Source: MEATINGPLACE, 12/15/16

Sanderson Farms reported fourth-quarter earnings that were sharply higher than analysts’ expectations, driven by stronger market prices for poultry products on improved export demand.

Boneless breast meat prices climbed 7.4 percent in the fourth quarter and jumbo wing prices jumped 9.5 percent.
Earnings for the quarter ended Oct. 31 climbed to $76.0 million, or $3.36 a share, from $27.4 million, or $1.22 a share, the year before. The average analyst projection was for a profit of $2.66 a share, according to Thomson Reuters.

Fourth-quarter net sales increased to $790.8 million from $679.6 million a year ago.

Sanderson Farms’ Palestine, Texas, plant moved to full production in October, and the company plans to begin production at its new St. Pauls, N.C., plant in January.

2017
For 2017, the company expects to process 4.183 billion pounds of dressed poultry, an 11.1 percent increase over the prior year, Chief Financial Officer Mike Cockrell told analysts on a conference call.
The company expects feed grain costs to be flat to lower in the year ahead.

Georgia Dock
Chief Executive Joe Sanderson, speaking on the call, addressed the recent controversy over the Georgia Dock pricing system, noting it has been a trusted benchmark for the retail grocery market for 40 years.

But he said he understood why some customers may have lost confidence in the benchmark, and believed the Georgia Department of Agriculture was going about its review of the system correctly.

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