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December 16, 2020

Cal-Maine Foods expands cage-free eggs capacity in Kentucky

Cal-Maine Foods plans to expand a US plant to increase production of cage-free eggs as states across the country implement new requirements.

By Dean Best

Cal-Maine Foods plans to expand a US plant to increase production of cage-free eggs as states across the country implement new requirements.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
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The US supplier of fresh shell eggs, including conventional, cage-free, organic and nutritionally-enhanced eggs, will invest US$40m in its facility in the city of Guthrie, Kentucky, with extension work already underway and completion of the project expected late in 2022. The company plans to convert existing egg production to house 1.5 million cage-free hens and 30,000 pullets.

Last year, Cal-Maine forked out $148m to expand three of its facilities to meet new requirements for cage-free hens – the Delta, Utah plant, a site in Pittsburg, Texas, and another in Zephyrhills, Florida.

Cal-Maine regards itself as the largest producer and distributor of fresh shell eggs in the US. Headquartered in Jackson, Mississippi, the company operates 42 shell egg production facilities, as well as sites for breeding, hatcheries, distribution centres, feed mills and processing and packaging.

Dolph Baker, the chairman and chief executive of Nasdaq-listed Cal-Maine, said in a statement: "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."

Baker added that the business has invested more than $462m over the past 12 years in facilities and equipment to expand cage-free egg production as a "growing number of states" now require allocations for cage-free birds to be implemented from 2022 to 2026. For instance, the state of California has a requirement that all eggs and associated products should be cage-free by 2022.   

In its financial year ended on 30 May, Cal-Maine generated sales of $1.35bn, down slightly on the previous year's $1.36bn. The speciality eggs category, which includes cage-free, organic and nutritionally-enhanced egg, accounted for 36.8% of group sales revenues equal to $485.5m.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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