Goldman Sachs Global Staples Forum

Goldman Sachs

Global Staples Forum

May 18, 2021

This presentation contains forward-looking statements

about the business, financial condition and prospects of the

Company. The actual performance of the Company could differ

materially from that indicated by the forward-looking statements

because of various risks and uncertainties. These risks and

uncertainties are described in our most recent Annual Report on

Form 10-K.

For more information contact:

Mike Cockrell

Treasurer, CFO and CLO

Sanderson Farms, Inc.

[email protected]

Office - 601-426-1454

Forward Looking Statement Warning

1

The Company

2

• Organized in 1947

• Incorporated in 1955

• Vertically integrated in 1961

• Initial public offering in 1987

• 3rd largest poultry processor in the U.S.

• Current processing capacity of 13.65 MM head per week

We Are a Leading Chicken Producer

3

Top 10 Poultry Companies for 2020

Source: WATT PoultryUSA Survey, March 2021

4

Tyson20.4%

Pilgrim's16.4%

Sanderson9.6%Perdue

6.3%

Koch6.2%

All Other41.1%

Million Million Lbs Average Million Lbs % R-T-C

Company Head Live Weight Live Weight R-T-C Market Share

Tyson Foods 37.90 230.30 6.08 200.70 20.4%

Pilgrim's 30.50 179.82 5.90 161.66 16.4%

Sanderson Farms, Inc. 12.63 102.50 8.12 94.31 9.6%

Mountaire Farms, Inc. 7.84 68.65 8.76 62.13 6.3%

Perdue Foods 12.39 76.52 6.18 61.26 6.2%

Koch Foods, Inc. 13.10 72.31 5.52 60.74 6.2%

Wayne Farms, LLC 7.90 54.60 6.91 48.80 5.0%

Peco Foods 5.12 45.30 8.85 36.04 3.7%

George's, Inc. 6.73 35.23 5.23 30.60 3.1%

House of Raeford Farms, Inc. 3.70 34.90 9.43 28.90 2.9%

Total Top 10 137.81 900.13 6.53 785.14 79.7%

All Others 39.78 241.17 6.06 199.60 20.3%

Total 177.59 1,141.30 6.43 984.74 100.0%

5

Balanced Asset Base

Waco, TX

Bryan, TX

Hammond, LA

Moultrie, GA

McComb, MS

Hazlehurst, MS

Jackson, MS

Collins, MS

Laurel, MS

Kinston, NC

Big Bird Deboning Plants Retail Tray Pack Plants

Palestine, TX

St. Pauls, NC

Tyler, TX

Prepared Chicken Plant

Poultry Plants

Full Capacity Live Pounds Processed Pounds

Per Week (1) Per Week (2) Per Week (3)

Laurel, MS 1965 650,000 6,012,500 5,561,500

Hammond, LA 1974 650,000 6,012,500 5,561,500

Collins, MS 1981 1,300,000 12,025,000 11,123,250

Waco, TX 2007 1,300,000 12,025,000 11,123,250

Palestine, TX 2015 1,300,000 12,025,000 11,123,250

St. Pauls, NC 2017 1,300,000 12,025,000 11,123,250

Total 6,500,000 60,125,000 55,616,000

Retail

Hazlehurst, MS 1961 650,000 4,387,500 3,861,000

McComb, MS 1993 1,300,000 8,775,000 7,722,000

Bryan, TX 1997 1,300,000 8,775,000 7,722,000

Moultrie, GA 2005 1,300,000 8,775,000 7,722,000

Kinston, NC 2011 1,300,000 8,775,000 7,722,000

Tyler, TX 2019 1,300,000 8,775,000 7,722,000

Total 7,150,000 48,262,500 42,471,000

Expected Capacity 13,650,000 108,387,500 98,087,000

Prepared Chicken Plant

Jackson, MS 1986

Notes: (1) Capacity measured in head/week.

(2) Based on target live weights.

(3) Based on historical yields.

Big Bird Deboning

722

795 98

6

1,07

7

1,16

7

1,30

8

1,43

7

1,53

0

1,58

0

1,80

2

2,02

5 2,44

1

2,42

6

2,56

7

2,80

5

2,95

9

3,04

1

3,05

8 3,44

1

3,76

5 4,29

1

4,50

3

4,61

4

4,84

2

4,82

4

10%

24%9%

8%12%

10%6% 3%

14%

12%

21% -1%6%

9%5%

3% 1%

13%

9%

14%

5%2%

5% 0%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*

Pounds Processed (millions)

Strong Track Record of Organic Growth

* Estimated.

