Because of rising animal feed ingredient costs, one company is tightening its belt nationwide. Earlier this week, Pilgrim's Pride announced it can no longer afford several of its distribution plants.

Ray Atkinson, director of corporate communications for Pilgrim's Pride, explains that what is going on to cause the company to announce it will layoff 1,100 people around the country, because the feed they use that's made from corn has gotten so expensive

"Pilgrims Pride buys about 324-million bushels of corn a year. A one cent rise in the price of corn is $3 million plus to the bottom line," says Atkinson, who also says the reason corn prices are rising is because of higher production costs for ethanol gas, which also comes from corn.

He adds, "It's really happened in the last couple of years with the ethanol policies coming into affect and the mandates that the government has put in place for blending ethanol with gasoline."

The cost of corn is expected to continue to rise, and Atkinson estimates there will be another $700 million increase in Pilgrims Pride's grain cost this year. He says other companies will also feel the pinch.

"Every food company uses grain in some way, whether they are making chicken or beef, and pork, or whether they are another kind of company for instance makers of soft drinks use high fructose corn syrup," continues Atkinson

So far no plants in the Valley are closing.