Financial Performance and Antitrust Investigation
, the largest U.S. egg producer, reported a significant increase in its fiscal third-quarter revenue to $1.42 billion, driven by higher egg prices and sales volume, despite falling short of 's forecast.
The company is under investigation by the for potential antitrust violations related to egg price increases, amid record high prices due to a bird flu epidemic.
Market Dynamics and Future Outlook
The bird flu epidemic led to the slaughter of over 166 million birds, contributing to a spike in egg prices, with one dozen Grade A eggs averaging $5.90 in February, a 10.4% increase from the previous year.
Cal-Maine is taking steps to mitigate the effects of bird flu by increasing the number of layer hens and chicks hatched, and recovering from flu-related closures, while also planning to diversify its product mix.