This special edition of EGG-NEWS provides commentary on recent publications, reports and events relating to highly pathogenic avian influenza (HPAI).  As of mid-April, outbreaks have ceased among large egg production and pullet rearing complexes.  Notwithstanding this hiatus, evident since the beginning of March, incident cases are reported among backyard flocks, turkey growing facilities and at live bird markets suggesting extension from reservoirs of infection.  Cessation of new cases in large egg production complexes is attributed to the end of seasonal migration of waterfowl that have now settled into their annual breeding cycle.  Sporadic cases are probably due to shedding of H5N1 virus by non-migratory domestic birds.  Given experience in recent years we can anticipate a resurgence of infection in the fall as the southward migration commences impacting farms along the Pacific, Central and Mississippi flyways.  This period of low HPAI activity should be used to strengthen biosecurity and to initiate protective vaccination of rearing pullets in high-risk areas in order to develop an immune population that will be challenged during the third and fourth quarters of 2025.

Noteworthy publications and events over the past two weeks relating to HPAI are reviewed for the benefit of subscribers:-

HPAI Vaccination Work Group Submits Proposal

A working group comprising Drs. John Clifford, Craig Rowles, Travis Schaal and David Swayne distributed a proposed vaccination plan dated April 1, 2025, to respond to highly pathogenic avian influenza (HPAI) in the U.S. egg industry.  The Working Group was convened by the United Egg Producers and the American Egg Board representing U.S. egg producers. The document includes factual information on the availability and efficacy of vaccines and incorporates sections on monitoring for effective immunization and surveillance to facilitate certification for export.

Essentially the document confirms what many in the industry have recognized as the futility of the USDA-APHIS response of attempting to ‘stamp out” the endemic infection given the unprecedented depopulation of over 130 million egg laying hens on more than 130 farms since the onset of the current H5N1 epornitic that commenced in 2022.

The summary correctly maintains that “a new approach to reduce layer and pullet flock susceptibility to HPAI virus should be considered to increase resistance to infection, reduce viral shedding and importantly reduce the risk of a potential mutation event that may lead to further HPAI infection in human.”  The document suggests a program under which flocks could be vaccinated with a priority for replacement pullets.  The report correctly stresses the need for high levels of biosecurity, echoing the recommendations of the World Organization of Animal Health. 

Vecor vaccination  in ovo  or S.Cut to chicks with booster

Oil-emulsion vaccine im during rearing

The report failed to stress the impact of flock depletion on egg prices and the cost to consumers that exceeded $15 billion in 2022 and considerably more in 2024 with an additional escalation in prices peaking at $8.50 per dozen at retail in late February 2025, reflecting the loss of approximately 30 million hens over an eight-week period.

The zoonotic potential of H5N1, deserved more than seven lines in a text extending over 13 pages.  Virologists and epidemiologists involved in monitoring aspects of the molecular biology of influenza have constantly stressed the risk of emergence of a zoonotic strain of H5N1 with possible human-to-human transmission.

One of the authors of the report is a distinguished researcher and has extensive experience in international regulation of avian diseases.  A member of the committee authoring the document is a prior Chief Veterinary Officer of the USDA responsible for the response to the 2015 HPAI epornitic.  Following retirement, he has served as an advisor to the USA Poultry and Egg Export Council that has a single-purpose commitment to maintaining the export volume of broiler leg quarters.  It does not appear from the document that his affiliation in any way affected his scientific objectivity. It would have been possible to have made a more definitive and stronger case for vaccination with a broader representation from among the industry.

The return of incident cases during the fall migration of waterfowl is inevitable. The current ongoing outbreaks may be attributed to resident avian and mammalian carriers. Recognition that the infection can be transmitted by the aerogenous route invalidates even strict structural and operational biosecurity and places large complexes with power ventilation at risk. The need for vaccination especially in high-risk regions along the Mississippi and Pacific flyways is self-evident.  The proposal to vaccinate pullets is obvious but will delay creation of an immune population due to the biological time restraints associated with rearing. 

The report notes, “Vaccination of caged in-lay hens is challenging and potentially unachievable in cage-free operations.” This appears to be a questionable assertion.  When the industry was confronted with severe coryza in 2023, egg producers effectively administered oil emulsion vaccines by the intramuscular route to hens in both cages and aviaries in the face of infection.

This commentator strongly supports the recommendation contained in the summary, “The industry believes that it time to enhance our overall strategy to control the virus through implementing vaccination in egg laying flocks.”  In contradistinction he final paragraph relating to “acceptability to the federal government, state animal health officials” is the major defect of the report inducing a wishy-washy, non-definitive approach ending with “We look forward to further discussion with USDA about the proposal.” 

