Post Holdings CEO Robert V. Vitale said he feels “very comfortable” with the way its Michael Foods subsidiary is matching the production of cage-free egg products with the demand.
“We are moving alongstep with our customers and trying to be supportive of their overall initiatives in this area, so our capacity is very nicely matched against the demands,” Vitale said while speaking during a November 17 conference call in which he also announced the financial results of Post Holdings’ fourth quarter of fiscal year 2017.
Vitale said that the demand for cage-free egg products has been “very consistent with” expectations in the foodservice sector.” However, retailers have not been as quick to transition.
“The retail conversion is a longer process than the foodservice. The announced foodservice customers have been more aggressive in moving toward a full cage-free introduction into its supply chain,” he said.
Michael Foods, in December 2015, announced that it would continue its investment in cage-free laying systems and that it would also be an advocate for cage-free egg products with consumers and customers.
Michael Foods, which according to the WATTAgNet Top Poultry Companies Database is the seventh largest egg company in the United States with 12.96 million hens, is in a different situation than the two largest egg companies in the country. Both Cal-Maine Foods and Rose Acre Farms, which have 37.94 million hens and 25 million hens, respectively, have announced that they have pulled back on cage-free egg production because the demand has not been in line with the supply.
Michael Foods is a founding member of the Coalition for Sustainable Egg Supply (CSES).
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