Sanderson Farms, Inc. (NASDAQ: SAFM) today issued the following
statement following its reading of a complaint filed on June 22,
2017, in the United States District Court for the Northern District
of California. In the complaint, three non-profit corporations
allege, among other things, that the Company’s products contain
residues of human and animal antibiotics, other pharmaceuticals,
hormones, steroids and pesticides. They seek, among other things,
an order enjoining the Company from continuing its “100% Natural”
marketing program.
Sanderson Farms generally does not comment on pending
litigation, but the allegations in this lawsuit bear upon food
quality and safety. The Company unequivocally states it does not
administer the antibiotics, other chemicals and pesticides, or
“other pharmaceuticals” listed in the complaint to its flocks, with
one exception. To suggest otherwise is false and irresponsible.
Company veterinarians do, on rare occasions, prescribe penicillin
to treat sick poultry flocks when in their professional judgement
they consider it necessary for animal welfare. Such medicines are
given in accordance with Food and Drug Administration (FDA)
guidance, including a withdrawal period between the time the
medicine is administered and when the flock is harvested. Most all
of the other drugs and chemicals cited in the complaint are not
approved for use in chickens, and some would be lethal to
chickens.
In its 70-year history, Sanderson Farms has never been cited by
the United States Department of Agriculture (USDA) or any other
regulatory body for violation of any residue law, rule or
regulation.
Sanderson Farms will vigorously defend this lawsuit. The Company
also intends to continue its marketing and advertising campaign to
educate consumers on its position regarding the judicious use of
FDA-approved medicines to treat sick chickens and to prevent
disease in chicken flocks. Such use is consistent with Sanderson
Farms’ animal welfare obligations to the animals under its care,
its environmental sustainability efforts and the Company’s
obligations regarding food safety.
Sanderson Farms, Inc. is engaged in the production, processing,
marketing and distribution of fresh, frozen and minimally
prepared chicken. Its shares trade on the NASDAQ Global Select
Market under the symbol SAFM.
This press release includes forward-looking statements within
the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995, 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 fiscal year ended October 31, 2016, and
the following:
(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 U.S. economies, any of which may affect the value of
inventories, the collectability of accounts receivable or the
financial integrity of customers, and the ability of the end user
or consumer to afford protein.
(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 market 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 the United States.
(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 of feed grains.
(12) Failure to respond to changing consumer preferences and
negative 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 or
litigation that could arise in the future.
Readers are cautioned not to place undue reliance on
forward-looking statements made by or on behalf of
Sanderson Farms. Each such statement speaks only as of the day it
was made. The Company undertakes no obligation to update or to
revise any forward-looking statements. The factors described
above cannot be controlled by the Company. When used in this press
release or in the related conference call, the words
“believes,” “estimates,” “plans,” “expects,” “should,” “outlook,”
and “anticipates” and similar expressions as they relate to
the Company or its management are intended to
identify forward-looking statements. Examples of
forward-looking statements include statements of the Company’s
belief about future operations, legal strategies and marketing
programs.
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version on businesswire.com: http://www.businesswire.com/news/home/20170623005519/en/
Sanderson Farms, Inc.Mike Cockrell,
601-649-4030Treasurer & Chief Financial Officer
Sanderson Farms (NASDAQ:SAFM)
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