A G R E E M E N T

                                     BETWEEN

                              SANDERSON FARMS, INC.

                          (COLLINS PROCESSING DIVISION)

                                       AND

                      LABORERS' INTERNATIONAL UNION OF NORTH AMERICA,

                      PROFESSIONAL EMPLOYEES LOCAL UNION #693, AFL-CIO

                      JANUARY 13, 2000 - DECEMBER 31, 2003





                               TABLE OF CONTENTS

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






1.    AGREEMENT                                                              1

2.    RECOGNITION                                                            1

3.    MANAGEMENT PREROGATIVES                                                1

4.    SHOP STEWARDS                                                          2

5.    UNION BULLETIN BOARD                                                   2

6.    NO STRIKE - NO LOCK OUT                                                2

7.    GRIEVANCE PROCEDURE                                                    3

      STEP 1                                                                 3

      STEP 2                                                                 3

      STEP 3                                                                 3

8.    ARBITRATION                                                            4

9.    SENIORITY                                                              5

10.   SENIORITY LIST                                                         6

11.   HOURS OF WORK                                                          7

12.   LEAVES  OF  ABSENCE                                                    8

13.   VACATIONS                                                              9

14.   HOLIDAYS                                                              10

15.   INSURANCE                                                             11

16.   WAGES                                                                 11

17.   MISCELLANEOUS                                                         12

18.   EMPLOYEE STOCK OWNERSHIP PLAN                                         13

19.   NO DISCRIMINATION                                                     13

20.   AUTHORIZATION FOR REPRESENTATION AND CHECK-OFF                        13

21.   UNION SECURITY                                                        13

22.   DURATION OF AGREEMENT                                                 14

      SIGNATURES                                                            14

      APPENDIX A  -  WAGE RATES                                              *

      APPENDIX B  -  CHECK-OFF                                               *






                                   ARTICLE 1
                                   AGREEMENT

Section 1. This Agreement made and entered into this 13th day of January,  2000,
by and between  Sanderson  Farms,  Inc.  (Collins  Processing  Division)  at its
Collins,  Mississippi,  location (hereinafter referred to as the "Company"), and
Laborers'  International  Union of North America,  Professional  Employees Local
Union #693, AFL-CIO (hereinafter referred to as the "Union".

                                   ARTICLE 2
                                  RECOGNITION

Section 2.1. The Employer recognizes the Union as the sole exclusive  bargaining
agency for all production and maintenance employees, including truck drivers and
rendering employees,  employed at its Collins,  Mississippi facility,  excluding
office clerical employees, truck shop employees, guards, professional employees,
and supervisors,  as defined in the Act,  certified on February 23, 1995, by the
National Labor Relations Board through an NLRB election, Case No. 15-RC-7846.

      The following jobs are excluded from coverage:

      (1)   Office Clerical Employees     (2)   Cost Counting Records Clerks
      (3)   Processing Accounting Clerks  (4)   Sales Clerks
      (5)   Live Haul Drivers             (6)   Cage Repair Employees
      (7)   Professional Employees        (8)   Guards and Supervisors
      (9)   Child Care Employees          (10)  Maintenance Parts Buyers

                                   ARTICLE 3
                            MANAGEMENT PREROGATIVES
Section 3.1.  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 3.2. The Employer  retains all prerogatives and rights of management and
all privileges and responsibilities not specifically limited by this Agreement.

                                   ARTICLE 4
                                 SHOP STEWARDS
Section 4.1. The Employer  recognizes  the right of the Union to designate  shop
stewards,  not to exceed  eleven (11) 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 4.2. 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 5
                              UNION BULLETIN BOARD

Section 5.1. 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 6

                             NO STRIKE - NO LOCK OUT

Section  6.1.  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 6.2. The Company  shall not lock out  employees for the duration of this
Agreement.  Section  6.3.  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 6.4. 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 7

                              GRIEVANCE PROCEDURE

Section 7.1.  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 7.2. 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 7.3. 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 8

                                   ARBITRATION

Section  8.1.  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 8.2. 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  8.3.  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 8.4. Multiple grievances shall not be heard before one arbitrator at the
same hearing except by mutual  agreement of the parties.  Section 8.5. 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 9

                                    SENIORITY

Section  9.1.  Seniority  is defined as the length of an  employee's  continuous
employment in the bargaining unit at the Company's Collins, Mississippi, 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  9.2.  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 9.3. 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 9.4. 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 Collins plant,  or
            three (3) months, whichever is less.

