Change Language:
The settlement, reached for an undisclosed amount, will also allow a hatchery and feed plant at the same location to replace their hands, Cal-Maine said.
The company plans to convert the broiler processing plant to an egg grading facility. Cal-Maine indicated it expects to contact some of the farmers that had supplied the Tyson plant to see if they will switch to supplying eggs.
“This transaction is consistent with our expansion strategy to grow our business through selective acquisitions in addition to our biological expansion initiatives,” said Sherman Miller, Cal-Maine’s president and chief executive officer. “Dexter’s location provides a significant opportunity to expand our geographic footprint and our ability to serve our valued consumers with additional production and distribution functions in Missouri and surrounding markets.
The deal capped a rocky December for Cal-Maine. La company temporarily halted production at a Kansas plant following an outbreak of bird flu at the site. Earlier this month, a U. S. jury ordered egg producers, in addition to Cal-Maine, to pay $17. 7. millions in damages to several food production companies after they were found guilty in a lengthy price-gouging trial. Under federal law, that amount has tripled to about $53 million.
Meanwhile, Dexter’s site is part of a service company that Tyson announced last year it would shut down in an effort to slash prices amid lower demand and falling profits.
Your email will arrive shortly
The plant, one of four domestic bird services Tyson announced in August, would close in the first part of its 2024 fiscal year.
Tyson’s rationalization was no obstacle to this. In November, Tyson announced plans to close two of its ready-to-use meat production facilities.
And in March, Tyson closed two poultry plants in Virginia and Arkansas, which together hired more than 1,600 people.
In the fiscal year ended at the end of September, Tyson posted a loss of $649 million, with a profit of $3. 25 billion a year earlier. Sales were $52. 88 billion, up from $53. 28 billion last year.
Check out all newsletters from the GlobalData Media network.