



                                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 March 31, 2001

                                     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 -
             March 31, 2001 and July 1, 2000                1

           Consolidated Statements of Operations
             Three Months and Nine Months Ended
             March 31, 2001 and April 1, 2000               2

           Consolidated Statements of Cash Flows -
             Nine Months Ended March 31, 2001
             and April 1, 2000                              3

           Notes to Consolidated Financial
             Statements                                  4 -  6

  Item 2.  Management's Discussion and Analysis of
             Consolidated Results of Operations and
             Financial Condition                         7 - 10

  Item 3.  Quantitative and Qualitative Disclosure About
             Market Risks                               10 - 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>
                                               March 31,        July 1,
                                                 2001            2000
<S>                                            <C>               <C>
                  ASSETS
Current assets:
  Cash and cash equivalents                    $ 10,431            8,671
  Receivables, principally trade,
    less allowance for doubtful
    accounts of $5,749 at
    March 31, 2001 and $4,041
    at July 1, 2000                             110,599          106,698
  Inventories (note 3)                          174,709          183,061
  Deferred income taxes                           9,277           16,360
  Investments (note 4)                           63,072                -
  Other current assets                           15,925           18,924
       Total current assets                     384,013          333,714
Investments (notes 4 and 5)                     121,664          167,988
Property, plant and equipment, net              230,951          239,188
Other assets                                    138,652          140,400
                                               $875,280          881,290

       LIABILITIES AND EQUITY
Current liabilities:
  Notes payable and current maturities of
    long-term debt:
    Short-term borrowings (note 8)             $118,820          131,910
    Subordinated loan certificates                    -               40
    Current maturities of long-term debt         40,659           34,352
                                                159,479          166,302
  Accounts payable                               65,179           72,325
  Accrued compensation and related expenses      18,375           24,052
  Interest left on deposit                       11,893           11,528
  Other current liabilities                      37,827           35,756
       Total current liabilities                292,753          309,963
Long-term debt, less current maturities (note 8)273,139          251,714
Accrued postretirement benefit costs (note 9)    34,115           58,407
Other liabilities                                21,407           21,716
       Total liabilities                        621,414          641,800
Patrons' and other equity:
  Common stock, $1.00 par value - Authorized
    500 shares; issued and outstanding 30 at
    March 31, 2001 and July 1, 2000                  30               30
  Patronage reserves                            191,790          197,520
  Accumulated other comprehensive income -
    unrealized gain on marketable equity
    security (notes 4 and 5)                     17,797            8,747
  Retained earnings                              44,249           33,193
       Total patrons' and other equity          253,866          239,490
                                               $875,280          881,290



        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    Nine Months Ended
                                 March 31, April 1,    March 31,  April 1,
                                   2001      2000        2001       2000
                                (13 Weeks) (13 Weeks) (39 Weeks) (40 Weeks)
<S>                              <C>        <C>       <C>        <C>
Net sales volume                 $424,787   413,471   1,280,093  1,288,806
Cost of sales                     417,327   411,564   1,213,487  1,231,260
 Gross margins                      7,460     1,907      66,606     57,546
Distribution, administrative
 and general expenses              20,302    20,871      61,144     61,819
Post retirement benefit plan
 curtailment gain (note 9)         29,454         -      29,454          -
 Net operating margins (loss)      16,612   (18,964)     34,916     (4,273)
Other income (deductions):
 Interest and dividend income       3,206     2,392       8,671      6,008
 Interest expense                 (10,143)   (8,428)    (30,544)   (23,626)
 Equity in earnings (loss) of
   affiliate (note 4)                 429    (4,312)        753     (6,701)
 Miscellaneous, net                  (929)      741       1,329      5,756
   Total other deductions          (7,437)   (9,607)    (19,791)   (18,563)
 Margins (loss) before income
   taxes                            9,175   (28,571)     15,125    (22,836)
Income tax expense (benefit)        3,394    (9,956)      5,596     (8,006)
 Net margins (loss)              $  5,781   (18,615)      9,529    (14,830)


