The recent winter storms have had a significant negative impact on Sanderson Farms’ operations in Texas, Louisiana and Mississippi. As a result, the chairman and CEO of Sanderson Farms said the company will process about 1.6 million fewer chickens at its plants in those three states.
“Because of the record low temperatures, power failures, snow and Ice, and hazardous road conditions, we were unable to operate our processing plants, deliver day-old baby chicks to broiler farms on our regular schedule, pick up its losses.
hatching eggs from breeder farms and set those eggs in our hatcheries, or manufacture and deliver chicken feed to the farms of our contract poultry producers,” said Sanderson. He added, he was grateful that none of the poultry plants were damaged and all the employees appeared to remain safe. However, the company’s live production supply chain “experienced interruptions and losses similar to a hurricane,” Sanderson said. The company lost 455,000 broilers in houses that lost power, water or feed, or had roofs collapse under the weight of the snow and ice. The company was also forced to humanely euthanize about 545,000 chicks at its hatcheries in Texas, and was unable to pick up and set 703,000 hatching eggs at those hatcheries. He estimated that those losses would represent a little less than 1% of the head they expected to process during the second quarter, which will conclude at the end of April.