Contact:     Mike Cockrell
Treasurer & Chief Financial Officer
(601) 649-4030


                SANDERSON FARMS, INC. ANNOUNCES STOCK REPURCHASE
                              AND DIVIDEND INCREASE


Laurel, Miss. (January 3, 2002) -- Sanderson Farms, Inc. (Nasdaq: SAFM), a
leading producer, processor, marketer and distributor of fresh and frozen
chicken and other prepared food items, announced that it has today purchased a
total of 621,079 shares, or 4.5% of its outstanding stock, from two major
shareholders at $20.42 per share, which was yesterday's closing market price.
The Company purchased 320,000 shares from the Estate of Joe Frank Sanderson and
301,079 shares from the Estate of Dewey R. Sanderson, Jr., which following the
sale now own 2,864,672 shares and 2,967,403 shares, respectively, together
representing 42.99% of the Company's outstanding shares.

         "In approving this transaction today, our Board of Directors determined
that the share repurchase will benefit the Company and its shareholders,"
commented Mike Cockrell, Chief Financial Officer. "We expect this purchase will
be accretive to earnings per share during the current fiscal year. In addition,
this purchase makes it much more remote that the Estates would be required to
sell large numbers of shares in the public market over a relatively short period
of time to repay borrowings they incurred for the purpose of paying federal
estate taxes. Such sales, or even the likelihood of such sales, could depress
market prices for the common stock."

         According to Cockrell, the Company's Board of Directors previously
approved the repurchase of up to one million shares of its common stock from
January 21, 1999 through January 20, 2001. The Board of Directors renewed this
authority and added another 500,000 shares to this repurchase program on
February 15, 2001. Prior to today's purchase, 845,500 shares of stock had been
repurchased under the program. "This transaction has allowed us to accelerate
our stock repurchase program," added Mr. Cockrell. "Because of the relatively
low float and trading volume for our stock, the Company has been unable to meet
its goal of repurchasing and retiring the number of shares authorized by the
Board of Directors. Following this transaction 33,421 shares remain available
for repurchase under the current repurchase program. The Board will continue to
evaluate the share repurchase program in the future."






Sanderson Farms Announces Stock Repurchase
Page 2
January 3, 2002


         Under applicable law, the shares repurchased in this transaction will
be canceled and retired, leaving 12,945,126 shares outstanding following the
transaction. This transaction reduced the number of shares outstanding by
621,079 shares or 4.5% of the stock outstanding prior to the purchase. The
Company funded the cost of the repurchase with cash on hand and borrowings under
its existing revolving credit facility.

         The Company also announced today that the Board of Directors has
declared a regular quarterly dividend of 10 cents per share payable February 19,
2002, to stockholders of record February 5, 2002. This represents a 100 %
increase over the last quarterly dividend and indicates an new annual dividend
rate of 40 cents per share, double the old rate of 20 cents per share. Payment
of the regular quarterly dividend will remain subject to Board approval each
quarter.

         "We last increased our regular quarterly and annual dividend rate in
September 1989," said Cockrell, "and we feel this action is reasonable in light
of our expansion over the last decade that has greatly increased our cash flow
potential."

         Sanderson Farms, Inc. is engaged in the production, processing,
marketing and distribution of fresh and frozen chicken and other prepared
food items.  Its shares trade on the Nasdaq National Market under the symbol
SAFM.

         This press release contains forward-looking statements based on
management's current views and assumptions. Actual results and events may
differ. Please refer to the "Cautionary Statement Regarding Risks and
Uncertainties That May Affect Future Performance" on page 17 of the Company's
2001 Annual Report on Form 10-K for a discussion of these matters. In addition
to the factors described in the 10-K, some of the forward-looking statements
herein may depend on future decisions to be made by the executors of the
Estates, over which decisions the Company may have no influence or control.