
                         UNITED STATES
              SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C.  20549
                           FORM 10-Q


                     (Mark One)
     [X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                  OF THE SECURITIES EXCHANGE ACT OF 1934

            For the Quarter Ended December 31, 1999

                              OR

     [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                  OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                 to


Commission File Number:   2-62681


                       GOLD KIST INC.
    (Exact name of registrant as specified in its charter)



     GEORGIA                                   58-0255560
(State or other jurisdiction of            (I.R.S. Employer
incorporation  or  organization)            Identification No.)



244 Perimeter Center Parkway, N.E., Atlanta, Georgia   30346
(Address  of  principal  executive  offices)         (Zip Code)



(Registrant's telephone number, including area code)     (770)
393-5000


                               N/A
(Former  name,  former  address and  former  fiscal  year,  if
changed since last report.)

Indicate  by check mark whether the registrant (1)  has  filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or  for  such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                                   Yes    X      No



                        GOLD KIST INC.


                             INDEX


                                                      Page No.

Part  I.   Financial Information


  Item 1.  Financial Statements

           Consolidated Balance Sheets -
             December 31, 1999 and June 26, 1999          1

           Consolidated Statements of Operations
             Three Months and Six Months Ended
             December 31, 1999 and December 26, 1998      2

           Consolidated Statements of Cash Flows -
             Six Months Ended December 31, 1999
             and December 26, 1998                        3

           Notes to Consolidated Financial
             Statements                                 4 - 6

  Item 2.  Management's Discussion and Analysis of
             Results of Operations and Financial
             Condition                                  7 - 11

Part II.   Other Information

  Item 6.  Exhibits and reports on Form 8-K               12


<TABLE>
                                                                   Page 1
Item 1.  Financial              GOLD KIST INC.
         Statements       CONSOLIDATED BALANCE SHEETS
                            (Amounts in Thousands)
                                 (Unaudited)
<CAPTION>
                                                  Dec. 31,         June 26,
                                                    1999             1999
<S>                                               <C>              <C>
          ASSETS
Current assets:
   Cash and cash equivalents                      $  9,992          20,810
   Receivables, principally trade,
     less allowance for doubtful
     accounts of $3,269 at
     Dec. 31, 1999 and $3,261
     at June 26, 1999                              112,962         109,060
   Inventories (note 3)                            185,138         182,799
   Deferred income taxes                            18,585          17,842
   Other current assets                             22,661          28,999
       Total current assets                        349,338         359,510
Investments          (note 4)                      180,234         106,199
Property, plant and equipment, net                 238,168         248,016
Other assets                                        91,035          87,499
                                                  $858,775         801,224

       LIABILITIES AND EQUITY
Current liabilities:
   Notes payable and current maturities of
     long-term debt:
     Short-term borrowings                        $ 85,010          58,085
     Subordinated loan certificates                    184          10,095
     Current maturities of long-term debt           16,399          16,820
                                                   101,593          85,000
   Accounts payable                                 84,192          95,985
   Accrued compensation and related expenses        23,824          36,165
   Other current liabilities                        32,036          42,212
       Total current liabilities                   241,645         259,362
Long-term debt, excluding current maturities       279,363         186,913
Accrued postretirement benefit costs                55,832          53,432
Other liabilities                                    5,628          22,150
       Total liabilities                           582,468         521,857
Patrons' and other equity:
   Common stock, $1.00 par value - Authorized
     500 shares; issued and outstanding 31 at
     Dec. 31, 1999 and June 26, 1999                    31              31
   Patronage reserves                              207,081         204,080
   Accumulated other comprehensive income -
     unrealized gain on marketable equity
     security (note 4)                              14,127          19,015
   Retained earnings                                55,068          56,241
       Total patrons' and other equity             276,307         279,367
                                                  $858,775         801,224



       See Accompanying Notes to Consolidated Financial Statements.</TABLE>


<TABLE>
                                                                   Page 2


                              GOLD KIST INC.
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                          (Amounts in Thousands)
                                (Unaudited)

