High Feed Costs Impact Sanderson Farms Earnings
Sanderson Farms, a leading chicken producer, has reported a significant decrease in profits for its recent quarterly results. The company, based in Laurel, Mississippi, has been adversely affected by the rising costs of feed grain, a critical component in poultry farming.
Earnings Take a Hit in Major profit Drop
In the second quarter ending April 30, Sanderson Farms witnessed its earnings plunge to $6.2 million, or 30 cents per share. This is a stark contrast to the $26.9 million, or $1.33 per share, reported in the same period last year. This decline highlights the challenges faced by the company in a volatile market.
Skyrocketing Corn Prices
A key factor in this downturn is the soaring price of corn, a major ingredient in chicken feed. Corn prices have hit a record high of over $6 per bushel, driven by robust demand from various sectors including exporters, livestock and chicken producers, and biofuel ethanol manufacturers.
About Sanderson Farms
Sanderson Farms, with its headquarters in Mississippi, is known for its significant role in the poultry industry. The company’s recent financial struggles reflect broader economic challenges, particularly in the agricultural sector.
Source: NEW YORK (May 22, Reuters)