6

Key Strengths

7

• As one of the industry’s most efficient producers, well positioned to

capture share

Low Cost

Producer

Favorable

Product Mix

• All production is focused on what have historically been the two most

profitable market segments in our industry

Attractive

Growth Profile

• Track record of generating strong internal growth

• History of delivering above industry average returns

Strong

Balance Sheet

• Managed and maintained appropriate capital structure

• Strong balance sheet enables growth even during industry downturns

Strong Portfolio of Customers – Prepared Foods

8

Strong Portfolio of Customers – Big Bird / Foodservice

9

Strong Portfolio of Customers – Tray Pack / Retail

10

Fiscal 2019 Fiscal 2020

Export Destinations, Volume

11

Central Asia18%

East/Southeast Asia 6%

Mexico53%

Other22%

Mexico53%

Other22%

Central Asia8%

East/Southeast Asia17%

1,000

1,500

2,000

2,500

3,000

3,500

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

U.S. BROILER EXPORTSVolume in Metric Tons, excluding paws (1,000s)

U.S. Broiler Exports

Source: USDA

12

Jan-Mar Jan-Mar %

Destination 2018 2019 2020 2020 2021 Change

Mexico 651,101 683,036 699,729 185,326 179,978 -2.9%

China 55 1,145 310,629 21,754 51,417 136.4%

Taiwan 199,103 206,074 240,630 66,907 43,994 -34.2%

Cuba 195,235 219,496 169,989 38,200 78,908 106.6%

Canada 141,255 130,272 149,837 34,341 34,746 1.2%

Vietnam 101,230 150,620 147,781 60,078 30,551 -49.1%

Guatemala 123,596 128,999 117,724 30,955 33,854 9.4%

Angola 209,131 165,999 115,827 10,695 41,846 291.3%

Georgia 53,123 116,156 94,425 37,534 9,771 -74.0%

Colombia 71,807 95,663 82,249 22,784 21,012 -7.8%

World Total 3,206,546 3,222,094 3,343,366 842,717 840,972 -0.2%

TOP U.S. BROILER EXPORT DESTINATIONSVolume in Metric Tons, excluding paws

13

Impact on

2020 2021 Change % Change US Cons Source

Head Processed 2,347,860 2,252,646 (95,214) -4.1% USDA Poultry Slaughter

Bird Weight 6.35 6.40 0.05 0.7% USDA Poultry Slaughter

Total Live Pounds 14,919,801 14,416,586 (503,215) -3.4% USDA Poultry Slaughter

Beg Stocks 972,189 858,792 (113,397) -11.7% -1.2% USDA Cold Storage

Ready to Cook Pounds 11,237,671 10,884,697 (352,974) -3.1% -3.8% USDA Poultry Slaughter

Exports 1,991,110 2,012,509 21,399 1.1% -0.2% USDA Chicken Exports

End Stocks 914,043 734,651 (179,392) -19.6% 1.9% USDA Cold Storage

Domestic Consumption 9,304,707 8,996,329 (308,378) -3.3% -3.3%

2020 2021 (Est) 2022 (Proj) 20 vs 21 21 vs 22 Source

Beg Stocks Less Paws 937,000 830,000 760,000 -11.4% -8.4% USDA WASDE - May 2021

Ready to Cook Pounds 44,106,000 44,286,000 44,815,000 0.4% 1.2% USDA WASDE - May 2021

Imports 145,000 131,000 133,000 -9.7% 1.5% USDA WASDE - May 2021

Exports, No Paws 7,371,000 7,354,000 7,450,000 -0.2% 1.3% USDA WASDE - May 2021

End Stocks Less Paws 830,000 760,000 795,000 -8.4% 4.6% USDA WASDE - May 2021

Domestic Consumption 36,987,000 37,133,000 37,463,000 0.4% 0.9% USDA WASDE - May 2021

Per Capita 96.2 96.2 96.7 0.0% 0.5% USDA WASDE - May 2021

in thousands

Domestic US Chicken ConsumptionJanuary - March

in thousands

Domestic US Chicken ConsumptionJanuary - December

% Change

14

2020 2021 (Est) 2022 (Proj) 20 vs 21 21 vs 22 Source

Beginning Stocks 642,000 716,000 665,000 11.5% -7.1% USDA WASDE - May 2021

Production 27,244,000 27,970,000 27,405,000 2.7% -2.0% USDA WASDE - May 2021

Imports 3,343,000 2,961,000 2,950,000 -11.4% -0.4% USDA WASDE - May 2021

Exports 2,956,000 3,227,000 3,225,000 9.2% -0.1% USDA WASDE - May 2021

Ending Stocks 716,000 665,000 670,000 -7.1% 0.8% USDA WASDE - May 2021

Domestic Consumption 27,557,000 27,755,000 27,125,000 0.7% -2.3% USDA WASDE - May 2021

Per Capita 58.4 58.6 57.1 0.3% -2.6% USDA WASDE - May 2021

2020 2021 (Est) 2022 (Proj) 20 vs 21 21 vs 22 Source

Beginning Stocks 646,000 467,000 415,000 -27.7% -11.1% USDA WASDE - May 2021

Production 28,318,000 28,236,000 28,560,000 -0.3% 1.1% USDA WASDE - May 2021

Imports 904,000 967,000 990,000 7.0% 2.4% USDA WASDE - May 2021

Exports 7,282,000 7,427,000 7,425,000 2.0% 0.0% USDA WASDE - May 2021

Ending Stocks 467,000 415,000 445,000 -11.1% 7.2% USDA WASDE - May 2021

Domestic Consumption 22,119,000 21,828,000 22,095,000 -1.3% 1.2% USDA WASDE - May 2021

