EXHIBIT 10

SANDERSON FARMS, INC.

BONUS AWARD PROGRAM

(ALL SALARIED EMPLOYEES)

Effective November 1, 2004
Supercedes November 1, 2003

SANDERSON FARMS, INC.
Bonus Award Program
Effective Nov. 1, 2004

I. PURPOSE

The Board of Directors of Sanderson Farms, Inc. has determined that in
addition to the Company's existing competitive and equitable total compensation
package, it is desirable to maintain a bonus award program for its salaried
employees. The purposes for such a program include:

A. To encourage excellence and high levels of performance.

B. To recognize the contributions of the salaried employees to the
overall profitability of the Company.

C. To encourage all employees from every division in the Company to
cooperate, share information and work together as a team for the
overall benefit of the Company and its shareholders.

II. PARTICIPATION AND MAXIMUM AWARD

The Executive Committee of Sanderson Farms, Inc. will select and recognize
personnel eligible to participate in the bonus award program, and reserves the
right to review and change the class of eligible employees at any time. Those
now designated include:

A. Salaried personnel within the corporate structure of Sanderson
Farms, Inc., Sanderson Farms, Inc. (Production Division), Sanderson
Farms, Inc. (Processing Division) and Sanderson Farms, Inc. (Foods
Division).

B. All salaried management and accounting trainees within the corporate
structure.

SANDERSON FARMS, INC.
Bonus Award Program

III. ELIGIBILITY

EMPLOYMENT/PARTICIPATION

Except in the case of death, disability or retirement, as set forth below,
employees must be employed in a designated position on October 31 of the
applicable fiscal year and must have been employed in a designated position for
a period of nine months prior to the end of the fiscal year to be eligible to
participate in the bonus award program. Base salary for this purpose shall
include regular compensation only, and shall not include bonus award payments
and any other miscellaneous payments that might be treated as income to the
employee.

DEATH, DISABILITY AND RETIREMENT

If an eligible employee terminates employment with the Company during the
fiscal year before October 31 as a result of death, disability or retirement,
and had been employed in a designated position for a period of at least nine
months, such employee will be eligible to participate in the Bonus Award Program
notwithstanding the fact that the employee is not employed on October 31, and
the base salary paid to such employee during that portion of the year during
which he or she was employed in a designated position will be used to calculate
the amount of such employee's bonus award.

EXTRAORDINARY CIRCUMSTANCES

Extraordinary circumstances will be subject to review by the Executive
Committee.

SANDERSON FARMS, INC.
Bonus Award Program

IV. DETERMINATION OF AWARD AND PAYMENT

Bonus award programs for many corporations focus in some form or another
on the real dollar profits earned by the corporation within a given time frame.
This method of determining bonuses to be paid to employees recognizes that
bonuses should be paid to employees only after a fair and equitable return has
been earned for the shareholders who own the company. With this basic philosophy
in mind, the Board has determined that no bonuses will be paid under this
program unless net return on average stockholders' equity after consideration is
taken for any bonus paid under this program for the year exceeds eight percent
(8%). After this minimum threshold is met, the Bonus Award Program will become
effective, and bonuses will be paid if the other criteria described in this
program are met.

In recognition of the fact that one of our primary obligations as
employees of this Company is to our shareholders, the Board of Directors has
determined that net profits made by the consolidated corporations [Sanderson
Farms, Inc., Sanderson Farms, Inc. (Production Division), Sanderson Farms, Inc.
(Processing Division) and Sanderson Farms, Inc. (Foods Division)] on a per share
basis for the period November 1 through October 31 of each year will be the
primary basis for bonus awards. The earnings per share for purposes of computing
the bonus awards, as set forth herein, shall be computed net of any bonuses
awarded and net of any extraordinary, non recurring income items. For all
employees of Sanderson Farms other than certain management level employees, this
will be the sole basis for determining bonus awards.

The audited annual financial statements, on a consolidated basis, of
Sanderson Farms, Inc. will be the measuring tool for the net return to
shareholders portion of the bonus award program. The annual bonus award will be
paid to participants in the bonus award program after the outside auditors have
completed their annual audit of the corporations, which is usually approximately
two (2) months after the end of the fiscal year.

SANDERSON FARMS, INC.
Bonus Award Program

V. OBJECTIVES AND FORMULAS FOR DETERMINATION OF THE BONUS AWARD

All salaried employees will receive a bonus if the net income per share
objectives set forth below are met, and if the minimum return on average
stockholders equity for the year is earned. Net income shall be computed net of
any bonuses awarded and net of any extraordinary, non recurring income items not
related to the fiscal year's operations. The annual audited financial
statements, on a consolidated basis, of Sanderson Farms, Inc., will be the
measuring tool for this portion of the Bonus Award Program. The annual bonus
award will be paid to participants after the outside auditors have completed
their annual audit of the consolidated corporation.