Effectively if the broiler segment of the poultry industry is still opposed to vaccination of egg production flocks and possibly growing turkeys in high-risk regions, despite appropriate monitoring and surveillance, all we will have is more discussion and temporizing without action.  The so-called four-pronged program advocated by the newly appointed Secretary of Agriculture is effectively smoke-and-mirror, more of the same widow dressing.  It appears that USDA-APHIS either through disinclination to accept realities or acting under the duress of exporters will continue to discuss, research, evaluate, and consider vaccination while continuing to implement whack-a-mole flock depopulation at the expense of taxpayers, producers and consumers. The essence of the report is reminiscent of the sentiments attributed to St. Jerome who prayed for chastity-- but not right away.

Prominent Health Advocate Comments on the Need for Vaccination Against HPAI

Dr. Scott Gottlieb, a physician, investor in medical companies and a director of pharmaceutical enterprises previously served as the 23^rd Commissioner of the Food and Drug Administration in the first administration of President Trump.  He recently authored a commentary pointing to the need for vaccination of poultry flocks using currently available commercial off-the-shelf products.  In his commentary he justifiably castigated Robert F. Kennedy, Jr., Secretary of the Department of Health and Human Services, who advanced the inane suggestion that HPAI should be allowed to spread unchecked through flocks in the hope that a few survivors would express genes for resistance to avian influenza.

Dr. Gottlieb correctly maintains that the egg industry must use the current seasonal quiescent stage of the epornitic before resumption of migration in the fall to establish immunity among flocks at risk.  He expresses this sentiment as, “We have vaccines for bird flu made by American companies and used overseas but so far federal officials don’t seem poised to use them here.”  He points to the deployment of vaccines in France, China and Mexico among other nations and cast doubt on the various distortions of science advanced by opponents of vaccination to support ongoing exports of broiler leg quarters.

Applying logic and common sense, Dr. Gottlieb notes that, “The avian influenza strains now in circulation have persisted continuously among birds and mammals for nearly two years and there’s growing evidence that it could become a permanent feature of North America – part of a the new normal to which the poultry industry must inevitably adjust for both the physical and economic health of Americans.”

Influenza H5N1 is clearly endemic in the U.S. and in the poultry industries of many nations. The incidence rate can be suppressed to some extent by strict structural and operational biosecurity involving investment and management.  Notwithstanding the stringency of biosecurity, there is little that can be done to prevent aerogenous transmission especially into power-ventilated houses located on multi-aged egg production complexes.

Avian influenza is effectively The Newcastle Disease of the 2020s. During the 1970s Velogenic viscerotropic  Newcastle disease (VVND=END) in Europe, Asia and Africa was in every way as catastrophic as avian influenza but was effectively controlled principally by vaccination supported by biosecurity.

It is questioned why a clear thinking and well-connected physician should have a greater appreciation of the risks, consequences and potential control measures to reduce the economic and potential zoonotic impact of avian influenza compared to the administrators of USDA-APHIS. Is the firm recommendation for vaccination advanced by Dr. Gottlieb an expression of epidemiologic reality or is it that Dr. Gottlieb is an independent scientific voice unfettered by conflicts of interest? 

Introduction of the SAVE Our Poultry Act

U.S. Representatives Sarah McBride, (D-DE) and Mike Lawler, (R-NY) introduced the Supporting Avian Virus Eradication (SAVE) Our Poultry Act that is intended to elevate the standard of biosecurity and to encourage research into protection including immunization.

In announcing the proposed legislation, Rep. McBride stated, “The SAVE Our Poultry Act is about supporting our farmers and their efforts to protect their animals, their markets and their future.”  According to an April 10^th release by Rep. McBride, the intended legislation would:

• Authorize USDA research grants to study highly pathogenic avian influenza
• Analyze the impact of poultry vaccination on international trade and market access
• Fund enhanced biosecurity practices and disinfection methods for poultry producers

The press release justifiably notes the high prices for eggs as a result of depopulation of flocks and pointed to the support by the National Chicken Council (NCC) representing broiler producers, the United Egg Producers and regional poultry associations with members at risk of or having experienced losses as result of HPAI. Specifics of the Bill that would amend the Food, Agriculture, Conservation and Trade Act of 1990 emphasizes HPAI as a “high priority research and extension area”.

Among other components the bill makes provision for grants to colleges and universities to “research the effectiveness of vaccines across poultry species, improve formulations of vaccines and improve the delivery mechanisms for vaccines.  This is in itself commendable but ignores the reality that both subunit vector vaccines are available off-the-shelf together with inactivated oil emulsion products that could be deployed immediately following approval and authorization for use by USDA-APHIS.  Ongoing research is obviously beneficial, but the infection is expected to return within months and research envisaged in the SAVE Our Poultry Act would do nothing to reduce losses in 2025 through 2026.

A provision of the bill goes to the core of the disinclination by USDA to allow vaccination.  The SAVE Our Poultry Act would involve “assessing the potential implications of vaccination on domestic and international poultry markets including trade and market access considerations.”  It is evident that the broiler segment of the U.S. poultry industry through its lobbying and the influential Broiler Caucus has effectively prevented the application of vaccination to the detriment of the turkey and egg production segments irrespective of sentiments expressed by the NCC. 

