Cal-Maine, Rose Acre Farms enter joint venture in Texas

Cal-Maine Foods and Rose Acre Farms have entered into a joint venture for the production of cage-free eggs. 
Cal-Maine Foods has entered into a joint venture for the production of cage-free eggs with Rose Acre Farms, Inc. This new joint venture, known as Red River Valley Egg Farm LLC, will build and operate a complex near Bogata, Red River County, Texas.
The current plans for the new facility provide for capacity of approximately 1.8 million laying hens, however the site is permitted for up to 2.9 million birds. Red River Valley Egg Farm will license and utilize Rose Acre Farms’ patent-pending cage-free aviary designs and systems. Construction has already started and initial operations of the new complex are expected to begin in August 2015. Red River Valley Egg Farm LLC will create approximately 80 to 100 new jobs in Red River County, Texas.
The project will allow the two largest egg companies in the United States to expand their operations. Cal-Maine Foods is the largest egg company in the United States and Rose Acre Farms is the second-largest, according to the WATT Global Media Top Companies Database.
“We are pleased to enter into this production joint venture with Rose Acre Farms to expand our production capabilities and respond to increased customer demand for cage-free and other specialty eggs,” said Dolph Baker, chairman, president and CEO of Cal-Maine Foods. “Considering the uncertain regulatory framework in our industry right now, it made sense to partner with Rose Acre Farms to share the costs and mitigate the risk of such a large-scale aviary style egg production facility. The additional capacity provided by Red River Valley Egg Farm will significantly increase the availability of cage-free and other specialty eggs and egg products. We look forward to working with Rose Acre Farms on this venture.”
Marcus Rust, chief executive officer of Rose Acre Farms, added: “We are proud to partner with Cal-Maine Foods in this new joint venture. Red River Valley Egg Farm provides a unique opportunity to leverage our combined strengths and capitalize on the growing demand for specialty eggs. This joint venture will allow us to better serve customers who are looking for a trusted supplier of cage-free eggs.”