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CalMaine (CALM) to Acquire Few Assets of Fassio Egg Farms
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CalMaine Foods (CALM - Free Report) has entered into an agreement to acquire certain assets of Fassio Egg Farms, Inc. The assets in contention, which are engaged in commercial shell egg production and processing, will boost CALM’s production capacity, especially for cage-free eggs, and market presence in Utah and the western United States.
Fassio has been a leader in the egg production business since 1915. In addition to conventional white eggs, Fassio Egg Farms also offers organic, cage-free, vegetarian-fed, brown eggs.
Fassio’s assets, which are to be acquired by CalMaine, have a current capacity of approximately 1.2 million laying hens, primarily cage-free, feed mill, pullets, fertilizer production and composting operation and land in Erda, UT, outside Salt Lake City. The transaction is expected to close soon, subject to customary closing conditions.
Demand for cage-free and organic egg products has been on the rise in recent years. 10 U.S. states have passed cage-free legislation or regulation for implementation by 2026. A significant number of CALM’s customers have announced goals to offer cage-free eggs exclusively on or before 2026. Some have recently changed those goals to 70% by 2030.
Percentage of U.S. households within cage-free mandated states is expected to continue to increase with the announcement of further mandates. Cal-Maine’s growth strategy is thus focused on the expansion of its cage-free egg production capacity, in line with the expected demand.
Last year, the company’s Board of Directors earmarked $82 million in capital projects to expand its cage-free egg production capabilities.
The company’s sales of cage-free eggs have increased and constitutes a larger share of its product mix. Cage-free egg sales comprised 20.1% of total net shell egg sales for fiscal 2023.
The increasing demand for protein-rich food is proving advantageous for poultry stocks like Cal-Maine Foods, Vital Farms (VITL - Free Report) , Pilgrim's Pride (PPC - Free Report) and Tyson Foods (TSN - Free Report) . Increasing health consciousness among consumers has led to the surge in demand for protein-packed food. Fitness enthusiasts, in particular, are adopting protein intensive ketogenic diets at an increasing rate.
Thus CalMaine, Vital Farms, Pilgrim's Pride and Tyson Foods have been enhancing their product portfolios through collaborations, acquisitions and efforts to increase capacity.
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CalMaine (CALM) to Acquire Few Assets of Fassio Egg Farms
CalMaine Foods (CALM - Free Report) has entered into an agreement to acquire certain assets of Fassio Egg Farms, Inc. The assets in contention, which are engaged in commercial shell egg production and processing, will boost CALM’s production capacity, especially for cage-free eggs, and market presence in Utah and the western United States.
Fassio has been a leader in the egg production business since 1915. In addition to conventional white eggs, Fassio Egg Farms also offers organic, cage-free, vegetarian-fed, brown eggs.
Fassio’s assets, which are to be acquired by CalMaine, have a current capacity of approximately 1.2 million laying hens, primarily cage-free, feed mill, pullets, fertilizer production and composting operation and land in Erda, UT, outside Salt Lake City. The transaction is expected to close soon, subject to customary closing conditions.
Demand for cage-free and organic egg products has been on the rise in recent years. 10 U.S. states have passed cage-free legislation or regulation for implementation by 2026. A significant number of CALM’s customers have announced goals to offer cage-free eggs exclusively on or before 2026. Some have recently changed those goals to 70% by 2030.
Percentage of U.S. households within cage-free mandated states is expected to continue to increase with the announcement of further mandates. Cal-Maine’s growth strategy is thus focused on the expansion of its cage-free egg production capacity, in line with the expected demand.
Last year, the company’s Board of Directors earmarked $82 million in capital projects to expand its cage-free egg production capabilities.
The company’s sales of cage-free eggs have increased and constitutes a larger share of its product mix. Cage-free egg sales comprised 20.1% of total net shell egg sales for fiscal 2023.
The increasing demand for protein-rich food is proving advantageous for poultry stocks like Cal-Maine Foods, Vital Farms (VITL - Free Report) , Pilgrim's Pride (PPC - Free Report) and Tyson Foods (TSN - Free Report) . Increasing health consciousness among consumers has led to the surge in demand for protein-packed food. Fitness enthusiasts, in particular, are adopting protein intensive ketogenic diets at an increasing rate.
Thus CalMaine, Vital Farms, Pilgrim's Pride and Tyson Foods have been enhancing their product portfolios through collaborations, acquisitions and efforts to increase capacity.