US poultry producer Sanderson Farms today (28 February) revealed that improved conditions in the poultry sector enabled it to reduce first-quarter losses.
During the three-month period, Sanderson said that losses totalled US$8m, down from a hefty $33.6m in the comparable period of last year. The group said that, although corn prices have retreated from their highs this autumn, higher feed costs dented margins.
Go deeper with GlobalData
The company booked an increase in sales for the period, which rose to $517.8m, up from $427.7m last year, on the back of higher poultry selling prices and “steady” retail demand.
“Market conditions steadily improved during our first fiscal quarter compared with last year’s first quarter and compared with our fourth quarter of fiscal 2011, and the company was profitable in January,” Joe Sanderson Jr, chairman and CEO, commented.
“However, we continue to experience high grain prices, especially for corn. Corn supplies are at their tightest level in 15 years, which will likely keep upward pressure on grain costs at least until the market gets some visibility into the quantity and quality of the 2012 crops.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
