Cal-Maine Foods announces $40.1m capital project to boost cage-free egg production

Cal-Maine Foods has announced a $40.1 million capital project to expand cage-free egg production at its facility in Guthrie, Kentucky.

The company plans to convert existing conventional capacity to house approximately 1.5 million cage-free hens and 300,000 pullets.

Construction work on the project – which the company plans to fund through a combination of available cash on hand, investments and operating cash flow – will begin immediately. Its completion is expected by late 2022.

“This latest expansion supports our continued efforts to position Cal-Maine Foods as an industry leader in meeting future customer goals for cage-free eggs,” said Dolph Baker, chairman and CEO of Cal-Maine Foods.

“The Guthrie location is strategically located close to a large customer footprint, which will enable us to enhance our distribution of cage-free eggs for this important market region.

“Including this latest project, we have allocated approximately $462.5 million during the prior 12 years to facilities, equipment and related operations to expand our cage-free production.”

Baker added: “Across the country, a growing number of states have passed minimum space and/or cage-free requirements with implementations ranging from January 2022 to January 2026.”

Headquartered in Mississippi, Cal-Maine Foods claims to be the largest producer and distributor of fresh shell eggs in the US. The company’s offerings span conventional, cage-free, organic and nutritionally enhanced eggs.

Last year, Cal-Maine Foods acquired egg production assets from Mahard Egg Farm in a move to increase its market presence.