A G R E E M E N T

                                   BETWEEN

                            SANDERSON FARMS, INC.

                        (HAMMOND PROCESSING DIVISION)

                                     AND

                      UNITED FOOD AND COMMERCIAL WORKERS

                               LOCAL UNION 210

                             affiliated with the

                      UNITED FOOD AND COMMERCIAL WORKERS

                             INTERNATIONAL UNION

                     November 1, 1998 - November 30, 2001





                               TABLE OF CONTENTS

ARTICLE                                                                   PAGE
- -------                                                                   ----

I.    AGREEMENT                                                              1

II.   RECOGNITION                                                            1

III.  MANAGEMENT PREROGATIVES                                                2

IV.   SHOP STEWARDS                                                          2

V.    GRIEVANCE PROCEDURE                                                    3

      STEP 1                                                                 3

      STEP 2                                                                 4

      STEP 3                                                                 4

VI.   ARBITRATION                                                            5

VII.  NO STRIKE - NO LOCK OUT                                                7

VIII. UNION BULLETIN BOARD                                                   7

IX.   HOURS OF WORK                                                          8

X.    SENIORITY                                                             10

XI.   LEAVES  OF  ABSENCE                                                   12

XII.  SENIORITY LIST                                                        14

XIII. MISCELLANEOUS                                                         15

XIV.  VACATIONS                                                             16

XV.   INSURANCE                                                             17

XVI.  HOLIDAYS                                                              17

XVII. WAGES                                                                 19

XVIII. NO DISCRIMINATION                                                    20

XIX.  AUTHORIZATION FOR REPRESENTATION AND CHECK-OFF                        21

XX.   UNION SECURITY                                                        21

XXI.  PROFIT  SHARING -- RETIREMENT                                         22

XXII. DURATION OF AGREEMENT                                                 22

      SIGNATURES                                                            23

      APPENDIX A                                                            24

      APPENDIX B                                                            26







288522

                                   ARTICLE I

                                   AGREEMENT

Section 1. This Agreement made and entered into this 1st day of November,  1998,
by and between Sanderson Farms, Inc. (Hammond  Processing  Division) of Hammond,
Louisiana,  hereinafter referred to as the Company or Employer,  and United Food
and  Commercial  Workers  Local Union 210,  affiliated  with the United Food and
Commercial Workers International Union, hereinafter referred to as the Union.

Section  2. The  general  purpose of this  Agreement  is to  establish  just and
equitable terms and conditions of employment and to provide methods for fair and
peaceful  adjustment  of  differences  which may arise.  It is recognized by the
Agreement to be the respective duty of the Company,  the Union and the Employees
to cooperate fully,  individually and collectively  toward the accomplishment of
said aims.

                                  ARTICLE II

                                  RECOGNITION

Section 1. The Company  recognizes the Union as the exclusive  bargaining  agent
for all production and maintenance  employees,  including truck drivers,  at the
Employer's  poultry  processing and rendering plant in Hammond,  Louisiana,  and
excluding  office  clerical   employees,   guards  and/or  watchmen,   salesmen,
professional employees, and supervisors as defined in the Act.





                                  ARTICLE III
                            MANAGEMENT PREROGATIVES

Section 1.  Nothing in this  Agreement  shall be deemed to limit the Employer in
any way in the  exercise of the  customary  functions  of  management  which are
recognized  as the  Employer's  exclusive  responsibility,  including,  but  not
limited to, the right to plan,  direct, and control  operations,  to utilize the
services of  contractors,  to  determine  the number,  size and  location of its
establishments,  to close an establishment or departments  thereof,  to hire, to
promote, to demote, and for proper cause to discipline, suspend or discharge, to
assign and schedule  work and transfer  employees  from one job or department to
another,  and to make and enforce  reasonable rules and regulations  relative to
any and all of these  matters or to the  management of its  operation,  provided
that the reasonableness of rules may be tested in the grievance  procedure.  The
Employer  shall  be  the  exclusive  judge  of  all  matters  pertaining  to its
operations and their scheduling and the methods, processes,  equipment, means of
operation and size of workforce.

Section 2. The Employer  retains all  prerogatives  and rights of management and
all privileges and responsibilities not specifically limited by this Agreement.

                                  ARTICLE IV
                                 SHOP STEWARDS

Section 1. The  Employer  recognizes  the right of the Union to  designate  shop
stewards,  not to exceed  eight (8) in number,  who shall be  assigned  to serve
specific areas of the plant to handle such Union business as may arise. The shop
stewards  shall be employees of the Company.  The Union shall notify the Company
in writing as to the names of the stewards and of any changes in  designation of
stewards.

