RIDGELAND, MISS. — The board of directors at Cal-Maine Foods, Inc. approved a strategic investment in MeadowCreek Foods, LLC, a new egg products manufacturing company.
Located in Neosho, Mo., the new entity will focus on hard-cooked and extended shelf-life egg products. Cal-Maine will capitalize MeadowCreek with up to $18.5 million in debt and equity to purchase property and equipment and to fund working capital. It will retain a controlling interest in the venture and will supply the company with specialty and conventional eggs.
MeadowCreek’s marketing plan will expand Cal-Maine’s reach in the foodservice and retail channels while opening new opportunities in the restaurant, institutional and industrial food products arena, said Dolph Baker, chairman and chief executive officer of Cal-Maine Foods. The Ridgeland, Miss.-based company produces and distributes fresh shell eggs, including conventional, cage-free, organic, pasture-raised, free range and nutritionally enhanced eggs.
“We are pleased to announce our strategic investment in MeadowCreek, which provides Cal-Maine Foods an opportunity to not only grow our presence in the egg products sector but position ourselves to better seek out solutions for economically feeding a growing world population,†Mr. Baker said. “While approximately 30% of produced eggs are currently directed to further processing in the United States, as specialty eggs become more popular, we see the demand for more specialty egg products, including cage-free products, to provide for industrial, food service and retail needs. We believe MeadowCreek will play an important role in meeting this demand.â€
The new company’s management team will be led by Ronald B. Bennett, a 30-year veteran of the egg industry, who will serve as president of MeadowCreek. Mr. Bennet launched his career in Cal-Maine’s egg products division in 1991. He also was chief operating officer at Prime Foods and director of egg products at Moark, LLC. He joins MeadowCreek from DeJong Operational Management & Consulting, where he developed operational improvements for ready-to-eat food and biotechnology companies.
“We look forward to our partnership with Ronald and his operations team in support of this venture,†Mr. Baker said.