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


  <TABLE>                                                            Page 3
                               GOLD KIST INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Amounts in thousands)
                                 (Unaudited)
<CAPTION>
                                                    Nine Months Ended
                                                   March 31,   April 1,
                                                     2001        2000
                                                   (39 Weeks) (40 Weeks)
<S>                                                <C>          <C>
Cash flows from operating activities:
  Net margins (loss)                                $  9,529    (14,830)
  Non-cash items included in net margins (loss):
    Depreciation and amortization                     31,331     32,471
    Post retirement benefit plan curtailment gain    (29,454)         -
    Equity in (earnings) loss of affiliate              (753)     6,701
    Deferred income tax expense (benefit)              5,596     (5,602)
    Other                                              3,756     (2,503)
  Changes in operating assets and liabilities:
    Receivables                                       (3,901)    (3,861)
    Inventories                                        8,352      5,552
    Other current assets                               2,764      1,312
    Accounts payable and accrued expenses            (10,752)   (20,978)
Net cash provided by (used in) operating activities   16,468     (1,738)
Cash flows from investing activities:
 Acquisitions of investments                            (640)   (98,605)
 Acquisitions of property, plant and equipment       (23,438)   (19,735)
 Other                                                (1,029)     2,046
Net cash used in investing activities of
 continuing operations                               (25,107)  (116,294)
Net cash used in investing activities of
 discontinued operations:
 Repurchase of accounts and crop notes receivable          -    (25,730)
 Other                                                     -      8,629
Net cash used in investing activities                (25,107)  (133,395)
Cash flows from financing activities:
 Short-term borrowings (repayments), net             (13,130)    44,770
 Proceeds from long-term debt                        140,000    100,000
 Principal repayments of long-term debt             (112,268)   (11,243)
 Patronage refunds and other equity paid in cash      (4,203)    (5,183)
Net cash provided by financing activities             10,399    128,344
Net change in cash and cash equivalents                1,760     (6,789)
Cash and cash equivalents at beginning of period       8,671     20,810
Cash and cash equivalents at end of period         $  10,431     14,021
Supplemental disclosure of cash flow data:
 Cash paid (received) during the periods for:
    Interest (net of amounts capitalized)          $  29,735     23,428
    Income taxes, net                              $  (2,528)     2,665



        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 10 through 16  and
     pages 24 through 35, respectively, of Gold Kist's Annual Report in  the
     previously filed Form 10-K for the year ended July 1, 2000.

     The Association employs a 52/53 week fiscal year.  Fiscal 2001 will  be
     a  52  week, whereas fiscal 2000 was a 53 week year.  Accordingly,  the
     nine  months  ended March 31, 2001 included 39 weeks,  while  the  nine
     months ended April 1, 2000 had 40 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>

                                      March 31, 2001      July 1, 2000
      <S>                              <C>                 <C>
     Live poultry and hogs              $ 93,344            97,623
     Marketable products                  49,315            53,367
     Raw materials and supplies           32,050            32,071
                                        $174,709           183,061
 </TABLE>

 4.  (a) At March 31, 2001, the Association's marketable equity security was
     carried  at  its  fair  value  of  $48.1  million,  which  includes  an
     unrealized  gain of $27.4 million.  At March 31, 2001,  the  unrealized
     gain,  net of deferred taxes of $9.6 million, has been reflected  as  a
     component   of   patrons'  and  other  equity  in   accumulated   other
     comprehensive  income.   At July 1, 2000, the Association's  marketable
     equity  security was carried at its fair value of $34.2 million,  which
     includes  an  unrealized gain of $13.5 million.  At July 1,  2000,  the
     unrealized  gain,  net  of deferred taxes of  $4.7  million,  has  been
     reflected  as  a component of patrons' and other equity in  accumulated
     other comprehensive income.

     (b)  Gold  Kist  has a 25% interest in Golden Peanut Company,  LLC  and
     subsidiaries  (Golden Peanut).  Gold Kist's investment in  the  limited
     liability company was $15.0 million at March 31, 2001 and $14.2 million
     at July 1, 2000.

                                                                   Page 5


     Summarized  operating statement information of Golden Peanut  is  shown
     below:
<TABLE>
<CAPTION>
                                Three Months Ended   Nine Months Ended
                                March 31, April 1,   March 31, April 1,
                                  2001      2000       2001      2000
     <S>                       <C>        <C>        <C>       <C>
     Net sales and other
       operating income        $128,097    98,209    374,809   282,304
     Costs and expenses         126,539   110,363    371,797   298,781
       Net earnings (loss)     $  1,558  (12,154)      3,012  (16,477)

 </TABLE>
     (c) Gold Kist has plans to liquidate the marketable equity security and
     the  investment in the limited liability company over the  next  twelve
     months.  As  a result, these investments have been reclassified  within
     current assets in the accompanying 2001 consolidated balance sheet.