Per Capita 52.0 51.1 51.5 -1.7% 0.8% USDA WASDE - May 2021

in thousands % Change

Domestic US Beef ConsumptionJanuary - December

Domestic US Pork ConsumptionJanuary - December

in thousands % Change

Market Overview

15

Cold Storage• Cold storage inventories are below average, particularly leg quarters and

wings

Demand

• Retail grocery demand remains strong; surged following stay at home orders, and

has continued

• Food service demand improving as the economy slowly reopens; boneless breast

prices have moved higher in response to strong QSR demand; demand will

continue to be impacted by COVID 19 mitigation efforts, but optimism regarding

vaccines; wings and tenders in high demand at foodservice

Competing

Meats

• Pork and beef production was challenged due to COVID 19 issues; retail

• prices higher, especially for pork; More pork and beef expected during 2021

Exports

• Currency values have improved demand

• Higher oil prices have improved liquidity

and demand

• Geopolitical and trade environment a

question

• African swine fever reemerging in 2021?;

China volume higher during 2020; paw

demand remains strong

• COVID-19 uncertainty

Current Market Overview

16

Supply

• Eggs set down 0.2% in 2020 (up 1.9% in

2021)

• Chicks placed down 0.7% in 2020 (up

0.2% in 2021)

• Hatch rate lower

• Livability lower

• USDA estimates less than 1% more

production in calendar 2021

Supply Data

Source: USDA

17

175

180

185

190

195

200

205

210

215

220

225

230

Jan

09

Jan

30

Feb

20

Mar

13

Apr 0

3

Apr 2

4

May

15

Jun

05

Jun

26

Jul 1

7

Aug

07

Aug

28

Sep

18

Oct

09

Oct

30

Nov

20

Dec

11

Jan

01

Broi

ler-

Type

Egg

s Se

t (m

illio

ns)

10-Yr High-Low Range 10-Yr Median 2019 2020 2021

48,000

50,000

52,000

54,000

56,000

58,000

60,000

62,000

64,000

66,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Broi

ler-T

ype

Hatc

hing

Egg

Laye

rs (t

hous

ands

)

10-Yr High-Low Range 10-Yr Median 2019 2020 2021

6,000

6,500

7,000

7,500

8,000

8,500

9,000

9,500

10,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Broi

ler-T

ype

Pulle

t Chi

cks H

atch

ed (t

hous

ands

)

10-Yr High-Low Range 10-Yr Median 2019 2020 2021

59,000

61,000

63,000

65,000

67,000

69,000

71,000

73,000

75,000

77,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Broi

ler-

Type

Cum

ulat

ive

Pote

ntia

l Pla

cem

ents

(tho

usan

ds)

10-Yr High-Low Range 10-Yr Median 2019 2020 2021

Pullet Placements Potential Breeder Placements

Layers Broiler Eggs Set

Supply Data

Source: USDA & third-party benchmarking service

18

Layers Rate of Lay

Hatchability Broiler Livability

50,000

52,000

54,000

56,000

58,000

60,000

62,000

64,000

66,000

May

-19

Jun-

19

Jul-1

9

Aug-

19

Sep-

19

Oct-1

9

Nov-

19

Dec-

19

Jan-

20

Feb-

20

Mar

-20

Apr-2

0

May

-20

Jun-

20

Jul-2

0

Aug-

20

Sep-

20

Oct-2

0

Nov-

20

Dec-

20

Jan-

21

Feb-

21

Mar

-21

Apr-2

1

Broi

ler-T

ype

Hatc

hing

Egg

Laye

rs (t

hous

ands

)

