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New Poultry Processing Plant for North Carolina

18 March 2015

US - St Pauls is to be the site for Sanderson Farms' new poultry complex in North Carolina.

The plant in St Pauls and Robeson County, North Carolina, will include a new poultry processing plant and waste water treatment facility.

The Company has other sites under consideration for a new hatchery.

These facilities will comprise a state-of-the-art poultry complex with the capacity to process 1.25 million birds per week for the big bird deboning market. At full capacity, the complex will employ approximately 1,100 people, will require 100 contract growers, and will be equipped to process and sell approximately 500 million pounds of dressed poultry meat annually at full production.

Sanderson Farms expects to invest approximately $139 million in the new North Carolina complex, which includes upgrades to its feed mill at Kinston in North Carolina and anticipates that associated contract growers will invest an additional $168 million in poultry production facilities. The Company expects to begin construction of the facilities this summer, with initial operations of the new complex to begin during the fourth fiscal quarter of 2016.

According to Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc., the selection of these sites followed a thorough due diligence process and approval by the Company’s Board of Directors.

He commented: “We are grateful for the cooperation from the economic development and governmental officials in St. Pauls, Robeson County and the State of North Carolina.

“We believe this expansion will enhance our ability to drive revenues and earnings and allow us to continue our record of building long-term value for our shareholders. The additional capacity of 1.25 million birds per week represented by the new complex will provide new marketing opportunities for the Company in the fresh food service market. We are pleased that our recent financial performance has put us in a position to continue to grow our Company.

“We want to also thank the public officials and communities of Fayetteville and Cumberland County, North Carolina, for the vote of confidence in our Company demonstrated by their recent approval of an incentive package for this project. However, we have decided, at this time, to pursue the opportunity in St. Pauls and Robeson County,” added Mr Sanderson.

Comment of avian flu outbreaks in US

Commenting on recent reports regarding the discovery of avian influenza in the United States, Mr Sanderson noted that none of the Company’s flocks has been affected.

He said: “Avian influenza has not been identified in any of the states in which we have operations and live inventory.

“However, we have taken this opportunity to remind all of our contract poultry producers and our employees that the Company requires strict adherence to its biosecurity programme, and have reminded them of the programme’s specific requirements and procedures. Consistent with standard industry practice, all of our flocks are tested for avian influenza before they are processed.”

Further Reading

You can visit the Avian Flu page by clicking here.

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