Cal-Maine Foods has acquired feed mills and operations from Deal-Rite Feeds, which are located in close proximity to its shell egg production facilities in North Carolina, USA. With the addition of these feed mill operations, the company reportedly can formulate, produce and deliver feed at a lower cost.
One of the largest producers and distributors of shell eggs, Cal-Maine Foods, Inc. has announced that it has acquired certain assets of Deal-Rite Feeds, Inc. and its affiliated entities, including two feed mills, storage facilities, usable grain, vehicles, related equipment and retail feed sales business located in Statesville and Union Grove, North Carolina, USA. The company is funding the acquisition with available cash on hand.
Sherman Miller, President and Chief Executive Officer of Cal-Maine Foods, Inc., said: “We are pleased to have the opportunity to acquire these feed mills and operations, which are strategically located in close proximity to our North Carolina shell egg production facilities. As we continue to expand contract production in this area, we also look for ways to effectively manage our production costs and drive efficiencies. Feed is a primary cost component in the production of shell eggs, and the quality and composition of feed are critical factors related to the health of our hens and the nutritional value of shell eggs. With the addition of these feed mill operations in North Carolina, we can formulate, produce and deliver feed at a lower cost with shorter travel required to reach the respective farms. We remain committed to our mission to be the most efficient and sustainable producer of fresh shell eggs and egg products, and we will look for additional opportunities to further support our growth strategy.”
