Cal-Maine Foods, Inc. Announces $23.0 Million Capital Project to Expand Cage-Free Production in Florida
RIDGELAND, Mississippi – Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced that its Board of Directors has approved a $23.0 million capital project to expand cage-free egg production of the company at its production facility in Okeechobee, Florida. The project will involve the construction of two non-cage poultry houses and one non-cage poultry house with a capacity of approximately 400,000 non-cage hens and 210,000 pullets, respectively. Construction will begin immediately with first pullet placements expected by mid-May 2022 and first barn complete by October 1, 2022, with second barn and project completion expected by February 1, 2023 The company plans to finance the project through a combination of free cash, investments and operating cash flow.
Commenting on the announcement, Dolph Baker, President and CEO of Cal-Maine Foods, Inc., said, “This latest expansion project in Florida supports our strategy to position Cal-Maine Foods as industry leader to meet 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 site. This expansion will further strengthen our ability to serve this important market region with production and distribution close to our customers. We have invested approximately $482 million since 2008 in related facilities, equipment and operations to expand our cageless production and distribution capabilities. We are committed to meeting the needs of our valued customers and will continue to identify new opportunities for growth as consumer demand and state requirements for cage-free eggs increase.
Cal-Maine Foods, Inc. is primarily engaged in the production, grading, packaging, marketing and sale of fresh shell eggs, including conventional, cage-free, organic, pasture-raised eggs , free-range and nutritionally enriched. The company, headquartered in Ridgeland, Mississippi, is the largest producer and marketer of fresh shell eggs in the United States and sells the majority of its shell eggs in states in the southeastern regions. west, southeast, mid-west and mid-Atlantic. 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. Forward-looking statements are based on the intention, beliefs, management’s current expectations, estimates and projections. about 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. 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 filings with the SEC (including its annual reports on Form 10-K, its quarterly reports on Form 10-Q and current reports on Form 8-K), (ii) the risks and hazards inherent in the trade in shell eggs (including diseases, pests, weather conditions and potential for recall), (iii) changes in demand for and market prices for shell eggs and food costs, (iv) our ability to forecast and meet demand for eggs non-cage and other specialty eggs, (v) any risks, changes or liabilities that may result from our future acquisition of new flocks or businesses and any risks or changes that may cause the conditions for the completion of a pending acquisition are not met, (vi) the risks related to the evolution of the COVID-19 pandemic, and (vii) the unfavorable results of pending litigation. Documents filed with the SEC may be obtained from the SEC or at the Company’s website, www.calmainefoods.com. Readers are cautioned not to place undue reliance on forward-looking statements because, although we believe that the assumptions on which the forward-looking statements are based are reasonable, there can be no assurance that such forward-looking statements will prove to be accurate. Further, any forward-looking statements included herein are made only as of their respective dates or, if no date is indicated, as of the date hereof. Except as otherwise required by law, we disclaim any intention or obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.