Cal-Maine Foods, the largest egg producer in the U.S., said it will invest $40 million to expand cage-free production as free-range hens make up a growing share of the nation’s flocks.
The company will build five new cage-free layer houses across locations in Florida, Georgia, Utah and Texas, largely replacing the company’s retired cage facilities. Construction is set to begin at the end of 2024, and the investment will add 1 million cage free layer hens by late next summer.
Cal-Maine also plans to expand cage-free production in Dexter, Missouri, as it repurposes a former Tyson Foods plant for use in shell egg production. The company has reached commitments with local growers in the region to add another 1.2 million free-range hens by fall 2025, with further capacity expansions to follow.
“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,” Sherman Miller, Cal-Maine president and CEO, said in a statement.
Egg producers are rapidly transitioning to cage-free operations as multiple states prepare to enact a ban on conventional housing in 2026. California already requires eggs sold in the state to come from cage-free hens.
Production of cage-free eggs has exploded over the past decade or so. Cage-free hens made up 40% of the U.S. flock in March 2024, up from around 5% in 2012. However, recent outbreaks of high pathogenic avian influenza have limited supply and sent prices skyrocketing in California.
Tighter egg supply has lifted Cal-Maine profits, with the producer reporting its first quarter sales nearly doubled compared to the previous year. The company also noted a 20% increase in sales of specialty eggs, which include organic or cage-free products.