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Sanderson Farms may delay new processing plant despite rising chicken demand, CEO says
19th May 2021
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Despite rising demand for chicken, Sanderson Farms may decide to wait to build another chicken processing plant.
On Tuesday, Sanderson Farms CEO Joe Sanderson spoke during the Goldman Sachs Global Staples Forum and said its newest processing plant may be delayed. In part, that could depend on the cost of soy and corn, Sanderson said.
Sanderson said he is also wary of the high cost of building materials, which make this a bad time for building — despite the company’s desperate need for a new plant.
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"Another thing I think we’re going to look very hard at is the cost of building a plant right now, with concrete and steel prices where they are, and with lumber prices, where they are right now," Sanderson said during the forum. "My opinion is — and we’ll get some data on this — but right now just, it’s not a good time to build a plant. Everybody in the world is building right now."
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However, Sanderson explained, the company is in dire need of a new plant. He said Sanderson Farms has been unable to take on new customers and orders because the company has been selling out of the chicken it processes.