58.0

58.5

59.0

59.5

60.0

60.5

61.0

61.5

62.0

62.5

63.0

63.5

64.0

64.5

65.0

65.5

66.0

Apr-

19

May

-19

Jun-

19

Jul-1

9

Aug-

19

Sep-

19

Oct

-19

Nov

-19

Dec-

19

Jan-

20

Feb-

20

Mar

-20

Apr-

20

May

-20

Jun-

20

Jul-2

0

Aug-

20

Sep-

20

Oct

-20

Nov

-20

Dec-

20

Jan-

21

Feb-

21

Mar

-21

Rate

of L

ay

77.5

78.0

78.5

79.0

79.5

80.0

80.5

81.0

81.5

82.0

82.5

83.0

83.5

Apr-

19

May

-19

Jun-

19

Jul-1

9

Aug-

19

Sep-

19

Oct

-19

Nov

-19

Dec-

19

Jan-

20

Feb-

20

Mar

-20

Apr-

20

May

-20

Jun-

20

Jul-2

0

Aug-

20

Sep-

20

Oct

-20

Nov

-20

Dec-

20

Jan-

21

Feb-

21

Mar

-21

Hatc

h Pe

rcen

t

92.75

93.00

93.25

93.50

93.75

94.00

94.25

94.50

94.75

95.00

95.25

95.50

95.75

96.00

Apr-

19

May

-19

Jun-

19

Jul-1

9

Aug-

19

Sep-

19

Oct

-19

Nov

-19

Dec-

19

Jan-

20

Feb-

20

Mar

-20

Apr-

20

May

-20

Jun-

20

Jul-2

0

Aug-

20

Sep-

20

Oct

-20

Nov

-20

Dec-

20

Jan-

21

Feb-

21

Mar

-21

Liva

bilit

y Pe

rcen

t

Intended Placements: Broiler-Type Pullet Chicks for Hatchery

Source: USDA

19

2019 2020 2021

Month as % of as % of as % of

2018 2019 2020

2018 2019 2020 2021 2018 2019 2020 2021

1,000 1,000 1,000 1,000 Percent Percent Percent 1,000 1,000 1,000 1,000

Jan 7,133 7,478 7,482 8,095 104.8 100.1 108.2 68,872 70,216 72,170 72,886

Feb 7,579 7,882 8,135 8,245 104.0 103.2 101.4 69,047 70,100 73,411 73,590

Mar 8,088 8,222 8,547 8,232 101.7 104.0 96.3 69,492 70,500 73,604 73,660

Apr 7,688 7,339 8,161 95.5 111.2 70,197 71,182 73,624 74,741

May 8,282 8,767 8,188 105.9 93.4 70,623 71,318 73,677 75,331

Jun 8,319 8,717 8,074 104.8 92.6 70,734 71,640 73,936 74,992

Jul 7,473 8,510 8,235 113.9 96.8 70,067 72,147 74,341 74,246

Aug 8,343 8,094 8,211 97.0 101.4 70,155 72,314 74,484 74,180

Sep 8,277 8,615 9,708 104.1 112.7 69,575 71,895 73,852 74,587

Oct 7,269 7,531 8,072 103.6 107.2 69,406 71,440 73,682

Nov 7,901 8,141 7,796 103.0 95.8 70,010 71,306 73,333

Dec 8,595 8,627 7,801 100.4 90.4 70,137 71,730 73,427

Annual

Total 94,947 97,923 98,410 103.1 100.5

Jan-Mar 22,800 23,582 24,164 24,572 103.4 102.5 101.7

Cumulative Potential Placements

Relative to Current Supply Flocks

7-15 Months Earlier

Pullet Chicks Hatched

Layers in Inventory on First Day of Month

Source: USDA

20

2018 2019 2020 2021

Month as % of as % of as % of as % of

2017 2018 2019 2020

2018 2019 2020 2021

1,000 1,000 1,000 1,000 Percent Percent Percent Percent

Jan 57,268 58,303 60,051 62,270 103.7 101.8 103.0 103.7

Feb 58,263 59,392 61,084 63,395 104.6 101.9 102.8 103.8

Mar 58,208 59,536 60,848 63,723 103.7 102.3 102.2 104.7

Apr 59,305 59,495 61,719 63,645 104.5 100.3 103.7 103.1

May 59,615 59,625 61,515 104.5 100.0 103.2 -

Jun 59,717 60,084 60,879 104.0 100.6 101.3 -

Jul 59,052 59,418 61,156 103.0 100.6 102.9 -

Aug 58,219 59,194 60,956 101.8 101.7 103.0 -

Sep 57,485 58,488 60,860 100.9 101.7 104.1 -

Oct 57,422 58,508 60,630 99.6 101.9 103.6 -

Nov 57,670 59,038 60,560 100.9 102.4 102.6 -

Dec 57,753 59,065 61,350 101.2 102.3 103.9 -

Average 58,331 59,179 60,967 63,258 102.7 101.5 103.0 103.8

Broiler-Type Hatching Layers

Broiler-Type* Eggs Set, US Total (in thousands)

Source: USDA

* Broiler-Type: Chicks or chickens of meat-type strains for meat or other uses, such as breeding or research.

21

Week Ending 2016 2017 2018 2019 2020 2021 Week Ending 2016 2017 2018 2019 2020

Jan 09 215,425 218,873 225,565 227,379 236,562 234,305 Jul 10 218,461 226,145 231,250 233,305 230,820

Jan 16 216,218 218,239 225,064 228,572 239,368 235,729 Jul 17 218,140 226,235 228,541 232,237 232,196

Jan 23 216,805 219,451 223,299 228,566 237,441 234,135 Jul 24 217,045 227,110 229,789 233,292 227,794

Jan 30 216,748 220,562 224,770 229,125 240,683 233,342 Jul 31 215,136 226,684 229,081 233,865 228,413

Feb 06 215,559 219,949 227,393 230,249 238,818 236,803 Aug 07 216,450 228,007 229,673 234,029 231,314

Feb 13 216,728 220,997 226,088 228,834 239,643 237,616 Aug 14 217,802 224,807 227,319 232,161 230,657

Feb 20 215,826 222,318 227,836 230,508 237,916 230,916 Aug 21 215,641 226,122 226,409 233,173 231,331

Feb 27 217,125 222,763 228,313 232,922 239,429 241,283 Aug 28 217,245 225,190 225,164 231,069 231,624

Mar 06 217,683 223,523 228,392 231,514 241,262 240,015 Sep 04 213,701 220,421 220,795 231,329 231,527

Mar 13 218,643 222,805 228,382 232,239 238,863 238,832 Sep 11 208,700 215,715 216,813 226,122 224,402

Mar 20 218,010 223,412 228,354 233,198 238,590 238,949 Sep 18 206,580 215,674 212,497 222,160 225,389

Mar 27 215,942 220,996 226,918 231,087 233,332 239,044 Sep 25 213,981 220,677 220,799 227,075 220,448

