cash equivalents at beginning of year                                              |   |                                               |   |   |   | 38,165 |   |   | 16,606 |   |   | 14,913 |   |
|                                                                                                       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| **Cash                and Cash Equivalents at End of Year**                                                |   |                                               |   |   | $ | 132,567 |   | $ | 38,165 |   | $ | 16,606 |   |
|                                                                                                       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| **Supplemental                Disclosure Information:**                                                    |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Cash                paid during the year for:                                                              |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Interest                (net of amount capitalized)                                                        |   |                                               |   |   | $ | 46,945 |   | $ | 49,675 |   | $ | 37,936 |   |
| Income                taxes paid (refunded)                                                                |   |                                               |   |   | $ | 172,929 |   | $ | 47,128 |   | $ | (14,867 | ) |
|                                                                                                       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| **Supplemental                Non-cash Disclosure Information:**                                           |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Business                acquisition, equity consideration (before cost of                issuance)         |   |                                               |   |   | $ | -- |   | $ | 357,475 |   |   | -- |   |
|                                                                                                       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| See                Notes to Consolidated Financial Statements                                              |   |                                               |   |   |   |   |   |   |   |   |   |   |   |

----

**NOTES      TO CONSOLIDATED FINANCIAL      STATEMENTS**

**NOTE      A - BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING      POLICIES**

**Principles      of Consolidation**

----

**Revenue      Recognition**

**Shipping      and Handling Costs**

**Cash      Equivalents**

**Investment      in Available for Sale Securities **

**Fair      Value of Financial Instruments**

**Concentrations      of Credit Risk**

----

**Inventories**

**Property,      Plant and Equipment**

*Accounting      for the Impairment or Disposal of Long-Lived Assets and for Long-Lived Assets      to      be Disposed Of (SFAS 144)*

----

**Purchase      Price Accounting**

**Litigation      and Contingent Liabilities**

**Accrued      Self Insurance**

**Product      Recall Accounting**

----

**Income      Taxes**

*SFAS      No. 109, Accounting for Income Taxes*
*SFAS      No. 109*
**.**

**Accounting      for Derivatives**

*Accounting      for Derivative Instruments and Hedging Activities (“SFAS 133”)*

----

**Net      Income per Common Share**

**Use      of Estimates**

**Reclassifications**

**NOTE      B - BUSINESS ACQUISITION**

|                                                                  |   | Fiscal                Year Ended                          |   |
|-----------------------------------------------------------------------|--------|-----------------------------------------------------------|--------|
|  In                thousands except for share and per share data |   | October                2, 2004*(53                Weeks)* |   |
| Net                sales                                              |   |                                                      |   |   | $ | 5,824,515 |   |
| Depreciation                and amortization                          |   |                                                      |   |   | $ | 120,833 |   |
| Operating                income                                       |   |                                                      |   |   | $ | 290,827 |   |
| Interest                expense, net                                  |   |                                                      |   |   | $ | 56,500 |   |
| Income                before taxes                                    |   |                                                      |   |   | $ | 231,852 |   |
| Net                income                                             |   |                                                      |   |   | $ | 142,798 |   |
| Net                income per common share                            |   |                                                      |   |   | $ | 2.15 |   |
| Weighted                average shares outstanding                    |   |                                                      |   |   |   | 66,555,733 |   |

----

**NOTE      C - RESTRUCTURING CHARGES AND NON-RECURRING RECOVERIES**

----

|                                 |   | **Fiscal                Year Ended****October                1, 2005** |   |
|--------------------------------------|--------|------------------------------------------------------------------------|--------|
|                                 |   |                                                                   |   |  MiscellaneousNet |   |  |   |                Total |   |   |   |
| Litigation                Settlement |   |                                                                   |   |   | $ | (11.7 | ) |   |   |   | $ | (11.7 | ) |