The earnings per share objectives and the respective percentage of
employees' bonus dependent upon EPS earned for the fiscal year (November 1 thru
October 31) are as follows:

RANK PER SHARE RETURN* PERCENTAGE OF AWARD
---- ----------------- -------------------

Best (1st) $ 3.5603 100.0%
2nd $ 3.5047 95.5%
3rd $ 3.4491 91.0%
4th $ 3.3936 86.5%
5th $ 3.3380 82.0%
6th $ 3.2825 77.5%
7th $ 3.2269 73.0%
8th $ 3.1714 68.5%
9th $ 3.1158 64.0%
10th $ 3.0603 59.5%
11th $ 3.0047 55.0%
12th $ 2.9491 50.5%
13th $ 2.8935 46.0%
14th $ 2.8379 41.5%
15th $ 2.7823 37.0%
16th $ 2.7267 32.5%
17th $ 2.6711 28.0%
18th $ 2.6155 23.5%
19th $ 2.5599 19.0%
20th BELOW ZERO

* Net of bonus and net of extraordinary, non recurring income items not related
to the fiscal year's operations. The per share return targets were calculated
using 19,994,646 diluted shares. Adjustments to these targets will be made to
reflect changes in the number of shares outstanding resulting from any merger,
consolidation, reorganization, re-capitalization, re-incorporation,
stock-splits, stock dividend, stock repurchase, or other changes in the
corporate structure of the Company. Furthermore, the target per share return
numbers were calculated based on a target net return on projected sales. The
Company reserves the right to adjust these targets in the event of a substantial
fluctuation in sales pounds or dollars during the year.

The following formula will be utilized to determine the exact dollar amount of a
participant's bonus award dependent upon EPS performance.

A = Gross Award

S = Base Salary (excluding bonus award payments and other items of
miscellaneous income) of the Participant during that portion of the
year in which he or she was employed in a designated position.

P = Percentage of award earned based on above schedule

M = Percent of salary eligible to be earned as a bonus based on
EPS performance.

FORMULA

S X P X M = A

As with any awards made under this Bonus Award Program, no bonus will be
paid unless total net income return (after bonus) on average stockholders'
equity for the year exceeds eight percent (8%). Net return on average
stockholders' equity will be computed by taking the average of beginning and
ending stockholders' equity for the applicable year, and dividing that number
into net income for the year.

The percent of salary eligible to be earned as a bonus based on EPS
performance ("M" in the above formula) for the fiscal year is 25%.

SANDERSON FARMS, INC.
Bonus Award Program

VI. PARAMETERS

This bonus award program has been designed to encourage teamwork and
cooperation among all of the divisions of Sanderson Farms, and to ensure that
Sanderson Farms is consistently among the leaders in profitability in the
broiler and prepared foods industry. The program is also designed to pay a bonus
to employees only after the Company has returned to its shareholders a fair and
equitable return.

1. In the event of extraordinary operating conditions that were unforeseen
when setting the objectives and percentages in this bonus award program, such
circumstances will be considered by the Executive Committee of Sanderson Farms,
Inc. in making awards.

2. In the event of possible reporting errors affecting the ranking, such
circumstances will be considered by the Executive Committee of Sanderson Farms,
Inc. in making awards.

3. In the event changes in laws or accounting procedures affect the
ranking, such circumstances will be considered by the Executive Committee of
Sanderson Farms, Inc. in making awards.

4. The per share return targets were calculated using 19,994,646 diluted
shares. Adjustments to these targets will be made to reflect changes in the
number of shares outstanding resulting from any merger, consolidation,
reorganization, re-capitalization, re-incorporation, stock-splits, stock
dividend, stock repurchase, or other changes in the corporate structure of the
Company. Furthermore, the target per share return numbers were calculated based
on a target net return on projected sales. The Company reserves the right to
adjust these targets in the event of a substantial fluctuation in sales pounds
or dollars during the year.

SANDERSON FARMS, INC.

BONUS AWARD PROGRAM

(DIVISION MANAGERS)

Effective November 1, 2004
Supercedes November 1, 2003

SANDERSON FARMS, INC.
Bonus Award Program
as of November 1, 2004

I. PURPOSE

A. To encourage excellence and high levels of performance.

B. To recognize the contributions of the salaried employees to the
overall profitability of the Company.

C. To encourage all employees from every division in the Company to
cooperate, share information and work together as a team for the
overall benefit of the Company and its shareholders.

II. PARTICIPATION AND MAXIMUM AWARD

B. All salaried management and accounting trainees within the corporate
structure.

SANDERSON FARMS, INC.
Bonus Award Program

III. ELIGIBILITY

EMPLOYMENT/PARTICIPATION

Except in the case of death, disability or retirement, as set forth below,
employees must be employed in a designated position on October 31 of the
applicable fiscal year and must have been employed in a designated position for
period of nine months prior to the end of the fiscal year to be eligible to
participate in the bonus award program. Base salary for this purpose shall
include regular compensation only, and shall not include bonus award payments
and any other miscellaneous payments that might be treated as income to the
employee.

DEATH, DISABILITY AND RETIREMENT

If an eligible employee terminates employment with the Company during the
fiscal year before October 31 as a result of death, disability or retirement,
and had been in a designated position for a period of at least nine months, such
employee will be eligible to participate in the Bonus Award Program
notwithstanding the fact that the employee is not employed on October 31, and
the base salary paid to such employee during that portion of the year during
which he or she was employed in a designated position will be used to calculate
the amount of such employee's bonus award.

EXTRAORDINARY CIRCUMSTANCES

Extraordinary circumstances will be subject to review by the Executive
Committee.

SANDERSON FARMS, INC.
Bonus Award Program
IV. DETERMINATION OF AWARD AND PAYMENT

Although the Board has determined that net profits earned for shareholders
of the Company should be the primary method of determining the bonuses to be
paid to employees, the Board has also recognized that certain management level
employees have responsibility for and more direct control over the operating
performance and profitability of the Company. In recognition of this fact, the
Board has concluded that a certain percentage of your bonus should be determined
by evaluating the operating and profitability performance of the Company
relative to its peers and competitors. Therefore, while a portion of your bonus
will be determined by the Company's earnings per share performance, a portion
will also be determined by evaluating the performance of the Company as compared
to our peers and competitors by Agri Stats for the poultry division, and certain
net income growth targets for managers in the foods division, all as described
herein.