<CAPTION>
                                Three Months Ended      Six Months Ended
                                Dec. 31,   Dec. 26,    Dec. 31,   Dec. 26,
                                  1999       1998        1999       1998
                               (14  Weeks) (13 Weeks) (27 Weeks) (26 Weeks)
<S>                              <C>            <C>     <C>       <C>
Net sales volume                 $444,520   434,282     875,335   915,137
Cost  of  sales                   422,654   378,766     819,696   774,499
Gross margins                      21,866    55,516      55,639   140,638
Distribution, administrative
 and general expenses              21,232    19,103      40,948    41,696
 Net operating margins                634    36,413      14,691    98,942
Other income (deductions):
 Interest income                    3,152       410       3,616     1,055
 Interest expense                  (8,613)   (3,941)    (15,198)  (13,453)
 Equity in earnings (loss) of
   partnership (note 4)            (1,335)      693      (2,389)    1,886
 Miscellaneous, net                 3,644       926       5,015     2,100
   Total other deductions          (3,152)   (1,912)     (8,956)   (8,412)
 Margins (loss) before income
   taxes                           (2,518)   34,501       5,735    90,530
Income tax expense (benefit)         (868)   11,606       1,950    31,805
 Net margins (loss)              $ (1,650)   22,895       3,785    58,725




       See Accompanying Notes to Consolidated Financial Statements.


</TABLE>
<TABLE>
                                                              Page 3
                               GOLD KIST INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Amounts in thousands)
                                 (Unaudited)

 <CAPTION>
                                                    Six  Months Ended
                                                   Dec. 31,    Dec. 26,
                                                     1999        1998
                                                   (27 Weeks) (26 Weeks)
<S>                                                 <C>         <C>
Cash flows from operating activities:
  Net margins                                      $  3,785      58,725
  Non-cash items included in net margins:
    Depreciation and amortization                    21,250      20,175
    Equity in (earnings) loss of partnership          2,389      (1,886)
    Deferred income tax expense (benefit)            (2,362)     29,366
    Other                                              (219)       (921)
  Changes in operating assets and liabilities:
    Receivables                                      (3,902)        683
    Inventories                                      (2,339)       (264)
    Other current assets                             23,798       2,401
    Accounts payable, accrued and other expenses    (24,986)     13,622
Net cash provided by operating activities of
 continuing operations                               17,414     121,901
Net cash provided by operating activities of
 discontinued operations                                  -      16,820
Net cash provided by operating activities            17,414     138,721
Cash flows from investing activities:
 Acquisitions of investments                        (98,600)          -
 Acquisitions of property, plant and equipment      (10,003)    (17,681)
 Other                                                   67       9,759
Net cash used in investing activities of
 continuing operations                             (108,536)     (7,922)
Net cash used in investing activities of
 discontinued operations:
 Repurchase of accounts and crop notes receivable   (25,730)          -
 Proceeds from sale of the Agri-Services segment          -     218,313
Net cash used in investing activities              (134,266)    210,391
Cash flows from financing activities:
 Short-term borrowings (repayments), net             17,015    (150,812)
 Proceeds from long-term debt                       125,000      83,891
 Principal repayments of long-term debt             (32,971)   (282,950)
 Patronage refunds and other equity paid in cash     (3,010)     (2,017)
Net cash provided by (used in) financing activities 106,034    (351,888)
Net change in cash and cash equivalents             (10,818)     (2,776)
Cash and cash equivalents at beginning of period     20,810      11,789
Cash and cash equivalents at end of period         $  9,992       9,013
Supplemental disclosure of cash flow data:
 Cash paid during the periods for:
    Interest (net of amounts capitalized)          $  16,119     22,500
    Income taxes                                   $   1,573          -



        See Accompanying Notes to Consolidated Financial Statements.
</TABLE>


                                                       Page 4
                        GOLD KIST INC.
          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    (Amounts in Thousands)
                          (Unaudited)


 1.  The  accompanying  unaudited consolidated  financial
     statements  reflect the accounts of Gold Kist  Inc.  and
     its  subsidiaries  ("Gold Kist" or  the  "Association").
     These  consolidated financial statements should be  read
     in conjunction with Management's Discussion and Analysis
     of  Consolidated  Results  of Operations  and  Financial
     Condition   and  the  Notes  to  Consolidated  Financial
     Statements  on pages 12 through 18 and pages 22  through
     37,  respectively, of Gold Kist's Annual Report  in  the
     previously filed Form 10-K for the year ended  June  26,
     1999.