Section 2. A  representative  of the Union shall be permitted to enter the plant
at  reasonable  times,  upon  Employer's  premises  and  plant,   provided  such
representative  shall in no way  interfere  with the  operations  of  Employer's
business and shall make arrangements with the Employer's manager.

                                   ARTICLE V
                              GRIEVANCE PROCEDURE

Section 1. Grievances  arising under this contract are herein defined as a claim
by a party to this  Agreement or an employee  covered by this Agreement that the
Company or the Union has violated a provision of this Agreement.

                                    STEP I

      The employee  shall discuss the grievance or complaint  with the immediate
supervisor  within five (5)  working  days after the event  giving rise  thereto
occurs, or within five (5) working days following the date on which the grievant
had or reasonably would have had knowledge thereof. In the event the employee so
requests,  the appropriate steward shall be present at this step. The supervisor
shall  give an answer  within  five (5)  working  days  after the  grievance  is
received.

                                    STEP 2

      If there is no settlement in Step 1, the grievance may be presented by the
employee and/or shop steward within five (5) working days from the date on which
the supervisor's  answer was given in Step 1. The grievance must be presented in
writing  to  the  department   superintendent   and  must  state  the  following
information:

      (a) name or names of employee or employees involved; (b) the department or
      departments involved; (c) the date and time of the occurrence or discovery
      of the  grievance;  (d) the  facts of the  incident  on which the claim is
      based; (e) the specific provision of this Agreement alleged to have been

violated;
      (f)   the remedy requested.
The department  superintendent shall give the Company's answer in writing within
five (5) working days after the grievance is received by the superintendent.

                                    STEP 3

      In the event the  grievance  is not settled in Step 2, then the  grievance
may  be  appealed  in  writing  to  the   division   manager  or  a   designated
representative  by the  Union to Step 3 within  five (5)  working  days from the
Company's answer in Step 2. The division manager or a designated  representative
shall give an answer in writing  within five (5)  working  days from the date of
the appeal.  In the event the grievance is not settled then the aggrieved  party
or parties shall have the right to request arbitration.

      In the event a  grievance  arises on behalf of the  Employer,  the  matter
shall be presented to the Union Business Agent in writing,  who shall have seven
(7) days from the date of  submission  within which to endeavor to reconcile the
grievance presented and shall give an answer in writing within that time. If not
settled within that time, the aggrieved party or parties shall have the right to
request arbitration.

Section 2. Discharge grievances shall be processed initially under Step 3 of the
grievance  procedure.  The written  grievance  shall be filed with the  division
manager within five (5) working days following the date of discharge.

Section 3. A failure to observe  the time limit  specified  herein for  original
presentation  of a  grievance  or  presentation  in any  subsequent  step of the
grievance  procedure  on the part of either the  grievant  or the Union shall be
conclusive evidence that the grievance has been settled and abandoned.

      Failure  on the part of the  Company  to comply  with the time  limits for
delivering its answer in any step of the grievance procedure shall automatically
advance the grievance to the next step of the grievance procedure.

      The time  limits of the  grievance  procedure  may be  extended  by mutual
consent of the Union and the Company.

                                  ARTICLE VI

                                 ARBITRATION

Section  1. If a  party  to  this  Agreement  desires  to  take a  grievance  to
arbitration,  it shall within fifteen (15) calendar days after the denial of the
grievance,  give written  notice of his  intention to the other party,  together
with a  written  statement  of the  specific  provision  or  provisions  of this
Agreement at issue.

Section 2. The parties shall attempt to select an impartial arbitrator.  If they
are  unable to agree  upon a choice  within  seven (7)  calendar  days after the
receipt of Notice of Intent to  Arbitrate,  either party may request the Federal
Mediation  and  Conciliation  Service to submit a list of five (5)  arbitrators,
from  which the  arbitrator  will be  selected.  Selection  shall be made by the
parties  alternately  striking any name from the list (the first to strike shall
be the party requesting  arbitration) until only one (1) name remains. The final
name  remaining  shall  be the  arbitrator  of the  grievance.  Section  3.  The
jurisdiction  and the  decision  of the  arbitrator  of the  grievance  shall be
confined to a determination of the acts and the interpretation or application of
the specific  provision or provisions of this Agreement at issue. The Arbitrator
shall be bound by terms and  provisions  of this  Agreement  and shall  have the
authority to consider only grievances  representing  solely an arbitration issue
under this Agreement.  The arbitrator  shall have no authority to add to, alter,
amend, or modify any provision of this Agreement. The decision of the arbitrator
in writing on any issue properly  before the  arbitrator in accordance  with the
provisions  of this  Agreement,  shall be final  and  binding  on the  aggrieved
employee or employees, the Union, and the Employer.

