Sanderson Farms, Inc. Reports on Its COVID-19 Response Plan
“With so much uncertainty surrounding the novel coronavirus, and the changes we face in our daily lives,
The Company has had no reports that any of its personnel or contract growers have tested positive for the virus. Management is monitoring operations closely, however, and has consulted with infectious disease experts to adopt precautions throughout the Company. If any Company or grower personnel test positive, or if any area of the Company’s operations becomes exposed to the virus, the Company will cooperate fully with local, state and federal authorities to implement and enforce appropriate quarantines.
“While there are no known indications that COVID-19 is transferable through food, our safety team is following guidance from public health organizations, including the
Measures the Company has taken to prevent the spread of the disease in its operations include:
Employees and members of their households are prohibited from traveling for personal reasons outside
the United States, through major international airports, to certain locations in the United Stateswith severe COVID-19 outbreaks, to non-work gatherings of 50 people or more, and other high-risk destinations. If those persons must travel to or through these areas, the Company will require them to remain away from work for a minimum of two weeks. Additionally, if any of the Company’s contractors travel to or through these areas, those persons will not be allowed on the Company’s premises for a minimum of two weeks.
- All corporate travel, including on Company and commercial aircraft, has been suspended, other than essential travel to Company facilities.
- Hand sanitizing stations appropriate for use in food processing facilities have been installed at each Company location, and the Company is reinforcing the importance of personal hygiene and social distancing practices that can prevent the spread of the disease.
Company nurses have been trained on
CDCprotocols for novel coronavirus and have masks and other equipment necessary for contact with symptomatic employees.
- Supervisors have been trained to identify signs of the COVID-19 illness in employees.
- The Company has increased the frequency and scope of cleaning of common areas like breakrooms and restrooms.
- Any personnel who have symptoms of COVID-19 will be placed on two week’s paid sick leave.
- Members of the senior management team are working from home as a precaution. Additionally, any employee who is in a high-risk group for COVID-19 is being allowed to work from home.
“As of the close of business on
This press release includes forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on a number of assumptions about future events and are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from the views, beliefs, projections and estimates expressed in such statements. These risks, uncertainties and other factors include, but are not limited to those discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended
(1) Changes in the market price for the Company’s finished products and feed grains, both of which may fluctuate substantially and exhibit cyclical characteristics typically associated with commodity markets.
(2) Changes in economic and business conditions, monetary and fiscal policies or the amount of growth, stagnation or recession in the global or
(3) Changes in the political or economic climate, trade policies, laws and regulations or the domestic poultry industry of countries to which the Company or other companies in the poultry industry ship product, and other changes that might limit the Company’s or the industry’s access to foreign markets.
(4) Changes in laws, regulations, and other activities in government agencies and similar organizations applicable to the Company and the poultry industry and changes in laws, regulations and other activities in government agencies and similar organizations related to food safety.
(5) Various inventory risks due to changes in market conditions including, but not limited to, the risk that market values of live and processed poultry inventories might be lower than the cost of such inventories, requiring a downward adjustment to record the value of such inventories at the lower of cost or net realizable value as required by generally accepted accounting principles.
(6) Changes in and effects of competition, which is significant in all markets in which the Company competes, and the effectiveness of marketing and advertising programs. The Company competes with regional and national firms, some of which have greater financial and marketing resources than the Company.
(7) Changes in accounting policies and practices adopted voluntarily by the Company or required to be adopted by accounting principles generally accepted in
(8) Disease outbreaks affecting the production, performance and/or marketability of the Company’s poultry products, or the contamination of its products.
(9) Changes in the availability and cost of labor and growers.
(10) The loss of any of the Company’s major customers.
(11) Inclement weather that could hurt Company flocks or otherwise adversely affect its operations, or changes in global weather patterns that could affect the supply and price of feed grains.
(12) Failure to respond to changing consumer preferences and negative or competitive media campaigns.
(13) Failure to successfully and efficiently start up and run a new plant or integrate any business the Company might acquire
(14) Unfavorable results from currently pending litigation and proceedings, or litigation and proceedings that could arise in the future.
Readers are cautioned not to place undue reliance on forward-looking statements made by or on behalf of
Treasurer, Chief Financial Officer
& Chief Legal Officer