Cal-Maine Foods, Inc.Announces $ 23.0 Million Investment Plan to Expand Cage-less Production in Florida
RIDGELAND, Mississippi, October 25, 2021– (COMMERCIAL THREAD) – Cal-Maine Foods, Inc. (NASDAQ: CALM) announced today that its board of directors has approved a $ 23.0 million investment plan to expand cage-free egg production from the company at its production facility in Okeechobee, Florida. The project will include the construction of two cage-free poultry houses and one cage-free chicken house with a capacity of approximately 400,000 cage-free hens and 210,000 pullets, respectively. Construction will begin immediately with the first pullet placements planned by mid-May 2022 and the first diaper house completed by October 1, 2022, with the second diaper house and project completion scheduled by on February 1, 2023. The Company expects to finance the project through a combination of available cash, investments and cash flow from operations.
Commenting on the announcement, Dolph Baker, President and CEO of Cal-Maine Foods, Inc., said, âThis most recent expansion project in Florida supports our strategy to position Cal-Maine Foods as a leader in industry 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 location. This expansion will further improve 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 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 new growth opportunities in tandem with increasing consumer demand and state requirements for cage-free eggs. “
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, free-range eggs. air and nutritionally improved. The company, 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 the southwestern states, Southeast, Midwest, and Mid Atlantic United States.
Statements 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 intention, belief, expectations , management’s current 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 which are difficult to predict and may be beyond our control. Factors that could cause actual results to differ materially from those projected in forward-looking statements include, among others, (i) risk factors set forth in the Company’s filings with the SEC (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 dangers inherent in the shell egg trade (including diseases, parasites, weather conditions and recall potential), (iii) changes in shell egg demand and market prices and feed costs, (iv) our ability to forecast and meet egg demand non-cage and other specialty eggs, (v) the risks, changes or obligations that could result from our future acquisition of new flocks or businesses and the risks or changes that could cause the conditions for carrying out a pending acquisition are not met, (vi) the risks associated with the evolution of the COVID-19 pandemic, and (vii) the negative results of pending litigation. Documents filed with the SEC can be obtained from the SEC or from the Company’s website, www.calmainefoods.com. Readers are cautioned not to place undue reliance on forward-looking statements because, although we believe the assumptions upon which forward-looking statements are based are reasonable, there can be no assurance that such forward-looking statements will prove to be correct. In addition, the forward-looking statements included herein are only made on their respective dates, or if no date is indicated, on the date hereof. Unless 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.
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Dolph Baker, President and CEO
Max P. Bowman, Vice-President and Chief Financial Officer