5.   In October 1998, the Association sold the assets of the Inputs business
     to  Southern States Cooperative, Inc. (Southern States).  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  current  weighted
     average  dividend  rate  on  the securities  is  8.3%.   Gold  Kist  is
     permitted  to  sell the preferred securities, which are  classified  as
     noncurrent investments in the accompanying consolidated balance sheets,
     pursuant to applicable securities regulations.

6.   For  the three-month period ended March 31, 2001 and April 1, 2000, the
     Association's consolidated comprehensive income (loss) was $1.4 million
     and  $(22.7)  million, respectively.  For the nine-month  period  ended
     March 31, 2001, the Association's consolidated comprehensive income was
     $18.6  million.   For the nine-month period ended April  1,  2000,  the
     Association's consolidated comprehensive income was a loss  of  $(23.8)
     million.   The  difference  between consolidated  comprehensive  income
     (loss),  as disclosed herein, and traditionally-determined consolidated
     net  margins  (loss),  as  set forth on the  accompanying  consolidated
     statements  of  operations,  results  from  unrealized  holding   gains
     (losses)  on  the  marketable equity security  less  applicable  income
     taxes.

7.   Effective July 2, 2000, the Association adopted SFAS No. 133 as amended
     by  SFAS  No.  138.   The  Statement requires the  recognition  of  all
     derivatives  on  the  balance  sheet  at  fair  value.   The  Company's
     derivatives  include  agricultural related forward purchase  contracts,
     futures  and  options transactions.  The Company's futures transactions
     have  historically  been designated as hedges and options  transactions
     have  been  marked to  market.  Effective in the first quarter of 2001,

                                                                      Page 6


     changes  in  the  fair value of these derivatives, except  for  forward
     purchase contracts, have been recorded through earnings.  The effect of
     the adoption of the new Statements was immaterial.

8.   On  November 3, 2000, the Association established a $240 million Senior
     Secured  Credit  Facility with a group of financial  institutions  that
     includes a $100 million 364-day revolving line of credit, a $95 million
     two-year  term  loan,  and  a $45 million  five-year  term  loan.   The
     interest  rates on the 364-day and two-year term facilities range  from
     2.25%  to  3% over the London Interbank Offered Rate (LIBOR),  adjusted
     quarterly based on the Association's financial condition.  The interest
     rate on the five-year term loan was fixed at 10.57%.  The Association's
     senior  notes, senior secured credit facilities and term loan  with  an
     agricultural  credit  bank  are secured by  substantially  all  of  the
     Association's  inventories,  receivables,  and  property,   plant   and
     equipment.   At March 31, 2001, the Association was in compliance  with
     all applicable loan covenants.

     Short-term borrowings of $70 million and long-term debt of $120 million
     were  repaid and replaced with proceeds of $54.5 million from the  364-
     day  revolving line of credit, the $95 million two-year term loan,  and
     the $45 million five-year term loan on November 3, 2000.

9.   Effective January 1, 2001, the Association substantially curtailed  its
     postretirement  medical benefit plan.  Postretirement medical  coverage
     will  only be available to existing retirees and active employees,  who
     as of that date, were 62 years of age or older and had 15 or more years
     of service.  A gain from the curtailment of approximately $29.4 million
     is  reflected in the accompanying consolidated statement of  operations
     as  of  March  31, 2001 with the accompanying reduction in the  accrued
     postretirement  benefit  liability  in  the  accompanying  consolidated
     balance  sheet at March 31, 2001.  The annual expense for  fiscal  2001
     should approximate $7.3 million before applicable income taxes.  It  is
     anticipated  that  the annual postretirement benefit  expense  will  be
     insignificant for fiscal years after 2001.


                                                                    Page 7

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

RESULTS OF OPERATIONS

The  Association's accounting cycle resulted in 13 weeks  and  39  weeks  of
operations,  respectively, in the three and nine month periods  ended  March
31,  2001  as compared to 13 weeks and 40 weeks of operations, respectively,
in the three and nine month periods ended April 1, 2000.