Section 4. Multiple  grievances  shall not be heard before one arbitrator at the
same hearing except by mutual agreement of the parties. Section 5. The Union and
the  Employer  shall each bear its own costs in these  arbitration  proceedings,
except  that  they  shall  share  equally  the fee  and  other  expenses  of the
arbitrator in connection with the grievance.

                                 ARTICLE VII
                           NO STRIKE - NO LOCK OUT

Section  1. For the  duration  of this  Agreement,  there  shall  be no  strike,
stoppages,  slowdowns,  picketing, or other interruption of or interference with
the operations of the plant.

Section 2. The Company  shall not lock out  employees  for the  duration of this
Agreement.  Section 3. Neither the violation of any provisions of the Agreement,
nor  the  commission  of any act  constituting  an  unfair  labor  practice,  or
otherwise made unlawful,  shall excuse the employees,  the Union, or the Company
from their  obligations  under the  provisions  of this  Article.  Section 4. An
employee discharged or otherwise  disciplined for violation of this Article, may
seek review of such discipline through the grievance and arbitration  procedures
provided  herein.  In this event,  the only  question  to be  reviewed  shall be
whether or not the employee participated in the prohibited conduct.

                                 ARTICLE VIII
                                UNION BULLETIN BOARD

The  Employer  will  provide a bulletin  board in the plant for posting of Union
notices.  All matters to be posted shall be submitted to the Division Manager or
a designated  representative  for approval  prior to posting,  and  management's
decision shall be final.

                                  ARTICLE IX
                                HOURS OF WORK

Section 1. The  regular  work week shall  consist of five (5) days or forty (40)
hours.  This shall not be  construed  as a  guarantee  of any amount of hours or
work.  The basic  work week  shall be the seven (7) day  period  from 12:01 a.m.
Sunday until midnight the following  Saturday.  Employees will be given at least
one (1) calendar week's notice of any change by the Company of the payroll week.

Section  2. An  employee  who works  more than  forty (40) hours in any one week
shall be paid at time and  one-half  the  regular  rate of pay for all  hours in
excess of forty (40).

Section 3. When  employees are called to work a shift  outside  their  regularly
scheduled  shift  and  report  for work,  or when  they  report to work at their
regularly  scheduled time, they shall be given the opportunity to work a minimum
of three (3) hours or receive pay for same at the applicable hourly rate, except
that no such pay shall be made when the plant cannot  operate for reasons beyond
the  control of the  Employer,  such as, but not limited  to,  strikes,  utility
failure,  fire,  flood,  storms or other acts of God interfering with work, or a
breakdown of machinery or equipment when the Company  notifies the employees not
to report to work at least four (4) hours prior to the scheduled time to work.

Section 4.  Employees will be paid at their regular rate for all waiting time of
thirty  (30)  minutes  or less,  so long as they do any job  they are  assigned.
Employees will not be paid for waiting time which exceeds thirty (30) minutes if
(1) they are  relieved of all duties,  (2) are free to leave the plant,  and (3)
are told the time  they  must  return to work.  Employees  will not be  relieved
without pay more than once in any  workday  except for a lunch break of not more
than one (1) hour.

Section 5. The Company will provide one (1) unpaid break of not less than thirty
(30) minutes for lunch during each shift,  and shall provide one (1) twelve (12)
minute paid rest period prior to lunch each day. In addition, all employees will
be allowed one (1) twelve  (12)  minute  paid rest period  after the lunch break
provided  the work time is expected to be not less than two and one-half (2 1/2)
hours.  No unpaid break shall be provided for  maintenance  employees  and truck
drivers.

      The Company shall have the right to provide a twenty-four (24) minute paid
lunch break to Clean-Up Line Operators on restricted hours in lieu of all breaks
provided in this Section.

Section 6. A Clean-Up Line Operator who has  completed the  probationary  period
and is permanently assigned to restricted hours in the clean up department shall
receive an hourly  adjustment  of ninety (90) cents for each hour worked in that
assignment.

Section  7.  Employees  who  have  completed  the  probationary  period  and are
temporarily  assigned for one or more consecutive hours to perform the duties of
an absent  employee in a higher paid  classification  shall  receive the rate of
that classification while performing the duties of the classification. Employees
who work at more than one pay rate  during a week in which  they  earn  overtime
shall receive overtime pay based upon an average of the rates earned during that
week.

                                  ARTICLE X

                                  SENIORITY

Section  1.  Seniority  is defined  as the  length of an  employee's  continuous
employment in the bargaining unit at the Company's Hammond,  Louisiana,  poultry
processing  plant since the last permanent  date of employment.  For purposes of
layoff,  recall,  promotion,  and vacation only,  this shall include  continuous
service which began prior to the acquisition of the plant by the Company.

