Sanderson Farms posts $55.7 million loss in third quarter

Sanderson Farms Inc. posted a net loss of $55.7 million for the third quarter of 2011, compared to a net income of $36.1 million for the third quarter of 2010.
The net loss for the first nine months of fiscal 2011 totaled $105.5 million, compared to a net income of $87 million for the same time in 2010. "Sanderson Farms' financial results for the third quarter of fiscal 2011 reflect difficult market conditions," said Joe F. Sanderson, Jr., chairman and CEO. "Market prices for poultry products were significantly lower than last year's third quarter. While retail grocery store demand has remained steady, food service demand remains sluggish, and will likely remain that way until the employment market gains traction and consumers regain their confidence and return to restaurants. We also incurred significantly higher costs for corn and soybean meal, our primary feed ingredients, compared with the same period a year ago."
The company plans to extend holiday production cuts into 2012 to better balance supply and demand.