October 12, 2024

Cal-Maine Foods to invest US$40 million in expanding cage-free egg production

Cal-Maine Foods announced that its board of directors has approved US$40 million for new capital projects aimed at expanding the company's cage-free production capabilities, Food Engineering reported.

The projects will be financed through a combination of available cash, sales of investment securities, and operating cash flow.

The expansion includes the construction of five new cage-free layer houses across its locations in Florida, Georgia, Utah, and Texas. Cal-Maine plans to begin construction by the end of 2024, with the goal of completing the projects by late summer 2025. Upon completion, the company will have additional capacity for approximately one million cage-free layer hens. This expansion is intended to replace recently retired caged facilities and increase the company's overall cage-free production capacity.

In addition, Cal-Maine provided an update on the conversion of facilities acquired from Tyson Foods in Dexter, Missouri, on March 14. Since acquiring the facilities, Cal-Maine has been working to remodel and repurpose them for shell egg production. The company has also collaborated with local contract growers and secured commitments for approximately 1.2 million additional free-range hens by fall 2025, with plans to increase capacity further in the future.

Sherman Miller, president and CEO of Cal-Maine Foods, expressed satisfaction with the company's expansion plans. "We are pleased to announce these new expansion projects, which support our strategy to increase our free-range production in line with customer demand and expanding state requirements for cage-free eggs," he said.

Miller also highlighted the company's progress in converting the Dexter facilities, noting the additional production and distribution capabilities expected from the location. He acknowledged the support from local contract growers and reaffirmed the company's commitment to being an efficient and sustainable producer of fresh shell eggs and egg products.

-      Food Engineering