Source: MEATINGPLACE, 10/17/14

 Sanderson Farms is exploring multiple locations for a new processing plant in North Carolina, a project it wants to start as soon as possible, Chief Executive Joe Sanderson Jr. told an audience gathered in New Orleans for the company’s annual investor conference.

“Our balance sheet is screaming for us to start building a plant there. I just want to assure you that we are aware of the need,” Sanderson said.

Constructing a new plant in North Carolina – and building another new plant after that – is key to continuing the company’s growth momentum, Sanderson stressed in his presentation.

When Sanderson’s Palestine, Texas, plant that currently is under construction becomes fully operational, it will increase the company’s production capacity by 15 percent, he said. The Palestine plant is scheduled to receive its first birds on Feb. 9, 2015.
A North Carolina plant would add another 15 percent to production.

“We hope to get that done ASAP. If we don’t get it done, we’ll go flat in growth,” Sanderson told the audience.

Sanderson Farms is talking to government officials in more than one location and is prepared to start building in North Carolina next spring if its process of due diligence works out, the CEO said. “There have been two counties that have invited us in,” he said, adding that construction of a plant would take about 15 months.

Large crowds of residents in Fayetteville, N.C. – one of the locations where Sanderson is considering building – have turned out at public meetings to voice opposition to a chicken plant there.

Sanderson revealed that the company also has held discussions about locations for not just one, but its next two big bird deboning plants. “North Carolina will not be our last plant,” he said.

“We’re going to keep building processing plants and complexes and keep growing this company,” Sanderson said.
But the company is not interested in building another further-processing plant, he added, in response to a question from the audience.

Among the highlights of a very strong 2014: Sanderson Farms expects to sell about 3 billion pounds of chicken and earn “somewhere north of $10 per share” if the analysts are right, the CEO said.

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