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Sanderson Farms to Build Poultry Complex In Palestine, Texas

The Poultry Complex Will Require Up to 1,000 Employees


02/15/2013 – At Sanderson Farms, Inc.  (NASDAQ: SAFM) annual stockholders meeting, held yesterday, the Sanderson Farms logocompany announced they have selected Palestine, Texas as the location for its next poultry complex. 


The new big bird deboning complex will consist of a feed mill, hatchery, poultry processing plant and waste water facility, all located in and near Palestine, Texas and is expected to complement the Sanderson Farm's existing operations located in Bryan and Waco, Texas.


Joe F. Sanderson, Jr., Chairman and CEO of Sanderson Farms noted, "The state of Texas has been an outstanding place for Sanderson Farms to do business. We look forward to the new marketing opportunities the new facility will create for us in this important region. However, construction of the new facility remains on hold until we have better visibility on future prices and availability of grain, and is subject to other contingencies including obtaining necessary permits, negotiating construction contracts, completing construction and obtaining board approval to move forward with the project."


Coming out of a challenging 2012, Sanderson told investors, "As we look to the year ahead, we are cautiously optimistic that the national economic recovery is beginning to gain traction. At the same time, we see challenges ahead for our industry with expected higher grain costs. We also do not expect to see a meaningful improvement in demand from our food service customers until the national employment situation improves and consumers begin to dine out again on a consistent basis. While we acknowledge these more immediate challenges, we will continue to manage Sanderson Farms for the long term. This strategy has historically served us well throughout the cycles that characterize our industry. With a strong financial position, we will execute this same strategy in fiscal 2013." 


Sanderson Farms informed the City of Palestine and Anderson Country that the company will invest around $92 million on the construction of a hatchery and processing plant that will be located in Anderson County and an additional $32 million on the feed mill in Freestone County. Once the hatchery and processing plant is open, the company expects to employ up to 1,000 people.


“This project is a long-term capital investment and will be the third complex of this nature built in Texas,” said Wendy Ellis, Economic Development Director for the City of Palestine Economic Development Corporation. “Sanderson Farms has a reputation for being an outstanding corporate partner wherever they are located. The leadership in Waco and McLennan County has enjoyed an outstanding relationship with them and has seen positive impacts in their area from the complex that was built there. Along with the relationship with Sanderson Farms, we look forward to putting together a collaborative effort with our neighbors in Freestone County to provide what the company needs to build in this area.”


Sources:  Sanderson Farms, Palestine Economic Development Corporation


Related Links:

Riopel Projects Growth in U.S. Meat Processing Business 

Tyson Foods Announces New Audit Program for Animal Treatment 


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