|                                           |   | **Fiscal                  Year                  Ended ** **October                    1, 2005** |
|-----------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|
|  Cost                  of sales -restructuring |   |                                                                                                      |   |   |   | Non-recurring                  Recoveries |   |   | Other                  Restructuring Charges |   |   | Miscellaneous                  Net |   |   | Total |   |
| Insurance                  recovery                 |   | $                                                                                                         | -- |   | $ | (23.8 | ) | $ | -- |   | $ | -- |   | $ | (23.8 | ) |
| Vitamin                                             |   |                                                                                                      | -- |   |   | (0.1 | ) |   | -- |   |   | -- |   |   | (0.1 | ) |
| Methionine                                          |   |                                                                                                      | -- |   |   | -- |   |   | -- |   |   | (0.9 | ) |   | (0.9 | ) |
| Restructuring                  and Related charges  |   |                                                                                                      | 64.2 |   |   | -- |   |   | 7.9 |   |   | -- |   |   | 72.1 |   |
| Total                                               |   | $                                                                                                         | 64.2 |   | $ | (23.9 | ) | $ | 7.9 |   | $ | (0.9 | ) | $ | 47.3 |   |

|                           |   | **Fiscal                Year Ended****October                1, 2005** |   |
|--------------------------------|--------|------------------------------------------------------------------------|--------|
|                           |   |                                                                   |   | Non-recurring                Recoveries |   | Miscellaneous                Net |   | Total |   |
| Avian                Influenza |   |                                                                   |   |   | $ | (26.6 | ) | $ | -- |   | $ | (26.6 | ) |
| Vitamin                        |   |                                                                   |   |   |   | (1.6 | ) |   | (23.5 | ) |   | (25.1 | ) |
| Methionine                     |   |                                                                   |   |   |   | (18.3 | ) |   | (12.5 | ) |   | (30.8 | ) |
| Total                          |   |                                                                   |   |   | $ | (46.5 | ) | $ | (36.0 | ) | $ | (82.5 | ) |

----

**NOTE      D - ACCOUNTS RECEIVABLE**

**NOTE      E - INVENTORIES**

|                                                                                                  |   | October                  1, |    | October                  2, |   |
|-------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|-----------------------------|--------|
| (In                  thousands)                                                                       |   |                        | 2005    |                        |   | 2004 |   |
| Chicken:                                                                                              |   |                        |    |                        |   |   |   |
| Live                  chicken and hens                                                                |   | $                           | 196,406 |                        | $      | 207,129 |   |
| Feed                  and eggs                                                                        |   |                        | 114,091 |                        |   | 101,735 |   |
| Finished                  chicken products                                                            |   |                        | 164,412 |                        |   | 215,443 |   |
|                                                                                                  |   |                        | 474,909 |                        |   | 524,307 |   |
| Turkey:                                                                                               |   |                        |    |                        |   |   |   |
| Live                  turkey and hens                                                                 |   | $                           | 7,209   |                        | $      | 8,306 |   |
| Feed                  and eggs                                                                        |   |                        | 4,924   |                        |   | 6,017 |   |
| Finished                  turkey products                                                             |   |                        | 23,072  |                        |   | 51,810 |   |
|                                                                                                  |   |                        | 35,205  |                        |   | 66,133 |   |
| Other                  Products:                                                                      |   |                        |    |                        |   |   |   |
| Commercial                  feed, table eggs, and retail farm store                                   |   | $                           | 4,866   |                        | $      | 7,661 |   |
| Distribution                  inventories (other                  than chicken & turkey products) |   |                        | 12,349  |                        |   | 11,896 |   |
|                                                                                                  |   |                        | 17,215  |                        |   | 19,557 |   |
|                                                                                                  |   |                        |    |                        |   |   |   |
| Total                  Inventories                                                                    |   | $                           | 527,329 |                        | $      | 609,997 |   |

