Sanderson Farms Inc was incorporated in Mississippi in 1955, and is a fully-integrated poultry processing company engaged in the production, processing, marketing and distribution of fresh and frozen chicken products. The Company is also engaged in the processing, marketing and distribution of prepared chicken through its wholly-owned subsidiary, Sanderson Farms, Inc. (Foods Division). The Company sells ice pack, chill pack, bulk pack and frozen chicken, in whole, cut-up and boneless form, mainly under the Sanderson Farms brand name to retailers, distributors, and casual dining operators principally in the southeastern, southwestern, northeastern and western United States, and to customers who resell frozen chicken into export markets. The Company conducts its chicken operations through Sanderson Farms, Inc. (Production Division) and Sanderson Farms, Inc. (Processing Division), both of which are wholly-owned subsidiaries of Sanderson Farms, Inc. The production subsidiary, Sanderson Farms, Inc. (Production Division), which has facilities in Laurel, Collins, Hazlehurst and McComb, Mississippi; Bryan, Waco, and Robertson County, Texas; Adel, Georgia and Kinston, North Carolina, is engaged in the production of chickens to the broiler stage. Sanderson Farms, Inc. (Processing Division), which has facilities in Laurel, Collins, Hazlehurst and McComb, Mississippi; Hammond, Louisiana; Bryan and Waco, Texas; Moultrie, Georgia and Kinston, North Carolina, is engaged in the processing, sale and distribution of chickens. The Company's chicken operations presently encompass 9 hatcheries, 8 feed mills and 10 processing plants, including the facilities at its new Palestine, Texas complex. The Company's prepared chicken product line includes approximately 70 institutional and consumer packaged partially cooked or marinated chicken items that it sells nationally and regionally, mainly to distributors and food service establishments. Its prepared chicken items are sold nationally and regionally, mainly to distributors and national food service accounts. Sales of such products are handled by sales personnel of the Company and by independent food brokers. Prepared chicken items are distributed from the Company's plant in Jackson, Mississippi, through arrangements with contract carriers. The Company's chicken processing plants are subject to continuous on-site inspection by the USDA. The Sanderson Farms, Inc. (Foods Division) prepared chicken plant operates under the USDAs Total Quality Control Program, which is a strict self-inspection plan written in cooperation with and monitored by the USDA.