Apr 03 216,253 223,028 228,250 232,734 230,051 239,577 Oct 02 207,899 213,777 214,197 226,526 226,011

Apr 10 217,103 222,922 228,674 231,419 221,732 236,654 Oct 09 210,916 215,287 216,609 219,586 216,003

Apr 17 215,712 221,588 230,010 234,112 217,377 238,244 Oct 16 209,227 216,079 216,474 219,874 223,592

Apr 24 217,521 223,196 230,671 235,159 223,446 238,754 Oct 23 209,688 216,058 215,040 224,946 219,977

May 01 216,702 221,695 230,694 234,647 215,820 238,721 Oct 30 211,173 219,762 217,655 227,946 223,987

May 08 217,752 223,558 231,118 233,386 223,846 239,808 Nov 06 212,535 215,787 214,874 225,039 219,988

May 15 217,618 223,438 229,998 233,274 228,799 Nov 13 217,215 222,371 221,678 227,833 224,164

May 22 220,164 225,163 232,203 235,266 229,381 Nov 20 219,803 227,783 228,058 236,755 234,678

May 29 219,768 225,375 231,081 234,718 235,020 Nov 27 220,033 226,498 228,298 237,331 236,347

Jun 05 219,305 224,566 233,560 235,855 235,533 Dec 04 219,773 231,957 235,953 237,789 238,598

Jun 12 220,346 227,278 231,367 235,102 235,775 Dec 11 219,578 221,351 218,594 234,754 227,542

Jun 19 217,595 223,929 230,161 231,262 236,096 Dec 18 220,161 228,725 225,070 237,328 235,738

Jun 26 218,375 224,653 230,691 233,369 234,683 Dec 25 219,309 227,645 228,998 239,207 238,840

Jul 03 215,665 223,738 228,658 229,724 232,909 Jan 01 220,439 225,393 228,714 238,698 236,749

Wk 53 236,793

Average 237,374 216,293 222,678 226,074 231,493 231,081

Last 6 wks

2021 vs 2020

107.5%

Broiler-Type* Chicks Placed, US Total (in thousands)

Source: USDA

* Broiler-Type: Chicks or chickens of meat-type strains for meat.

22

Week Ending 2016 2017 2018 2019 2020 2021 Week End 2016 2017 2018 2019 2020

Jan 09 177,538 178,711 184,170 181,388 189,673 189,222 Jul 10 178,843 182,321 186,578 188,078 191,188

Jan 16 176,898 178,132 183,100 183,810 190,561 188,117 Jul 17 179,488 182,515 187,201 188,840 189,568

Jan 23 174,318 179,406 181,623 184,426 190,935 187,754 Jul 24 176,788 182,340 185,851 185,557 188,097

Jan 30 177,107 178,308 180,641 182,934 188,943 185,900 Jul 31 180,278 183,923 187,190 188,917 185,482

Feb 06 176,049 177,529 179,713 184,078 191,466 186,623 Aug 07 179,190 183,630 184,647 187,882 186,897

Feb 13 177,029 178,329 178,172 183,473 190,046 185,677 Aug 14 178,325 184,458 185,944 188,569 183,149

Feb 20 176,890 179,278 179,756 183,689 191,781 182,810 Aug 21 177,216 184,208 184,857 189,446 183,927

Feb 27 176,243 178,895 181,341 184,343 190,332 186,730 Aug 28 178,297 184,739 186,753 189,697 185,837

Mar 06 176,985 179,258 181,142 183,864 190,908 187,365 Sep 04 178,939 182,537 184,539 188,085 186,275

Mar 13 176,748 180,659 183,138 184,428 189,935 182,126 Sep 11 177,263 182,261 183,327 188,824 186,699

Mar 20 177,563 181,053 182,863 186,252 191,214 187,496 Sep 18 178,925 182,206 181,387 186,464 186,933

Mar 27 178,254 182,459 183,423 184,227 191,772 187,285 Sep 25 174,175 178,280 178,241 187,150 186,298

Apr 03 179,148 181,321 183,331 186,294 190,586 187,077 Oct 02 171,099 174,477 174,645 183,309 180,736

Apr 10 179,346 181,497 184,021 187,720 187,257 187,810 Oct 09 168,871 173,969 170,633 179,376 181,185

Apr 17 177,248 180,068 182,236 186,459 177,508 187,559 Oct 16 175,134 178,245 177,250 182,079 177,312

Apr 24 178,157 181,442 183,105 187,144 177,637 188,364 Oct 23 169,432 172,074 172,339 182,859 181,793

May 01 178,132 181,579 183,739 186,723 171,109 186,097 Oct 30 172,230 174,490 174,188 176,960 170,958

May 08 177,553 180,494 184,747 189,363 164,168 187,177 Nov 06 171,178 175,138 173,909 177,887 179,027

May 15 178,408 181,985 185,643 190,534 176,754 Nov 13 171,395 175,948 172,433 181,074 175,068

May 22 178,648 180,485 185,488 189,915 173,563 Nov 20 172,410 178,073 175,482 183,414 180,212

May 29 179,623 182,601 185,625 188,891 181,286 Nov 27 174,356 175,569 173,088 180,144 176,275

Jun 05 178,982 181,540 185,643 189,428 184,601 Dec 04 177,178 178,520 178,344 184,061 180,479