----

**NOTE        F - NOTES PAYABLE AND LONG-TERM DEBT**

|                                                                                                                        |   | FinalMaturity |    | October                    1, 2005 |   | October                    2, 2004 |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|------------------------------------|--------|------------------------------------|--------|
|                                                                                                                        |   |          |    |                               |   |                               |   |
| Senior                    unsecured notes, at 9 5/8%                                                                        |   | 2011          |    | $302,588                           |   | $303,019                           |   |
|                            Senior subordinated unsecured notes, at 9 1/4%                |   |          | 2013    |                               |   | 100,000                            |   |   | 100,000 |   |
| Note                    payable to an insurance company at 6.68%                                                            |   |          | 2012    |                               |   | 53,103                             |   |   | 55,899 |   |
| Notes                    payable to an insurance company at LIBOR plus 2.2075%                                              |   |          | 2013    |                               |   | 54,667                             |   |   | 68,000 |   |
| Revolving                    term/credit facility - 10 year tranche at LIBOR plus 1.75%, payable                    monthly |   |          | 2010    |                               |   | --                                 |   |   | -- |   |
| Revolving                    term/credit facility - 7 year tranche at LIBOR plus 1.50%, payable                    monthly  |   |          | 2007    |                               |   | --                                 |   |   | -- |   |
| Other                                                                                                                       |   |          | Various |                               |   | 17,108                             |   |   | 17,376 |   |
|                                                                                                                        |   |          |    |                               |   | 527,466                            |   |   | 544,294 |   |
| Less                    current maturities                                                                                  |   |          |    |                               |   | (8,603                             | )      |   | (8,428 | ) |
| Total                                                                                                                       |   |          |    |                               | $      | 518,863                            |   | $ | 535,866 |   |
|                                                                                                                        |   |          |    |                               |   |                               |   |   |   |   |

----

**NOTE        G - INCOME TAXES**

----

| *(In                    thousands)*              |   |   | 2005    |   |   | 2004   |   |   | 2003    |   |
|--------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|---------|--------|
| Current:                                         |   |   |    |   |   |   |   |   |    |   |
| Federal                                          |   | $      | 117,518 |   | $      | 71,144 |   | $      | 8,431   |   |
| Foreign                                          |   |   | 3,880   |   |   | 2,092  |   |   | 3,989   |   |
| State                    and other               |   |   | 14,899  |   |   | 3,664  |   |   | 348     |   |
| Total                    current                 |   |   | 136,297 |   |   | 76,900 |   |   | 12,768  |   |
| Deferred:                                        |   |   |    |   |   |   |   |   |    |   |
| Federal                                          |   |   | (1,594  | )      |   | (2,225 | )      |   | (2,260  | )      |
| Foreign                                          |   |   | 4,475   |   |   | 5,673  |   |   | 13,781  |   |
| State                    and other               |   |   | 113     |   |   | (153   | )      |   | (155    | )      |
| Total                    deferred                |   |   | 2,994   |   |   | 3,295  |   |   | 11,366  |   |
| Change                    in valuation allowance |   |   | (747    | )      |   | --     |   |   | (16,935 | )      |
|                                             |   | $      | 138,544 |   | $      | 80,195 |   | $      | 7,199   |   |

|                                                                                                               |   |   | 2005 |   |   | 2004 |   |   | 2003  |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|------|--------|--------|------|--------|--------|-------|--------|
| Federal                    income tax rate                                                                         |   |   | 35.0 | %      |   | 35.0 | %      |   | 35.0  | %      |
| State                    tax rate, net                                                                             |   |   | 2.1  |   |   | 2.1  |   |   | 1.7   |   |
| Difference                    in U.S. statutory tax rate and foreign country effective tax                    rate |   |   | (1.3 | )      |   | 5.9  |   |   | (1.7  | )      |
| Change                    in estimate of foreign earnings to be repatriated                                        |   |   | 0.6  |   |   | --   |   |   | --    |   |
| Currency                    related differences                                                                    |   |   | (1.1 | )      |   | (4.2 | )      |   | 3.1   |   |
| Change                    in valuation allowance                                                                   |   |   | (0.2 | )      |   | --   |   |   | (26.9 | )      |
| Other                                                                                                              |   |   | (0.8 | )      |   | (0.3 | )      |   | 0.3   |   |
| Total                                                                                                              |   |   | 34.3 | %      |   | 38.5 | %      |   | 11.5  | %      |

----

| *(In                  thousands)*                       |   |   | 2005    |   |   | 2004    |   |
|---------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
|                                                    |   |   |    |   |   |    |   |
| Deferred                  tax liabilities:              |   |   |    |   |   |    |   |
| Property                  and equipment                 |   | $      | 137,109 |   | $      | 132,061 |   |
| Inventories                                             |   |   | 47,206  |   |   | 52,538  |   |
| Prior                  use of cash accounting           |   |   | 20,135  |   |   | 21,813  |   |
| Acquisition                  related items              |   |   | 16,518  |   |   | 17,436  |   |
| Other                                                   |   |   | 39,775  |   |   | 25,998  |   |
| Total                  deferred tax liabilities         |   |   | 260,743 |   |   | 249,846 |   |
| Deferred                  tax assets:                   |   |   |    |   |   |    |   |
| Net                  operating losses                   |   |   | 25,435  |   |   | 37,483  |   |
| Expenses                  deductible in different years |   |   | 87,183  |   |   | 67,232  |   |
| Total                  deferred tax asset               |   |   | 112,618 |   |   | 104,715 |   |
| Valuation                  allowance                    |   |   | --      |   |   | 747     |   |
| Net                  deferred tax liabilities           |   | $      | 148,125 |   | $      | 145,878 |   |

