Cal-Maine Foods announced it has completed the acquisition of Tyson Foods' broiler processing plant, hatchery and feed mill in Dexter, Missouri, that closed in 2023.
The egg producer said it plans to remodel the plant for use in the shell egg and egg products sector. After the acquisition of the plant was announced, Cal-Maine said it expected to enter into agreements with some of Tyson’s former contract farmers to convert their operations to egg production.
On the acquisition, Sherman Miller, Cal-Maine Foods President and Chief Executive Officer, stated: “We are pleased to join the Dexter community and are excited about the opportunities to expand our operations. We intend to partner with the existing strong network of local contract growers who can support our shell egg production capabilities.”
Miller continued: “Dexter’s central geographic location and strong work force will enhance our supply and distribution capabilities for customers in Missouri and surrounding markets. Importantly, we will also benefit from closer proximity to sources for our primary feed ingredients. We look forward to the new production opportunities, including the potential for additional free-range capacity, in this new community and market for Cal-Maine Foods.”
The Tyson plant closure caused lawsuits
Missouri poultry farmers took legal action against Tyson Foods after the closure of the producer’s Dexter, Missouri, processing plant.
The lawsuit alleged that Tyson breached its contract and committed fraudulent misrepresentation after the growers took on millions of dollars in debt to update and maintain their broiler and broiler breeder farms at the producer’s request.
Tyson’s former farmers claimed the producer knew as early as November 2021 that it would shut down the processing plant, but did not tell its growers in that area, and led them to believe the facility was staying in operation. As of March 2024, the lawsuit is ongoing.