The Company's performance relative to its peers and competitors as
reported by Agri Stats will be used to evaluate and determine bonuses paid to
those employees whose bonuses are determined in part by such performance. The
appropriate measuring tool as set forth in this Bonus Award Program as reported
by Agri Stats for the twelve (12) month period ending on October 31 each year
will be used to determine if a bonus has been earned by such employees.

SANDERSON FARMS, INC.
Bonus Award Program

V. OBJECTIVES AND FORMULAS FOR DETERMINATION OF THE BONUS AWARD

A. EPS Bonus

The earnings per share objectives and the respective percentage of
employees' bonus dependent upon EPS earned for the fiscal year (November 1 thru
October 31) are as follows:

RANK PER SHARE RETURN* PERCENTAGE OF AWARD
---- ----------------- -------------------

The following formula will be utilized to determine the exact dollar amount of a
participant's bonus award dependent upon EPS performance.

A = Gross Award

S = Base Salary (excluding bonus award payments and other
items of miscellaneous income) of the Participant during
that portion of the year in which he or she was employed
in a designated position.

P = Percentage of award earned based on above schedule

M = Percent of salary eligible to be earned as a bonus based
on EPS performance.

FORMULA

S X P X M = A

SANDERSON FARMS, INC.
Bonus Award Program

The percent of salary eligible to be earned as a bonus based on EPS
performance ("M" in the above formula) for the fiscal year is 25%.

B. Performance Based Bonus

All processing and production division managers will receive a bonus based
in part upon the Company's earnings per share performance, in part based on the
Company's overall corporate Agri Stats performance, and in part based on the
performance of the complexes to which they are assigned (that is, "big bird
debone" complexes (Laurel, Hammond and Hazlehurst) will be grouped and "tray
pack" complexes (Texas, McComb and Collins) will be grouped) relative to the
Company's peers and competitors as reported by Agri Stats. The overall corporate
Agri Stats performance measure will be the Company's performance relative to its
peers and competitors as reported by Agri Stats in its "bottom line analysis,
per head" report, net of bonus. The performance of the applicable complexes will
be measured by the complexes' combined performance relative to its peers and
competitors as reported by corporate Agri Stats in its complex "operational
profit analysis, per head" report, net of bonus.

These managers will be paid in accordance with the following schedules:

ASSIGNED CORPORATE
COMPLEX AGRI STATS
PERCENTAGE OF SALARY OPERATING BOTTOM
ELIGIBLE TO BE EARNED PROFIT LINE
AS BONUS BASED REPORT REPORT
ON PERFORMANCE (PER HEAD) (PER HEAD)
FACTORS (PERCENTAGE OF AWARD EARNED) (PERCENTAGE OF AWARD EARNED)

TARGET TOP 10% TOP THREE PLACES
Prod. Div. Managers 20% 50% 50%
Proc. Div. Managers 20% 50% 50%
By-Products Div. Mgr. 20% 100%

HIGH AVERAGE TOP 20% PLACES FOUR THROUGH SIX
Prod. Div. Managers 20% 33.3% 33.3%
Proc. Div. Managers 20% 33.3% 33.3%
By-Products Div. Mgr. 20% 66.67%

LOW AVERAGE TOP 30% PLACES SEVEN THROUGH NINE

Prod. Div. Managers 20% 16.7% 16.7%
Proc. Div. Managers 20% 16.7% 16.7%
By-Products Div. Mgr. 20% 33.3%

The division manager at the Foods Division will receive a bonus based in
part upon the Company's earnings per share performance as described on pages 5
and 6 of this plan, and in part based on the Foods Division's performance as
measured by "growth in pre-tax operating income" and Corporate Agri Stats Bottom
Line Analysis, per head, report as described below. The final results of the
Foods Division will be determined after the Company's external auditors have
completed their audit at the end of each fiscal year, which is completed
approximately two months after the last day of each fiscal year end.

PERCENTAGE OF SALARY
ELIGIBLE TO BE EARNED TARGET CORPORATE
AS BONUS BASED PRE TAX AGRI STATS
ON PERFORMANCE OPERATING BOTTOM LINE
FACTORS INCOME GROWTH RPT (PER HEAD)

TARGET 54% TOP THREE PLACES
Division Mgr.-Foods 20% 80% 20%

50%
Division Mgr.-Foods 20% 65%

AVERAGE 46% PLACES FOUR THROUGH SIX
Division Mgr.-Foods 20% 50% 10%

42%
Division Mgr.-Foods 20% 35%

LOW 38% PLACES SEVEN THROUGH NINE
Division Mgr.-Foods 20% 20% 5%

The following formula will be utilized for all employees whose bonus is to
be determined in part by factors other than EPS performance to determine that
portion of the award dependent upon such factors:

A = Gross Award

S = Salary (excluding bonus award payments and other
items of miscellaneous income) of the Participant
during that portion of the year in which he or she was
employed in a designated position.

P = Percentage of award earned based on performance
factor

M = Percentage of salary eligible to be earned and paid
as a bonus on performance factor.

FORMULA

S X P X M = A

SANDERSON FARMS, INC.
Bonus Award Program

VI. PARAMETERS

2. In the event of possible reporting errors affecting the ranking, such
circumstances will be considered by the Executive Committee of Sanderson Farms,
Inc. in making awards.

