Sanderson Farms Inc. (SAFM), the third- largest U.S. chicken processor, said the removal of food-safety inspectors because of federal budget cuts set to go into effect would disrupt its operations.
The company is prohibited by law from operating poultry- processing plants without the presence of federal inspectors and would have to shut plants in their absence, Laurel, Mississippi- based Sanderson said in a filing today.
The closing of plants owned by Sanderson, a supplier to grocery chains Kroger Co. and Supervalu Inc., would be one of the effects of the automatic U.S. federal budget cuts set to begin March 1 unless President Barack Obama and Congress work out a deal to avoid or postpone them.
“Without proper notice, that would be a terrible situation for us,” Joe Sanderson Jr., the company’s chairman and chief executive officer, said on a call with analysts to discuss fiscal first-quarter earnings (SAFM).
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