**NOTE        H**
**        - COMPREHENSIVE INCOME**

**NOTE        I - COMMON STOCK**

----

----

**NOTE        J - SAVINGS PLAN**

**NOTE        K - RELATED PARTY TRANSACTIONS**

| *(In                  thousands)*                                                                      |   |   | 2005   |   |   | 2004   |   |   | 2003   |   |
|--------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Lease                  payments on commercial egg property                                             |   | $      | 750    |   | $      | 750    |   | $      | 750    |   |
| Chick,                  feed and other sales to major stockholder, including                  advances |   | $      | 51,258 |   | $      | 53,481 |   | $      | 48,130 |   |
| Live                  chicken purchases and other payments to major stockholder                        |   | $      | 54,318 |   | $      | 54,180 |   | $      | 48,804 |   |
|                          Loan guaranty fees                         |   | $      | 1,775  |   | $      | 2,634  |   | $      | 3,236  |   |
| Lease                  payments and operating expenses on airplane                                     |   | $      | 536    |   | $      | 587    |   | $      | 588    |   |

----

**NOTE        L- COMMITMENTS and CONTINGENCIES**

----

**NOTE        M - BUSINESS SEGMENTS**

----

----

|                                                             |   |  ***Fiscal                  Year Ended*** |      |
|------------------------------------------------------------------|--------|------------------------------------------------|-----------|
|                                                             |   |  **October                  1, 2005**     |      | **October                  2, 2004****(a)(b)** |   | **September                  27, 2003****(a)** |   |
|                                                             |   |  ***(In                  thousands)***    |      |
| **Net                  Sales to Customers:**                     |   |                                           |      |   |   |   |   |   |   |   |
| Chicken:                                                         |   |                                           |      |   |   |   |   |   |   |   |
| United                  States                                   |   | $                                              | 4,411,269 |   | $ | 4,091,706 |   | $ | 1,738,312 |   |
| Mexico                                                           |   |                                           | 403,353   |   |   | 362,442 |   |   | 349,305 |   |
| Sub-total                                                        |   |                                           | 4,814,622 |   |   | 4,454,148 |   |   | 2,087,617 |   |
| Turkey                                                           |   |                                           | 204,838   |   |   | 286,252 |   |   | 305,678 |   |
| Other                  Products:                                 |   |                                           |      |   |   |   |   |   |   |   |
|                     United States                      |   |                                           | 626,056   |   |   | 600,091 |   |   | 207,284 |   |
|                     Mexico                             |   |                                           | 20,759    |   |   | 23,232 |   |   | 18,766 |   |
| Sub-total                                                        |   |                                           | 646,815   |   |   | 623,323 |   |   | 226,050 |   |
| Total                                                            |   |                                           | 5,666,275 |   |   | 5,363,723 |   |   | 2,619,345 |   |
| **Operating                  Income (Loss):**                    |   |                                           |      |   |   |   |   |   |   |   |
| Chicken:                                                         |   |                                           |      |   |   |   |   |   |   |   |
| United                  States                                   |   | $                                              | 405,662   |   | $ | 329,694 |   | $ | 60,507 |   |
| Mexico                                                           |   |                                           | 39,809    |   |   | (7,619 | ) |   | 12,557 |   |
| Sub-total                                                        |   |                                           | 445,471   |   |   | 322,075 |   |   | 73,064 |   |
| Turkey(c)                                                        |   |                                           | (22,539   | ) |   | (96,839 | ) |   | (73,992 | ) |
| Other                  Products:                                 |   |                                           |      |   |   |   |   |   |   |   |
|                     United States                      |   |                                           | 8,250     |   |   | 35,969 |   |   | 14,300 |   |
|                     Mexico                             |   |                                           | 4,630     |   |   | 4,033 |   |   | 3,762 |   |
| Sub-total                                                        |   |                                           | 12,880    |   |   | 40,002 |   |   | 18,062 |   |
| Non-recurring                  recoveries(d)                     |   |                                           | --        |   |   | 76 |   |   | 46,479 |   |
