March 14, 2008

Sanderson Farms forecast consumer preference to switch to chicken

Sanderson Farms forecast that consumers would soon leave beef and pork and switch to chicken in the time to come, while also expecting further consolidation in the US poultry industry.

CEO of Sanderson Farms, Joe Sanderson, said that although consumers have not yet switched to chicken products, but the continuous price increases in corn would lead to price hikes in beef and pork, which would result in consumers switching to the lower-priced chicken.

Sanderson is also expecting further consolidation in the US poultry industry within the year as smaller producers could leave the business.

He also stated that there could be some assets for sales over the next 12 months, some of which may be due to retiring operators selling their businesses.

In addition, Sanderson asserted that the company will not invest in overseas facilities.

"I think there is plenty of money to be made in the US," said Sanderson.