Sanderson Farms, Inc., has approved an expansion project for the company's Collins, Miss., poultry processing facility and hatchery. The Collins facility is currently dedicated to servicing both retail and big bird deboning customers and will be converted to process exclusively for the big bird deboning market.

The conversion project will include an expansion of the Collins hatchery, retrofitting certain equipment in the Collins processing plant, and the construction of a new feed mill. The board of directors has approved a $20 million capital budget for the project. As a result, the Company's capital budget for fiscal 2005 will increase by $6.5 million to $138.7 million, while the budget for fiscal 2006 will include $13.5 million for this project.

Source: Company Release