June 27, 2008
Sanderson Farms delays plans for poultry plant in North Carolina
Sanderson Farms (SAFM) is delaying construction of a US$126.5 million poultry complex because of high feed costs.
The company had previously announced plans to build the complex, which would include a feed mill, poultry processing plant and hatchery - in Kinston, N.C., in April.
Rising prices for corn and soymeal, the main components of poultry feed, made it difficult to predict input costs, Chairman and Chief Executive Joe F. Sanderson Jr. said in a press release issued Thursday (June 26, 2008).
He added that recent flooding in the Midwest has added to the uncertainty about US corn and soy crops, which in turn has caused prices to go higher.
"While our balance sheet remains strong, we believe it is prudent to be conservative with our working capital and our balance sheet at this time," he said.