Sanderson Farms predicts fewer US chicken companies
No. 4 US chicken producer Sanderson Farms expects more consolidation in the US chicken industry within the coming months as smaller producers exit the business.
Joe Sanderson, Sanderson Farms CEO recently stated that it would not be surprising if there were to be some assets for sale over the next 12 months, of which some may be due to older operators selling their businesses.
“There will be some age issues, a lot of the people holding the businesses started them,” he said. “So there will be some of that as families get out of the business. But it won’t be fast.”
It was also made clear by Sanderson that the company will not be investing in overseas facilities, but rather staying put in the US. “I think there is plenty of money to be made in the US,” he said.
Sanderson shared his thoughts regarding consumer purchases when it comes to meat products. He stated that consumers are currently buying pork and beef and not switching to cheaper proteins, like chicken, just yet. However, he stated that as corn prices continue to rise, so will the price of beef, which means that in the near future consumers may consume more chicken in place of more expensive beef.
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