Congressional Response to the Secretary of the Department of Health and Human Services

The poultry industry and human epidemiologists should be alarmed by the misinformed, and incendiary statements by Robert F. Kennedy, Jr. Secretary of the Department of Health and Human Services as reported in the New York Times on March 18^th, relating to “letting avian flu run through flocks so we can identify the birds and preserve those that are immune to it.”  This appalling approach to end the bird flu epidemic is unworthy of even cursory consideration.

Five members of the House of Representatives addressed a letter to the Secretary on April 1^st condemning his statement and demanding reports and copies of communications among the Department of Health and Human Services, the USDA, the Centers for Disease Control and Prevention and the National Institutes of Health regarding mitigation of avian influenza.

In the first instance it is noted that avian influenza will ultimately kill in excess of 98 percent of an infected flock.  During the clinical phase, vast quantities of virus are generated resulting in the potential for inter-farm spread especially where complexes are located in close proximity.  Even if a small proportion of a flock were to survive an outbreak of avian influenza their value for breeding would be negligible given that the commercial generation of broiler, turkey and egg-production flocks are hybrids. The program of “stamping-out” has in all probability reduced farm-to-farm spread notwithstanding the depopulation of 170 million commercial poultry since the onset of the 2022 epornitic.

To add insult to injury, the Secretary of Agriculture, Brooke Rollins apparently embraced the distorted logic expressed by Secretary Kennedy despite confusingly advancing a “four-pronged strategy” incorporating nothing new and funded by  a proposed $1 billion in an attempt to suppress HPAI.

The five members of the House, including Rep. Raja Krishnamoorthi (D-IL), Ranking Member of the Subcommittee on Healthcare and Financial Services and Rep. Gerald E. Connoly (D-VA), Ranking Member of the Committee on Oversight and Government Reform requested a list of non-governmental experts consulted by HHS relating to any federal response to avian influenza.  The Representatives also requested “a full and complete list of individuals who recommended that the federal government would allow avian flu to run through the flock in an effort to build immunity” together with their credentials and past involvement with the federal government.  The letter to Secretary Kennedy raised the justifiable issue of a potential zoonotic infection and stressed the need to “combat, contain and eliminate avian influenza, requiring a concerted and coordinated effort across all relevant federal agencies.”

Secretary Kennedy is devoid of scientific credentials. He has surrounded himself with sophists and charlatans expressing unconventional policies to prevent human infections. He has embraced conspiracy theories on disease and related topics that have been debunked by both U.S. and international scientist and agencies. As a Secretary of the HHS he is entitled to his personal opinions but not a selective or distorted expression of facts

Zoonotic Implications of HPAI

The zoonotic aspect of HPAI was reviewed in a published interview prepared by Dr. Eric Rubin Editor-in-Chief and Dr. Lindsey Baden, Deputy Editor of the New England Journal of Medicine who discussed infectivity of HPAI with virologist Dr. Yoshihiro Kawaoka.  Of concern is the circulation of H5N1 genotype D.11 and B3.13 in avian species and dairy herds respectively.  Although the incidence rate of bovine influenza H5N1 is declining more than 1,000 herds have been diagnosed with possibly many more infected. Both structural deficiencies and a lack of effective biosecurity within the U.S. dairy industry have contributed to dissemination of the virus.  It does not help that the Administration has terminated personnel involved in response to COVID and have effectively disbanded the group of scientists including epidemiologists, virologists and logisticians concerned with preparedness for a future pandemic.  Signing a Presidential Executive Order has transitory political effect but does not necessarily prevent the inevitable emergence of an infection with epidemic or pandemic potential at some time in the future.

Rubin, E. et al outbreak update-H5N1 New England Journal of Medicine 2025 doi.org/10.1056/nejme 2502267

Aerogenous Transmission of H5N1 Confirmed

EGG-NEWS has consistently maintained that highly pathogenic avian influenza (HPAI) can be transmitted by the aerogenous route either as a bioaerosol or entrained on excreta and dust to be moved by wind.  A comprehensive epidemiologic investigation involving field observations, meteorology and molecular studies confirmed the spread of an outbreak of H5N1 from a commercial duck farm to unrelated egg production farms over a distance of five miles.  The case report with appropriate documentation involved an outbreak in the Czech Republic.  The authors note that their findings “underscore the importance of considering windborne spread in future outbreak mitigation strategies.”  Anecdotal and experimental data confirm the possibility of airborne infection extending from waterfowl excreting virus.

The USDA-APHIS has long held that “biosecurity of an acceptable standard will provide protection against HPAI.”  This is a false presumption given the ability of the virus to be transmitted over relatively long distances by the aerogenous route.  As noted by the authors of the Czech paper, power-ventilated egg production housing is extremely vulnerable given the volume of air displaced by fans. Exhaust rates may range from 200,000 to 600,000 cfm per 100,000 hens depending on climatic conditions.  Among the many failures of USDA-APHIS to address appropriate preventive measures has been a neglect of field epidemiology.  The only conclusions that can be drawn from superficial telephone-administered surveys is that proximity to waterfowl preceding an outbreak was a significant risk factor.  This would indirectly correspond with the observations in this significant publication.

