Cal Maine net sales for 2024 drop 25%, egg prices in 2023 blamed.

Cal-Maine Foods reported fiscal 2024 net sales of $2.3 billion, while fiscal 2023 net sales were $3.1 billion.

The decline was primarily due to a decrease in average net selling prices for conventional and specialty eggs in 2024 compared to 2023, according to Cal-Maine Foods vice president and chief financial officer Max Bowman.

Inflated shell egg prices in 2023 were driven by supply chain disruptions caused by highly pathogenic avian influenza (HPAI) outbreaks in the U.S.

Additionally, in the fourth quarter of fiscal 2024, Cal-Maine’s net sales were $640.8 million compared to $688.7 million in the same quarter last year. Bowman added that the decline in net sales in both fiscal 2024 and the fourth quarter was due in part to fiscal 2024 being one week shorter than fiscal 2023.

Bowman stated, “Overall, our fourth-quarter ag costs per dozen were 14.3% lower compared to the prior-year period, primarily due to more favorable commodity prices for key feed ingredients. Fiscal 2024 ag costs per dozen were down 8.3%, primarily due to lower feed costs. Fourth-quarter ag costs per dozen were down 24.9% compared to fourth-quarter ag costs per dozen in fiscal 2023, and fiscal 2024 ag costs per dozen were 18.6% lower compared to fiscal 2023.”

Addressing the cost of agricultural production for producers, Bowman explained that current market indicators for corn are improving, which means prices could be lower.

Cal-Maine Acquisitions in Fiscal Year 2024

In fiscal year 2024, which ended on June 1^saintand shortly thereafter, the producer completed acquisitions that Cal-Maine Foods Chairman and CEO Sherman Miller said fueled the company’s organic growth initiatives. The purchases included Fassio Egg Farms, a former Tyson Foods broiler processing plant, hatchery and feed mill in Dexter, Missouri, and ISE America, Inc.

On the acquisition front, Miller said, “We have begun work on the acquired Dexter facilities to repurpose assets for shell egg production and processing. We are partnering with local farmers, collaborating with local contractors and businesses, and making significant investments in the Dexter area to renovate and improve facilities, with future plans to expand shell egg and value-added egg product capabilities.”