Section 9.5. 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 9.6. All permanent job vacancies in premium rated  classifications shall
be posted for two (2)  consecutive  working  days 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  9.7.  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 10

                                 SENIORITY LIST

Section 10.1. Upon request at any reasonable  time, the Company shall furnish to
the Union a current seniority list.

                                   ARTICLE 11

                                  HOURS OF WORK

Section 11.1. 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  11.2.  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 11.3.  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 11.4.  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  11.5.  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  11.6.  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 11.7.  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 12

                               LEAVES OF ABSENCE

Section  12.1.  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  12.2.  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  12.3.  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 12.4. 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 12.5.  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 13

                                    VACATIONS

Section 13.1.  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  13.2.  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 13.3.  Vacation pay shall be computed at forty (40) times the Employee's
regular straight time hourly rate. Section 13.4. 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 13.5.  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 14

                                    HOLIDAYS

Section 14.1.  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 week of the birthday.

Section  14.2.  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 14.3.  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 14.4. 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 14.5. Employees on vacation during the week in which a holiday
falls shall receive holiday pay.

                                  ARTICLE 15
                                   INSURANCE

Section 15.1. 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 16

                                      WAGES

Section 16.1.  Wages shall be paid as provided in Appendix A attached hereto and
made a part of this Agreement.  Section 16.2.  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 16.3.  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  16.4.  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. Long
haul  drivers who have been  continuously  employed for five (5) more years will
receive an additional one (1) cent on the applicable mileage rate.

Section 16.5. 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 17
                                 MISCELLANEOUS

Section 17.1.  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  17.2.  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  17.3.  The  Employer  may  require  any  employee  to  take a  physical
examination at any time at the Employer's expense. Section 17.4. 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 17.5. 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 Mississippi or Federal statute.

                                  ARTICLE 18

                  EMPLOYEE STOCK OWNERSHIP PLAN - RETIREMENT

Section 18.1. Employees covered by this Agreement will continue to be covered by
the Employee  Stock  Ownership  Plan of Sanderson  Farms,  Inc. and  Affiliates.
Participation  and  benefits  in  the  plan  shall  be in  accordance  with  the
provisions of that plan.

                                  ARTICLE 19

                                NO DISCRIMINATION

Section  19.1.  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 19.2.  Whenever  masculine  gender is used in this  Agreement,  it shall
apply to the feminine gender.

                                  ARTICLE 20

                AUTHORIZATION FOR REPRESENTATION AND CHECK-OFF

Section  20.1.  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 20.2. 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 20.3. 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 21

                                 UNION SECURITY

Section 21.1.  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 22

                              DURATION OF AGREEMENT

Section 22.1. This Agreement shall remain in full force and effect from the 13th
day of January,  2000 until the 31st day of December,  2003,  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 December 31, 2003, 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 and 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 January, 2000.

SANDERSON FARMS, INC.                     LABORERS' INTERNATIONAL UNION
(Collins Processing Division)                   OF NORTH AMERICA, PROFESSIONAL
                                          EMPLOYEES LOCAL UNION #693
                                          AFL-CIO
/c/Daniel J. Nicovich                     /s/Charles Carney
- --------------------------------          -----------------------------------
                                          /s/Jimmie Funelin
- --------------------------------          -----------------------------------
                                          /s/Sheila Richardson
- --------------------------------          -----------------------------------
                                          /s/Jerry Barnes
                                          -----------------------------------
                                          /s/Easter Ducksworth
                                          -----------------------------------
                                          /s/Cassandra Magee
                                          -----------------------------------

                                          -----------------------------------

                                          -----------------------------------

                                          -----------------------------------







                                 APPENDIX "A"

