Sanderson Loss Expands in Second Quarter

NEW YORK - May 25/06 - SNS - Sanderson Farms, Inc. reported a net loss of U.S. $16.649 million on sales of $225.069 million for the second quarter ending April 30, compared to a net gain of $26.52 million on sales of $259.176 million during the same quarter of the previous fiscal year.

This lifted the fiscal year to date loss to $25.255 million on sales of $447.183 million, compared to a net income of $36.561 million on sales of $492.466 million during he first half of the previous fiscal year.

"Our financial results for the second quarter of fiscal 2006 reflect a difficult market environment for our industry," said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. "The combination of sluggish demand for poultry products in the domestic market with the decline in exports has depressed market prices compared with the levels we experienced in the prior year period."

According to Sanderson, overall market prices for poultry products were significantly lower in the second quarter of 2006 compared with prices a year ago. As measured by a simple average of the Georgia dock price for whole chickens, prices decreased approximately 7.3% in the Company's second fiscal quarter compared with the same period in 2005.

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