Section  2. All  newly  hired  or  rehired  employees  shall  be  considered  as
probationary employees for a period of ninety (90) days during which period they
shall not acquire  seniority,  and during which they may be  discharged  without
recourse  to the  grievance  and  arbitration  procedures  provided  herein.  If
retained as a regular employee upon satisfactory  completion of the probationary
period, seniority shall be retroactive to the first day of employment.

Section 3. In matters of layoff,  recall,  and promotion,  consideration will be
given  to an  employee's  skill,  ability,  attendance,  versatility,  training,
physical fitness,  and seniority;  and when, in the opinion of the Company,  the
factors  other  than  seniority  are  relatively  equal,  seniority  will be the
deciding factor.

Section  4. An  employee's  seniority  shall be lost and  employment  considered
terminated by:

      (a)    discharge for just cause;
      (b)   failure to return  from layoff  within  five (5) working  days after
            written  notice  by  certified  mail is sent by the  Company  to the
            employee's last known address on the Company's books.  Actual notice
            to the employee of recall by any other means shall satisfy the terms
            of this provision;

      (c)   voluntary termination of employment;
      (d)   failure to report after  termination of a leave of absence  approved
            by the Company in writing on the first  scheduled  day following the
            expiration of such leave of absence;

      (e)  engaging  in a  gainful  occupation  while on leave of  absence;  (f)
      absence from work for three (3) consecutive working days without

            notice to the  Company,  which  shall be  considered  as a voluntary
            quit,  unless  notice was prevented by a cause beyond the control of
            the employee;

      (g)   separation  from  the  Company's  active  payroll  for  any  reason,
            exclusive of leaves of absence approved by the Company, for a period
            exceeding an employee's  length of service in the Hammond plant,  or
            three (3) months, whichever is less.

Section 5. For the purposes of this  Agreement,  layoffs  shall be classified as
(a) "short term" and (b) "long term". A short term layoff is a layoff which will
not exceed ten (10)  workdays in length.  Short term layoffs may be made without
regard to  seniority.  A long term layoff is a layoff which will exceed ten (10)
workdays in length. Long term layoffs shall be made subject to Section 3 of this
Article.

Section 6. All permanent job vacancies in premium rated classifications shall be
posted for  twenty-four  (24) hours on the plant  bulletin  board.  Employees in
lower rated  classifications  desiring  promotion  to such jobs shall sign a bid
sheet posted on the bulletin board. An employee who does not sign such bid sheet
shall have no right to consideration for the vacancy.  However, the fact that an
employee did not sign the bid sheet will not preclude that employee's  selection
for the job by the Company if none of the signers is determined to be qualified.
If no qualified  employee bids on the posted position,  the Company may fill the
position in its discretion.  If, after a reasonable  period not to exceed thirty
(30) days, the employee  selected for the posted position achieves an acceptable
level of  performance,  the employee shall receive the rate of the new position.
If the employee  fails to perform in an acceptable  manner,  such employee shall
return to a job in their  former  classification  and the  premium  job shall be
posted again. An employee who self-disqualifies  shall return to the extra board
at the line  operator's  rate of pay and shall not be eligible  for bidding on a
premium job for a period of six (6) months.

Section 7. Assignments  involving employees on the extra board shall be in order
of seniority.  Within a department,  no extra board  employee  shall be retained
over a permanently assigned employee.

                                  ARTICLE XI
                               LEAVES OF ABSENCE

Section 1. An employee who has completed the probationary period may be granted,
at the  Company's  discretion,  a leave of absence  without pay for a reasonable
period of time, not to exceed one (1) month, for the following reasons:

      (a)   emergency personal business;
      (b)   serious illness in the immediate family (spouse,
            children or parents), supported by a doctor's certificate; and
      (c)   Union business, upon written request by the Union's
            Business  Manager,  provided  that no more than three (3)  employees
            shall be on such leave simultaneously.

Section 2. Employees who have completed their  probationary  period are eligible
for up to thirteen  (13) weeks per year of unpaid  family and medical  treatment
leave for the following reasons:

      (a) Employee's serious health condition -- a medical certification will be
required  which states that the  employee is unable to perform the  functions of
the employee's position.

      (b) Family serious health condition -- spouse, parent, or child. A medical
certification  will be required  stating the employee is "needed to care for the
individual."

      (c) New child leave -- the birth,  adoption or foster care  placement by a
state agency of a child,  and, the need to care for the child; such leave may be
prior to the actual birth or placement.