| Total                                                            |   | $                                              | 435,812   |   | $ | 265,314 |   | $ | 63,613 |   |
| **Depreciation                  and Amortization:****(e)**  |   |                                           |      |   |   |   |   |   |   |   |
| Chicken:                                                         |   |                                           |      |   |   |   |   |   |   |   |
| United                  States                                   |   | $                                              | 114,131   |   | $ | 89,767 |   | $ | 50,215 |   |
| Mexico                                                           |   |                                           | 12,085    |   |   | 12,217 |   |   | 11,981 |   |
| Sub-total                                                        |   |                                           | 126,216   |   |   | 101,984 |   |   | 62,196 |   |
| Turkey                                                           |   |                                           | 3,343     |   |   | 6,887 |   |   | 7,921 |   |
| Other                  Products:                                 |   |                                           |      |   |   |   |   |   |   |   |
|                     United States                      |   |                                           | 5,196     |   |   | 4,773 |   |   | 3,935 |   |
|                     Mexico                             |   |                                           | 189       |   |   | 144 |   |   | 135 |   |
| Sub-total                                                        |   |                                           | 5,385     |   |   | 4,917 |   |   | 4,070 |   |
| Total                                                            |   | $                                              | 134,944   |   | $ | 113,788 |   | $ | 74,187 |   |
| **Total                  Assets:**                               |   |                                           |      |   |   |   |   |   |   |   |
| Chicken:                                                         |   |                                           |      |   |   |   |   |   |   |   |
| United                  States                                   |   | $                                              | 2,059,579 |   | $ | 1,830,051 |   | $ | 799,967 |   |
| Mexico                                                           |   |                                           | 287,414   |   |   | 212,492 |   |   | 207,221 |   |
| Sub-total                                                        |   |                                           | 2,346,993 |   |   | 2,042,543 |   |   | 1,007,188 |   |
| Turkey                                                           |   |                                           | 77,319    |   |   | 122,163 |   |   | 193,349 |   |
| Other                  Products:                                 |   |                                           |      |   |   |   |   |   |   |   |
|                     United States                      |   |                                           | 85,581    |   |   | 78,754 |   |   | 54,275 |   |
|                     Mexico                             |   |                                           | 2,010     |   |   | 2,529 |   |   | 2,672 |   |
| Sub-total                                                        |   |                                           | 87,591    |   |   | 81,283 |   |   | 56,947 |   |
| Total                                                            |   | $                                              | 2,511,903 |   | $ | 2,245,989 |   | $ | 1,257,484 |   |
| **Capital                  Expenditures:**                       |   |                                           |      |   |   |   |   |   |   |   |
| Chicken:                                                         |   |                                           |      |   |   |   |   |   |   |   |
|                     United States                      |   | $                                              | 102,470   |   | $ | 54,433 |   | $ | 34,517 |   |
|                     Mexico                             |   |                                           | 4,924     |   |   | 8,640 |   |   | 9,218 |   |
| Sub-total                                                        |   |                                           | 107,394   |   |   | 63,073 |   |   | 43,735 |   |
| Turkey                                                           |   |                                           | 3,604     |   |   | 8,151 |   |   | 5,582 |   |
| Other                  Products:                                 |   |                                           |      |   |   |   |   |   |   |   |
|                     United States                      |   |                                           | 5,448     |   |   | 8,395 |   |   | 4,257 |   |
|                     Mexico                             |   |                                           | 142       |   |   | 23 |   |   | -- |   |
| Sub-total                                                        |   |                                           | 5,590     |   |   | 8,418 |   |   | 4,257 |   |
| Total                                                            |   | $                                              | 116,588   |   | $ | 79,642 |   | $ | 53,574 |   |