3. In the event changes in laws or accounting procedures affect the
ranking, such circumstances will be considered by the Executive Committee of
Sanderson Farms, Inc. in making awards.

4. The per share return targets were calculated using 19,994,646 diluted shares.
Adjustments to these targets will be made to reflect changes in the number of
shares outstanding resulting from any merger, consolidation, reorganization,
re-capitalization, re-incorporation, stock-splits, stock dividend, stock
repurchase, or other changes in the corporate structure of the Company.
Furthermore, the target per share return numbers were calculated based on a
target net return on projected sales. The Company reserves the right to adjust
these targets in the event of a substantial fluctuation in sales pounds or
dollars during the year.

SANDERSON FARMS, INC.

BONUS AWARD PROGRAM

(EXECUTIVE COMMITTEE)

Effective November 1, 2004
Supercedes November 1, 2003

SANDERSON FARMS, INC.
Bonus Award Program
Effective Nov. 1, 2004

I. PURPOSE

A. To encourage excellence and high levels of performance.

B. To recognize the contributions of the salaried employees to the
overall profitability of the Company.

C. To encourage all employees from every division in the Company to
cooperate, share information and work together as a team for the
overall benefit of the Company and its shareholders.

II. PARTICIPATION AND MAXIMUM AWARD

B. All salaried management and accounting trainees within the corporate
structure.

The maximum bonus award achievable will vary depending on the employee's
position in the Company.

SANDERSON FARMS, INC.
Bonus Award Program

III. ELIGIBILITY

EMPLOYMENT/PARTICIPATION LEVEL

DEATH, DISABILITY AND RETIREMENT

EXTRAORDINARY CIRCUMSTANCES

Extraordinary circumstances will be subject to review by the Executive
Committee.

SANDERSON FARMS, INC.
Bonus Award Program

IV. DETERMINATION OF AWARD AND PAYMENT

In recognition of the fact that one of our primary obligations as
employees of this Company is to our shareholders, the Board of Directors has
determined that net profits made by the consolidated corporations [Sanderson
Farms, Inc., Sanderson Farms, Inc. (Production Division), Sanderson Farms, Inc.
(Processing Division) and Sanderson Farms, Inc. (Foods Division)] on a per share
basis for the period November 1 through October 31 of each year will be the
primary basis for bonus awards. The earnings per share for purposes of computing
the bonus awards, as set forth herein, shall be computed net of any bonuses
awarded and net of any extraordinary, non recurring income items. For all
employees of Sanderson Farms other than those management level employees
specifically described in this program, this will be the sole basis for
determining bonus awards.

Although the Board has determined that net profits earned for shareholders
of the Company should be the primary method of determining the bonuses to be
paid to employees, the Board has also recognized that certain management level
employees have responsibility for and more direct control over the operating
performance and profitability of the Company. In recognition of this fact, the
Board has concluded that a certain percentage of such employees' bonus should be
determined by evaluating the operating and profitability performance of the
Company relative to its peers and competitors. Therefore, while a portion of
such employees' bonus will be determined by the Company's earnings per share
performance, a portion of such employees' bonus will also be determined by
evaluating the performance of the Company as compared to our peers and
competitors by Agri Stats for the poultry division, and certain net income
growth targets for managers in the foods division, all as described herein.

SANDERSON FARMS, INC.
Bonus Award Program

V. OBJECTIVES AND FORMULAS FOR DETERMINATION OF THE BONUS AWARD

A. All salaried employees

The earnings per share objectives and the respective percentage of
employees' bonus dependent upon EPS earned for the fiscal year (November 1 thru
October 31) are as follows:

RANK PER SHARE RETURN* PERCENTAGE OF AWARD
---- ----------------- -------------------

Best (1st) $3.5603 100.0%
2nd $3.5047 95.5%
3rd $3.4491 91.0%
4th $3.3936 86.5%
5th $3.3380 82.0%
6th $3.2825 77.5%
7th $3.2269 73.0%
8th $3.1714 68.5%
9th $3.1158 64.0%
10th $3.0603 59.5%
11th $3.0047 55.0%
12th $2.9491 50.5%
13th $2.8935 46.0%
14th $2.8379 41.5%
15th $2.7823 37.0%
16th $2.7267 32.5%
17th $2.6711 28.0%
18th $2.6155 23.5%
19th $2.5599 19.0%
20th BELOW ZERO

*Net of bonus and net of extraordinary, non recurring income items not related
to the fiscal year's operations. The per share return targets were calculated
using 19,994,646 diluted shares. Adjustments to these targets will be made to
reflect changes in the number of shares outstanding resulting from any merger,
consolidation, reorganization, re-capitalization, re-incorporation,
stock-splits, stock dividend, stock repurchase, or other changes in the
corporate structure of the Company. Furthermore, the target per share return
numbers were calculated based on a target net return on projected sales. The
Company reserves the right to adjust these targets in the event of a substantial
fluctuation in sales pounds or dollars during the year.

The following formula will be utilized to determine the exact dollar amount of a
participant's bonus award dependent upon EPS performance.

A = Gross Award

S = Base Salary (excluding bonus award payments and other
items of miscellaneous income) of the Participant
during that portion of the year in which he or she
was employed in a designated position.

P = Percentage of award earned based on above schedule

M = Percent of salary eligible to be earned as a bonus
based on EPS performance.

