Cal-Maine Foods, Inc. Announces $23.0 Million Capital Project to Expand Cage-Free Production in Florida
26 October 2021 - 7:30AM
Business Wire
Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced that its
Board of Directors has approved a $23.0 million capital project to
expand the Company’s cage-free egg production at its Okeechobee,
Florida, production facility. The project will include the
construction of two cage-free layer houses and one cage-free pullet
house with capacity for approximately 400,000 cage-free hens and
210,000 pullets, respectively. Construction will commence
immediately with first pullet placements planned by mid-May 2022
and the first layer house finished by October 1, 2022, with the
second layer house and project completion expected by February 1,
2023. The Company plans to fund the project through a combination
of available cash on hand, investments and operating cash flow.
Commenting on the announcement, Dolph Baker, chairman and chief
executive officer of Cal-Maine Foods, Inc., stated, “This most
recent expansion project in Florida supports our strategy to
position Cal-Maine Foods as an industry leader in meeting the
growing demand for specialty egg offerings, including cage-free
eggs. We have a strong market presence in Florida with a large
customer base served by the Okeechobee location. This expansion
will further enhance our ability to serve this important market
region with production and distribution in proximity to our
customers. We have invested approximately $482 million since 2008
in facilities, equipment and related operations to expand our
cage-free production and distribution capabilities. We are
committed to meeting the needs of our valued customers and will
continue to identify further growth opportunities in tandem with
expanding consumer demand and state requirements for cage-free
eggs.”
Cal-Maine Foods, Inc. is primarily engaged in the production,
grading, packing, marketing and sale of fresh shell eggs, including
conventional, cage-free, organic, pasture-raised, free-range and
nutritionally enhanced eggs. The Company, which is headquartered in
Ridgeland, Mississippi, is the largest producer and distributor of
fresh shell eggs in the United States and sells the majority of its
shell eggs in 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) our ability to predict and meet demand
for cage-free and other specialty eggs, (v) risks, changes or
obligations that could result from our future acquisition of new
flocks or businesses and risks or changes that may cause conditions
to completing a pending acquisition not to be met,(vi) risks
relating to the evolving COVID-19 pandemic, and (vii) 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
publicly update these forward-looking statements, whether as a
result of new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20211025005796/en/
Dolph Baker, Chairman and CEO Max P. Bowman, Vice President and
CFO (601) 948-6813
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