February 27, 2008

Sanderson Farms reports Q1 profits due to higher poultry prices

Poultry processor Sanderson Farms Inc. has announced a Q1 profit compared to the same period in last year due to improved market prices for poultry and higher net sales.
 

The company's first quarter net income is at US$6.22 million compared to a net loss of US$2.85 million in last year's first quarter.

Net sales have increased to US$362.6 million from US$292.71 million.

Whole chicken prices have increased by about 10.3 percent, while prices for boneless breast meat have increased about 6.7 percent, said the company.

The average market price for bulk leg quarters has increased about 30.4 percent while prices for corn and soymeal shot up by 12.9 percent and 39.9 percent respectively.

Both corn and soymeal are the company's primary feed ingredients.

The results show that the market conditions have improved, although the company notes that grain prices will continue to climb up, according to Joe Sanderson, CEO of Sanderson Farms.