For the first quarter that ended January 31, 2010, Sanderson Farms reported net sales of US$420.1 million, up 8% from US$388.9 million for the same period a year ago.

Net income reached US$15.8 million, compared with a net loss of US$6.7 million for the first quarter of fiscal 2009.

Market prices for poultry products were mixed during the first quarter of fiscal 2010 compared with the same period of fiscal 2009, but were higher overall. Feed costs, the company's largest single component in cost of sales, decreased 4.6% compared with the first quarter a year ago.

"The results for the first quarter of fiscal 2010 reflect an improved overall poultry market compared with the first quarter of last year," said Joe Sanderson, chairman and chief executive officer of Sanderson Farms, Inc. "Demand for chicken at the retail grocery level has remained good and current supply levels are balanced with consumer demand in that market. Our food service business remains soft, reflecting the prolonged slowdown in restaurant traffic caused by current economic conditions. We expect these demand trends to continue until we see a meaningful improvement in the national job market and consumers resume spending and dining out again.''

Grain prices have declined over recent weeks in reaction to the USDA's January crop estimates, and feed costs for fiscal 2010 are likely to remain below last year's levels, said Sanderson.

Sanderson Farms have reached a more favourable industry balance of supply and demand levels for poultry products, and egg sets and breeder placements remain in check. The construction of the company's Kinston, North Carolina, plant is moving forward as planned and processing operations of the facility is expected to begin in January 2011.

Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared food items.