Egg producer Cal-Maine to buy Tyson's chicken plant in Missouri

Cal-Maine Foods

29/12/2023 22:46

Dec 29 (Reuters) - Egg producer Cal-Maine Foods  CALM.O 
said on Friday it had agreed to acquire a recently shut chicken
broiler processing plant, hatchery and feed mill in Dexter,
Missouri from Tyson Foods  TSN.N . 
    Tyson, the largest U.S. meat producer by sales, said in
August it would be shutting down four of its chicken plants in
states including Missouri, as it looks to cut costs amid slowing
demand for its products.
    About 683 people worked at Tyson's facility in Dexter, which
has a population of around 8,000.
    Cal-Maine said it expects to convert the broiler processing
factory into an egg-grading facility initially and anticipates
making additional investments and creating new jobs.  
    The company, which expects to close the transaction in its
third fiscal quarter, did not disclose a value for the deal.  
    Cal-Maine also said it expects to enter into agreements with
some of Tyson’s former contract farmers and convert their
operations to support its egg production.

 (Reporting by Granth Vanaik in Bengaluru; Editing by Pooja
Desai)
 ((Granth.Vanaik@thomsonreuters.com | X : https://twitter.com/Vanaik_Granth;))