FORMULA

S X P X M = A

SANDERSON FARMS, INC.
Bonus Award Program

For all employees other than those specifically set forth below, the
percent of salary eligible to be earned as a bonus based on EPS performance ("M"
in the above formula) is 25%. The management level employees set forth below
shall be eligible to earn a bonus based on EPS performance equal to the percent
of their salary as set forth below ("M" in the above formula):

CEO 50%

CFO, 50%
COO/President 50%
Dir.-Marketing, 35%
Dir.-Production 35%
Dir.-Processing 35%

B. Executive Committee

Bonus awards under this Bonus Award Program for the Chief Executive
Officer, Chief Financial Officer, VP-Sales, Director of Marketing, Director of
Production, Director of Processing, Director of Development, the Controller, the
Director of Administration, the Director of Technical Services, the Director of
Sales and the Chief Financial Analyst will be granted based on a combination of
earnings per share performance and general corporate performance as measured
against the Company's peers and competitors as reported by Agri Stats. For
purposes of calculating bonuses awarded and paid to individuals in these
positions based on operating performance, the corporate Agri Stats measure will
be as reported in Agri Stats' "bottom line analysis, per head" report, net of
bonus. Awards made to these individuals based on the operating performance
factor will be as follows:

PERCENTAGE OF SALARY CORPORATE AGRI STATS
ELIGIBLE TO BE EARNED AS BOTTOM LINE
BONUS ON OPERATING REPORT (PER HEAD)
PERFORMANCE FACTORS (PERCENTAGE OF AWARD EARNED)

TARGET TOP THREE PLACES
CEO 50% 100%
CFO, COO, 50% 100%
Dir. Mktg, Dir. Proc. 35% 100%
Dir.Prod. 35% 100%
Controller, Dir. Admn., 25% 100%
Dir.Tech Svcs., Dir. Sales, 25% 100%
Dir. Devlop., Chief Analyst 25% 100%

HIGH AVERAGE PLACES FOUR THROUGH SIX
CEO 50% 66 2/3%
CFO, COO, 50% 66 2/3%
Dir.-Marketing, 35% 66 2/3%
Dir.-Prod., Dir.-Proc. 35% 66 2/3%
Controller, Dir.-Admin., 25% 66 2/3%
Dir-Tech Svcs., Dir.-Sales, 25% 66 2/3%
Dir. Develop.,Chief Analyst 25% 66 2/3%

LOW AVERAGE PLACES SEVEN THROUGH NINE

CEO 50% 33 1/3%
CFO, COO, 50% 33 1/3%
Dir.-Marketing, 35% 33 1/3%
Dir.-Prod., Dir.-Proc., 35% 33 1/3%
Controller, Dir.-Admin, 25% 33 1/3%
Dir-Tech Svcs., Dir.-Sales, 25% 33 1/3%
Dir. Develop.,Chief Analyst 25% 33 1/3%

A = Gross Award
S = Base Salary (excluding bonus award
payments and other items of
miscellaneous income) of the
Participant during that portion of
the year in which he or she was
employed in a designated position.
P = Percentage of award earned based on performance factor
M = Percentage of salary eligible to be earned and paid as
a bonus on performance factor.

FORMULA

S X P X M = A

SANDERSON FARMS, INC.
Bonus Award Program

VI. PARAMETERS

2. In the event of possible reporting errors affecting the ranking, such
circumstances will be considered by the Executive Committee of Sanderson Farms,
Inc. in making awards.

3. In the event changes in laws or accounting procedures affect the
ranking, such circumstances will be considered by the Executive Committee of
Sanderson Farms, Inc. in making awards.

SANDERSON FARMS, INC.

BONUS AWARD PROGRAM

(GENERAL OFFICE PERFORMANCE AWARDS PARTICIPANTS)

Effective November 1, 2004
SUPERCEDES NOVEMBER 1, 2003

SANDERSON FARMS, INC.
Bonus Award Program
Effective Nov. 1, 2004

I. PURPOSE

A. To encourage excellence and high levels of performance.

B. To recognize the contributions of the salaried employees to the
overall profitability of the Company.

C. To encourage all employees from every division in the Company to
cooperate, share information and work together as a team for the
overall benefit of the Company and its shareholders.

II. PARTICIPATION AND MAXIMUM AWARD

B. All salaried management and accounting trainees within the corporate
structure.

SANDERSON FARMS, INC.
Bonus Award Program

III. ELIGIBILITY

EMPLOYMENT/PARTICIPATION

DEATH, DISABILITY AND RETIREMENT

EXTRAORDINARY CIRCUMSTANCES

Extraordinary circumstances will be subject to review by the Executive
Committee.

SANDERSON FARMS, INC.
Bonus Award Program

IV. DETERMINATION OF AWARD AND PAYMENT

Although the Board has determined that net profits earned for shareholders
of the Company should be the primary method of determining the bonuses to be
paid to employees, the Board has also recognized that certain management level
employees have responsibility for and more direct control over the operating
performance and profitability of the Company. In recognition of this fact, the
Board has concluded that a certain percentage of your bonus should be determined
by evaluating the operating and profitability performance of the Company
relative to its peers and competitors. Therefore, while a portion of your bonus
will be determined by the Company's earnings per share performance, a portion of
your bonus will also be determined by evaluating the performance of the Company
as compared to our peers and competitors by Agri Stats for managers in the
poultry division, and based on certain net income growth targets for managers in
the foods division, all as described herein.