     The Association employs a 52/53 week fiscal year. Fiscal
     2000  will  be  a  53  week  year.   As  a  result,  the
     Association's  quarter ended December 31, 1999  included
     14  weeks, while the quarter ended December 26, 1998 had
     13  weeks.   Accordingly, the six months ended  December
     31,  1999 included 27 weeks, while the six months  ended
     December 26, 1998 had 26 weeks.

 2.  In  the  opinion  of  management,  the  accompanying
     unaudited consolidated financial statements contain  all
     adjustments  (consisting of normal  recurring  accruals)
     necessary to present fairly the financial position,  the
     results   of  operations,  and  the  cash  flows.    All
     significant intercompany balances and transactions  have
     been eliminated in consolidation.  Results of operations
     for  interim  periods are not necessarily indicative  of
     results for the entire year.

 3.     Inventories consist of the following:
 <TABLE>
 <CAPTION>
                                     Dec. 31, 1999      June 26, 1999
        <S>                             <C>               <C>
        Live poultry and hogs           $ 90,729            93,999
        Marketable products               58,062            56,097
        Raw materials and supplies        36,347            32,703
                                        $185,138           182,799
 </TABLE>

 4.  (a) At December  31, 1999, the Association's marketable
     equity security was carried at its fair value of $42.5
     million, which includes an unrealized gain of $21.7 million.
     At December  31,  1999,  the  unrealized gain,  net   of
     deferred taxes of $7.6 million, has been reflected as  a
     separate  component of patrons' and  other  equity.   At
     June  26,  1999,  the  Association's  marketable  equity
     security was carried at its fair value of $50.0 million,
     which includes an  unrealized gain of $29.3 million.  At
     June  26,  1999,  the unrealized gain, net  of  deferred
     taxes of $10.2 million, has been reflected as a separate
     component of patrons' and other equity.


                                                       Page 5

     (b)Gold Kist has a 33% interest in Golden Peanut Company,
     a Georgia general partnership.  Gold Kist's investment in
     the partnership was $17.3 million at December 31, 1999
     and $19.7 million at June 26, 1999.

     Summarized operating statement information of Golden
     Peanut Company is shown below:

 <TABLE>
 <CAPTION>
                                Three Months Ended     Six Months Ended
                               Dec.  31,   Dec. 26,   Dec.  31,  Dec. 26,
                                 1999        1998       1999       1998
      <S>                       <C>       <C>          <C>       <C>
      Net sales and other
         operating income       $96,540    116,266     179,494   210,315
      Costs and expenses         99,789    114,187     185,291   204,657
         Net earnings (loss)    $(3,249)     2,079      (5,797)    5,658
 </TABLE>

5.   In October 1998, the Association completed the sale of
     assets  of  the  Inputs business to  Southern  States
     Cooperative, Inc. (Southern States).  Proceeds of  $218.3
     million  from  the sale represented an  amount  equal  to
     $39.9  million  plus 100% of estimated net current  asset
     value  less the remaining obligations under an industrial
     development  bond  and  a  lease  obligation  assumed  by
     Southern  States.  Also, the proceeds reflected  a  $10.0
     million  hold  back deduction provided for in  the  asset
     purchase agreement.  In order to resolve the post-closing
     valuation  process, the Association agreed  in  September
     1999  to  repurchase  from Southern States  approximately
     $25.7 million of accounts and crop notes receivable.  The
     agreement  resulted  in  a final  settlement  payment  to
     Southern   States  of  approximately  $21.2  million   in
     September 1999.