                                 WAGE SCHEDULE

                                                              EFFECTIVE

                                              1/16/00   1/07/01   1/06/02   1/05/03
                                                                   

PROCESSING
Receiving
      Forklift Operator ................         8.25      8.45      8.80      9.15
      Hanging Dock .....................         8.10      8.30      8.65      9.00
Picking
      Killer ...........................         8.35      8.55      8.90      9.25
      Floorworker ......................         8.00      8.20      8.55      8.90
      Line Operator ....................         7.85      8.05      8.40      8.75
Eviscerating
      Floorworker ......................         8.00      8.20      8.55      8.90
      Bird Chiller Operator ............         8.00      8.20      8.55      8.90
      Line Operator ....................         7.85      8.05      8.40      8.75
PACKING
Drip Line
      Forklift Operator ................         8.30      8.50      8.85      9.20
      Scale Operator ...................         8.10      8.30      8.65      9.00
      Floorworker ......................         8.00      8.20      8.55      8.90
      Giblet Chiller Operator ..........         8.00      8.20      8.55      8.90
      Grader ...........................         7.95      8.15      8.50      8.85
      Line Operator ....................         7.85      8.05      8.40      8.75
Specialty
      Scale Operator ...................         8.10      8.30      8.65      9.00
      Floorworker ......................         8.00      8.20      8.55      8.90
      Line Operator ....................         7.85      8.05      8.40      8.75
Polybag
      Scale Operator ...................         8.10      8.30      8.65      9.00
      Floorworker ......................         8.00      8.20      8.55      8.90
      Line Operator ....................         7.85      8.05      8.40      8.75
Paw Line
      Scale Operator ...................         8.10      8.30      8.65      9.00
      Chiller Operator .................         8.00      8.20      8.55      8.90
      Line Operator ....................         7.85      8.05      8.40      8.75





                                                           EFFECTIVE

                                              1/16/00   1/07/01   1/06/02   1/05/03
                                                                  

CHILLING/PREPRICE/SHIPPING
Chilling
      Forklift Operator ................         8.30      8.50      8.85      9.20
      Chilling Room Operator ...........         7.95      8.15      8.50      8.85
Preprice
      Data Printer Operator ............         8.10      8.30      8.65      9.00
      Line Operator ....................         7.85      8.05      8.40      8.75
Shipping
      Forklift Operator ................         8.30      8.50      8.85      9.20
      Billing Clerk ....................         8.00      8.20      8.55      8.90
      Loading Crew .....................         7.95      8.15      8.50      8.85
      Distribution Driver ..............        10.40     10.60     10.95     11.30
DEBONE DEPARTMENT
Deboning
      Scale Operator ...................         8.10      8.30      8.65      9.00
      Floorworker ......................         8.00      8.20      8.55      8.90
      Knife Sharpener ..................         8.00      8.20      8.55      8.90
      Cooler Arranger ..................         7.95      8.15      8.50      8.85
      Combo Packer .....................         7.95      8.15      8.50      8.85
      Dumper ...........................         7.95      8.15      8.50      8.85
      Stack Off ........................         7.95      8.15      8.50      8.85
      Line Operator ....................         7.85      8.05      8.40      8.75
QUALITY CONTROL
      Quality Control Technician .......         8.10      8.30      8.65      9.00
Purchasing
      Supply Clerk .....................         8.30      8.50      8.85      9.20
      Line Operator ....................         7.85      8.05      8.40      8.75
Waste Water
      Waste Treatment Operator .........         7.95      8.15      8.50      8.85