SANDERSON FARMS, INC.
Bonus Award Program

V. OBJECTIVES AND FORMULAS FOR DETERMINATION OF THE BONUS AWARD

A. EPS Performance

The earnings per share objectives and the respective percentage of
employees' bonus dependent upon EPS earned for the fiscal year (November 1 thru
October 31) are as follows:

RANK PER SHARE RETURN* PERCENTAGE OF AWARD
---- ----------------- -------------------

Best (1st) $3.5603 100.0%
2nd $3.5047 95.5%
3rd $3.4491 91.0%
4th $3.3936 86.5%
5th $3.3380 82.0%
6th $3.2825 77.5%
7th $3.2269 73.0%
8th $3.1714 68.5%
9th $3.1158 64.0%
10th $3.0603 59.5%
11th $3.0047 55.0%
12th $2.9491 50.5%
13th $2.8935 46.0%
14th $2.8379 41.5%
15th $2.7823 37.0%
16th $2.7267 32.5%
17th $2.6711 28.0%
18th $2.6155 23.5%
19th $2.5599 19.0%
20th BELOW ZERO

The following formula will be utilized to determine the exact dollar amount of a
participant's bonus award dependent upon EPS performance.

A = Gross Award
S = Base Salary (excluding bonus award
payments and other items of
miscellaneous income) of the
Participant during that portion
of the year in which he or she
was employed in a designated
position.
P = Percentage of award earned based on above schedule
M = Percent of salary eligible to be earned as a bonus
based on EPS performance.
FORMULA
S X P X M = A

The percent of salary eligible to be earned as a bonus based on EPS
performance ("M" in the above formula) for the fiscal year is 25%.

B. Performance Based Bonus

Bonus awards under this Bonus Award Program for the Nutritionist,
Veterinarian, Assistant to Director of Live Production, Corporate Chill Pack
Coordinator and Quality Assurance Manager will be granted based on a combination
of earnings per share performance and general corporate performance as measured
against the Company's peers and competitors as reported by Agri Stats. For
purposes of calculating bonuses awarded and paid to individuals in these
positions based on operating performance, the corporate Agri Stats measure will
be as reported in Agri Stats' "bottom line analysis, per head, report." Awards
made to these individuals based on the operating performance factor will be as
follows:

PERCENTAGE OF SALARY CORPORATE AGRI STATS
ELIGIBLE TO BE EARNED AS BOTTOM LINE
BONUS ON OPERATING REPORT (PER HEAD)
PERFORMANCE FACTORS (PERCENTAGE OF AWARD EARNED)

TARGET TOP THREE PLACES
Corp. Processing Mgr. 20% 100%
Corp. Production Mgr. 20% 100%
Nutritionist 15% 100%
Veterinarian 15% 100%
Corp. Live Prod. Asst. 15% 100%
Quality Assurance Mgr 15% 100%
Corp. Maint. Mgr. 15% 100%

HIGH AVERAGE PLACES FOUR THROUGH SIX
Corp. Processing Mgr. 20% 66 2/3%
Corp. Production Mgr. 20% 66 2/3%
Nutritionist 15% 66 2/3%
Veterinarian 15% 66 2/3%
Corp. Live Prod. Asst 15% 66 2/3%
Quality Assurance Mgr 15% 66 2/3%
Corp. Maint. Mgr. 15% 66 2/3%

LOW AVERAGE PLACES SEVEN THROUGH NINE
Corp. Processing Mgr. 20% 33 1/3%
Corp. Production Mgr. 20% 33 1/3%
Nutritionist 15% 33 1/3%
Veterinarian 15% 33 1/3%
Corp. Live Prod. Asst. 15% 33 1/3%
Quality Assurance Mgr 15% 33 1/3%
Corp. Maint. Mgr. 15% 33 1/3%

All poultry sales managers will receive a bonus based in part upon the
Company's earnings per share performance, in part based on the Company's overall
corporate Agri Stats performance, and in part based on the performance of the
complexes to which they are assigned (that is, "big bird debone" complexes
(Laurel, Hammond and Hazlehurst) will be grouped and "tray pack" complexes
(Collins, Texas and McComb) will be grouped) relative to the Company's peers and
competitors as reported by Agri Stats. The overall corporate Agri Stats
performance measure will be the Company's performance relative to its peers and
competitors as reported by Agri Stats in its "bottom line analysis, per head"
report. The performance of the applicable complexes will be measured by the
complexes' combined performance relative to its peers and competitors as
reported by corporate Agri Stats in its complex "operational profit analysis,
per head" report.

These managers will be paid in accordance with the following schedule:

ASSIGNED CORPORATE
PERCENTAGE OF SALARY COMPLEX AGRI STATS
ELIGIBLE TO BE EARNED OPERATIONS BOTTOM
AS BONUS BASED PROFIT (PER HEAD) LINE REPORT
ON PERFORMANCE AGRI STATS (PER HEAD)
FACTORS (% OF AWARD EARNED) (% OF AWARD EARNED)

TARGET TOP 10% TOP THREE PLACES
Manager Export Sales 20% 0% 100.0%
Manager Debone/MDM Sales 20% 50% 50%
Manager Cust. Relations 20% 0% 100.0%
Corporate Export Sales Managers 15% 0% 100.0%
Corporate Sales Managers 15% 50% 50%

HIGH AVERAGE TOP 20% PLACES FOUR THROUGH SIX
Manager Export Sales 20% 0% 66.67%
Manager Debone/MDM Sales 20% 33.3% 33.3%
Manager Cust. Relations 20% 0% 66.67%
Corporate Export Sales Managers 15% 0% 66.67%
Corporate Sales Managers 15% 33.3% 33.3%

