Cal-Maine Foods, Inc. Announces New Joint Venture with Rose Acre Farms, Inc. in Texas
09 April 2015 - 9:00PM
Business Wire
Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced the Company
has entered into a production joint venture with Rose Acre Farms,
Inc. Based in Seymour, Indiana, Rose Acre Farms, Inc. has 17
processing operations in six states and has been family-owned and
operated since 1964.
This new joint venture, known as Red River Valley Egg Farm, LLC,
will build and operate a state of the art shell egg production
complex near Bogata, Red River County, Texas. The current plans for
the new facility provide for capacity of approximately 1.8 million
laying hens, however the site is permitted for up to 2.9 million
birds. Red River Valley Egg Farm, LLC will license and utilize Rose
Acre Farms’ patent-pending cage-free aviary designs and systems.
Construction has commenced and initial operations of the new
complex are expected to begin in August 2015. Red River Valley Egg
Farm, LLC will create approximately 80 to 100 new jobs in Red River
County, Texas.
Commenting on the announcement, Dolph Baker, chairman, president
and chief executive officer of Cal-Maine Foods, Inc., stated, “We
are pleased to enter into this production joint venture with Rose
Acre Farms to expand our production capabilities and respond to
increased customer demand for cage-free and other specialty eggs.
Considering the uncertain regulatory framework in our industry
right now, it made sense to partner with Rose Acre Farms to share
the costs and mitigate the risk of such a large-scale aviary style
egg production facility. The additional capacity provided by Red
River Valley Egg Farm will significantly increase the availability
of cage-free and other specialty eggs and egg products. We look
forward to working with Rose Acre Farms on this venture.”
Marcus Rust, chief executive officer of Rose Acre Farms, Inc.,
added, “We are proud to partner with Cal-Maine Foods in this new
joint venture. Red River Valley Egg Farm provides a unique
opportunity to leverage our combined strengths and capitalize on
the growing demand for specialty eggs. This joint venture will
allow us to better serve customers who are looking for a trusted
supplier of cage-free eggs.”
Red River County Judge Morris Harville (recently retired), of
Bogata, Texas, has been involved in the development and permitting
of Red River Valley Egg Farm complex. Harville stated, “We are
honored to be have been selected as the site for this very
important new egg production complex. This project will bring new
jobs and economic opportunities to Red River County and is the best
chance the citizens of Bogata and Red River County have had to
improve their living conditions.”
Cal-Maine Foods, Inc. is primarily engaged in the production,
grading, packing and sale of fresh shell eggs, including
conventional, cage-free, organic and nutritionally-enhanced eggs.
The Company, which is headquartered in Jackson,
Mississippi, is the largest producer and distributor of fresh shell
eggs in the United States and sells the majority of
its shell eggs in approximately 29 states across the
southwestern, southeastern, mid-western and mid-Atlantic regions of
the United States.
Statements contained in this press release that are not
historical facts are forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995.
The forward-looking statements are based on management’s current
intent, belief, expectations, estimates and projections regarding
our company and our industry. These statements are not guarantees
of future performance and involve risks, uncertainties, assumptions
and other factors that are difficult to predict and may be
beyond our control. The factors that could cause actual results to
differ materially from those projected in the forward-looking
statements include, among others, (i) the risk factors set forth in
the Company’s SEC filings (including its Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K), (ii) the risks and hazards
inherent in the shell egg business (including disease, pests,
weather conditions and potential for recall),
(iii) changes in the demand for and market prices of shell
eggs and feed costs, (iv) risks, changes or obligations that could
result from our future acquisition of new flocks or
businesses, and (v) adverse results in pending litigation
matters. SEC filings may be obtained from the SEC or the
Company’s website, www.calmainefoods.com. Readers are
cautioned not to place undue reliance on forward-looking
statements because, while we believe the assumptions
on which the forward-looking statements are based are
reasonable, there can be no assurance that these
forward-looking statements will prove to be accurate.
Further, the forward-looking statements included herein
are only made as of the respective dates thereof, or if
no date is stated, as of the date hereof. Except as
otherwise required by law, we disclaim any intent or
obligation to update publicly these forward-looking
statements, whether as a result of new information, future
events or otherwise.
Cal-Maine Foods, Inc.Dolph Baker, Chairman, President and CEO,
601-948-6813orTimothy A. Dawson, Vice President and CFO,
601-948-6813
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