Jun 12 180,519 183,100 187,806 190,861 185,168 Dec 11 179,537 184,243 182,615 189,058 187,891

Jun 19 181,302 183,463 187,087 190,065 189,917 Dec 18 179,424 182,778 183,565 189,371 188,549

Jun 26 180,036 183,104 189,258 190,708 189,591 Dec 25 179,230 186,308 189,542 190,059 190,986

Jul 03 181,138 184,560 187,870 190,092 190,683 Jan 01 179,215 178,912 176,894 189,188 183,051

Wk 53 188,571

Average 186,733 177,082 180,412 182,041 186,105 184,714

Last 6 wks

2021 vs 2020

105.2%

Young Chickens Slaughtered

Source: USDA

23

2019 2020 2021 2019 2020 2021

Month as % of as % of as % of as % of as % of as % of

2018 2019 2020 2018 2019 2020

2018 2019 2020 2021

1,000 1,000 1,000 1,000 % % % 1,000 Avg Wt 1,000 Avg Wt 1,000 Avg Wt 1,000 Avg Wt % % %

Jan 772,266 788,098 820,185 745,333 102.1 104.1 90.9 4,832,536 6.26 4,929,047 6.25 5,254,130 6.41 4,790,027 6.43 102.0 106.6 91.2

Feb 693,788 697,844 716,853 676,811 100.6 102.7 94.4 4,322,698 6.23 4,331,433 6.21 4,539,919 6.33 4,322,876 6.39 100.2 104.8 95.2

Mar 742,817 730,928 810,822 830,502 98.4 110.9 102.4 4,633,484 6.24 4,529,234 6.20 5,125,752 6.32 5,303,683 6.39 97.8 113.2 103.5

Apr 731,074 758,442 752,639 103.7 99.2 4,586,809 6.27 4,769,674 6.29 4,785,456 6.36 104.0 100.3

May 794,062 803,160 732,106 101.1 91.2 4,964,043 6.25 5,080,062 6.33 4,725,202 6.45 102.3 93.0

Jun 744,790 740,052 773,413 99.4 104.5 4,632,253 6.22 4,677,554 6.32 5,011,992 6.48 101.0 107.1

Jul 775,038 814,443 786,204 105.1 96.5 4,813,719 6.21 5,147,407 6.32 4,973,291 6.33 106.9 96.6

Aug 822,867 805,342 771,711 97.9 95.8 5,168,459 6.28 5,107,162 6.34 4,955,096 6.42 98.8 97.0

Sep 719,006 766,832 790,691 106.7 103.1 4,532,355 6.30 4,888,978 6.38 5,140,953 6.50 107.9 105.2

Oct 819,956 849,010 787,752 103.5 92.8 5,184,403 6.32 5,439,282 6.41 5,102,660 6.48 104.9 93.8

Nov 729,068 712,323 719,240 97.7 101.0 4,583,164 6.29 4,544,504 6.38 4,605,473 6.40 99.2 101.3

Dec 689,771 757,769 768,071 109.9 101.4 4,287,589 6.22 4,842,657 6.39 4,926,673 6.41 112.9 101.7

Annual 9,034,503 9,224,243 9,229,687 102.1 100.1 56,541,512 6.26 58,286,994 6.32 59,146,597 6.41 103.1 101.5

Jan-Mar 2,208,871 2,216,870 2,347,860 2,252,646 100.4 105.9 95.9 13,788,718 6.24 13,789,714 6.22 14,919,801 6.35 14,416,586 6.40 100.0 108.2 96.6

Head

2019 2021

Live Pounds

20202018

U.S. Broiler Live Weights

Source: USDA

24

6.15

6.20

6.25

6.30

6.35

6.40

6.45

6.50

6.55

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2019 2020 2021

600,000

650,000

700,000

750,000

800,000

850,000

900,000

950,000

1,000,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Po

un

ds

(th

ou

san

ds)

2021 2020 2019 2018 2017

Total Chicken

U.S. Cold Storage Stocks

Source: USDA

25

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

26,000

28,000

30,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Po

un

ds

(th

ou

san

ds)

2021 2020 2019 2018 2017

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

130,000

140,000

150,000

160,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Po

un

ds

(th

ou

san

ds)

2021 2020 2019 2018 2017

150,000

160,000

170,000

180,000

190,000

200,000

210,000

220,000

230,000

240,000

250,000

260,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Po

un

ds

(th

ou

san

ds)

2021 2020 2019 2018 2017

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Po

un

ds

(th

ou

san

ds)