LOW AVERAGE TOP 30% PLACES SEVEN THROUGH NINE
Manager Export Sales 20% 0% 33.3%
Manager Debone/MDM Sales 20% 16.7% 16.7%
Manager Cust. Relations 20% 0% 33.3%
Corporate Export Sales Managers 15% 0% 33.3%
Corporate Sales Managers 15% 16.7% 16.7%

The Foods Sales Managers will receive a bonus based in part upon the
Company's earnings per share performance as described on pages 5 and 6 of this
plan, and in part based on the Foods Division's performance as measured by
"pre-tax operating income growth" and Corporate Agri Stats Bottom Line Analysis,
per head, report as described below. The final results of the Foods Division
will be determined after the Company's external auditors have completed their
audit at the end of each fiscal year, which is completed approximately two
months after the last day of each fiscal year end.

PERCENTAGE OF SALARY
ELIGIBLE TO BE EARNED TARGET CORPORATE
AS BONUS BASED PRE TAX AGRI STATS
ON PERFORMANCE OPERATING BOTTOM LINE
FACTORS INCOME GROWTH RPT (PER HEAD)

TARGET 54% TOP THREE PLACES
Manager Foods Div. Sales 20% 80% 20%
Foods Sales Manager 15% 80% 20%
Prod. Development Mgr. 10% 80% 20%

50%
Manager Foods Div. Sales 20% 65%
Foods Sales Manager 15% 65%
Prod. Development Mgr 10% 65%

AVERAGE 46% PLACES FOURTH THROUGH SIX
Manager Foods Div. Sales 20% 50% 10%
Foods Sales Manager 15% 50% 10%
Prod. Development Mgr 10% 50% 10%

42%
Manager Foods Div. Sales 20% 35%
Foods Sales Manager 15% 35%
Prod. Development Mgr 10% 35%

LOW 38% PLACES SEVEN THROUGH NINE
Manager Foods Div. Sales 20% 20% 5%
Foods Sales Manager 15% 20% 5%
Prod. Development Mgr 10% 20% 5%

A = Gross Award
S = Base Salary (excluding bonus award
payments and other items of miscellaneous
income) of the Participant during that
portion of the year in which he or she was
employed in a designated position.
P = Percent age of award earned based on
Performance factor
M = Percentage of salary eligible to be earned and
paid as a bonus on performance factor.

FORMULA
S X P X M = A

SANDERSON FARMS, INC.
Bonus Award Program

VI. PARAMETERS

2. In the event of possible reporting errors affecting the ranking, such
circumstances will be considered by the Executive Committee of Sanderson Farms,
Inc. in making awards.

3. In the event changes in laws or accounting procedures affect the
ranking, such circumstances will be considered by the Executive Committee of
Sanderson Farms, Inc. in making awards.

SANDERSON FARMS, INC.

BONUS AWARD PROGRAM

(PRODUCTION, PROCESSING AND FOODS PERFORMANCE AWARD PARTICIPANTS)

Effective November 1, 2004
Supercedes November 1, 2003

SANDERSON FARMS, INC.
Bonus Award Program
Effective Nov. 1, 2004

I. PURPOSE

A. To encourage excellence and high levels of performance.

B. To recognize the contributions of the salaried employees to the
overall profitability of the Company.

C. To encourage all employees from every division in the Company to
cooperate, share information and work together as a team for the
overall benefit of the Company and its shareholders.

II. PARTICIPATION AND MAXIMUM AWARD

B. All salaried management and accounting trainees within the corporate
structure.

SANDERSON FARMS, INC.
Bonus Award Program

III. ELIGIBILITY

EMPLOYMENT/PARTICIPATION

DEATH, DISABILITY AND RETIREMENT

EXTRAORDINARY CIRCUMSTANCES

Extraordinary circumstances will be subject to review by the Executive
Committee.

SANDERSON FARMS, INC.
Bonus Award Program

IV. DETERMINATION OF AWARD AND PAYMENT

Although the Board has determined that net profits earned for shareholders
of the Company should be the primary method of determining the bonuses to be
paid to employees, the Board has also recognized that certain management level
employees have responsibility for and more direct control over the operating
performance and profitability of the Company. In recognition of this fact, the
Board has concluded that a certain percentage of your bonus should be determined
by evaluating the operating and profitability performance of the Company
relative to its peers and competitors. Therefore, while a portion of your bonus
will be determined by the Company's earnings per share performance, a portion of
your bonus will also be determined by evaluating the performance of the Company
as compared to our peers and competitors by Agri Stats for poultry division
managers, and based on certain net income growth targets for managers in the
foods division, all as described herein.

SANDERSON FARMS, INC.
Bonus Award Program

V. OBJECTIVES AND FORMULAS FOR DETERMINATION OF THE BONUS AWARD

A. EPS Bonus

The earnings per share objectives and the respective percentage of
employees' bonus dependent upon EPS earned for the fiscal year (November 1 thru
October 31) are as follows:

RANK PER SHARE RETURN* PERCENTAGE OF AWARD
---- ----------------- -------------------

Best (1st) $3.5603 100.0%
2nd $3.5047 95.5%
3rd $3.4491 91.0%
4th $3.3936 86.5%
5th $3.3380 82.0%
6th $3.2825 77.5%
7th $3.2269 73.0%
8th $3.1714 68.5%
9th $3.1158 64.0%
10th $3.0603 59.5%
11th $3.0047 55.0%
12th $2.9491 50.5%
13th $2.8935 46.0%
14th $2.8379 41.5%
15th $2.7823 37.0%
16th $2.7267 32.5%
17th $2.6711 28.0%
18th $2.6155 23.5%
19th $2.5599 19.0%
20th BELOW ZERO

The following formula will be utilized to determine the exact dollar amount of a
participant's bonus award dependent upon EPS performance.