Nagy, A. et al bioRxiv doi.org/10.1101/2025.02.12.637829

Editorial Comment

The Economic Impact of HPAI

There is no purpose in tiptoeing around the failure to adopt vaccination against HPAI in high-risk areas.  The broiler industry may or may not lose a part of their market for leg quarters that represent over 97 percent of shipments of USDA-inspected broiler products valued at $4.5 billion in 2024.  Although this restraint is significant in terms of volume and monetary value, the ban on vaccination requires a broader perspective.  The USDA-APHIS has expended over $2 billion in indemnity payments and logistics from the Commodity Credit Corporation.  Individual egg producers have experienced disproportionately higher losses as a result of their inability to supply markets during the period required to repopulate their complexes.  Consumers have been forced to pay high prices for eggs, far exceeding the potential loss that may be experienced through export markets.  In 2022, the average price of eggs was conservatively $2 per dozen higher than it would have been in the absence of HPAI, costing consumers an incremental $15 billion on their grocery expenditures.  In 2024 the cost to consumers as a result of HPAI was infinitely higher given the differential between average shelf price and values that would otherwise have prevailed.  The loss of 30 million hens during the first two months of 2025 was reflected in an escalation in egg prices peaking at $8.58 per dozen at wholesale on February 28^th but declining thereafter to $3.27 per dozen by the end of March. Notwithstanding this decline, the escalation in egg prices attained 60.4 percent in March 2025 compared to twelve months previously.  The disproportionate escalation in the price of eggs should be compared to an increase of 0.5 percent for food-at-home during March.  Within this category, dairy items increased by 2.2 percent, poultry meat by 0.9 percent, cereal and bakery products by 1.1 percent. Fruit and vegetables declined by 0.7 percent. and the fish and seafood category was down by 1.5 percent.

In reviewing the export market for broiler leg quarters, it is noted that volumes are declining but unit prices are moving in the opposite direction although with a net decline in total annual value.  The question arises as to whether importing nations would continue to purchase leg quarters if preventive vaccination were to be permitted for egg-production flocks in high-risk areas. Vaccination would be subject to appropriate monitoring and surveillance in accordance with World Organization of Animal Health (WOAH) or negotiated standards. It is envisaged that USDA-APHIS could certify that broiler flocks of origin contributing to exports were free of HPAI at the time of slaughter.  It is also important to note that many of the nations importing U.S. leg quarters do so on the basis of low cost with an average unit price of $1,424 prevailing over the first two months of 2025 covering 479,000 metric tons.  Many importing nations are endemic with respect to HPAI and in some cases deploy vaccines against the infection. This would facilitate exports in accordance with the rules of the WOAH. 

The USDA-APHIS has been stubbornly remiss in their failure to negotiate terms under which U.S. producers could justifiably export broiler leg quarters from non-infected flocks.  For more than three years the Agency has labored under the misplaced presumption that HPAI is exotic in the U.S. and that the disease could be eradicated following an anachronistic “stamping-out” program.  The fallacy in the APHIS playbook is the failure to accept that infection is disseminated by millions of wild bird reservoirs on a seasonal basis together with introduction by migratory marine birds cohabitating with waterfowl in the Canadian Maritime provinces and in Alaska with extension down into British Colombia.

For the edification of APHIS there is adequate anecdotal and scientific evidence of introduction of infection on to farms by the aerogenous route. This reality means that even the strictest biosecurity does not provide absolute protection against H5N1 and other highly pathogenic avian influenza viruses suggesting a phased shift in the approach to vaccination.

Reducing the Capacity of the U.S to Respond to Zoonotic HPAI

The ongoing mass dismissals in the U.S. Food and Drug Administration will have an adverse effect on testing consumer dairy products although it is generally accepted that pasteurization inactivates bovine influenza H5N1 strain B3-13 virus.  Similar reductions in staffing at the Centers for Disease Control and Prevention will compromise detection of possible zoonotic infection that appears to be increasing in complexity and significance.  Mass layoffs have affected 40 cooperating laboratories within the FDA Veterinary, Laboratory Investigation and Response Network and also the USDA National Animal Health Laboratory Network responsible for aspects of routine and diagnostic activities.  Critical reductions have occurred among the personnel of the National Animal Health Laboratory Network that coordinates activities between the USDA National Veterinary Services Laboratory and the approximately 60 state and university laboratories throughout the U.S. This commentator gives little credence to a USDA spokesperson that averred that job reduction “will not compromise the critical work of the department including its ongoing response to avian influenza.”

Stop Press: 60-Minutes Segment on HPAI

The 60-Minutes airing on April 20^th focused on bovine influenza H5N1 with little coverage of HPAI in poultry other than the obvious impact on egg prices. The greatest deficiency was a lack of ‘assurance’ that avian influenza is not transmissible to consumers through eggs.  APHIS was disinclined either through governmental restraint or lack of photogenic administrators, from participation in the program.

