The demand for cage-free eggs has not kept up with the supply, so Cal-Maine Foods has adjusted its cage-free egg production accordingly.
Dolph Baker, chairman, president and CEO of Cal-Maine Foods, revealed the production adjustment in a press release issued on October 2 that coincided with the announcement of its financial results of the first quarter of fiscal year 2018.
According to Baker, the cage-free egg market is an important area of focus for the company’s growth strategy and it has invested in its operations and capacity to provide a strong supply of cage-free eggs.
However, Baker pointed out that “many food service providers, national restaurant chains and major retailers, including our largest customers, have made public commitments to transition away from conventional eggs and exclusively offer cage-free eggs by future specified dates.”
“However, the higher price gap between conventional eggs and specialty eggs has resulted in reduced demand for specialty eggs,” Baker said.
To bring the situation back into balance, Baker said the company has adjusted its cage-free egg production levels in line with the current customer demand. Because of the investment the company has made in cage-free laying systems, Cal-Maine Foods, the world’s largest egg producer, is well-positioned to increase its cage-free egg capacity when demand trends change, Baker said.
“Above all, we will continue to support our customers with a favorable product mix that includes cage-free eggs, as well as other healthy and affordable options for consumers including conventional, nutritionally enhanced and organic eggs,” Baker said.
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