----

| (a)    | Certain                  historical amounts have been reclassified to conform with current                  year                  presentation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (b)    | The                  Company acquired the ConAgra chicken division on November 23, 2003                  for                  $635.2 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.                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (c)    | Included                  in fiscal 2004 are restructuring charges totaling $72.1 million                  offset                  somewhat by the non-recurring recovery of $23.8 million representing                  the                  gain recognized on the insurance proceeds received in connection                  with the                  October 2002 recall. In addition, the Company estimates its losses                  related                  to the October 2002 recall (excluding the insurance recovery described                  above) negatively affected gross profit and operating income by                  $20.0                  million in fiscal 2004 and $65.0 million in fiscal                  2003. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (d)    | Non-recurring                  recoveries which have not been allocated to the individual segments                  are as                  follows (in millions):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

|                             |   | October                  2, 2004 |   |  September                  27, 2003 |   |
|----------------------------------|--------|----------------------------------|--------|-------------------------------------------|--------|
| Avian                  influenza |   |                             | --     |                                      |   | 26.6 |   |
| Vitamin                          |   |                             | 0.1    |                                      |   | 1.6 |   |
| Methionine                       |   |                             | --     |                                      |   | 18.3 |   |
|                             |   |                             |   |                                      |   |   |   |
| Total                            |   | $                                | 0.1    |                                      | $      | 46.5 |   |
|                             |   |                             |   |                                      |   |   |   |

| (e) | Includes                  amortization of capitalized financing costs of approximately $2.3                  million,                  $2.0 million and $1.5 million in fiscal years 2005, 2004 and 2003,                  respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**NOTE        N - QUARTERLY RESULTS (UNAUDITED)**

| *(In                    thousands, except per share data)* |   | *Year                    ended October 1, 2005* |
|------------------------------------------------------------|--------|-------------------------------------------------|
|                                                            |   |                                            | First |   |   | Second |   |   | Third |   |   | Fourth |   |   | Fiscal |   |
|                                                       |   |                                            | Quarter(a) |   |   | Quarter(a)(b) |   |   | Quarter(a) |   |   | Quarter(a) |   |   | Year |   |
|                                                       |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    sales                               |   | $                                               | 1,368,247 |   | $ | 1,375,321 |   | $ | 1,440,039 |   | $ | 1,482,668 |   | $ | 5,666,275 |   |
| Gross                    profit                            |   |                                            | 161,118 |   |   | 164,055 |   |   | 219,221 |   |   | 200,805 |   |   | 745,199 |   |
| Operating                    income                        |   |                                            | 91,015 |   |   | 88,955 |   |   | 135,993 |   |   | 119,849 |   |   | 435,812 |   |
| Net                    income                              |   |                                            | 48,509 |   |   | 56,389 |   |   | 85,353 |   |   | 74,728 |   |   | 264,979 |   |
| Per                    Share:                              |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    income                              |   |                                            | 0.73 |   |   | 0.85 |   |   | 1.28 |   |   | 1.12 |   |   | 3.98 |   |
| Cash                    dividends                          |   |                                            | 0.015 |   |   | 0.015 |   |   | 0.015 |   |   | 0.015 |   |   | 0.06 |   |

| *(In                    thousands, except per share data)* |   | *Year                    ended October 2, 2004* |
|------------------------------------------------------------|--------|-------------------------------------------------|
|                                                            |   |                                            | First |   |   | Second |   |   | Third |   |   | Fourth |   |   | Fiscal |   |
|                                                            |   |                                            | Quarter(c) |   |   | Quarter(c) |   |   | Quarter(c)(d)(e) |   |   | Quarter(c)                    (d)(e) |   |   | Year(c) |   |
|                                                       |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    sales                               |   | $                                               | 1,044,367 |   | $ | 1,384,908 |   |  $ | 1,447,994 |   |  $ | 1,486,454 |   |  $ | 5,363,723 |   |
| Gross                    profit                            |   |                                            | 77,112 |   |   | 122,937 |   |   | 118,220 |   |   | 210,770 |   |   | 529,039 |   |
| Operating                    income                        |   |                                            | 30,808 |   |   | 61,511 |   |   | 37,117 |   |   | 135,878 |   |   | 265,314 |   |
| Net                    income                              |   |                                            | 10,286 |   |   | 32,951 |   |   | 9,814 |   |   | 75,289 |   |   | 128,340 |   |
| Per                    Share:                              |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    income                              |   |                                            | 0.20 |   |   | 0.50 |   |   | 0.15 |   |   | 1.13 |   |   | 2.05 |   |
| Cash                    dividends                          |   |                                            | 0.015 |   |   | 0.015 |   |   | 0.015 |   |   | 0.015 |   |   | 0.06 |   |