The Bottom Line

It is hoped that well-intended Congressional action, comments by informed commentators and scientific publications will break the de facto veto exercised by the broiler sector over vaccination as a modality to suppress outbreaks of HPAI in turkey and egg-producing flocks. Further temporizing proposed in the form of additional “discussion” and “research” is disingenuous. Delay will be both costly and represent a risk of emergence of a potentially zoonotic strain. The Administration should sincerely work towards reducing the price of eggs over the long term, limit public sector expenditures on control and avoid even the smallest risk of a catastrophic pandemic. Those in authority in the  USDA and DHHS would be well advised to heed the advice of epidemiologists, avian health practitioners, the WOAH and informed observers regarding the efficacy and desirability of vaccination to establish immune populations with appropriate surveillance in high-risk areas.

This October edition of EGG-NEWS is sponsored by Big Dutchman North America and includes a review of services offered by the Company at a time of transition to a new president.

Unfortunately it was not possible to include reviews on the WASDE or on export data for the month due to the ongoing Federal shutdown. It is hoped that the Congressional impasse will be resolved and that our hardworking USDA employees will soon be able to return to work.

O

The USDA Cage-Free Report covering September 2025, was released on October 3^rd 2025.  

The report documented the complement of hens producing under the Certified Organic Program to be 20.0 million (rounded to 0.1 million), unchanged since July 2025. The number of hens classified as cage-free (but excluding Certified Organic) and comprising aviary, barn and other systems of housing apparently increased by 0.3 million hens or 0.3 percent from August 2025 to 116.6 million, attributed to repopulation of depleted flocks.

Extensive depopulation was carried out as a result of HPAI through the fourth quarter of 2024 and continuing in January and February 2025 (31 million), but with lower intensity in March (0.2 million) and April (1.0 million) and a single large complex in Arizona during May (3.8 million).  Losses reemerged during late September in a caged-bird complex in Wisconsin (3.1 million hens and +250,000 pullets).

Average weekly production for Certified Organic eggs in September 2025 was down 1.0 percent (rounded) compared to August 2025 with a high average weekly production of 83.1 percent. Average weekly flock production for cage-free flocks other than Certified Organic was down 0.4 percent in September 2025, with a high average hen-month production of 81.9 percent.  Seasonally placed flocks in anticipation of periods of peak demand will increase the availability of cage-free and organic eggs, reflecting pullet chick placements 20 weeks previously.

There is no adequate explanation for the high production rates recorded especially if the reported number of hens is lower than actual, and in view of possible undercounts following HPAI flock depopulation. It is assumed that almost all cage free flocks are in the first cycle of production with negligible molting contributing to the high average in hen-week values compared to caged hens.

According to the USDA Egg Markets Overview and data from the weekly USDA Shell Egg Demand Indicator, the categorization of U.S. flocks according to housing system among 292.2 million producing hens or a total flock of 296.9 hens on August 1^st comprised*:-

Caged, 160.5 million, up 4.1 million and comprising 54.1 percent of the total flock;

Cage Free (non-organic), 116.3 million (39.2% of total flock) with 86.2% of this population in barns, 7.2% on free-range and 6.6% on pasture;

Cage Free (organic), 20.0 million, unchanged from July with 60.0% of this population in barns and 23.5% on free-range and 16.5% on pasture or other extensive systems

*Updated figures will be posted after USDA resumes publication following the end of the Federal shutdown

 Losses attributed to HPAI in 2025-to-date comprised:-

   Caged flocks, 24.6 million representing 8.4 percent of a nominal 290 million producing hens    

   Cage-free flocks, 14.8 million representing 5.1 percent of the national flock

   Organic flocks, negligible, >0.1 percent

On September 29^th USDA recorded the following National inventory levels expressed in 30-dozen cases (rounded) with the monthly change as a percentage of the total quantity of eggs:-

Commodity shell eggs of all sizes.              1,558,200. (+14.3%)

Commodity breaking stock.                            343,700. (+12.5%)

Specialty eggs.                                                  39,100.  (+5.4%)

Certified organic eggs.                                      89,200. (-2.4%)

Cage Free eggs                                                439,000. (+6.1%)                        

Negotiated nest-run grade-ready cage-free price for September 2025 averaged $1.47 per dozen, down $0.46 per dozen (-23.8 percent) from $1.93 per dozen in August 2025, reflecting a restoration of balance between demand and supply.

The September 2025 advertised U.S. featured retail price for Large White cage-free eggs over 1,823 stores in six regions (NW, NE, SE, SW, MW and SC.) was $3.45 per dozen. This compares with 761 stores featuring cage-free Large White in August and reflects fewer promotions as the year has progressed, consistent with the negligible incidence rate of HPAI from late May through September. The September 2025 advertised U.S. featured retail price for Large Brown cage-free eggs over 421 stores in five regions was $3.40 per dozen with a range of $2.84 per dozen in the NE region to $4.99 per dozen in the NW region.

