November 18, 2019
Rembrandt closes egg production plant in Minneapolis, US
Iowa-based Rembrandt Foods has disclosed that it will close an egg-production plant in Renville, Minneapolis, the United States, citing a glut of eggs in the market.
The Star Tribune reported on the decision from Rembrandt, which employs 52 people in the central Minnesota city.
Rembrandt president Paul Hardy said the company was "ultimately overindexed on conventional eggs" and faced a market where demand was dropping.
The egg industry has been struggling for years with supply/demand issues, the paper notes. After an outbreak of bird flu, many farmers expanded production to hedge against widespread deaths, but that risked a glut of eggs going forward if more hens survived.
Consumer habits are also in flux. "Conventional eggs" generally means from caged birds, and more consumers have been buying cage-free or organic varieties, leading farmers to add production in those segments.
Hardy said that some Renville employees may transfer to other Rembrandt facilities.
- Minneapolis/St. Paul Business Journal