Largest US Producer Of Fresh Shell Eggs, Cal-Maine Foods Stops Production At Kansas Facility Due To Bird Flu Scare
Portfolio Pulse from Vandana Singh
Cal-Maine Foods Inc (NASDAQ:CALM), the largest U.S. producer of fresh shell eggs, has halted production at a Kansas facility due to an avian influenza outbreak. Approximately 684,000 laying hens, 1.6% of the company's total flock, tested positive for the disease. Cal-Maine is following USDA protocols and working to minimize customer disruption by securing production from other facilities. The USDA assures that there is no public health concern or threat to the food supply, and no eggs have been recalled. Cal-Maine has not detected HPAI at any other locations and maintains strict biosecurity programs. Over 72.5 million birds in the U.S. have been lost to avian flu since February 2022. CALM shares dropped 0.37% in premarket trading.
December 13, 2023 | 1:32 pm
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NEGATIVE IMPACT
Cal-Maine Foods Inc has temporarily stopped production at a Kansas facility due to an avian influenza outbreak, impacting a small portion of its flock. The company is taking measures to prevent supply disruptions and there is no public health risk according to the USDA.
The temporary halt in production at the Kansas facility due to the avian influenza outbreak could lead to a short-term negative impact on Cal-Maine's stock price, as evidenced by the premarket trading dip. However, the company's proactive measures to secure production from other facilities and the USDA's assurance that there is no public health concern may mitigate the impact. The fact that only 1.6% of the total flock is affected and no other locations have tested positive for HPAI suggests that the long-term impact on the company's operations may be limited.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100