The recorded average gradeable nest run price of $1.47 per dozen for brown and white cage-free combined plus a provision of $0.60 cents per dozen for packaging, packing and transport, resulted in a theoretical price of $2.07 per dozen delivered to CDs. The average advertised promotional retail price of $3.40 per dozen for Brown and $3.45 per dozen for white represented retail margins of 66.7 percent for featured White and 64.2 percent for Brown respectively.  Fewer promotions were offered for White compared to Brown cage-free by stores reflecting the balance between supply and demand for the two broad categories. Margins are presumed higher for non-featured eggs including pastured and other specialty eggs at shelf prices attaining in excess of $8.00 per dozen in high-end supermarket chains. Retailers maximizing margins especially on Certified Organic, free-range and pastured categories restrict the volume of sales, ultimately disadvantageous to producers.

As Big Dutchman North America enters a new chapter, President Budd Bentley shares a clear commitment to customers and the industry: “I am honored to follow in the footsteps of Clovis Rayzel and honor the legacy of Big Dutchman. So many before me have worked hard to create something truly great, dedicated to serving our customers – farmers. After five and a half years in the industry with Prism Controls, I see four pillars in which we must excel: Engineering, Relationships, Order Fulfillment, and Customer Service. Our team is focused on building competence and excellence in all four complementary activities. We come to work every day proud and focused on the needs of our customers and stakeholders.”

In 2024, Big Dutchman adopted the guiding principle of “Taking action for future generations” to feed the world – an ethic grounded in innovation and teamwork across engineering, sales, logistics, installation, and service. This philosophy is now reflected in how they organize people and resources to optimize customer satisfaction. They listen closely to producers, solving real-world challenges, and delivering durable, high-performing systems with dependable support over the long haul.

Pillar 1: Engineering – Practical innovation that solves real farm problems

Mark Kennedy, recently appointed to lead engineering in North America, is sharpening Big Dutchman’s focus on speed-to-value. Working closely with the core design team in Vechta, Germany, Mark is implementing a Product Development Process (PDP) that adapts proven global designs to meet North American needs, thereby accelerating production and reducing the total cost of ownership. Drawing on deep experience from the U.S. automotive industry, he is prioritizing design improvements, rigorous field evaluations, and upgrades to aviary and floor systems to fit evolving welfare standards. This includes exploring solutions that bridge conventional cages – which still house a significant share of the U.S. flock – and advanced true aviaries offered by Big Dutchman, ensuring customers have practical options for their business goals.

Big Dutchman Natura Step true open aviary

Pillar 2: Relationships – Listening first, always partnering

Big Dutchman’s sales organization is built on trust and long-term partnership. Customer priorities guide their roadmap, and that feedback shapes the solutions that are brought to market. From initial planning through expansion and modernization, Big Dutchman’s teams collaborate closely with integrators, producers, and dealers to ensure systems align with performance targets, welfare outcomes, and ROI. Steve Walcott, Vice President of Sales, Egg Business Unit, underscores this approach: “Our commitment is simple: listen, align, deliver. We connect engineering with customer reality, mapping solutions to goals like flock health or labor efficiency. That’s how we build confidence and repeat success across barns and budgets.”

Steve Walcott VP, Sales meets with customers at regional and national meetings and on farms

Pillar 3: Order Fulfillment – The right parts, in the right sequence, on time

Scott Postma, Vice President overseeing supply chain, operations, logistics, and purchasing, has steered the organization through unprecedented volatility – port congestion, tariff fluctuations, and pandemic-era disruptions. His mandate is straightforward: “Take care of customers.” That means delivering equipment and materials to the correct location, on time, and in the sequence required for rapid, efficient installation. With stabilized service levels and renewed demand for installations, conversions, and upgrades, Scott’s team continues to refine the implementation of projects, enabling producers to stay on schedule and on budget.

Pillar 4: Customer Service – Here for you, anytime, anywhere

Big Dutchman is unique among equipment suppliers in its after-sales consultation and service. Aviary Systems Specialist Erika Prewitt supports customers with hands-on guidance for cage-free barns and aviaries, including stocking plans and best practices to manage flocks. Whether on-site or remote, Erika and the Big Dutchman team of field technicians ensure quality of installation, train crews, and conduct final inspections before handover. Systems start strong and keep performing. Her premise is simple and dependable: “We’re there for you anytime, anywhere.”

Complementing service with practicality, Customer Support leader Al Fox coordinates field technicians and manages spare parts for the long operational life of Big Dutchman systems. He emphasizes the importance of reputable, trained installers – because “bargain” contractors and their shortcuts often lead to higher costs later. When skilled labor is tight or travel is constrained, the Big Dutchman teams step up with remote support, suggested remedial procedures, and quality assurance to ensure completion and allow scheduled placement of flocks.

Customer satisfaction, end-to-end

From engineering rigor and consultative sales to reliable fulfillment and responsive service, Big Dutchman’s four pillars are incorporated into every project and all relationships. Team members work diligently to provide for future generations. Their goal is consistent: to optimize customer satisfaction through delivering solutions that work on the farm – from day one, over a long future.