     In  order  to  complete  the  transaction  with  Southern
     States, the Association committed to purchase, subject to
     certain terms and conditions, from Southern States up  to
     $100 million principal amount of preferred securities  if
     Southern  States was unable to market the  securities  to
     other  purchasers. In October 1999, the Company purchased
     for  $98.6  million the $100 million principal amount  of
     preferred  securities as required under  the  commitment.
     The   preferred  securities  carry  an  initial  weighted
     average  dividend rate of 7.8%.  To the  extent  Southern
     States places with other purchasers capital and/or equity
     securities  similar  to the preferred  securities  in  an
     amount  less than $100 million, the preferred  securities
     owned by the Association shall be reduced correspondingly
     on  a  dollar-for-dollar basis.  If not repurchased, Gold
     Kist  must hold the preferred securities for a period  of
     at  least  nine  months  from the  purchase  date.   Upon
     expiration  of  that period, Gold Kist may give  Southern
     States  notice  of  its intention to sell  the  preferred
     securities.  Upon the later of the expiration of  a  120-
     day  waiting period or the termination of a placement  of
     the  preferred securities or similar securities commenced
     by  Southern  States  prior to the  end  of  the  waiting
     period, Gold Kist will be permitted to sell the preferred
     securities to third parties.

6.   Effective June 28, 1998, the Association adopted SFAS No.
     130, "Reporting Comprehensive  Income."   This  statement
     establishes items that are required to be recognized under
     accounting standards as components of comprehensive income.
     SFAS No. 130 requires, among other things that an enterprise
     report a total for comprehensive income in condensed
     financial statements of interim periods.  For the three month


                                                      Page 6


     periods  ended  December 31, 1999 and  December  26,  1998,
     the  Association's consolidated comprehensive (loss) income
     was  $(1.4) million and $24.2 million, respectively.  For
     the  six  month  periods ended December  31,  1999  and
     December 26,   1998,   the   Association's   consolidated
     comprehensive  (loss) income was $(1.1) million and $55.8
     million,  respectively.  The difference between consolidated
     comprehensive   (loss)  income,  as  disclosed   here,   and
     traditionally-determined consolidated net margins (loss), as
     set   forth   on  the  accompanying  Condensed  Consolidated
     Statements  of  Operations, results from unrealized  holding
     gains  (losses)  on the marketable security less  applicable
     income taxes.

                                                           Page 7
ITEM 2.            MANAGEMENT'S DISCUSSION AND ANALYSIS
                        OF RESULTS OF OPERATIONS
                        AND FINANCIAL CONDITION

RESULTS OF OPERATIONS

The Association's accounting cycle resulted in 14 weeks and 27
weeks  of operations, respectively, in the three and six month
periods ended December 31, 1999 as compared to 13 weeks and 26
weeks  of operations, respectively, in the three and six month
periods ended December 26, 1998.

Net Sales Volume

Gold  Kist  net sales volume of $444.5 million for  the  three
months ended December 31, 1999 increased 2.4% or $10.2 million
as  compared  to  the  three months ended December  26,  1998.
Average poultry selling prices declined approximately 9.7% for
the  three months ended December 31, 1999 as compared  to  the
three  months  ended December 26, 1998.  Pounds processed  and
marketed  for  the  three  months  ended  December  31,   1999
increased approximately 12.0% as compared to the three  months
ended  December 26, 1998.  Net sales volume of $875.3  million
for  the six months ended December 31, 1999 decreased 4.4%  or
$39.8 million as compared to the six months ended December 26,
1998.   The net sales volume decrease for the six months ended
December 31, 1999 was primarily the result of a 11.1% decrease
in  average  selling prices, which was partially offset  by  a
8.3%  increase in pounds of poultry sold. Management  believes
the  decline  in  sales prices is a result of an  increase  in
industry poultry production and the weakness in export markets
due  to  the  poor economic conditions in Russia. Also,  large
supplies  of  competing meats (pork and beef) have contributed
to  the  decline in market prices for chicken. In response  to
these   market   conditions,  the  Association   reduced   its
production  of  live broilers by approximately 6%  during  the
quarter ended December 31, 1999.

