Cal-Maine Foods, a leading US egg group, has recently acquired a broiler processing plant from meat giant Tyson Foods. The plant, located in Dexter, Missouri, was closed by Tyson prior to the acquisition. Cal-Maine plans to convert the facility into an egg grading facility and is seeking to engage with farmers who previously supplied the Tyson plant to discuss the possibility of supplying eggs.
In a statement, Cal-Maine president and CEO Sherman Miller expressed the company’s growth strategy and its intent to expand their business through strategic acquisitions. Miller added, “The Dexter location offers an important opportunity to expand our geographic footprint and enhance our ability to serve our valued customers with added production and distribution capabilities.”
However, Cal-Maine experienced setbacks with a temporary production halt at a facility in Kansas due to an outbreak of avian influenza, and a lawsuit in which a US jury ordered the company to pay a significant sum in damages. Conversely, Tyson has been streamlining its operations, with the closure of several facilities and a significant loss in the previous fiscal year.
Tyson’s strategic moves included shutting down domestic chicken facilities as well as case-ready meat facilities. In addition, the company also closed two poultry plants, resulting in a combined loss of 1,600 jobs. These steps come as Tyson reported a considerable loss and drop in sales for the year.
The acquisition of the plant from Tyson aligns with Cal-Maine’s commitment to its expansion strategy. With the acquisition of the Tyson plant, Cal-Maine aims to strengthen its position in the market and enhance its production and distribution capabilities. With the resulting benefits, Cal-Maine remains focused on its growth trajectory in the food and beverage industry.
