Cal-Maine Foods net sales for the fourth quarter of the fiscal 2021 year were $349.8 million, compared to $453.3 million for the fourth quarter of the fiscal 2020 year. Additionally, the company showed a net loss of $4.2 million, compared to a net income of $60.5 million during the same period of 2020.
In the report, the average sales price for a dozen shell eggs was reported at $1.32 for the fourth quarter this fiscal year, compared to $1.58 this time last year.
“Our results for the fourth quarter of fiscal 2021 reflect a significant drop in average selling prices and lower volumes for conventional eggs compared with the same period last year. The fourth quarter of 2020 was a period of very high consumer demand, with market prices reaching record levels as more meals were being prepared at home during the early restrictive phase of the COVID-19 pandemic,” stated Dolph Baker, chairman and chief executive officer of Cal-Maine Foods.
As consumers started to populate restaurants again, fewer meals were prepared at home. This caused the overall demand for shell eggs to reach a level closer to pre-pandemic, Baker explained. Moreover, the USDA reported that hatch increased compared to the prior period from January 2021 through May 2021.
Red River Valley
At the end of is fiscal 2021 year, Cal-Maine Foods reached an agreement to buy the remaining 50% of Red River Valley Egg Farm from Rose Acre Farms for $48.5 million. Red River Valley Egg Farm LLC was created in 2015 by the two companies and now has approximately a 1.7 million cage-free laying hens and cage-free pullet capacity.
“Red River Valley Egg Farm offers us additional opportunities to expand our cage-free production capacity and further enhance our ability to provide exceptional service and distribution capabilities to our customers. Including this purchase, we have invested over $476 million in facilities, equipment, and related operations to expand our cage-free production since 2008,” said Baker.