      The provisions of this Section shall be  administered  in accordance  with
the Family and Medical Leave Act of 1993 (FMLA).  Section 3.  Employees who have
completed their probationary period who lose actual work time in order to attend
the  funeral of a family  member  shall  receive a paid  funeral  leave for time
necessarily lost during the employee's  regularly scheduled shift,  provided the
employee would have been scheduled and at work during that day. Said leave shall
be up to three (3) days with pay for a deceased parent,  spouse, child, brother,
or  sister  and  one  (1)  day  for  a  deceased  father-in-law,  mother-in-law,
grandparent,  brother-in-law,  or  sister-in-law.  In order to receive pay under
this Section,  an employee must be actively  working,  must make application for
such  paid  leave,  and  must  attend  the  funeral.  The  Company  may  require
satisfactory  evidence of attendance at the funeral and the  relationship of the
deceased.  Section  4. If the  Company  has  knowledge  that an  employee,  in a
premium-rated  classification,  will be on family and  medical  leave,  military
leave,  or an industrial  injury leave for more than thirty (30) calendar  days,
the job will be posted and filled on a temporary  basis.  The successful  bidder
will  receive the rate of the premium  classification  for the period its duties
are performed.  When employees on leave under this Section return, they shall be
immediately  assigned to their old job;  employees  temporarily  filling the job
shall  return  to their  regular  classification  and pay rate.  Section  5. The
Company shall pay each active  employee who reports for jury duty the difference
between  pay up to eight times the hourly  rate for time  actually  lost and the
juror's daily fee for each day the employee is required to serve on a jury.  The
employee must report to work during those days of his regularly  scheduled shift
during  which  the  employee  is not  required  to  report  for jury  duty or be
available at court for jury  service.  The employee  must present  proof of jury
service and the amount of compensation received from the court.

                                 ARTICLE XII
                                SENIORITY LIST

Section 1. Upon request at any reasonable time, the Company shall furnish to the
Union a current seniority list.

                                 ARTICLE XIII

                                 MISCELLANEOUS

Section 1. The Company  shall  maintain  safe,  sanitary,  and  healthy  working
conditions  at all  times,  and  employees  will be  required  to  cooperate  in
maintaining such conditions.  Any complaints regarding safety or health shall be
processed through the grievance and arbitration provisions of this Agreement.

Section 2. The Company will provide any uniforms  required of employees who have
completed their probationary period.

      The Company will furnish required safety equipment,  gloves,  aprons, hair
nets,  freezer  gloves,  cotton  gloves,  and smocks at no cost to the employee.
Needed  replacements,  through  normal use, will be made at no cost provided the
worn out  article is returned to the  Company.  If an item is lost or  destroyed
through employee negligence, the employee will be charged for its replacement.

Section 3. The Employer may require any employee to take a physical  examination
at any time at the Employer's expense. Section 4. It shall be the responsibility
of all  employees  to keep  the  Employer  apprised  of their  current  address,
telephone number, marital status and number of dependents.

Section 5. It is the intent of the  parties  hereto that no  provisions  of this
Agreement  shall require either party to perform any act which shall be unlawful
under any Louisiana or Federal statute.

                                 ARTICLE XIV

                                  VACATIONS

Section 1.  Regular  full-time  employees  shall be eligible  for one (1) week's
vacation after the first  anniversary date of continuous  employment,  and after
the anniversary date of each succeeding year.

      Employees shall be eligible for a second week of vacation after the second
anniversary  date of continuous  employment,  and after the anniversary  date of
each succeeding year of continuous employment.

      Employees  shall be eligible for a third week of vacation  after the tenth
anniversary  date of continuous  employment,  and after the anniversary  date of
each succeeding year of continuous employment.

      Employees  shall be  eligible  for a fourth  week of  vacation  after  the
twentieth  anniversary  date of continuous  employment and after the anniversary
date of each succeeding year of continuous employment.

Section 2. To be eligible for a vacation,  an employee must have worked  sixteen
hundred  (1,600)  hours during the  preceding  twelve (12) months or eighty (80)
percent of available  hours for that period,  whichever is less.  Vacations  and
holidays  not  worked  shall be  considered  time  worked for  purposes  of this
Section.

Section 3.  Vacation  pay shall be computed  at forty (40) times the  Employee's
regular straight time hourly rate.  Section 4. Due  consideration  will be given
employees'  choice of vacation time, but all vacations  scheduled are subject to
the final  approval  of the  Company in keeping  with the  Company's  scheduling
needs.  In the event that two or more  employees  cannot be released at the same
time,  the  employee  with the longest  service  with the Company  will be given
preference.  An employee who notifies  the Company of a vacation  choice  thirty
(30) days in advance  shall not lose that vacation  choice to another  employee.
Vacations  may  not be  scheduled  for  periods  of less  than a  week,  and all
vacations must be taken within an anniversary year.