Big Dutchman North America Headquarters, Holland, MI

This update of U.S egg-production statistics, costs and prices is provided for the information of producers and stakeholders

SEPTEMBER HIGHLIGHTS

• September 2025 USDA ex-farm blended USDA nest-run, benchmark price for conventional eggs from caged hens was 175 cents per dozen, down 41 cents per dozen or 19.0 percent from the August 2025 value of 216 cents per dozen. The corresponding September 2023 and 2024 values were respectively $0.96 and $3.33 cents per dozen. For annual comparison, average monthly USDA benchmark price over 2023 was 146 cents per dozen and 247 cents per dozen for 2024. Stock levels and prices prior to the onset of flock depletions due to HPAI indicated a relative seasonal balance between supply and demand. Future nest-run and wholesale prices will be largely dependent on consumer demand for shell eggs and products, re-emergence of HPAI, net imports and the rate of replacement of pullets and hens depleted due to HPAI. Other considerations include diversion to shell sales from the egg-breaking sector in an interconnected industry. Imports declined sharply during the past quarter although the U.S. ran a negative trade balance through July.
• September 2025 USDA ex-farm negotiated USDA nest-run, benchmark price for all categories of cage-free eggs was 147 cents per dozen, down 76 cents per dozen or 34.1 percent from the August 2025 value of 223 cents per dozen. The corresponding September 2023 and 2024 values were respectively 120 and 208 cents per dozen.
• Fluctuation in wholesale price is attributed in part to the amplification of upward and downward swings associated with the commercial benchmark price-discovery system in use. An important factor influencing pricing is the proportion of shell eggs supplied under cost-plus contracts accentuating the upward and downward price trajectory of uncommitted eggs as determined by the price discovery system. Highly pathogenic avian influenza was the major driver of price in 2024 and through Q1 of 2025 due to the high incidence rate. Approximately 40 million hens and at least 2.0 million pullets were depleted in 2024 with close to an additional 36 million birds, (hens and pullets) in 35 complexes or farms through mid-May 2025. The Fall 2025 losses involved two complexes of 3.1 million hens in late September and 2.0 million in early October.
• September 2025 USDA average nest-run production cost for conventional eggs from caged flocks over four regions (excluding SW and West), applying updated inputs was 74.6 cents per dozen, up 0.9 cents from August 2025 at 73.7 cents per dozen. The September average nest run production cost for other than caged and certified organic hens was estimated by the EIC to be 93.9 cents per dozen up 1.7 cent per dozen from August. Approximately 60 cents per dozen should be added to the USDA benchmark nest-run costs to cover processing, packing material and transport to establish a realistic cost value as delivered to warehouses.
• September 2025 USDA benchmark nest-run margin for conventional eggs attained a positive value of 100.4 cents per dozen compared to a positive margin of 142.9 cents per dozen in August 2025. Year to date the average monthly nest-run production margin has attained 296.3 cents per dozen. Average nest-run monthly margin for 2024 was 170.8 cents per dozen compared to 64.2 cents per dozen in 2023 and 155 cents in 2022.
• September 2025 USDA benchmark nest-run margin for all categories of cage-free eggs attained a positive value of 53.1 cents per dozen compared to a positive margin of 130.8 cents per dozen in August 2025. Year to date the average monthly nest-run production margin has attained 352.2 cents per dozen. Average nest-run monthly margin over 2024 was 440 cents per dozen compared with 100 cents per dozen in 2023, relatively unaffected by HPAI compared to the preceding and following years.
• The August 2025 national flock (over 30,000 hens per farm) was stated by the USDA to be up by 6.6 million hens (rounded, and a probable undercount) to 285.9 million compared to approximately 326 million before the advent of the H5N1 epornitic of HPAI in 2022. Approximately 3.5 million hens returned to production from molt during the month together with projected maturation of 23 million pullets, with the total offset by depletion of an unknown number of spent hens. On October 8^th USDA estimated the total U.S table-egg production flock at 304.5 million with 298.1 million actually in production.
• August 2025 pullet chick hatch of 28.7 million was down 0.4 million (-1.4 percent) from July 2025 but inconsistent with an increased industry need to replace depopulated flocks.
• August export data will be released after resumption of Federal activities. In July 2025 exports of shell eggs and products combined were up 27.1 percent from June 2025 to 376,600 case equivalents representing the theoretical production of 5.6 million hens. Shell egg exports totaling 72,000 cases were dominated by Canada (38 percent of volume) the “Rest of Americas” including the Caribbean (40 percent). With respect to 304,000 case equivalents of egg products, importers comprised Canada (32 percent of volume), “Rest of Americas and the EU (each 20 percent), Japan, (12 percent), Mexico, (8 percent) collectively representing 98 percent of shipments. Volumes exported are based on the needs of importers, competing suppliers, availability in the U.S. and FOB prices offered.          
• According to the USDA Egg Market Overview released on September 8^th, all egg imports (shell, liquid and dry) in July attained 19.5 million dozen shell equivalents compared to exports of all categories of 11.2 million dozen shell equivalents.
• For 2025 through July the negative trade balance in all shell and derived egg products attained 15.5 million dozen shell equivalents.

