Cal-Maine Foods to invest $40.1m to increase cage-free egg production

US-based egg supplier Cal-Maine Foods has said that it will invest $40.1m to enhance its cage-free egg production capacity at its facility in Guthrie, Kentucky.

The expansion plan has been approved by the company’s board.

The project will see the creation of additional infrastructure to convert the existing capacity to accommodate nearly 1.5 million cage-free hens and 300,000 pullets.

Cal-Maine Foods chairman and CEO Dolph Baker said: “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.

“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 $462.5m during the prior 12 years to facilities, equipment, and related operations to expand our cage-free production.”

Construction works at the site are expected to begin immediately, with initial conversions expected to take place in early next year.

The first pullet placements are expected to be completed by mid-next year and the first layer house finished by late next year.

Cal-Maine Foods intends to complete the project by late 2022.

The company will be using a combination of available cash on hand, investments and operating cash flow to finance the project.

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.

“We believe adding this capacity in Cal-Maine Foods’ facilities over the next two years will help drive our continued efforts to meet customers’ needs.”

Last April, Cal-Maine Foods announced a $148m investment to expand its three facilities to boost its cage-free capacity.