Cal-Maine Foods' board of directors has approved $40 million in new projects to expand the company’s cage-free production capabilities, the company announced.
The projects will include the addition of five new cage-free layer houses across the company’s locations in Florida, Georgia, Utah and Texas. Cal-Maine plans to start construction by the end of the year and expects the projects to be completed — with additional capacity for approximately 1 million cage-free layer hens — by late summer 2025. The additions will primarily replace recently retired caged facilities.
The company plans to fund the projects through a combination of available cash on hand, sales of investment securities and operating cash flow.
Cal-Maine also provided an update on its conversion of the former Tyson Foods facilities in Dexter, Missouri, acquired in March. Following the closing, the company began work to remodel and repurpose those assets for use in shell egg production. Cal-Maine Foods has also been working with local contract growers and has commitments that would result in approximately 1.2 million additional free-range hens by fall 2025, with plans to add more capacity in the future.
“We are pleased to announce these new expansion projects, which support our strategy to increase our free-range production in line with customer demand and expanding state requirements for cage-free eggs. The additional capacity will further enhance our ability to serve our growing customer base," Cal-Maine President and CEO Sherman Miller said. "We have made considerable progress with the conversion of the Dexter facilities and look forward to the additional production and distribution capabilities from this location."
Cal-Maine says it is nation's the largest producer and distributor of fresh shell eggs.
