Cal-Maine Foods, a leading player in the food and beverage industry, has announced a significant investment of $40 million aimed at enhancing its cage-free egg production capabilities. This initiative responds to the growing consumer demand for free-range eggs and aligns with increasing state regulatory requirements.
The Mississippi-based company, which currently stands as the largest producer and distributor of fresh shell eggs in the United States, plans to finance these capital projects through a combination of cash reserves, sales of investment securities, and operating cash flows. This strategic investment will facilitate the construction of five new cage-free layer houses across its facilities in Florida, Georgia, Utah, and Texas.
Construction is anticipated to commence by the end of this year, with expectations to complete the projects and add capacity for approximately one million cage-free layer hens by late summer 2025. Notably, the new layer houses will replace recently retired caged facilities, further enhancing the company’s commitment to meeting evolving consumer preferences in the food and drink business.
Additionally, Cal-Maine provided an update regarding its ongoing conversion of former Tyson Foods facilities situated in Dexter, Missouri, which were acquired in March. The company has made substantial progress in repurposing these assets for shell-egg production, securing commitments for around 1.2 million additional free-range hens by autumn 2025 and preparing for further expansions in capacity.
In June, it was revealed that Cal-Maine and Tyson Foods are currently facing a class-action lawsuit linked to the sale of the Tyson facility to the egg producer. A local law firm is representing 45 farmers who previously raised chickens for Tyson, claiming the company failed to uphold promises regarding anti-trust practices connected to the sale.
Commenting on the recent capital expenditure announcement, Cal-Maine’s President and CEO Sherman Miller stated, “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. The additional capacity will further enhance our ability to serve our growing customer base.”
Furthermore, last month, Cal-Maine launched a strategic partnership with U.S. peer Crepini to create a venture focused on prepared foods and egg products. This initiative includes a strategic investment, where Cal-Maine will hold a 51% stake in Crepini Foods and contribute $6.8 million for new equipment and working capital.