January 2, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

Cal-Maine Foods, the largest producer and distributor of fresh shell eggs in the U.S., announced it has agreed to acquire shuttered assets belonging to Tyson Foods consisting of a broiler processing plant, hatchery, and feed mill located in Dexter, Missouri.

Once the transaction is closed in Cal-Maine’s third fiscal quarter, the company stated that it plans to invest $13 million to convert the assets from chicken processing into an egg processing facility – a project that is expected to create approximately 96 jobs. 

“We are pleased to announce the proposed acquisition of the assets of Tyson’s former broiler processing facility in Dexter, Missouri,” said Sherman Miller, president and CEO, Cal-Maine Foods, Inc. “This transaction is consistent with our growth strategy to expand our business through selective acquisitions in addition to our organic growth initiatives.”

Additionally, in connection with the deal, Cal-Maine expects to enter into agreements with certain former Tyson contract farmers to convert their operations to align with Cal-Maine’s cage-free, free range, or pasture-raised egg production operations. 

“Southeast Missouri has a proud history of poultry production,” said Chris Chinn, Missouri Director of Agriculture. “This announcement from Cal-Maine Foods is a win for poultry farmers, grain farmers and the many agribusinesses who support those segments of the industry. We appreciate the leadership at Cal-Maine Foods for recognizing the opportunity to partner with Missouri producers.”

Further out, Cal-Maine explained that it anticipates making additional investments in the Dexter operations and in the local community through potential future expansions into egg products processing capabilities such as hard-cooked eggs. 

“The Dexter location offers an important opportunity to expand our geographic footprint and enhance our ability to serve our valued customers with added production and distribution capabilities in Missouri and surrounding markets,” noted Miller.

“We are very excited with the prospect of having Cal-Maine Foods as another regional economic driver in the 25th district,” said Missouri Senator Jason Bean. “Agriculture brings about inherent uncertainties that our farmers understand all too well, and having the ability to partner with a reputable, long-standing company like Cal-Maine helps our producers continue to manage risk and provide safe, abundant food for all. I cannot overstate how proactive and impactful the efforts of the City of Dexter and DED have been to maintain our poultry industry in Southeast Missouri.”

Headquartered in Ridgeland, Mississippi, Cal-Maine sells the majority of its eggs across the U.S. southwest, Midwest, and mid-Atlantic regions of the U.S. This acquisition in Missouri will only strengthen its position in a category that is forecast to grow from a value of US$13.74 billion in 2022 to US$16.2 billion in 2028, reflecting a CAGR of 2.79 percent. 

“Cal-Maine Foods’ decision to establish their facility in Dexter not only underscores our city’s exceptional potential but also brings a wave of prosperity that will significantly benefit our local workforce and economy,” said Alisha Trammell, executive director, Dexter Chamber of Commerce. “We are proud to say that this venture will provide numerous employment opportunities for our local residents, offering them a chance to be part of a dynamic, growing industry.”

“We look forward to working with the Tyson team to close the transaction and to working with the contract growers who will support our shell egg production capabilities,” concluded Miller. “As we extend our market reach, we remain focused on the efficient and sustainable management of our existing and acquired operations and meeting the demands of our customers.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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