USA – Cal-Maine Foods, a leading US egg producer, has successfully acquired a broiler processing plant from Tyson Foods, a USA-based meat giant.

The plant, located in Dexter, Missouri, was previously closed by Tyson, and the acquisition includes a hatchery and feed mill at the same site.

The deal, finalized for an undisclosed sum, is part of Cal-Maine’s growth strategy and involves converting the broiler processing plant into an egg grading facility.

Cal-Maine plans to reach out to farmers who had supplied the Tyson plant to explore the possibility of them switching to supplying eggs for the newly acquired facility.

The move is seen as a strategic opportunity to expand Cal-Maine’s geographic footprint and enhance production and distribution capabilities in Missouri and surrounding markets.

“This transaction is consistent with our growth strategy to expand our business through selective acquisitions in addition to our organic growth initiatives,” Cal-Maine President and CEO Sherman Miller stated.

The acquisition comes after a challenging December for Cal-Maine, marked by a temporary production halt at a Kansas facility due to an avian influenza outbreak.

According to the company, the highly pathogenic avian influenza (HPAI) had affected about 684,000 laying hens or nearly 1.6% of its total flock.

In addition, Cal-Maine said that the detections did not present an immediate public health concern and are not a threat to the food supply, according to the U.S. Department of Agriculture (USDA).

On the other hand, Tyson Foods had announced the closure of several facilities, including the Dexter plant, as part of cost-cutting measures amidst slowing demand and declining profits.

The Dexter site was among four domestic chicken facilities Tyson planned to close in the first half of its 2024 fiscal year.

In November, Tyson also revealed plans to shut down two case-ready meat production facilities, continuing its streamlining efforts.

Tyson’s financial challenges were evident in its year-end results, with a US$649 million loss in the year to the end of September, compared to a US$3.25 billion profit in the previous year.

Sales also saw a slight dip, standing at US$52.88 billion, down from US$53.28 billion the year before.

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