Cal-Maine Acquires Texas Egg Farming Operation

October 19, 2018

Cal-Maine Foods announced it has agreed to acquire Featherland Egg Farms including its total assets related to commercial egg production, processing, distribution, and sales, for an undisclosed amount.

Headquartered in Jackson, Mississippi, and operating within a single supply chain, Cal-Maine is solely active in the production, grading, packaging, marketing, and distribution of shell eggs including specialty products such as nutritionally enhanced, cage free, organic, and brown eggs. In fiscal 2018, the company sold nearly 1.4 billion dozen eggs, accounting for approximately 20 percent of total U.S. domestic production. Cal-Maine controls the largest flock in the U.S. consisting of 36.3 million layers, and 9.6 million pullets and breeders.

As a member of the Eggland’s Best Inc. cooperative, Cal-Maine markets its specialty eggs under the Egg-Land’s Best, Land O’Lakes, Farmhouse, and 4-Grain brands, and produces, markets, and distributes Egg-Land’s Best and Land O’Lakes branded eggs along with joint venture partners through exclusive license agreements across the southeast, south-central, southwest, and Atlantic regions of the U.S.

Founded in 1952, Featherland Egg Farms is one of the few remaining egg farming operations in Texas, and has grown to include facilities with a capacity for 600,000 layer hens, a feed mill, and related production and distribution facilities located near Marion, Texas.

“We are pleased to announce the acquisition of the Featherland Egg Farms assets,” said Dolph Baker, chairman and CEO, Cal-Maine Foods.  “This transaction is consistent with our strategy to expand our business through selective acquisitions. It is located near many of our other locations and major market areas in south Texas, and we intend to capitalize on specific market opportunities created by this additional production capacity.”

Cal-Maine is a self-proclaimed “leader in industry consolidation”. Since 1989, the company has closed on 20 acquisitions ranging in size from 350,000 layers to 7.5 million layers.

In 2015, In response to customer demand for cage-free and specialty eggs, Cal-Maine formed a joint venture with Indiana-based Rose Acre Farms to form the new entity, Red River Valley Egg Farm – another Texas egg farming operation with the initial capacity for 1.8 million laying hens, and possible future expansion to house 2.9 million hens.

The following year, Cal-Maine Foods Inc. announced it had agreed to acquire all of the assets of Foodonics International Inc. and its related entities doing business under the name Dixie Egg Company for an undisclosed amount.

Upon completion of the deal,  Cal-Maine gained commercial egg production and processing facilities with a capacity for 1.6 million laying hens and all related feed production, milling, and distribution facilities located in Georgia, Alabama, and Florida.

Last year Cal-Maine continued its strategic growth plan through industry consolidation, announcing in February that it had agreed to acquire all assets of Happy Hen Egg Farms Inc. – a commercial producer, processor, and distributor of shell eggs located near Harwood and Wharton, Texas, for an undisclosed sum.

Per capita egg consumption in the U.S. has steadily increased over the past 10 years, according to the American Egg Board, climbing from 248.3 eggs per person per year in 2008 to 276.3 egg per person per year in 2018. Furthermore, the Board forecasts that consumption will continue to climb through next year, with preliminary figures showing a per capita consumption rate of 281.2 eggs per person for 2019. Amid this market environment, Cal-Maine is positioned to benefit from a growing demand for cage-free eggs, and  continues to remain dominant through consistent acquisitions.

“We look forward to the opportunity to extend our market reach and deliver greater value to both our customers and shareholders,” said Baker.

-Lynda Kiernan

Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.

Join the Global AgInvesting Community

Share your email to be notified about upcoming events, receive leading industry news and more.