Cal-Maine Foods to Acquire Shuttered Tyson Plant

Egg producer Cal-Maine Foods plans to acquire a recently shuttered chicken broiler processing plant, hatchery and feed mill in Dexter, MO from Tyson Foods. The company will open an egg processing facility at the site.

Tyson, the largest US 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. In the earlier report, Tyson said it would shift production to other facilities and halt operations at the four plants in the first two quarters of fiscal 2024. 

About 683 people worked at Tyson's facility in Dexter, which has a population of around 8,000.

Cal-Maine expects to convert the broiler processing factory into an egg-grading facility initially and anticipates making additional investments and creating new jobs.

“We are pleased to announce the proposed acquisition of the assets of Tyson’s former broiler processing facility in Dexter, Missouri,” said Sherman Miller, president and chief executive officer of Cal-Maine Foods. “This transaction is consistent with our growth strategy to expand our business through selective acquisitions in addition to our organic growth initiatives.

"The Dexter location offers an important opportunity to expand our geographic footprint and enhance our ability to serve our valued customers with added production and distribution capabilities in Missouri and surrounding markets. We look forward to working with the Tyson team to close the transaction and to working with the contract growers who will support our shell egg production capabilities. As we extend our market reach, we remain focused on the efficient and sustainable management of our existing and acquired operations and meeting the demands of our customers.”

Cal-Maine’s Dexter location will include a chick hatchery, feed mill, and maintenance of breeder flocks in addition to the production, processing, packaging, and distribution of shell eggs. The company’s establishment in Dexter represents just the first phase of its investment in the community. Cal-Maine’s facility is expected to begin operations in summer of 2024.

The company did not disclose a value for the deal.

Cal-Maine also has plans to enter into agreements with some of Tyson’s former contract farmers and convert their operations to support its egg production.