Sanderson Farms, Inc. engages in the production, processing, marketing and distribution of fresh and frozen chicken and the preparation, processing, marketing and distribution of processed and prepared chicken items. Products The company sells chill pack, ice pack, bulk pack and frozen chicken, in whole, cut-up and boneless form, primarily under the Sanderson Farms brand name to retailers, distributors and casual dining operators principally in the southeastern, southwestern, northeastern and western United States. As of October 31, 2014, the company processed approximately 452 million chickens, or approximately 3.0 billion dressed pounds. The company conducts its chicken operations through Sanderson Farms, Inc. (Production Division) and Sanderson Farms, Inc. (Processing Division), both of which are wholly-owned subsidiaries of Sanderson Farms, Inc. The production subsidiary, Sanderson Farms, Inc. (Production Division), which has facilities in Laurel, Collins, Hazlehurst and McComb, Mississippi; Bryan, Waco, Palestine, Freestone County, and Robertson County, Texas; Adel, Georgia and Kinston, North Carolina, is engaged in the production of chickens to the broiler stage. Sanderson Farms, Inc. (Processing Division), which has facilities in Laurel, Collins, Hazlehurst and McComb, Mississippi; Hammond, Louisiana; Bryan, Palestine, and Waco, Texas; Moultrie, Georgia and Kinston, North Carolina, is engaged in the processing, sale and distribution of chickens. The company conducts its prepared chicken business through its wholly-owned subsidiary, Sanderson Farms, Inc. (Foods Division), which has a facility in Flowood, Mississippi. The Foods Division is engaged in the processing, marketing and distribution of approximately 130 prepared chicken items, which it sells nationally and regionally, principally to distributors and national food service accounts. The company has the ability to produce a range of processed chicken products and prepared chicken items. Processed chicken is first saleable as an ice packed, whole chicken. The company adds value to its ice packed, whole chickens by removing the giblets, weighing, packaging and labeling the product to specific customer requirements and cutting and deboning the product based on customer specifications. The company adds additional value to the processed chicken by deep chilling and packaging whole chickens in bags or combinations of fresh chicken parts, including boneless product, in various sized, individual trays under the company’s brand name, which then may be weighed and pre-priced, based on each customer’s needs. As of October 31, 2014, the company had the capacity to process 4.375 million head per week in its big bird deboning plants. Most of its chill pack production is sold under the Company’s Sanderson Farms brand name. Regulations The company’s facilities and operations are subject to regulation by various federal and state agencies, including the Federal Food and Drug Administration (FDA), the United States Department of Agriculture (USDA), the Environmental Protection Agency, the Occupational Safety and Health Administration and corresponding state agencies. The company’s chicken processing plants are subject to continuous on-site inspection by the USDA. The Sanderson Farms, Inc. (Foods Division) prepared chicken plant operates under the USDA’s Total Quality Control Program. Seasonality The demand for the company’s chicken products generally is greatest during the spring and summer months and lowest during the winter months. Trademarks The company has registered with the United States Patent and Trademark Office the trademark Sanderson Farms, which it uses in connection with the distribution of its prepared chicken and premium grade chill pack products. The company also has registered with the United States Patent and Trademark Office seven other trademarks that are used in connection with the distribution of chicken and other products and for other competitive purposes. History Sanderson Farms, Inc. was founded in 1947. The company was incorporated in Mississippi in 1955.
sanderson farms inc (SAFM:NASDAQ GS)
127 Flynt Road
Laurel, MS 39443
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