Net Operating Margins

The Association had net operating margins of $634 thousand for
the  three months ended December 31, 1999 as compared  to  net
operating margins of $36.4 million for the three months  ended
December  26, 1998.  Net operating margins for the six  months
ended December 31, 1999 were $14.7 million as compared to  net
operating  margins of $98.9 million for the six  month  period
ended December 26, 1998.  The decline in operating margins was
due   primarily  to  the  decrease  in  broiler  sales  prices
discussed   above  and  increases  in  field  production   and
processing  costs.  These increases were partially  offset  by
lower  feed ingredient costs.  Feed ingredient costs  for  the
three and six months ended December 31, 1999 declined 3.0% and
8.1%,  respectively, as compared to the three and  six  months
ended  December  26,  1998.  Management  believes  lower  feed
ingredient prices reflect the continuation of weak U.S.  grain
exports  and  favorable grain harvests during the  past  three
years.   The  Association's  pork  division  posted  operating
losses  of  $463 thousand and $1.2 million, respectively,  for
the  three  and six month periods ended December 31,  1999  as
compared to operating losses of $2.6 million and $3.4 million,
respectively,  for  the  three and  six  month  periods  ended
December    26,   1998.    The   decrease   in   distribution,
administrative and general expenses for the six  months  ended
December   31,  1999  reflected  the  decrease  in   incentive
compensation expenses related to the decline in net margins.

                                                        Page 8

Other Income (Deductions)

Interest  expense of $8.6 million for the three  months  ended
December 31, 1999 increased $4.7 million as compared  to  $3.9
million for the three months ended December 26, 1998. Interest
expense  for the six months ended December 31, 1999 was  $15.2
million as compared to $13.5 million for the six months  ended
December  26,  1998.  The increases reflected  higher  average
borrowings  necessary to fund the purchase of Southern  States
preferred  securities for $98.6 million in  October  1999  and
$25.7 million of accounts and crop notes receivable that  were
purchased from Southern States in September 1999.  (See Note 5
of Notes to Consolidated Financial Statements).

Equity  in  loss of partnership of approximately $1.3  million
and  $2.4 million represented the Association's pro rata share
of  Golden  Peanut Company's loss for the three and six  month
periods  ended December 31, 1999, respectively, in  accordance
with   the  partnership  agreement.   This  compared  to  $693
thousand and $1.9 million, respectively, pro rata share of the
partnership's  earnings for the three and  six  month  periods
ended December 26, 1998.  The partnerships loss for the fiscal
2000 periods resulted from litigation related expenses.

Miscellaneous, net was $3.6 million for the three months ended
December  31, 1999 as compared to $926 thousand for the  three
months  ended December 26, 1998. Miscellaneous,  net  for  the
three  months ended December 31, 1999 includes a $3.9  million
insurance  recovery that represents losses from the  theft  of
chicken  at the Association's South Carolina complex  in  1997
and  1998.   During the three months ended December 31,  1999,
the Association recorded a $406 thousand gain on the sale of a
portion of its investment in an international trading company.
For  the  three months ended December 31, 1999, miscellaneous,
net  included  a  $158  thousand gain from  the  Association's
ownership interest in a pecan processing and marketing company
as compared to a $301 thousand gain for the three months ended
December  26,  1998. Miscellaneous, net for  the  three  month
period  ended  December 31, 1999 reflects a $1.3 million  loss
accrual  related  to an indemnification agreement  for  cotton
sales contracts that were sold to an unrelated third party  in
1998.   Miscellaneous, net for the three months ended December
31,   1999   includes  losses  of  $426  thousand   from   the
Association's ownership interest in a company engaged  in  the
manufacture and distribution of fertilizer additives  for  the
farm  industry.  Miscellaneous, net for the six  months  ended
December 31, 1999 was $5.0 million as compared to $2.1 million
for the same period a year ago.

For  the three months ended December 31, 1999 and December 26,
1998,  the  Association's combined federal and state effective
income tax rates were 34.5% and 33.6%, respectively.  For  the
six  months ended December 31, 1999 and December 26, 1998, the
Association's combined federal and state effective income  tax
rates  were 34.0% and 35.1%, respectively.  Income tax expense
for  the  periods presented reflects income taxes at statutory
rates  adjusted  for  available  tax  credits  and  deductible
patronage refunds.