Section 5. The Company  reserves the right to schedule a plant  shutdown for one
 .(l) week in any year,  which  shall be  treated  as a  vacation  week for those
employees entitled to vacation.

                                  ARTICLE XV

                                   INSURANCE

      The Company will provide a group insurance  program for employees  covered
by this  Agreement.  The Company  will  continue to make  monthly  contributions
toward  group  insurance  premiums in the same  proportion  as is  currently  in
effect. Employees will bear the remaining costs of the insurance.

                                  ARTICLE XVI

                                   HOLIDAYS

Section 1. The following shall be considered holidays:

            New Year's Day                      Labor Day
            Martin Luther King's Birthday       Thanksgiving Day
            Memorial Day                        Christmas Day
            July Fourth                         Birthday Holiday

The birthday holiday shall be taken on the employee's birthday.  If the birthday
falls on a Saturday or Sunday,  the holiday  shall be taken on a day agreed upon
by the Company and the employee within one (1) week of the birthday.

Section 2. All regular full-time employees who have completed their probationary
period shall be paid for eight (8) hours at their regular straight time rate for
each  holiday  enumerated  above,  provided  they  report  for work and work all
scheduled  hours on the workday  preceding  and the workday next  following  the
holiday,  unless the employee was  necessarily  absent due to personal  illness,
supported by a doctor's certificate, or because of an emergency occurring to the
employee or the employee's immediate family (meaning only spouse,  children,  or
parents).  No  employee  shall lose  holiday pay because of missing no more than
thirty (30) minutes on the workday before or the workday following the holiday.

     In any  event,  an  employee  must  work at least  one (1) day  during  the
calendar  week in which a holiday falls in order to be eligible for holiday pay,
except the employee who is on vacation.

Section  3.  Employees  required  to work on a holiday  shall be paid the amount
provided  above,  in addition to their regular  earnings for that day. Hours not
worked  on a holiday  shall not be  considered  as work  time in  computing  any
additional  compensation  due under the overtime  provisions  of this  contract.
Section 4. If an  employee  is  required to work and fails to report or fails to
work scheduled  hours on a holiday,  the employee shall forfeit  holiday pay for
that day.

Section 5. Employees on vacation  during the week in which a holiday falls shall
receive holiday pay.

                                 ARTICLE XVII

                                    WAGES

Section 1. Wages shall be paid as  provided  in  Appendix A attached  hereto and
made a part of this Agreement.  Section 2. Whenever a new job  classification is
created by the Company, or there is a change or merger of job classifications or
the job content of job classifications, the Company will discuss the appropriate
wage rate with the Union. If a mutually satisfactory rate cannot be agreed upon,
the Company will set the rate.  The Union may file a grievance on the rate,  and
the dispute  shall be settled in accordance  with the grievance and  arbitration
procedures of this contract.

Section 3. Any employees who, upon the effective date of the wage rate set forth
in Appendix A, are earning in excess of the applicable rate,  shall,  during the
term of this  Agreement,  continue  to  receive  their  current  rate  until the
contract  rate equals or exceeds that rate.  This section shall not apply to any
employee  in a  classification  which has been paid on a salary  basis under any
past contract.

Section 4. If, during the term of this  Agreement,  Congress  enacts new minimum
wage  legislation  which requires the payment of a minimum wage greater than the
rate provided in Appendix A for newly-hired employees,  the rate for newly-hired
employees  shall be raised to the federal  minimum rate,  and the spread between
the rates provided in this Agreement shall be maintained.  Any such change shall
be effective upon the effective date of the new federal minimum rate.

Section 5. In addition  to the wage rates as provided in Appendix A,  production
employees who have been  continuously  employed for five (5) or more years shall
receive seniority pay of twenty (20) cents per hour.  Maintenance  employees and
distribution  drivers who have been  continuously  employed for five (5) or more
years will receive seniority pay of fifty (50) cents per hour.

Section 6.  Employees  who have been  continuously  employed for one (1) or more
years shall receive a night shift  differential  of  twenty-five  (25) cents per
hour for work performed on a shift  starting  during the hours  beginning  12:00
noon through 1:00 a.m. The starting time of a shift  determines if it is subject
to the shift differential.  Employees  performing work on a night shift which is
not their  regular  shift will receive  shift  differential  for such work if it
lasts  three (3) or more hours.  Distribution  drivers  shall not receive  shift
differential regardless of the time they begin work.

                                 ARTICLE XVIII
                                 NO DISCRIMINATION

Section  1. The  Company  and the Union  agree  that they will not  discriminate
against any person  with regard to  employment  or Union  membership  because of
race,  creed,  color,  sex,  religion,  age,  national origin, or disability (as
defined in the Americans With Disabilities Act).

