Chicken processor and distributor Sanderson Farms Inc. has reported a net income of $23.9 million for the second fiscal quarter of 2012, compared with a net loss of $16.3 million in 2011, according to the company's latest financial report.
Market prices for poultry products were higher during the second quarter of fiscal 2012 compared with the same quarter in 2011, said the company, increasing approximately 7.5 percent. Bulk leg quarter market prices were 22.4 percent higher compared with 2011's second quarter, and reflected continued strong export and demand. Boneless breast meat prices during the second quarter were 2.3 percent higher than the prior year period, and jumbo wing prices were up 121.5 percent. Prices paid for corn and soybean meal, the company's primary feed ingredients, decreased 6.44 percent and 15.19 percent, respectively, compared with the second quarter of fiscal 2011.
Net income for the first half of fiscal 2012, ending on April 30, was $15.9 million, compared with a net loss of $49.8 million during the same time in 2011.
"Looking ahead, we will continue to closely monitor the chicken markets and production levels as we head into the summer months and what is typically a period of better demand for chicken," said Joe F. Sanderson, Jr., chairman and CEO of the company. "Weekly broiler egg sets continue to run below last year's numbers, and breeder placements are lower. With economic conditions continuing to affect consumer behavior, we expect to see continued soft casual dining demand. However, market prices for boneless breast meat sold to our food service customers improved seasonally the first two weeks of May, and market prices for retail grocery store product have also moved higher. We believe these market improvements are supply driven and, while market conditions remain fluid, we will maintain our focus on our operating performance and sales execution."
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