Cal-Maine Foods: Vertical Integration, Cost Structure & Competitive Positioning

CALMCalMaine Foods

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Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

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It sounds like part of the reason that the specialty price is so much higher may have more to do with Eggland's Best flowing through there rather than cage-free prices being a lot higher than conventional prices.

Yes. If you look at the cost difference between cage-free houses and conventional houses, I think it's 10, 15, 20 cents per dozen as far as overall cost goes. As these farmers get used to these cage-free houses and get better with them and get better with the birds, and they have more time to train and produce better birds that work well with these new style houses, I can see the cost going down and everybody going to it. Between the cage-free aviary housing style and the conventional powerhouse cage tower houses, I think the costs are coming closer together.