The Michael Foods plant in David City, Nebraska, is shutting down, with the last day of operation planned for July 29.
The upcoming closure was confirmed by Lisa Hanly, director of communications for Post Holdings, the parent company of Michael Foods. Hanly shared no further information concerning the dehydrated egg products plant closure.
However, the Columbus Telegram reported that an employee at the David City copy of an internal announcement, which said the decision to close was based on the determination that there is “excess capacity across our dried egg network that would not be utilized by current demand or the anticipated growth in this category.
The internal announcement also reportedly stated that a severance package will be offered to plant employees, and that workers at the facility can have the option to working at other Michael Foods farms or processing facilities with a signing bonus and relocation expense assistance available.
The David City plant became part of Michael Foods’ operations in 2020, when Post Holdings and Michael Foods acquired Henningsen Foods. Dehydrated egg products were produced at this particular facility. When Post Holdings acquired Henningsen Foods, headquartered in Omaha, the acquisition included three production facilities in Nebraska. Henningsen Foods was previously owned by Kewpie Corporation, which is headquartered in Japan.
Michael Foods, according to the Egg Industry Top Companies report, has a flock of 11.91 million hens, making it the sixth largest egg producer in the United States. Headquartered in Minnetonka, Minnesota, Michael Foods is the largest supplier of processed eggs in the world.
Michael Foods was acquired by Post Holdings in 2014.