LIQUIDITY AND CAPITAL RESOURCES

The  Association's  liquidity is  dependent  upon  funds  from
operations  and external sources of financing.  The  principal
source of external short-term financing is a secured committed
credit facility with a commercial bank.  In December 1999, the
Association reduced its $250 million secured committed  credit
facility  with  seven commercial banks to $200  million.   The
facility  includes a three-year $100 million revolving  credit
commitment and a $100


                                                       Page 9

million 364-day line of credit commitment.  In December  1999,
the  Association  amended the loan covenants  associated  with
this   facility.    As  of  December  31,  1999,   outstanding
borrowings under the revolving credit and the 364-day line-of-
credit  commitments  were  $100  million  and  $42.1  million,
respectively.

The 364-day line of credit and the three year revolving credit
facility, as well as, the Association's senior notes  payable,
term  loan  with agricultural credit bank, interest rate  swap
agreements  and  any  letters of credit  are  secured  by  all
inventory  and  accounts  receivable of  the  Association  and
mortgages on the Association's facilities in Marshall  County,
Alabama and Sumter County, South Carolina.

Covenants under the amended terms of the loan agreements  with
lenders  include  conditions that could limit  short-term  and
long-term  financing available from various external  sources.
The  terms  require  a  ratio  of current  assets  to  current
liabilities  of  not less than 1.25:1 and the ratio  of  total
funded  debt to total capitalization not to exceed 65%.  Also,
the  terms  require a minimum tangible net worth (as  adjusted
for  accumulated other comprehensive income (loss)) of  $255.0
million,  which is adjusted quarterly based upon net  margins.
At  December 31, 1999, the Association's current ratio,  ratio
of total funded debt to capitalization and tangible net worth,
determined  under the loan agreements, were 1.45:1,   52%  and
$262.2  million, respectively.  The terms of the $200  million
credit   facility  require  specific  quarterly  fixed  charge
coverage  ratios during fiscal 2000 and a fixed  charge  ratio
(eight quarter average) for fiscal 2000 of 175%.  In addition,
the  terms place a limitation on capital expenditures,  equity
distribution,  cash  patronage refunds and  commodity  hedging
contracts  that  include cash forward purchases,  as  well  as
futures  and  options contracts.  At December  31,  1999,  the
Association was in compliance with the agreements.

Working  capital  and patrons equity were $107.7  million  and
$276.3 million, respectively, at December 31, 1999 as compared
to  $100.1 million and $279.4 million, respectively,  at  June
26,  1999.   The  increase in working  capital  reflected  the
repurchase of accounts and crop notes receivable from Southern
States.  The  decline  in patrons equity at December 31, 1999,
as  compared  to  June 26, 1999, reflected  the  $4.9  million
unrealized  holding loss on  a marketable equity security  and
equity  redemptions  of $1.9 million.  Net  cash  provided  by
operating activities reflected net margins and non-cash items,
which were partially offset by increases in marketable products
and  raw  material  and  supplies  inventories and receivables,
as well as, lower accrued compensation and related liabilities.
Existing cash balances and additional short-term and long-term
borrowings were used  to  repurchase accounts  and  crop notes
receivable, fund acquisitions of property, plant and equipment
and redeem subordinated loan certificates.

In  October 1998, the Association completed the sale of assets
of  the Agri-Services segment to Southern States.  Proceeds of
$218.3  million from the sale represented an amount  equal  to
$39.9  million plus 100% of estimated net current asset  value
less the remaining obligations under an industrial development
bond,  a  lease obligation assumed by Southern  States  and  a
$10.0  million hold back deduction provided for in  the  asset
purchase  agreement.  In connection with the  sale  of  assets
transaction,  Southern States delivered to the  Association  a
post-closing  statement of net asset value (the  "post-closing
valuation")  prepared pursuant to the terms  of  the  purchase
agreement.  The  Association subsequently objected to Southern
States' post-


                                                       Page 10

closing valuation principally with regard to the valuation  of
accounts  and crop notes receivable.  In order to resolve  the
post-closing  valuation, the Association agreed  in  September
1999  to  repurchase from Southern States approximately  $25.7
million  of accounts and crop notes receivable.  The agreement
resulted  in a final settlement payment to Southern States  of
approximately $21.2 million in September 1999.