Section 2. Whenever  masculine gender is used in this Agreement,  it shall apply
to the feminine gender.

                                  ARTICLE XIX
                AUTHORIZATION FOR REPRESENTATION AND CHECK-OFF

Section 1. During the term of this Agreement, the Company will deduct initiation
fees,  assessments,  and Union dues from the wages of employees who individually
authorize the Company on a form in compliance with Appendix B to this Agreement.

Section  2. The Union  shall  save the  Company  harmless  against  and from all
claims,  demands,  suits or other  forms of  liability  that  arise out of or by
reason  of  action  taken  or not  taken  by the  Company  in  reliance  upon or
compliance with any provisions of this Article.

Section 3. It is agreed  that by reason of  institution  of the above  check-off
system,   collections  by  any  other  method  on  the  Company's  premises  are
prohibited, except with the permission of the Company.

                                  ARTICLE XX
                                UNION SECURITY

Section 1. It shall be a  condition  of  employment  that all  employees  of the
Employer  covered by this Agreement become members of the Union in good standing
not later than  thirty-one (31) days after the effective date of this Agreement,
and remain  members in good standing of the Union.  It shall also be a condition
of employment that all employees covered by this Agreement and hired on or after
its effective date shall on the thirty-first  (31st) day following the beginning
of such employment become and remain members in good standing in the Union.

     The Union  shall save the  Company  harmless  against  and from all claims,
demands,  suits,  or other forms of liability  that arise out of or by reason of
action taken or not taken by the Company in reliance upon or compliance with any
provisions of this Article.

     It is  understood  and agreed that the  provisions of this Article shall be
effective only to the extent permitted by applicable law.

                                  ARTICLE XXI
                         PROFIT SHARING -- RETIREMENT

Section 1. Since November 1, 1989 employees  covered by this Agreement have been
covered by the General  Employees Profit Sharing - Retirement Trust Agreement of
Sanderson Farms, Inc. and Affiliates. Approval has been sought from the Internal
Revenue  Service (IRS) to merge said Plan into the Employee Stock Ownership Plan
of Sanderson Farms, Inc. and Affiliates,  effective as of November 1, 1993. When
the merger is  approved,  participation  and  benefits in the newly  merged plan
shall be in  accordance  with the  provisions  of that plan  beginning  with the
effective date of the merger.  In the event the IRS does not approve the merger,
employees  covered  by this  Agreement  shall  continue  to be  governed  by the
preexisting Plan and its provisions.

                                 ARTICLE XXII
                            DURATION OF AGREEMENT

Section 1. This Agreement shall remain in full force and effect from the 1st day
of  November,  1998 until the 30th day of  November,  2001,  and shall  continue
thereafter  from year to year until  either party to this  Agreement  desires to
terminate this Agreement by giving written notice at least sixty (60) days prior
to November 30, 2001, or at least sixty (60) days'  written  notice prior to any
anniversary  date  thereafter.  The parties to this Agreement  shall endeavor to
satisfactorily  negotiate  any  contemplated  change or execute a new  Agreement
during the sixty (60) day period,  after proper notice in writing has been given
as provided herein above. Notice, as specified in this Article,  shall be mailed
via United States Certified Mail.

      IN WITNESS  WHEREOF,  the parties  have  hereunto  signed their names this
______ day of November, 1998.

SANDERSON FARMS, INC.                    UNITED FOOD AND COMMERCIAL
(Hammond Processing Division)            WORKERS LOCAL UNION 210,
                                         Affiliated with the United
                                         Food and Commercial Workers
/s/Brian C. Williams                     International Union
- ------------------------------
/s/Stephen C. Blessey                    /s/Oneal W. Scott
- ------------------------------           ------------------------------------
                                        /s/Eva Mae Adams
                                         ------------------------------------
                                         /s/Annie Landry
                                         ------------------------------------
                                         /s/Lucille Bickham
                                         ------------------------------------
                                         /s/Hattie Lloyd
                                         ------------------------------------
                                         /s/Raymond L. Carver
                                         ------------------------------------
















                                 APPENDIX "A"

                                 WAGE SCHEDULE


                                          EFFECTIVE   EFFECTIVE   EFFECTIVE
                                           11/1/98     1/2/2000    1/7/2001
                                                              

PROCESSING
Receiving

      Forklift Operator .................... 8.00         8.25         8.45
      Hanging Dock ......................... 7.85         8.10         8.30
Picking

      Killer ............................... 8.10         8.35         8.55
      Floorworker .......................... 7.75         8.00         8.20
      Line Operator ........................ 7.60         7.85         8.05
Eviscerating

