July 23, 2014

Project Destiny Information

Company: Sanderson Farms, Inc – Headquartered in Laurel, Mississippi. third largest chicken producer in the US. Founded in 1947, with a strong balance sheet and earnings (2013 Net income of $130 million w/ publicly traded stock currently at $100.70 per share). Project: The company is still in the due diligence phase (not yet committed) to consider constructing a chicken processing plant of about 170,000 sq. ft., and related facilities (hatchery, live haul shed, offices, etc.), in the Cedar Creek Business Park, with total capital investment of $113+ million. Employment: Processing plant - 1,000+ employed with an estimated average hourly pay rate at $11.71 ($24,338 yr). All Sanderson employees participate in a comprehensive benefit package covering the employee and family, with Sanderson paying 75% of the costs (benefits represent an additional hourly employee costs of approx. $2.50 per hour). Prior to being hired by Sanderson Farms, all candidates for employment undergo a background check and must be legal citizens. Water Source & Quality: Sanderson Farms’ preferred water sources are wells drilled on site and they do not discharge directly into the river. Water obtained from wells is utilized in the processing of chickens, it then goes through a full chemical-free treatment process that includes disinfecting by using ultra violet light. The water treatment facility costs about $12 million to construct. The treated water is then sprayed onto fields in accordance with DENR regulations and is void of odor or pollutants. The sprayed water eventually goes back into the aquifer. All non-process water used for restrooms etc. is disposed of through and treated by the City’s sanitary sewer system. Other Related Investment: $170+ million by 100+ local farmers from Cumberland and surrounding counties to construct and operate about 500 broiler houses, 48 breeder houses & 18 pullet houses. Regulatory Controls: Water quality checked at every phase (wells, waste treatment facility, fields being sprayed, etc.) by DENR on a continual basis. Property Taxes: Annual taxes for property & equipment of approx. $600,000 to the County and $400,000 to the City. Kinston Plant: Sanderson Farms constructed a similar facility in Kinston, NC in 2011. This facility is located in an industrial park with other high quality manufacturers neighboring Sanderson’s operations (pharmaceutical company for one). A number of Cumberland / Fayetteville elected officials and others have visited this location. They found the facility, grounds and general area well maintained (no chicken feathers), with no odors. Further, Kinston city officials consider Sanderson Farms a quality addition to their market and a good corporate citizen.