Donnie King: Alright. Thank you. I will €“ I’ll start out on this, and then I will flip it to Brady for a few comments. We’re moving closer to the bottom or to the trough of the beef cycle. We obviously were surprised at the amount of beef harvested in our Q1. There was a lot more beef on the market than what we had expected particularly in light of increased pricing €“ or excuse me, increased cost of cattle and at the same time, a decline in cut out. So that was a bit of a surprise to us. That’s a miss for us. But we are moving closer. We know that there are more hoppers being harvested. We know there are more cows being harvested. We know what those signs are that we are looking for in terms of when the herd would rebuild.
And it’s going to require a rain or precipitation. It’s going to require the rancher to see more forage in hay. Availability, those are some of the things you need to look for. But as we’ve gotten a quarter closer to answer your question, Alexia, we €“ we see a little more clearly than now. We know that the trough is coming, but we wanted to €“ the number you see is a conservative number for us and making every effort to make sure that we guide you to where we see Q2 and the balance of the year going. And so Brady, let me see if you want to add anything to that. Welcome, Brady Stewart.
Brady Stewart: Thank you, Donnie. And certainly, your points relative to cattle availability and the look into the future is spot on the drought, lack of affordable hay and forage and higher overall supply chain costs are still driving cal liquidation in parts of the U.S. as we move out of this cycle of the cal liquidation and start to see some replacements into the future, we will certainly have better visibility to the trough that you mentioned as well, Donnie. Why I am optimistic about the future? Is the team has worked diligently and effectively to strategically align ourselves with suppliers to ensure we have the supply required relative to higher grading cattle. We feel good about global demand, specifically on higher-grading beef products from a macro standpoint.
We’re seeing some appreciation in drop credit values, specifically on specialty products, including fats and oils. And while it is hard to pinpoint the exact bottom based on the current drought and feedstock conditions, we are seeing some moderation and some signs of optimism relative to the drought conditions that we will keep an eye on moving into the future.
Operator: Thank you. And ladies and gentlemen, our next question today comes from Ken Goldman at JPMorgan. Please go ahead.
Ken Goldman: Hi, thank you. I wanted to ask a couple of questions. First, Donnie, you made a change at the top in the Chicken segment. Can you outline a little bit which changes are most important as we think about the next few years that you’d like to see and maybe why the change was made now?
Donnie King: Sure, Ken. I’d be happy to €“ David Bray was leading our poultry business. And I talked about in Q1 that we had some issues as it related to markets and the amount of protein on the market. The change that we made is a result of some of the controllables that I think we made some good decisions. I’d like to have seen those decisions faster and perhaps some better quality of decisions and there were things in Q1 as it relates to chicken that we could have done better. And I made the change. I went out immediately and recruited Wes Morris, who Wes has had has run many parts of our Chicken business. He’s led our Prepared Foods business, and he’s also led our Case-Ready beef and pork business. And they had an opportunity to pick up a great talent with many, many years of experience and know-how in this business, and we made the change.
