Cal-Maine Foods, Inc. announced on Oct. 4 its board of directors approved $40 million in new capital projects to expand the company’s cage-free production capabilities. Cal-Maine plans to fund the projects through a combination of available cash on hand, sales of investment securities and operating cash flow.

The projects will include the addition of five new cage-free layer houses across the its locations in Florida, Georgia, Utah and Texas. The company plans to start construction by the end of 2024 and expects the projects to be completed with additional production capacity for approximately one million cage-free layer hens by late summer 2025. These additions will primarily replace recently retired caged facilities and add to the company’s cage-free capacity.

Cal-Maine also provided an update on its conversion of the former Tyson Foods facilities in Dexter, Mo., acquired on March 14. Following the closing, the company began work to remodel and repurpose these assets for use in shell egg production. Cal-Maine Foods has also been working with local contract growers and has commitments that would result in approximately 1.2 million additional free-range hens by fall 2025, with plans to add more capacity in the future.

“We are pleased to announce these new expansion projects, which support our strategy to increase our free-range production in line with customer demand and expanding state requirements for cage-free eggs," says Sherman Miller, president and CEO, Cal-Maine Foods, Inc. "The additional capacity will further enhance our ability to serve our growing customer base. We have made considerable progress with the conversion of the Dexter facilities and look forward to the additional production and distribution capabilities from this location. We greatly appreciate the support we have received from the existing network of local contract growers. As we continue to expand our operations, we remain committed to being the most efficient and sustainable producer of fresh shell eggs and egg products, and we will look for additional opportunities to further advance our growth strategy.”