September 23, 2013

Sanderson Farms to start construction of facility in Texas

Sanderson Farms, Inc. is set to begin construction of a new feed mill, hatchery, poultry processing plant and a wastewater treatment facility in Palestine, Texas on October 1, 2013.

The Palestine facility has a processing capacity of 1.250 million head of chickens per week. Product is intended for the big bird deboning market.

"We are excited about the new opportunities ahead for Sanderson Farms as we expand our production capacity and presence in Texas," said Joe F. Sanderson, Jr., chairman and CEO.

The company had previously announced the selection of Palestine for the site on February 14, 2013, but plans for building had been put on hold due to the uncertainties of the grain market, as well as other contingencies including obtaining Board approval to move forward with the project.

The board also authorised a regular cash quarterly dividend of US$0.20/share. This represents a new annual dividend rate of US$0.80/share, the company reported.

Sanderson said, "Our solid financial and operating performance, consistent growth and strong balance sheet have allowed us to move forward on both of these actions and further demonstrate our confidence in Sanderson Farms' future and our commitment to building shareholder value."