In order to complete the transaction with Southern States, the
Association  committed to purchase, subject to  certain  terms
and  conditions,  from  Southern States  up  to  $100  million
principal  amount of preferred securities if  Southern  States
was  unable  to market the securities to other purchasers.  In
October  1999,  the Company  purchased for $98.6  million  the
$100  million  principal amount of  preferred   securities  as
required  under  the  commitment.  The  Association  used  its
revolving  credit  facility  to  fund  the  purchase  of   the
preferred securities.  Gold Kist must hold the securities  for
a period of at least nine months from the purchase date before
initiating a sale to a third party.  (See  Note  5 of Notes to
Consolidated Financial Statements).

The  Association  plans capital expenditures of  approximately
$40.0   million   in   2000  that  include  expenditures   for
renovations, changes, additions and technological advances  in
poultry  production  and processing.  Many  of  these  capital
projects  are  designed  to enhance product  mix  and  improve
product  flow.   In  addition,  planned  capital  expenditures
include  other  asset improvements and necessary replacements.
Management   intends   to   finance   planned   2000   capital
expenditures  and related working capital needs with  existing
cash balances and net margins adjusted for non-cash items  and
additional   long-term  borrowings,  as  needed.    In   2000,
management  expects  cash  expenditures  to  approximate  $7.0
million  for  patronage refunds and equity distributions  less
insurance proceeds.  The Association believes cash on hand and
cash equivalents at December 31, 1999 and cash expected to  be
provided  from operations, in addition to borrowings available
under  existing  credit arrangements, will  be  sufficient  to
maintain  cash flows adequate for the Association's  projected
growth and operational objectives during 2000.

Year 2000 Disclosure Statement

The  year  2000  problem is the result  of  computer  programs
written  using  two digits (rather than four)  to  define  the
applicable year.  Any of the computer programs that have time-
sensitive  software might recognize a date using "00"  as  the
year  1900  rather than the year 2000, which could  result  in
miscalculations or system failures.

The  Association completed its preparation for the  year  2000
issue in November 1999 and as of February 14, 2000, there have
been no significant business interruptions related to the year
2000 issue.  The Association will continue to monitor and test
its   systems  and  those  of  our  key  vendors  and  develop
contingency plans, if needed, should any issues be identified.
The  Association's cost of repairing the IT systems and non-IT
systems   was   approximately   $800   thousand,   of    which
approximately $300 thousand was spent in fiscal 2000.

                                                       Page 11

Important Considerations Related to Forward-Looking Statements

This  Report contains statements which to the extent they  are
not  recitations  of historical fact, may constitute  "forward
looking  statements" within the meaning of applicable  federal
securities law.  All forward-looking statements in this Report
are  intended  to  be  subject to the safe  harbor  protection
provided  by the Private Securities Litigation Reform  Act  of
1995  and Section 21E of the Securities Exchange Act of  1934,
as  amended.  It should be noted that this discussion contains
forward-looking  statements which are subject  to  substantial
risks  and uncertainties.  There are many factors which  could
cause   actual  results  to  differ  materially   from   those
anticipated by statements made herein.  Such factors  include,
but   are   not  limited  to,  changes  in  general   economic
conditions,  weather, the growth rate of the  market  for  the
Company's  products  and  services, the  availability  of  raw
inputs,   global   political  events,  the  ability   of   the
Association  to  implement changes  in  sales  strategies  and
organization  on  a  timely basis, the affect  of  competitive
products  and pricing, seasonal revenues, as well as a  number
of   other   risk  factors  which  could  effect  the   future
performance of the Association.

