logrotate

logrotate.conf

/etc/logrotate.conf
/etc/logrotate.d/...

/home/deploy/APPNAME/current/log/*.log {
  daily
  missingok
  rotate 7
  compress
  delaycompress
  notifempty
  copytruncate
}

How It Works:

daily – Rotate the log files each day. You can also use weekly or monthly here instead.
missingok – If the log file doesn’t exist, ignore it
rotate 7 – Only keep 7 days of logs around
compress – GZip the log file on rotation
delaycompress – Rotate the file one day, then compress it the next day so we can be sure that it won’t interfere with the Rails server
notifempty – Don’t rotate the file if the logs are empty
copytruncate – Copy the log file and then empties it. This makes sure that the log file Rails is writing to always exists so you won’t get problems because the file does not actually change. If you don’t use this, you would need to restart your Rails application each time.

http://excid3.com/blog/logrotate-rails-production-logs/