Brief

Sanderson Farms plans Texas-sized expansion

Dive Brief:

  • Sanderson Farms Inc., said it was considering adding new poultry complexes in Smith and Wood counties in Texas, according to Food Business News
  • The plan is to add a new feed mill, hatchery, poultry processing plant and waste water treatment facility in both areas.
  • Both facilities will boast processing capabilities to process 1.25 million birds per week, which would bring about approximately 375 million pounds of dressed poultry meat annually. The meat would come from nearly 80 contract poultry growers.

Dive Insight:

Sanderson Farms is continuing its big growth with these new plans. Earlier this year, the poultry giant opened a new 180,000-square-foot processing plant and wastewater treatment facility in St. Pauls, NC. 

The poultry giant has seen solid growth everywhere, reporting a net income increase of 50% in a year's time. The poultry market in general is strengthening, though Sanderson Farms posted solid growth based on its dark meat products. Today's low commodity crop costs also have made feed less expensive, allowing for more growth.

With several high-profile incidents of bird flu in recent weeks, now could be an opportune time for Sanderson Farms to expand. While other producers are shying away from using antibiotics on sick livestock, Sanderson Farms has embraced the practice. Shareholders even defeated a vote on changing the policy, agreeing with the poultry company's board that the company should use antibiotics when its animals are ill.

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Filed Under: Manufacturing Corporate Meat / Protein
Top image credit: Sanderson Farms