Sanderson Farms, Inc. is engaged 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. 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. As of October 31, 2013, the company processed approximately 452 million chickens, or approximately 3.0 billion dressed pounds. In addition, the company purchased and further processed 3.4 million pounds of poultry products during 2013. 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 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 94 prepared chicken items, which it sells nationally and regionally, principally to distributors and national food service accounts. Products 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. Sales and Marketing The company’s chicken products are sold primarily to retailers (including national and regional supermarket chains and local supermarkets) and distributors located principally in the southeastern, southwestern, northeastern and western the United States. The company also sells its chicken products to casual dining operators and to United States based customers who resell the products outside of the continental the United States. Sales and distribution of the company’s chicken products are conducted primarily by sales personnel at its general corporate offices in Laurel, Mississippi. The company’s prepared chicken items are sold nationally and regionally, primarily to distributors and national food service accounts. Regulation 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. Its 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, which is a strict self-inspection plan written in cooperation with and monitored by the USDA. Seasonality The demand for the company’s chicken products 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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