With one new poultry plant nearly ready to start production and another reaching full capacity, Sanderson Farms expects to process 11.1 percent more dressed poultry in fiscal year 2017 than it did in fiscal year 2016.
Sanderson Farms Chief Financial Officer Mike Cockrell, speaking during a conference call where the company announced its financial results for the fourth quarter of fiscal year 2016 and for the full year, said that the company currently expects to process 4.183 billion pounds during the fiscal year, which began on November 1.
That estimate, however, is contingent upon factors such as weather, changes in target live weights and market conditions.
Pounds processed per quarter
Breaking it down by quarters, Cockrell said the projections are to process 970.5 million pounds during the first quarter, 1.02 billion pounds during the second quarter, 1.082 billion pounds during the third quarter and 1.111 billion pounds during the fourth quarter.
When asked by one analyst who noted that the figures given for FY 2017 were higher than the guidance offered two months ago, Cockrell said one reason for that is that the company’s new plant in St. Pauls, North Carolina, will go online faster than it expected, and should reach full capacity quicker than its next newest poultry plant in Palestine, Texas.
Status of new plants
Joe Sanderson Jr., CEO of Sanderson Farms, said the poultry plant in Texas started to run at full capacity in October.
Meanwhile, the St. Pauls plant is expected to begin operations in January.
“The new complex in St. Pauls demonstrates our optimism and confidence in the long-term success of Sanderson Farms and our industry. The new complex will add value for our investors, opportunities for our employees, and high quality products for new customers,” said Sanderson.
Sanderson added that the company is committed to further growing its processing operations beyond the new plant in North Carolina.
