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May 13, 2021

Cal-Maine Foods takes full control of Red River Valley Egg Farm business

US egg processor Cal-Maine Foods is to pay US$48.5m to purchase the remaining 50% interest in Texas-based Red River Valley Egg Farm.

By Andy Coyne

The deal sees Red River become a wholly-owned subsidiary of Cal-Maine, which previously owned half of the business.

Red River Valley Egg Farm owns and operates a shell egg production complex with approximately 1.7 million laying hens, pullet capacity, feed mill and processing plant, on approximately 400 acres near Bogata, Texas.

Dolph Baker, chairman and chief executive officer of Cal-Maine, said: “We have enjoyed a good working relationship with Rose Acre Farms since we formed this partnership and are pleased to assume full ownership of Red River Valley Egg Farm.

“When it commenced operations in 2015, Red River Valley Egg Farm significantly increased the availability of cage-free and other specialty eggs to meet the growing consumer demand for those products, and we look forward to continuing to support our valued customers in this important region.”

He added: “We believe this transaction will offer us additional opportunities to expand our production capacity and to meet the anticipated growing demand for cage-free and specialty eggs.”

Baker said Red River Valley’s management team will remain in place and be integrated into Cal-Maine’s operation.

Cal-Maine, headquartered in Jackson, Mississippi, is the largest producer and distributor of fresh shell eggs in the US.

In December, it announced plans to expand a facility in Kentucky to increase its production of cage-free eggs.

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