Effects of Inflation

The  major factor affecting the Association's net sales volume
and cost of sales is the change in commodity market prices for
broilers,  hogs  and  feed  grains.   The  prices   of   these
commodities  are affected by world market conditions  and  are
volatile  in  response  to  supply  and  demand,  as  well  as
political  and  economic events.  The  price  fluctuations  of
these  commodities  do  not  necessarily  correlate  with  the
general  inflation  rate.  Inflation  has,  however,  affected
operating costs such as labor, energy and material costs.

Future Accounting Requirements

In  June 1998, the Financial Accounting Standards Board (FASB)
issued   Statement   No.   133  "Accounting   for   Derivative
Instruments  and Hedging Activities."  The Statement  requires
the  recognition  of all derivatives on the balance  sheet  at
fair   value.    The  Company's  derivatives,  which   include
agricultural  related  futures and options,  are  specifically
designated  as  hedges.  Changes in the fair  value  of  these
derivatives will either be offset against the change  in  fair
value of the corresponding hedged assets, liabilities, or firm
commitments   through   earnings   or   reflected   as   other
comprehensive  income until the hedged item is  recognized  in
earnings.  The disclosure requirements of the Standard will be
reflected  in  the  Association's 2001 consolidated  financial
statements.   Management  has not  determined  the  effect  of
adopting   this  statement  on  the  Association's   financial
statements in fiscal 2001.

                                                       Page 12


                  PART II:  OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K.

    (a)  Exhibit

         Designation of Exhibit
             in this Report        Description of Exhibit

                B-10(i)(6)      Fifth Amendment dated as of
                                November 29, 1999, to Credit
                                Agreement dated as of August
                                4, 1998, with various banks
                                and lending institutions,
                                as lendors, and Cooperatieve
                                Centrale Raiffeisen-Boerenleen
                                Bank B.A., New York Branch, as
                                agent

                B-10(i)(7)      Sixth Amendment dated as of
                                December 21, 1999, to Credit
                                Agreement dated as of August
                                4, 1998, with various banks
                                and lending institutions, as
                                lendors, and Cooperatieve
                                Centrale Raiffeisen-Boerenleen
                                Bank B.A., New York Branch, as
                                agent

                 B-27           Financial Data Schedule

    (b)  Reports on Form 8-K.  Gold Kist has not filed any reports
         on  Form  8-K during the three months ended  December
         31, 1999.

                          SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934,  the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.

                                       GOLD KIST INC.
                                        (Registrant)

Date   February 14, 2000
                                       Gaylord O. Coan
                                   Chief Executive Officer
                                (Principal Executive Officer)

Date    February 14, 2000
                                    Walter F. Pohl, Jr.
                                       Controller
                               (Principal Accounting Officer)


                                                    Page 12


                  PART II:  OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K.

    (a)  Exhibit

         Designation of Exhibit
             in this Report       Description of Exhibit

                B-10(i)(6)      Fifth Amendment dated as of
                                November 29, 1999, to Credit
                                Agreement dated as of August
                                4, 1998, with various banks
                                and lending institutions, as
                                lendors, and Cooperatieve
                                Centrale Raiffeisen-Boerenleen
                                Bank B.A., New York Branch, as
                                agent

                B-10(i)(7)      Sixth Amendment dated as of
                                December 21, 1999, to Credit
                                Agreement dated as of August
                                4, 1998, with various banks
                                and lending institutions, as
                                lendors, and Cooperatieve
                                Centrale Raiffeisen-Boerenleen
                                Bank B.A., New York Branch, as
                                agent

                 B-27           Financial Data Schedule

    (b)  Reports on Form 8-K.  Gold Kist has not filed any reports
         on  Form  8-K during the three months ended  December
         31, 1999.

                          SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934,  the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.

                                     GOLD KIST INC.
                                      (Registrant)

Date     February 14, 2000        /s/  Gaylord  O. Coan
                                       Gaylord  O.Coan
                                  Chief Executive Officer
                               (Principal Executive Officer)



Date     February 14, 2000       /s/ Walter F. Pohl, Jr.
                                     Walter F. Pohl, Jr.
                                        Controller
                               (Principal Accounting Officer)

