So, that’s the approach we take. We feel very comfortable with the team we have in place. We will feel very comfortable with the strategy that we have in place. I feel very comfortable from an operational execution perspective that we’re making strides and improvements in that particular segment.
Benjamin Theurer: Okay. So no plants closures and expect kind of specific scenarios?
Brady Stewart: As Donnie indicated earlier, we literally are evaluating everything. And that’s both asset utilization, along with how we frame our strategy and our business moving forward. And we’re comfortable with our approach as we move forward.
Benjamin Theurer: Okay. Perfect. Thanks.
Donnie King : Thank you.
Operator: [Operator Instructions] Our next question comes from Michael Lavery from Piper Sandler. Please go ahead with your question.
Michael Lavery: Morning, thank you.
Donnie King : Good morning.
Michael Lavery: I just wanted to come back to Chicken and how you think about, I guess capacity. It’s impressive to be able to cut some facilities and maintain the volume output is obviously from an efficiency standpoint. But I guess, just given the industry supply and where pricing is so pressured, is there any rationalization or kind of reduction beyond that that would make sense, just given the market dynamics?
Donnie King : Sure, I think there’s a couple things to say on that. I mean, we’ve been pretty consistent going back to the last year talking about capacity utilization as a driver for profitability in this business. And we were in the low 80s in ‘22. And so, with the balance of growing our business and rationalizing some of the footprint, we have feel as though we’ve now optimized the network and continue to push towards those utilization levels that would be in line with historical the drivers for profitability for us. I think that’s the first thing. And then, you talk about – you ask about just where demand is, or what the customer doing or the industry dynamics. We don’t mean to make any projections about what’s going on, the industry and focus on what we can control.
And I think that with these move or going to get closer to our customers, which is a benefit with how we’re moving things around and I think we feel good about the choices on that front. I don’t know if you got anything to add, Wes or John?
Wes Morris: Yeah, Michael, I think just as a reminder, we talk about it often that where our demand backwards slaughter production organization. And so, when you look at our customer forward demand curve, plus the business we picked, we’re literally gaining momentum on both sides right sizing capacity and growing at the same time.
John Tyson : And maybe I could add one additional thing to that, there’s been a lot of conversation this morning about capital and what is that going to be going forward. But we obviously talked about the assets that we’re closing. I think that what you may not understand is how all those fit together and so maybe I can help with that. A couple of years ago, we have eat up intentionally in capital to get ourselves in a position to have capacity, specifically, more value-added branded type capacity. And so, that’s where a lot of the extra spending above and beyond $1.5 billion. I think it’s also important to link the plant closures that we talked about with a reduction in the capital that we’re going to spend for the balance of ‘23 and probably what that looks like in ’24.
That work is done today and these assets were shuttering would have required a significant capital in order to make them competitive. And if you look at the returns on those that did really didn’t make sense to do that. But I would tell you, in terms of Chicken specifically in the capacity, with even with the 10% reduction, we’re just over 90% capacity and we still have room to grow with the customers and as the market grows.
