Cal-Maine Foods Inc. recently announced US$82 million for capital projects to expand its U.S. cage-free production capacity in Delta, Utah, and Guthrie, Kentucky.
Utah’s expansion includes four new cage-free layer houses and two pullet house conversions while Kentucky’s expansion includes nine cage-free layer house conversions and two pullet house conversions. The two expansions will increase the egg producer's flock by 1,763,000 in total.
Construction on the two projects has already started. The Utah project is slated for completion by fall 2023, while the Kentucky facility should be complete by spring 2025.
The egg producer plans to fund the expansions using a blend of available cash on hand, investments and operating cash flow.
“We are pleased to announce these cage-free expansion projects that will further advance our growth strategy and better serve customers given growing customer and consumer demand and expanding state requirements for cage-free eggs. Cal-Maine Foods is well-positioned as an industry leader in meeting this demand,” said Dolph Baker, Cal-Maine Foods chairman and chief executive officer.
“Including this project, since 2008, we have allocated approximately $625 million in facilities, equipment and related operations expanding our cage-free production and distribution capabilities. This includes approximately $123 million of projects scheduled for completion during the next three years. We are committed to meeting the needs of our valued customers and will continue to identify opportunities to enhance our operations with improved efficiencies to support our anticipated growth.”
Cal-Maine and HPAI
Announcements regarding egg production expansions, cage-free or not, are encouraging to hear after news concerning egg shortages due to HPAI has been surfacing. Avian influenza has had a major effect on the U.S. egg industry this year. As of March 31, 11.8 million laying hens have been depopulated across four U.S. states – Wisconsin, Iowa, Maryland and South Dakota.
Additionally, Cal-Maine has confirmed that there have been no positive HPAI tests at any Cal-Maine Foods’ owned or contracted production facility to date.