2021 2020 2019 2018 2017

Breasts & Breast Meat Wings

Leg Quarters Whole Chickens

U.S. Cold Storage Stocks

Source: USDA

26

Total Foodservice

Foodservice Average Weekly Sales Volume

Company foodservice sales versus baseline of February 2020 average

27

Jumbo Boneless Breast Jumbo Wings

30%

40%

50%

60%

70%

80%

90%

100%

110%

120%

Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 5/8/2021

Perc

ent o

f Pou

nds

Sold

30%

40%

50%

60%

70%

80%

90%

100%

110%

120%

Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 5/8/2021

Perc

ent o

f Pou

nds

Sold

30%

40%

50%

60%

70%

80%

90%

100%

110%

120%

Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 5/8/2021

Perc

ent o

f Pou

nds

Sold

0.5000

1.0000

1.5000

2.0000

2.5000

3.0000

3.5000

4-Ja

n

25-J

an

15-F

eb

8-M

ar

29-M

ar

19-A

pr

10-M

ay

31-M

ay

21-J

un

12-J

ul

2-A

ug

23-A

ug

13-S

ep

4-O

ct

25-O

ct

15-N

ov

6-D

ec

27-D

ec

10-Yr High-Low Range 10-Yr Median 2019 2020 2021

0.7000

0.9000

1.1000

1.3000

1.5000

1.7000

1.9000

2.1000

2.3000

4-Ja

n

25-J

an

15-F

eb

8-M

ar

29-M

ar

19-A

pr

10-M

ay

31-M

ay

21-J

un

12-J

ul

2-A

ug

23-A

ug

13-S

ep

4-O

ct

25-O

ct

15-N

ov

6-D

ec

27-D

ec

10-Yr High-Low Range 10-Yr Median 2019 2020 2021

Jumbo Wings(5.0 million pounds/week assuming 8.25% yield*)

Urner Barry Market Quotes

Source: comtell.com* Estimated pounds for BBDB plants based on target live weights and historical yields.

28

0.7000

0.9000

1.1000

1.3000

1.5000

1.7000

1.9000

2.1000

2.3000

2.5000

2.7000

4-Ja

n

25-J

an

15-F

eb

8-M

ar

29-M

ar

19-A

pr

10-M

ay

31-M

ay

21-J

un

12-J

ul

2-A

ug

23-A

ug

13-S

ep

4-O

ct

25-O

ct

15-N

ov

6-D

ec

27-D

ec

10-Yr High-Low Range 10-Yr Median 2019 2020 2021

Jumbo Boneless Breast(15.5 million pounds/week assuming 25.70% yield)

Breast Tenders(2.6 million pounds/week assuming 4.30% yield*)

Urner Barry Market Quotes

Source: comtell.com* Estimated pounds for BBDB plants based on target live weights and historical yields.

29

0.1000

0.1500

0.2000

0.2500

0.3000

0.3500

0.4000

0.4500

0.5000

0.5500

4-Ja

n

25-J

an

15-F

eb

8-M

ar

29-M

ar

19-A

pr

10-M

ay

31-M

ay

21-J

un

12-J

ul

2-A

ug

23-A

ug

13-S

ep

4-O

ct

25-O

ct

15-N

ov

6-D

ec

27-D

ec

10-Yr High-Low Range 10-Yr Median 2019 2020 2021

Leg Quarters

Leg Quarters(20.0 million pounds/week assuming 33.25% yield*)

0.5000

0.6000

0.7000

0.8000

0.9000

1.0000

1.1000

1.2000

1.3000

1.4000

1.5000

1.6000

1.7000

1.8000

4-Ja

n

25-J

an

15-F

eb

8-M

ar

29-M

ar

19-A

pr

10-M

ay

31-M

ay

21-J

un

12-J

ul

2-A

ug

23-A

ug

13-S

ep

4-O

ct

25-O

ct

15-N

ov

6-D

ec

27-D

ec

10-Yr High-Low Range 10-Yr Median 2019 2020 2021

Boneless Thigh Meat

Feature Activity – Boneless Skinless Breast Value Pack

Source: USDA

30

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Nu

mb

er o

f Sto

res

(4 w

eek

rolli

ng

aver

age)

2018 2019 2020 2021

Chicken Market History

Source: comtell.com

31

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 05/17/21

Boneless Breast 1.4123 1.6126 1.6906 1.3668 1.2351 1.3092 1.0746 1.0608 1.0138 1.5399 2.2500

Tender 1.6042 1.6595 1.9260 1.5386 1.7230 1.6512 1.4741 1.5585 1.3759 1.8778 2.4300

Small Wing 1.8179 1.4638 1.3808 1.7180 1.3763 1.7322 1.2986 1.5228 1.8406 2.6635 3.1700

Jumbo Wing 1.6498 1.3885 1.2802 1.5106 1.6292 1.9033 1.4061 1.7370 1.6938 2.6119 3.1600

Leg Quarter 0.4980 0.4851 0.4531 0.2716 0.3015 0.3569 0.3178 0.3435 0.2518 0.3374 0.3900

Boneless Thigh 1.3154 1.4001 1.2958 0.9421 1.0164 1.2063 1.1463 1.1777 0.8650 1.0188 1.6900

Thighs 0.6990 0.6842 0.6430 0.4470 0.3837 0.4981 0.4069 0.4675 0.3389 0.3576 0.5200

Drumsticks 0.5758 0.5502 0.4953 0.2947 0.3321 0.3785 0.3513 0.3181 0.3630 0.3827 0.4200

