Sanderson Farms, Inc. plans to invest approximately $92 million on the construction of a hatchery and processing plant in Anderson County, Texas and another $32 million on the feed mill in Freestone County, employing more than 1,000 in the Lone Star State.
“The state of Texas has been an outstanding place for Sanderson Farms to do business. We look forward to the new marketing opportunities the new facility will create for us in this important region,” said Joe F. Sanderson, Sanderson Farms chairman and chief executive officer.
At a meeting of stockholders he said; The new big bird deboning complex will consist of a feed mill, hatchery, poultry processing plant and waste water facility, all located in and near Palestine, Texas. This facility will complement the Company's existing operations located in Bryan and Waco, Texas.
"The state of Texas has been an outstanding place for Sanderson Farms to do business, he added. We look forward to the new marketing opportunities the new facility will create for us in this important region. However, construction of the new facility remains on hold until we have better visibility on future prices and availability of grain, and is subject to other contingencies including obtaining necessary permits, negotiating construction contracts, completing construction and obtaining board approval to move forward with the project."
"As we look to the year ahead, we are cautiously optimistic that the national economic recovery is beginning to gain traction,” he added. At the same time, we see challenges ahead for our industry with expected higher grain costs. We also do not expect to see a meaningful improvement in demand from our food service customers until the national employment situation improves and consumers begin to dine out again on a consistent basis. While we acknowledge these more immediate challenges, we will continue to manage Sanderson Farms for the long term. This strategy has historically served us well throughout the cycles that characterize our industry. With a strong financial position, we will execute this same strategy in fiscal 2013.”
Wendy Ellis, economic development director for the City of Palestine Economic Development Corporation, said that they will be working with the state and Freestone County to develop an incentive package.