Sanderson Farms (SAFM +0.9%) announced that it signed an agreement to continue processing chickens grown by House of Raeford Farms at the Sanderson Farms poultry processing facility located in St. Pauls, North Carolina.
Under the terms of the agreement, Sanderson Farms will purchase, process and sell chickens grown by House of Raeford Farms through mid-December 2017.
Sanderson Farms estimates that the additional volume of processed pounds this arrangement will generate for its St. Pauls processing plant will be 20.4M pounds in FQ3, 26.3M pounds in FQ4 and 12.4M pounds for FQ1 of 2018.
“We are pleased to have reached this agreement with our North Carolina neighbors, House of Raeford Farms, while they rebuild their Teachey processing facility following the devastating fire," says Sanderson CEO Joe Sandersom.
"We hope to benefit from favorable chicken markets as we head into the busy summer months," he adds.
Source: Press Release