Sanderson Farms, Inc. Announces Plans for Additional New Poultry Complex in North Carolina

Sanderson Farms, Inc. (NASDAQ: SAFM) announced today that it plans to locate a potential new poultry complex near Goldsboro, North Carolina. The construction of the new complex is subject to various contingencies, including obtaining satisfactory state and local incentives, locating suitable property, obtaining necessary permits and the approval of the Company’s lenders of an amendment to its revolving credit agreement permitting, among other things, the capital expenditures for the Goldsboro complex.

Sanderson Farms expects to invest approximately $94.0 million in the potential new big bird deboning complex. The project, if completed, will consist of an expansion of the feed mill for the Company’s Kinston, North Carolina, plant, a hatchery, a processing plant with capacity to process 1.25 million chickens per week and a waste water treatment facility. At full capacity, the plant is expected to employ approximately 1,100 people, require approximately 150 contract growers, and be equipped to process and sell 8.9 million pounds of dressed poultry per week. If all contingencies are met, the Company expects to begin construction of the complex in the second quarter of fiscal 2011 and expects to begin operations in the third quarter of fiscal 2012.

According to Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc., plans for this potential project have been approved by the Company’s Board of Directors. “This planned expansion in North Carolina will support our growth strategy and further enhance our ability to drive revenue and earnings for our shareholders. Once fully operational, the production at this new facility, together with the new production at our Kinston, North Carolina, facility, will represent a 30 percent increase to our processing capacity, and is expected to provide steady production growth for the Company through 2014. In today’s market environment, we believe we have a significant opportunity to leverage our efficient operations with the additional capacity of 1.25 million birds per week and take advantage of new markets. We are pleased that our strong balance sheet and financial performance have put us in the position to continue to grow our Company.”

Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared food items. Its shares trade on the NASDAQ Global Select Market under the symbol SAFM.

This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact, are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on management's current views and assumptions, and are subject to risks and uncertainties. Actual results and events may differ materially from those expressed or implied in the statements. For a discussion of these risks and uncertainties, please refer to the Company's most recent Annual Report on Form 10-K and other subsequent filings with the Securities and Exchange Commission. Forward-looking statements included herein speak only as of the date hereof and the Company undertakes no obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances.