Cal-Maine Foods, Inc. (NASDAQ: CALM) today announced the Company has
entered into a production joint venture with Rose Acre Farms, Inc. Based
in Seymour, Indiana, Rose Acre Farms, Inc. has 17 processing operations
in six states and has been family-owned and operated since 1964.
This new joint venture, known as Red River Valley Egg Farm, LLC, will
build and operate a state of the art shell egg production complex near
Bogata, Red River County, Texas. The current plans for the new facility
provide for capacity of approximately 1.8 million laying hens, however
the site is permitted for up to 2.9 million birds. Red River Valley Egg
Farm, LLC will license and utilize Rose Acre Farms’ patent-pending
cage-free aviary designs and systems. Construction has commenced and
initial operations of the new complex are expected to begin in August
2015. Red River Valley Egg Farm, LLC will create approximately 80 to 100
new jobs in Red River County, Texas.
Commenting on the announcement, Dolph Baker, chairman, president and
chief executive officer of Cal-Maine Foods, Inc., stated, “We are
pleased to enter into this production joint venture with Rose Acre Farms
to expand our production capabilities and respond to increased customer
demand for cage-free and other specialty 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 specialty eggs and egg
products. We look forward to working with Rose Acre Farms on this
venture.”
Marcus Rust, chief executive officer of Rose Acre Farms, Inc., added,
“We are proud to partner with Cal-Maine Foods in this new joint venture.
Red River Valley Egg Farm provides a unique opportunity to leverage our
combined strengths and capitalize on the growing demand for specialty
eggs. This joint venture will allow us to better serve customers who are
looking for a trusted supplier of cage-free eggs.”
Red River County Judge Morris Harville (recently retired), of Bogata,
Texas, has been involved in the development and permitting of Red River
Valley Egg Farm complex. Harville stated, “We are honored to be have
been selected as the site for this very important new egg production
complex. This project will bring new jobs and economic opportunities to
Red River County and is the best chance the citizens of Bogata and Red
River County have had to improve their living conditions.”
Cal-Maine Foods, Inc. is primarily engaged in the production, grading,
packing and sale of fresh shell eggs, including conventional, cage-free,
organic and nutritionally-enhanced eggs. The Company, which is
headquartered in Jackson, Mississippi, is the largest producer and
distributor of fresh shell eggs in the United States and
sells the majority of its shell eggs in approximately 29 states across
the southwestern, southeastern, mid-western and mid-Atlantic regions of
the United States.
Statements contained in this press release that are not historical
facts are forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. The
forward-looking statements are based on management’s current intent,
belief, expectations, estimates and projections regarding our company
and our industry. These statements are not guarantees of future
performance and involve risks, uncertainties, assumptions and other
factors that are difficult to predict and may be beyond our control.
The factors that could cause actual results to differ materially from
those projected in the forward-looking statements include, among others,
(i) the risk factors set forth in the Company’s SEC filings (including
its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K), (ii) the risks and hazards inherent in the
shell egg business (including disease, pests, weather conditions and
potential for recall), (iii) changes in the demand for and market prices
of shell eggs and feed costs, (iv) risks, changes or obligations that
could result from our future acquisition of new flocks or businesses,
and (v) adverse results in pending litigation matters. SEC filings may
be obtained from the SEC or the Company’s website, www.calmainefoods.com.
Readers are cautioned not to place undue reliance on forward-looking
statements because, while we believe the assumptions on which the
forward-looking statements are based are reasonable, there can be no
assurance that these forward-looking statements will prove to be
accurate. Further, the forward-looking statements included herein
are only made as of the respective dates thereof, or if no date is
stated, as of the date hereof. Except as otherwise required
by law, we disclaim any intent or obligation to update publicly these
forward-looking statements, whether as a result of new information,
future events or otherwise.
Copyright Business Wire 2015