Net Sales Volume

Gold  Kist's total net sales for the quarter ended March 31, 2001  increased
2.7%  as compared to the quarter ended April 1, 2000.  Third quarter poultry
sales  increased due to a 3.1% improvement in average selling  prices,  more
than offsetting a 1.8% reduction in volume.  For the nine-month period ended
March  31, 2001, net sales declined .7% from $1.29 billion in the comparable
period last year to $1.28 billion in the current year.  The decrease was due
primarily  to  the  additional one-week period in fiscal  2000  and  a  2.4%
reduction  in  volume,  partially offset by a 2.3%  improvement  in  average
selling  prices and a .6% improvement in processing yield.  On a  comparable
per week basis, net sales increased 1.9% for the first nine months of fiscal
2001 as compared to the same period in fiscal 2000.

Poultry  selling  prices continue to be depressed by  an  excess  supply  of
poultry  and  other  competing meats such as beef  and  pork.   A  temporary
reduction  in  broiler  placements beginning in  the  first  fiscal  quarter
moderately reduced the rate of growth in broiler supplies and contributed to
the  improvement  in  selling prices.  According to the U.S.  Department  of
Agriculture's (USDA) National Agricultural Statistic Service,  U.S.  broiler
production  in  calendar  2000 was 41.5 billion pounds,  live  weight,  1.7%
higher than the 1999 production of 40.8 billion pounds.   This increase  was
lower than earlier estimates.

Export  sales  of  $16.7  million and $48.8 million, respectively,  for  the
quarter  and  nine  months ended March 31, 2001 increased 27.4%  and  21.4%,
respectively,  over  the  same  periods in fiscal  2000.   The  increase  is
principally  attributable to increased sales to Russia due  to  an  improved
Russian economy and a stabilization of their rules governing imports.

Net Operating Margins

The Association had net operating margins of $16.6 million and $34.9 million
for  the  three and nine months ended March 31, 2001 as compared  to  a  net
operating  loss  of  $(19.0) million and $(4.3) million  in  the  comparable
periods last year.  The increase in net operating margins in the quarter and
nine  months  ended  March 31, 2001 was due primarily to  the  gain  on  the
curtailment  of the post retirement benefit plan (see Note  9  of  Notes  to
Consolidated Financial Statements) and, to a lesser extent, improved poultry
selling prices.  Lower cost of sales in the year-to-date fiscal 2001  period
also  reflects the one-week reduction in the reporting period from the prior
year.   The  receipt  in  December  2000  of  $4.1  million  for  a  partial
distribution  of  Gold  Kist's  share as a class  claimant  in  the  vitamin
antitrust class action litigation positively impacted year-to-date  cost  of
sales.   However, higher average feed costs, processing expenses and  energy
costs partially offset these factors and brought about the increase in  cost
of sales for the current quarter.
                                                                    Page 8

The  impact  of  cost  reductions implemented in the  current  fiscal  year,
including  salary  freezes/reductions,  contributed  to  the  reduction   in
distribution,  administrative and general expenses  for  the  quarter  ended
March 31, 2001 as compared to April 1, 2000.

Other Income (Deductions)

Interest  and  dividend income was $8.7 million for the  nine  months  ended
March  31, 2001 as compared to $6.0 million for the nine months ended  April
1,  2000.  The increase was attributable primarily to receiving the interest
and  dividends  for the full 2001 period from the Southern States  preferred
securities, which were acquired in October 1999.

Interest expense was $30.5 million for the nine months ended March 31,  2001
as  compared  to  $23.6  million for the comparable  period  last  year,  an
increase of 29%.  The increase was due to higher average interest rates  and
loan  balances,  and  expenses/fees related to  the  senior  secured  credit
agreement established November 3, 2000.

Equity  in  earnings of affiliate of $753,000 represented the  Association's
share  of Golden Peanut's earnings for the nine months ended March 31,  2001
in  accordance  with  the membership agreement.  This  compared  to  a  $6.7
million  share of the affiliate's loss for the same period a  year  ago  due
principally to litigation related expenses.