U.S. Retail Meat Prices and Per Capita Consumption

Source: USDA

32

25.0

30.0

35.0

40.0

45.0

50.0

55.0

60.0

65.0

70.0

75.0

80.0

85.0

90.0

95.0

100.0

105.0

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Est

2022

Est

Po

un

ds

US Per Capita Consumption

Beef Pork Broilers

-

50

100

150

200

250

300

350

400

450

500

550

600

650

700

750

800

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Ce

nts

/po

un

d

Retail Meat Prices

Choice Beef Pork Composite Broiler

Live Cattle

Market Prices

33

Lean Hogs

Corn

Market Prices

34

Soybean Meal

U.S. Supply & Use

Source: USDA

35

2019/20 2020/21 Est. 2021/22 Proj. 2021/22 Proj.Apr May

Million Acres

Area Planted 89.7 90.8 NA 91.1

Area Harvested 81.3 82.5 NA 83.5

Bushels

Yield per Harvested Acre 167.5 172.0 NA 179.5

Million Bushels

Beginning Stocks 2,221 1,919 NA 1,257

Production 13,620 14,182 NA 14,990

Imports 42 25 NA 25

Supply, Total 15,883 16,127 NA 16,272

Feed and Residual 5,897 5,700 NA 5,700

Food, Seed & Industrial 6,287 6,395 NA 6,615

Ethanol & by-products 4,857 4,975 NA 5,200

Domestic, Total 12,185 12,095 NA 12,315

Exports 1,778 2,775 NA 2,450

Use, Total 13,963 14,870 NA 14,765

Ending Stocks 1,919 1,257 NA 1,507

STOCKS TO USE 13.7% 8.5% NA 10.2%

Avg. Farm Price ($/bu) 3.56 4.35 NA 5.70

CORN

U.S. Supply & Use

Source: USDA

36

2019/20 2020/21 Est. 2021/22 Proj. 2021/22 Proj.Apr May

Million Acres

76.1 83.1 NA 87.6

74.9 82.3 NA 86.7

Bushels

47.4 50.2 NA 50.8

Million Bushels

909 525 NA 120

3,552 4,135 NA 4,405

15 35 NA 35

4,476 4,695 NA 4,560

2,165 2,190 NA 2,225

1,682 2,280 NA 2,075

96 102 NA 104

9 4 NA 15

3,952 4,575 NA 4,420

525 120 NA 140

STOCKS TO USE 13.3% 2.6% NA 3.2%8.57 11.25 NA 13.85

Use, Total

Ending Stocks

Avg. Farm Price ($/bu)

Imports

Supply, Total

Crushings

Exports

Seed

Residual

Area Harvested

Yield per Harvested Acre

Beginning Stocks

Production

SOYBEANS

Area Planted

SAFM Feed Cost

37

Cents per Processed Pound % of Total Cost of Goods Sold

0%

10%

20%

30%

40%

50%

60%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

5

10

15

20

25

30

35

40

45

50

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Corn & Soy Sensitivity - Fiscal 2020

Quantity Purchased

Hypothetical

Price Change

Impact on

Cash

Ultimate Impact on

COGS

Corn 124.7 Million Bushels $1.00 / bushel $124.7 million $0.0258 / lb processed

Soybean Meal 1.2 Million Tons $10.00 / ton $12.0 million $0.0025 / lb processed

Financial Summary

38

39

Strong Track Record of Financial Performance

Note: (1) Estimated(2) Through first quarter

1,537 1,580

1,809

2,049

2,399 2,4632,581

2,8002,956 3,038 3,066

3,455

3,765

4,248

4,4964,610

4,857 4,830

0

1,000

2,000

3,000

4,000

5,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

(in

mil

lio

ns)

Poultry Pounds Sold

4.62

3.53

(0.57)

3.91

(2.13)

3.94

6.07

(5.74)

2.35

5.68

10.80

9.52

8.37

12.30

2.70 2.41

1.27 0.42

(7.00)

(5.00)

(3.00)

(1.00)

1.00

3.00

5.00

7.00

9.00

11.00

13.00

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

($/S

har

e)

Earnings per Share

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Margins

Gross Profit Operating Income Net Income

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

$110

$120

$130

$140

$150

$160

$170

$180

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Stock Price

(1)

(2)

(2)

40

COVID Expenses

Stock Price, Net Sales & Pounds Sold

41

42

Capital Expenditures and Depreciation & Amortization

* Estimated

18.0 20.7 29.0 26.2 26.7 22.6

34.8 32.2 47.2 48.8

59.6

78.3 72.8

89.7 96.3

116.7

145.0 128.6

26

.3

24

.8

30

.8

33

.2

41

.9

43

.2

44

.4

51

.7

60

.0

62

.2

64

.3

74

.7

84

.6

10

0.3

11

0.9

13

5.4

15

6.8

17

2.0

9.5

92.3

15.1

9.4

4.5 5.7

4.8

9.4 4.7

0.2

4.4

24.2

15.2 88.2

8.1

107.7

18.6

5.7

104.6 50.6

13.2 122.4

26.3

12.4

156.5

67.1

22.1

56.3

47.9

30.5

9.3

10.1

14.0

2.8

2.3

12.2 2.0

7.4

11.7 29.0

29.3

9.4

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

$220

$240

$260

$280

$300

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021*

(in

mill

ion

s)

Maintenance Depreciation Georgia Complex General Office Prepared Foods

Collins Expansion Waco Complex Kinston Complex Palestine Complex St. Pauls Complex

Tyler Complex Equipment Upgrades Jones County Hatchery Aircraft