SAN FRANCISCO – Sanderson Farms Inc. said Thursday that it has indefinitely delayed construction on a new chicken processing facility. The company blamed rising feed costs for the decision to postpone the construction.

"In light of escalating prices for corn and soybean meal, our primary feed ingredients, it has become increasingly difficult to predict our future input costs," CEO Joe Sanderson said.

The company had originally planned to break ground on the $126.5 million plant this summer. When running at full capacity, the plant was expected to boost the company's current supply of chickens to the retail market by 1.25 million birds per week, or 6.7 million pounds. The site would have also included a feed mill and hatchery.

The company said it still plans to build the plant, but is delaying it indefinitely.

Source: MarketWatch