US egg processor Cal-Maine Foods is to set up a production joint venture with local peer Rose Acre Farms.
The two will build and operate a shell egg production in Texas called Red River Valley Egg Farm.
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The plans for the new facility provide for capacity of approximately 1.8m laying hens. However, the site is permitted for up to 2.9m birds.
Operations are expected to start in August, with the new facility expected to create between 80 and 100 jobs.
Dolph Baker, chairman, president and CEO of Cal-Maine Foods, said the company was responding to increased "customer demand for cage-free and other speciality eggs".
"Considering the uncertain regulatory framework in our industry right now, it made sense to partner with Rose Acre Farms to share the costs and mitigate the risk of such a large-scale aviary style egg production facility. The additional capacity provided by Red River Valley Egg Farm will significantly increase the availability of cage-free and other speciality eggs and egg products. We look forward to working with Rose Acre Farms on this venture."
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