A = Gross Award
S = Base Salary (excluding bonus award payments and other
items of miscellaneous income) of the Participant
during that portion of the year in which he or she
was employed in a designated position.
P = Percentage of award earned based on above schedule
M = Percent of salary eligible to be earned as a bonus
based on EPS performance.
FORMULA

S X P X M = A

The percent of salary eligible to be earned as a bonus based on EPS
performance ("M" in the above formula) for the fiscal year is 25%.

B. Performance Based Bonus

All production unit managers, processing shift managers, processing
managers, packing managers and shipping/preprice managers will receive a bonus
based in part upon the Company's earnings per share performance, in part based
on the Company's overall corporate Agri Stats performance, and in part based on
the performance of the complexes to which they are assigned (for example, "big
bird debone" complexes (Laurel, Hammond and Hazlehurst) will be grouped and
"tray pack" complexes (McComb, Collins and Texas) will be grouped) relative to
the Company's peers and competitors as reported by Agri Stats. The overall
corporate Agri Stats performance measure will be the Company's performance
relative to its peers and competitors as reported by Agri Stats in its "bottom
line analysis, per head" report, net of bonus. The performance of the applicable
complexes will be measured by the complexes' combined performance relative to
its peers and competitors as reported by corporate Agri Stats in its complex
"operational profit analysis, per head" report, net of bonus.

These managers will be paid in accordance with the following schedule:

ASSIGNED CORPORATE
PERCENTAGE OF SALARY COMPLEX AGRI STATS
ELIGIBLE TO BE EARNED OPERATIONS BOTTOM
AS BONUS BASED PROFIT LINE
ON PERFORMANCE AGRI STATS REPORT
FACTORS (PER HEAD) (PER HEAD)
(PERCENTAGE OF AWARD EARNED) (PERCENTAGE OF AWARD EARNED)

TARGET TOP 10% TOP THREE PLACES
Prod. Unit Mgrs, 10% 50% 50%
Proc. Plant Mgrs 10% 50% 50%
Proc. Shift Mgrs 10% 50% 50%
Processing Mgrs 10% 50% 50%
Packing Mgrs. 10% 50% 50%
Ship/Preprice/ Mgrs 10% 50% 50%

HIGH AVERAGE TOP 20% PLACES FOUR THROUGH SIX
Prod. Unit Mgrs. 10% 33.3% 33.3%
Proc. Plant Mgrs 10% 33.3% 33.3%
Proc. Shift Mgrs. 10% 33.3% 33.3%
Processing Mgrs. 10% 33.3% 33.3%
Packing Mgrs. 10% 33.3% 33.3%
Ship/Preprice/ Mgrs. 10% 33.3% 33.3%

LOW AVERAGE TOP 30% PLACES SEVEN THROUGH NINE
Prod. Unit Mgrs. 10% 16.7% 16.7%
Proc. Plant Mgrs 10% 16.7% 16.7%
Proc.Shift Mgrs. 10% 16.7% 16.7%
Processing Mgrs. 10% 16.7% 16.7%
Packing Mgrs. 10% 16.7% 16.7%
Ship/Preprice/ Mgrs. 10% 16.7% 16.7%

At the Foods Division, the Production Manager will receive a bonus based
in part upon the Company's earnings per share performance as described on pages
6 and 7 of this plan, and in part based on the Foods Division's performance as
measured by "growth in pre-tax operating income" and Corporate Agri Stats Bottom
Line Analysis, per head, report, as described below. The final results of the
Foods Division will be determined after the Company's external auditors have
completed their audit at the end of each fiscal year, which is completed
approximately two months after the last day of each fiscal year end.

PERCENTAGE OF SALARY
ELIGIBLE TO BE EARNED TARGET CORPORATE
AS BONUS BASED PRE TAX AGRI STATS
ON PERFORMANCE OPERATING BOTTOM LINE
FACTORS INCOME GROWTH RPT (PER HEAD)

TARGET 54% TOP THREE PLACES
Production Manager 10% 80% 20%

50%
Production Manager 10% 65%

AVERAGE 46% PLACES FOUR THROUGH SIX
Production Manager 10% 50% 10%

42%
Production Manager 10% 35%

LOW 38% PLACES SEVEN THROUGH NINE
Production Manager 10% 20% 5%

A = Gross Award
S = Base Salary (excluding bonus award payments and
other items of miscellaneous income) of the
Participant during that portion of the year in
which he or she was employed in a designated
position.
P = Percentage of award earned based on performance
factor
M = Percentage of salary eligible to be earned and
paid as a bonus on performance factor.

FORMULA

S X P X M = A

SANDERSON FARMS, INC.
Bonus Award Program

VI. PARAMETERS

2. In the event of possible reporting errors affecting the ranking, such
circumstances will be considered by the Executive Committee of Sanderson Farms,
Inc. in making awards.

3. In the event changes in laws or accounting procedures affect the
ranking, such circumstances will be considered by the Executive Committee of
Sanderson Farms, Inc. in making awards.