                                                EFFECTIVE

                                                 1/16/00  1/07/01  1/06/02  1/05/03
                                                                  
MAINTENANCE DEPARTMENT
      Master Skilled Operator I ............       12.65    12.85    13.20    13.55
      Master Skilled Operator II ...........       11.15    11.35    11.70    12.05
      Skilled Maintenance Men 10.25 ........       10.45    10.80    11.15
      Mechanic .............................        9.65     9.85    10.20    10.55
      Mechanic Helper ......................        8.15     8.35     8.70     9.05
      Clean-Up Floor Worker ................        8.00     8.20     8.55     8.90
      Clean-Up Line Operators ..............        7.85     8.05     8.40     8.75
BY-PRODUCTS (Rendering)
Maintenance
      Master Skilled Maint. I ..............       12.65    12.85    13.20    13.55
      Master Skilled Maint. II .............       11.15    11.35    11.70    12.05
      Skilled Maintenance ..................       10.25    10.45    10.80    11.15
      Mechanic .............................        9.65     9.85    10.20    10.55
Mechanic Production
      Feather Loader .......................        8.30     8.50     8.85     9.20
      Feather Cooker Operator 8.30 .........        8.50     8.85              9.20
      Meat Cooker Operator .................        8.30     8.50     8.85     9.20
      Utility ..............................        8.30     8.50     8.85     9.20
      By-Products Crew .....................        8.30     8.50     8.85     9.20
      Bobcat Loader ........................        8.10     8.30     8.65     9.00
Driver
      Raw Material Driver ..................        9.05     9.25     9.60     9.95
      Finish Material Driver ...............        9.05     9.25     9.60     9.95


                  Probationary  employees shall receive a training rate of $6.15
            per hour for the first ninety (90) days of their  employment,  which
            shall be $6.25 effective January 7, 2001, $6.35 effective January 6,
            2002, and $6.45  effective  January 5, 2003.  Upon the expiration of
            the ninety (90) day period,  the rate shall be $7.05 per hour, which
            shall be $7.15 effective January 7, 2001, $7.25 effective January 6,
            2002,  and  $7.35  effective  January  5,  2003.  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.

            Long haul drivers will be paid on a per mile basis as follows:

            Trips in excess of 100 miles from Collins:

                  Less than one year            28 cents per mile
                  One year to five years        30 cents per mile
                  Over five years               32 cents per mile

            Trips up to 100 miles from Collins:

                  Less than one year            32 cents per mile
                  One year to five years        34 cents per mile
                  Over five years               36 cents per mile

            Double team operation:

                  Less than five years          19 cents per mile
                  After five years              22 cents per mile

            Miscellaneous  paid  time,  including  breakdowns,  is  paid  at the
            distribution driver hourly rate.









                                  APPENDIX "B"

                     CHECK-OFF AUTHORIZATION AND ASSIGNMENT

                     TO: ALL EMPLOYERS BY WHOM I AM EMPLOYED

                  I,  _________________________________________________________,
            do  hereby  assign  to  Local  Union  No.  693,  LIUNA  Professional
            Employees,  AFL-CIO, such amounts from my wages as shall be required
            to pay the initiation fees,  readmission  fees,  membership dues and
            assessments  of the Local Union as may be  established  from time to
            time.  My Employer is hereby  authorized  to deduct  amounts from my
            wages  and pay the same to the Local  Union  and/or  its  authorized
            representative,   in  accordance  with  the  collective   bargaining
            agreement in existence between the Local Union and my Employer.

                  This  authorization  shall become operative upon the effective
            date of each collective bargaining agreement entered into between my
            Employer and the Local Union.

                  This  authorization  shall be irrevocable  for a period of one
            year,  or  until  the  termination  of  the  collective   bargaining
            agreement  in  existence  between my Employer  and the Local  Union,
            whichever   occurs  sooner;   and  I  agree  and  direct  that  this
            authorization   shall  be   automatically   renewed   and  shall  be
            irrevocable  for  successive  periods of one year  each,  or for the
            period of such succeeding applicable collective bargaining agreement
            between my  Employer  and the Local  Union,  whichever  be  shorter,
            unless I give written  notice to my Employer and the Local Union not
            more  than  twenty  days  and not less  than  ten days  prior to the
            expiration  of  each  period  of one  year,  or of  each  applicable
            collective  bargaining  agreement  between my Employer and the Local
            Union, whichever occurs sooner.

                  Dues and fees paid to Local  Union No. 693 are not  deductible
            as charitable  contributions  for federal income tax purposes.  Dues
            and fees paid to Local Union 693,  however,  may qualify as business
            expenses,  and may be deductible in limited circumstances subject to
            various restrictions imposed by the Internal Revenue Service.

                  This   assignment   has  been   executed  this  _____  day  of
            ______________________________, 2000.