Laurel, Mississippi headquartered, Sanderson Farms, Inc. is a fully integrated poultry processing company. The Company engages in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared food items. Sanderson Farms employs greater than 12,000 employees in operations across five states and 13 different cities. The Company has 11 plants and more than 800 independent growers. The expectation is that its 12th complex will open in January of 2017 in St. Pauls, North Carolina.
Sanderson Farms has annual sales of over $2.8 billion. The Company has a weekly processing capacity of 9.375 million chickens. It supplies poultry products to food retailers, distributors, restaurants, and food service operators throughout the U.S. and in more than 40 countries. The Company’s newest poultry facility is a $140 million complex. It comprises a feed mill, hatchery, poultry processing plant and waste water facility situated in and near the city of Palestine, Texas.
Sanderson Farms doesn’t add anything to its fresh chicken. There are no additives, artificial ingredients or preservatives – its chicken always consists of a single-ingredient product, which is 100% natural chicken.
The Company sells ice pack, chill pack, bulk pack, and frozen chicken in whole, cut-up, and boneless form mainly under the Sanderson Farms brand name. Its prepared chicken product line includes institutional and consumer packaged partially cooked or marinated chicken items. These products are for food service establishments as well as distributors.
Sanderson Farms’ plants in Mississippi, Louisiana, Texas, North Carolina and Georgia process in excess of 10.6 million chickens weekly. Its processing facility in Mississippi produces an additional 1.72 million pounds of chicken products for the food service industry. The Company’s hatcheries are in Collins, MS; Adel, GA; McComb, MS; Waco, TX; Palestine, TX; Hazlehurst, MS; Laurel, MS; Bryan, TX; Kinston, NC; and St. Pauls, NC.
Sanderson Farms is the third largest poultry producer in the United States. The top 10 Poultry Companies for 2015 include Tyson Foods, Pilgrim’s, Sanderson Farms, Perdue Foods, Koch Foods, Inc., Wayne Farms, LLC, Mountaire Farms, Inc., House of Raeford Farms, Inc., Peco Foods, and Keystone Foods, LLC.
For 2015, Sanderson Farms processed a record 3.44 billion dressed pounds. This represents an increase of around 12.6% versus the 3.06 billion dressed pounds the Company processed during fiscal 2014. For 2015, it sold 3.42 billion pounds of dressed poultry versus 3.05 billion pounds in fiscal 2014. This represents another record.
Its Foods division sold an additional 14.4 million pounds of prepared chicken products. This represents a 19% increase from 2014.
Regarding Sanderson Farms Q3 2016, the Company reported Net Income of $54.7 million or $2.42 per share. This is in comparison to Net Income of $50.9 million or $2.27 per share during the prior year’s Q3. Net Sales for Q3 2016 totaled $728 million. This represents a decrease of 1.6% from $739.9 million during Q3 2015. the decrease was because of a decrease in the Company’s average sales price for poultry products. That was offset by increased volume.
Sanderson Farms operates its own feed mills. Therefore, the Company maintains control over what its chickens eat. Its in-house nutritionists develop a corn/soy-based diet. This diet contains essential protein, vitamins and minerals to ensure healthy and efficient growth. Its feed mills are in Adel, GA; Hazlehurst, MS; McComb, MS; Kinston, NC; Collins, MS; Laurel, MS; Easterly, TX; and Palestine, TX. In Palestine, TX, the Company’s processing plant is now near fully capacity. This plant represents more than 14% more production for Sanderson Farms.
For fiscal 2017, Sanderson Farms expects to process a little more than 4 billion pounds of poultry.