Miscellaneous,  net was a loss of $(.9) million and income of  $1.3  million
for the three and nine months ended March 31, 2001 as compared to income  of
$741,000  and  $5.8 million for the same periods last year.   For  the  nine
months  ended  April  1, 2000, miscellaneous, net included  a  $3.9  million
insurance  recovery  on  product theft losses  at  the  Association's  South
Carolina  poultry complex.  For the three and nine months  ended  March  31,
2001,   miscellaneous,  net  included  a  $(330,000)  and  $(61,000)   loss,
respectively,  from  the  Association's  ownership  interest  in   a   pecan
processing and marketing company as compared to a $47,000 and $875,000  gain
for  the  comparable  periods in 2000.  Income from  a  hog  grow-out  joint
venture  with  another regional cooperative was $118,000 and  $1.1  million,
respectively, for the three and nine-month periods ended March 31,  2001  as
compared  to  a gain of $100,000 and a loss of $(52,000), respectively,  for
the  same periods in 2000.  Increases in hog market prices gave rise to this
improvement.

For  the  three  and  nine  months ended March 31, 2001,  the  Association's
combined  federal and state effective income tax rates were  37%.   Combined
effective  rates for the three and nine-month periods ended  April  1,  2000
were  35%.   Income  tax expense for the periods presented  reflects  income
taxes  at  statutory rates adjusted for available tax credits and deductible
nonqualified equity redemptions.

LIQUIDITY AND CAPITAL RESOURCES

The  Association's  liquidity is dependent upon funds  from  operations  and
external  sources of financing.  The principal sources of external financing
are  a secured credit facility, a term loan with an agricultural credit bank
and  senior notes with an insurance company totaling $117.9 million,  and  a
rolling  four-month  equity swap agreement with a  commercial  bank  in  the
amount of $55.2 million. The credit facility, which was replaced on November
3,  2000, included a three-year $120 million revolving credit commitment and
a $100 million 364-day line of credit commitment.

                                                                     Page 9

On  November  3,  2000, the Association established a  $240  million  Senior
Secured Credit Facility with a group of financial institutions that includes
a $100 million 364-day revolving line of credit, a $95 million two-year term
loan, and a $45 million five-year term loan.  The interest rates on the 364-
day  and  two-year term facilities range from 2.25% to 3%  over  the  London
Interbank   Offered   Rate  (LIBOR),  adjusted  quarterly   based   on   the
Association's  financial  condition.  The weighted  average  rate  on  these
facilities was 8.25% at March 31, 2001.  The interest rate on the  five-year
term  loan  was  fixed  at 10.57%.  The Association's senior  notes,  senior
secured credit facilities and term loan with an agricultural credit bank are
secured  by substantially all of the Association's inventories, receivables,
and  property, plant and equipment.  At March 31, 2001, the Association  had
unused loan commitments of $36.4 million.

Covenants  under  the  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 of debt agreements specify minimum
consolidated   tangible  net  worth,  current  ratio  and   coverage   ratio
requirements,  as well as a limitation on the funded debt to  total  capital
ratio.   The  debt  agreements place a limitation on  capital  expenditures,
equity  distributions, cash patronage refunds, commodity  hedging  contracts
and  additional  loans, advances or investments.  At  March  31,  2001,  the
Association was in compliance with all applicable loan covenants.

For  the  first  nine  months of fiscal 2001, cash provided  from  operating
activities  was $16.5 million as compared to cash used of $1.7  million  for
the  first  nine  months of fiscal 2000.  Operating cash  flow  provided  by
depreciation  and  amortization  expense was  offset  by  the  gain  on  the
curtailment of the post retirement medical plan, a noncash transaction.  The
net cash flow from operating activities, along with additional net long-term
borrowings, was used to repay short-term borrowings, which included maturing
Subordinated  Certificates and to fund capital asset expenditures  of  $23.4
million and net equity redemptions of $4.2 million.

Working capital and patrons' and other equity were $91.3 million and  $253.9
million,  respectively, at March 31, 2001 as compared to $23.8  million  and
$239.5  million,  respectively, at July 1, 2000.  The  increase  in  working
capital   reflected   the   decrease  in   current   liabilities   and   the
reclassification of certain investments to current assets.  In keeping  with
its  strategy to divest non-core assets, the Association plans to  liquidate
its  investment  in  Golden Peanut Company, LLC and the  investment  in  the
marketable  equity security over the next twelve months.   The  increase  in
patrons'  equity  reflected  the  $9.0 million  increase  in  value  of  the
marketable equity security, net of tax, and $9.5 million in net margins  for
the first nine months of fiscal 2001.