| (a)    | In                      the third quarter of fiscal 2005, we determined that the consolidated                      financial statements for the first and second quarters of fiscal                      2005                      included certain reclassification entries reducing selling,                      general and                      administrative expense that we now believe should have been                      more                      appropriately reflected as a reduction in cost of sales. As                      a result, we                      have reclassified approximately $5.7 million in the first quarter                      and $5.6                      million in the second quarter having the effect of decreasing                      cost of                      sales and increasing selling, general and administrative expenses                                                                                                                                                                                                                 |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (b)    | Included                      in net income in the second quarter of fiscal 2005 is a $7.5                      million after                      tax gain from a litigation settlement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (c)    | In                      fiscal 2005, we determined that the consolidated financial                      statements for                      the quarters and fiscal year 2004 included certain reclassification                      entries reducing selling, general and administrative expense                      that we now                      believe should have been more appropriately reflected as a                      reduction in                      cost of sales. As a result, we have reclassified $0.1 million                      related to                      the first quarter, $10.0 million related to the second quarter,                      $3.3                      million related to the third quarter and $5.6 million relating                      to the                      fourth quarter of fiscal 2004 having the effect of decreasing                      cost of                      sales and increasing selling, general and administrative expenses                      in                      fiscal 2004 to adjust for these prior entries. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (d)    | Included                      in gross profit and operating income for the third and fourth                      quarters of                      fiscal 2004 are turkey restructuring charges of $56.0 million                      and $8.2                      million, respectively. Included in operating income for the                      third quarter                      of fiscal 2004 are other restructuring charges of $7.9 million.                      See Note C                      to the Consolidated Financial Statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

| (e) | Operating                    income includes a non-recurring recovery of $23.8 million attributable                    to                    recoveries under a business interruption insurance policy related                    to the                    October 2002 recall. See Note C to the Consolidated Financial                    Statements. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| PILGRIM'S                    PRIDE CORPORATION                                                                                                  |
|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                            |
| SCHEDULE                    II-VALUATION AND QUALIFYING                    ACCOUNTS                                                             |
|                                                                                                                                            |
| Col.                    A                                                                                                                       |   | Col.                    B | Col.                    C | Col.                    D | Col.                    E |
|                                                                                                                                            |   |   | ADDITIONS |   |   |
|                                                                                                                                            |   |   |   | Charged                    to |   |   |
|                                                                                                                                            |   | Balance                    at | Charged                    to | Other |   | Balance                    at |
| DESCRIPTION                                                                                                                                     |   | Beginning | Costs | Accounts- | Deductions | end |
|                                                                                                                                            |   | of                    Period | and                    Expenses | Describe(1) | Describe(2) | of                    Period |
|                                                                                                                                            |   |   |   |   |   |   |
| Year                    ended October 1, 2005:                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Reserves                    and allowances deducted                                                                                             |   |   |   |   |   |   |   |   |   |   |   |
| from                    asset accounts:                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Allowance                    for doubtful accounts                                                                                              |   |   | $4,244,644 |   | $767,923 |   | $-- |   | $349,412 |   | $4,663,155 |
|                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Year                    ended October 2, 2004:                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Reserves                    and allowances deducted                                                                                             |   |   |   |   |   |   |   |   |   |   |   |
| from                    asset accounts:                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Allowance                    for doubtful accounts                                                                                              |   |   | $1,184,199 |   | $1,124,878 |   | $5,228,623 |   | $3,293,056 |   | $4,244,644 |
|                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| Year                    ended September 27, 2003:                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Reserves                    and allowances deducted                                                                                             |   |   |   |   |   |   |   |   |   |   |   |
| from                    asset accounts:                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Allowance                    for doubtful accounts                                                                                              |   |   | $2,344,000 |   | $87,543 |   | $-- |   | $1,247,344 |   | $1,184,199 |
|                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |
| (1)                    Balance of allowance for doubtful accounts established for accounts                    receivable acquired from ConAgra. |
| (2)                    Uncollectible accounts written off, net of                    recoveries.                                                |

----