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Print ArticleLaurel, MS: Sanderson Farms Inc. has recently put plans for the construction of a new chicken-processing plant in Kinston, NC on hold, citing skyrocketing corn and soybean costs as the reason.
The decision follows a trend in the chicken and meat industries to pull back on investing in new infrastructure due to rising feed prices. Recently, Tyson Foods Inc. pulled the plug on its meat-processing business in Canada. It also plans to sell its Lakeside Farm Industries Ltd. to XL Foods Inc. for $106 million, a deal involving meatpacking plants, feed yards and fertilizer.
Sanderson had planned to break ground on the $126.5 million plant this summer.
"In light of escalating prices for corn and soybean meal, our primary feed ingredients, it has become increasingly difficult to predict our future input costs," the company said in a statement.