The  Association plans capital expenditures of approximately $35 million  in
2001 that primarily include expenditures for expansion of further processing
capacity  and  technological advances in poultry production and  processing.
In  addition,  planned capital expenditures include other asset improvements
and  necessary  replacements.  Management intends to  finance  planned  2001
capital  expenditures and related working capital needs with  existing  cash
balances,   cash  expected  to  be  provided  from  operations,   additional
borrowings  and liquidation of investments, as needed.  In 2001,  management
expects cash expenditures to approximate $5 million for equity distributions
less insurance proceeds.

                                                                    Page 10


In  connection  with  the  sale of assets of the  Agri-Services  segment  to
Southern States during 1999, Gold Kist discontinued the sale of Subordinated
Certificates.  The Association believes cash on hand and cash equivalents at
March  31,  2001  and  cash  expected to be  provided  from  operations  and
liquidation  of  investments,  in addition  to  borrowings  available  under
committed  credit  arrangements, will be sufficient to maintain  cash  flows
adequate  for the Association's operational objectives during  2001  and  to
fund  the  repayment  of  outstanding Subordinated  Certificates  and  other
indebtedness as they mature.

Important Considerations Related to Forward-Looking Statements

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.   In  light  of  these  risks  and
uncertainties, the Association cautions readers not to place undue  reliance
on any forward-looking statements.  The Association undertakes no obligation
to  publicly  update or revise any forward-looking statements based  on  the
occurrence of future events, the receipt of new information or otherwise.

Among  the  factors that may affect the operating results of the Association
are  the  following:  (i) fluctuations in the cost and availability  of  raw
materials,  such  as feed grain costs; (ii) changes in the availability  and
relative  costs  of labor and contract growers; (iii) market conditions  for
finished products, including the supply and pricing of alternative proteins;
(iv)  effectiveness  of sales and marketing programs; (v)  risks  associated
with  leverage, including cost increases due to rising interest rates;  (vi)
changes  in regulations and laws, including changes in accounting standards,
environmental laws and occupational, health and safety laws; (vii) access to
foreign  markets  together  with  foreign economic  conditions;  and  (viii)
changes in general economic conditions.

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.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISKS

Market Risk

The principal market risks affecting the Association are exposure to changes
in  commodity prices and interest rates on borrowings.  Although the Company
has   international  sales  and  related  accounts  receivable  for  foreign
customers,  there  is no foreign currency exchange risk  as  all  sales  are
denominated in United States dollars.



                                                                    Page 11

Commodities Risk

The  Association is a purchaser of certain agricultural commodities used for
the  manufacture  of poultry feeds.  The Association uses commodity  futures
and  options for economic hedging purposes to reduce the effect of  changing
commodity  prices  and  to  ensure supply of  a  portion  of  its  commodity
inventories  and  related  purchase and sale  contracts.   Feed  ingredients
futures and option contracts, primarily corn and soybean meal, are accounted
for at market.  Changes in fair value on these commodity futures and options
are  recorded  as  a component of product cost in earnings.   Terms  of  the
Association's  secured  credit  facility  limit  the  use  of  cash  forward
contracts  and commodities futures and options transactions.  At  March  31,
2001,  the  notional amounts and fair value of the Association's outstanding
commodity futures and options positions were not material.

                                                                     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

         None

     (b)Reports  on Form 8-K.  Gold Kist has not filed any reports  on  Form
        8-K during the three months ended March 31, 2001.

                                 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     May 11, 2001
                                                  Gaylord O. Coan
                                               Chief Executive Officer
                                            (Principal Executive Officer)




Date     May 11, 2001
                                                 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

         None

     (b)Reports  on Form 8-K.  Gold Kist has not filed any reports  on  Form
        8-K during the three months ended March 31, 2001.

                                 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     May 11, 2001                         /s/ Gaylord O. Coan
                                                  Gaylord O. Coan
                                               Chief Executive Officer
                                            (Principal Executive Officer)




Date     May 11, 2001                        /s/ Walter F. Pohl, Jr.
                                                 Walter F. Pohl, Jr.
                                                     Controller
                                            (Principal Accounting Officer)