      Floorworker .......................... 7.75         8.00         8.20
      Bird Chiller Operator ................ 7.75         8.00         8.20
      Line Operator ........................ 7.60         7.85         8.05
By-Products Department

      By-Products Operator ................. 7.85         8.10         8.30

CUSTOMER SERVICE

Saws

      Floorworker .......................... 7.75        8.00        8.20
      Line Operator ........................ 7.60        7.85        8.05
Packing

      Scale Operator ....................... 7.85        8.10        8.30
      Floorworker .......................... 7.75        8.00        8.20
      Giblet Chiller Operator .............. 7.75        8.00        8.20
      Grader ............................... 7.70        7.95        8.15
      Line Operator ........................ 7.60        7.85        8.05
Specialty

      Forklift Operator .................... 8.05        8.30        8.50
      Scale Operator ....................... 7.85        8.10        8.30
      Floorworker .......................... 7.75        8.00        8.20
      Stackoff ............................. 7.70        7.95        8.15
      Line Operator ........................ 7.60        7.85        8.05
Marination

      Scale Operator ....................... 7.85        8.10        8.30
      Formulating Mixer .................... 7.75        8.00        8.20
      Floorworker .......................... 7.75        8.00        8.20
      Stack Off ............................ 7.70        7.95        8.15
      Line Operator ........................ 7.60        7.85        8.05






                                          EFFECTIVE   EFFECTIVE   EFFECTIVE
                                            11/1/98   1/2/2000    1/7/2001
                                                         

SHIPPING

      Forklift Operator ...................  8.05       8.30       8.50
      Cooler & Shipping Dock ..............  7.70       7.95       8.15
      Distribution Driver ................. 10.15      10.40      10.60

DEBONE DEPARTMENT

Deboning

      Forklift Operator ...................  8.00       8.25       8.45
      Scale Operator ......................  7.85       8.10       8.30
      Floorworker .........................  7.75       8.00       8.20
      Front Half Puller ...................  7.70       7.95       8.15
      Combo Packer ........................  7.70       7.95       8.15
      Stack Off ...........................  7.70       7.95       8.15
      Line Operator .......................  7.60       7.85       8.05

Quality Control Technician ................  7.85       8.10       8.30

MAINTENANCE DEPARTMENT

      Master Skilled Operator I ........... 12.40      12.65      12.85
      Master Skilled Operator II .......... 10.90      11.15      11.35
      Skilled Maintenance Men ............. 10.00      10.25      10.45
      Mechanic ............................  9.40       9.65       9.85
      Mechanic Helper .....................  7.90       8.15       8.35
      Clean-Up Line Operators .............  7.60       7.85       8.05



Probationary  employees  shall receive a training rate of $6.05 per hour for the
first  ninety  (90) days of their  employment,  which  shall be $6.15  effective
January 2, 2000 and $6.25 effective  January 7, 2001. Upon the expiration of the
ninety (90) day period,  the rate shall be $6.75 per hour,  which shall be $6.85
effective January 2, 2000 and $6.95 effective January 7, 2001. After one year of
employment,  an  employee's  rate  shall be as shown  hereinabove.  Newly  hired
employees  in  premium  classifications  above  shall  receive  the rate of that
classification upon the expiration of a forty-five (45) day period.





                                 APPENDIX "B"

                            CHECK-OFF AUTHORIZATION

To:   Any Employer under contract with United Food and Commercial
      Workers Union, Local 210, AFL-CIO

      You are hereby authorized and directed to deduct from my wages, commencing
      with the next payroll period,  an amount equivalent to dues and initiation
      fees as shall be certified by the Secretary-Treasurer of Local 210, of the
      United Food and Commercial Workers International Union, AFL-CIO, and remit
      same to said Secretary-Treasurer.

      This authorization and assignment is voluntary,  made in consideration for
      the cost of representation and collective bargaining and is not contingent
      upon my present or future membership in the Union. This  authorization and
      assignment shall be irrevocable for a period of one (1) year from the date
      of execution or until the  termination  date of the Agreement  between the
      Employer and Local 210,  whichever  occurs  sooner,  and from year to year
      thereafter,  unless  not less  than  thirty  (30)  days and not more  than
      forty-five (45) days prior to the end of any subsequent  yearly period,  I
      give the  Employer  and Union  written  notice of  revocation  bearing  my
      signature thereto. The  Secretary-Treasurer  of Local 210 is authorized to
      deposit this authorization with any Employer under contract with Local 210
      and is further  authorized  to transfer  this  authorization  to any other
      Employer  under  contract with Local 210 in the event that I should change
      employment.