TABLES SHOWING KEY PARAMETERS FOR SEPTEMBER 2025.

Summary tables for the latest USDA September 2025 flock statistics, costs and unit prices were made available by the EIC on October 13^th 2025. Data is arranged, summarized, tabulated and compared with values from the previous September 12^th 2025 release reflecting August 2025 costs and production data, as revised and applicable. Monthly comparisons of production data and costs are based on revised USDA and EIC values.

VOLUMES OF PRODUCTION REFLECTING THE ENTIRE INDUSTRY                                                                                   

*USDA Revised

*Revised USDA/EIC Note 1. Texas excluded to maintain confidentiality

PROPORTION OF U.S. TOTAL HENS BY STATE, 2025                                                                   

Based on a nominal denominator of 285 million hens in flocks over 30,000 covering 95 percent of the U.S complement.

USDA has amended inclusion of specific states in regions and eliminated Texas data to protect confidentiality of Company flock

Sizes

1. Values rounded to 0.1% 

Rate of Lay, weighted hen-month (USDA)   81.5 September 2025.    82.1% August 2025

*Revised USDA

*Revised, using data from USDA Livestock, Dairy and Poultry Outlook September 18^th 2025 taking into account demand from the food service sector and presumably including the effect of HPAI depopulation and net importation.

EGG INVENTORIES AT BEGINNING OF SEPTEMBER 2025:

EGGS BROKEN UNDER FSIS INSPECTION (MILLION CASES)   AUGUST 2025, 7.03     JULY 2025, 6.94 

Export and import data for August was not released due to Federal shutdown.

EXPORTS JULY 2025: (Expressed as shell-equivalent cases of 360 eggs).

*Representing 1.8 percent of National production in JULY 2025 (0.4% shell, 1.4% products).                    

COSTS AND UNIT REVENUE VALUES¹ FOR CONVENTIONAL EGGS FROM CAGED HENS

Notes:   1. Excludes SW and West 

Components of Production cost per dozen:-

Ex Farm Margin (rounded to nearest cent) according to USDA values reflecting September 2025:-

                                                        175.0 cents per dozen¹- 74.6 cents per dozen = 100.4 cents per dozen         (August 2025 comparison:         216.0 cents per dozen – 73.1 cents per dozen  = 142.9 cents per dozen.

Note 1:  USDA Blended nest-run egg price

1. Unrealistic USDA values based on advertised promotional prices with few participating stores, non-representative of shelf prices!

Caged hens depopulated for HPAI attained 3.1 million on a complex in WI. during September

AVERAGE COSTS AND UNIT REVENUE FOR EGGS FROM CAGE-FREE HENS

Components of Production cost for cage-free eggs, per dozen:-

Ex Farm Margin (rounded to cent) according to USDA values reflecting negotiated price for SEPTEMBER 2025:-

Cage-Free brown     147.0 cents per dozen¹- 93.9 cents per dozen =  53.1 cents per dozen

August 2025:-           223.0 cents per dozen -  92.2 cents per dozen =  130.8 cents per dozen  

 1.       Contract price, nest-run loose. Range 155 to 210 c/doz. Negligible change since July 2024 and totally unrealistic.

1. Negotiated price, loose. Range $1.20 to $2.60 per dozen
2. Estimate based on prevailing costs
3. Unrealistic USDA values based on promotional prices with few participating stores and non-representative of shelf prices

Cage-Free HPAI losses 2.0 million during October on WA complex

* Conventional (non-organic) feed

Feed prices used are the average national and regional values for caged flocks. Excludes organic feeds with prices substantially higher than conventional.

The following production data was summarized from the September 22^nd 2025 edition of the USDA Chickens and Eggs-:

• August 2025 pullet hatch, 28.7 million, up 5 percent from August 2024.
• January to August 2025 cumulative pullet hatch, 236.7 million, up 8 percent from the corresponding months of 2025
• September 1^st 2025 egg-type hatching eggs in incubators, 55.0 million, up 12 percent from September1^st 2024
• September 2025 pullets placed, 27.6 million, up 12 percent from September 2024.
• September 2025 pullets undergoing rearing, 140.3 million, up 8 percent from September 2024.
• September 1^st 2025 hen population 301.4 million, down 1 percent from September 1^st 2024.
• August 2025 table eggs produced, 7,586 billion, down 2.2 percent from June 2024.
• September 2025 hens in molt, 2.1% of flock, up 17 percent from September 2024.
• September 1^st 2025 hens completed molt, 9.8% of flock, down 4 percent from September 1^st 2024.
• August 2025 disposal by slaughter, 11.5 million, down 21 percent from August 2024
• August 2025 disposal by rendering, composting or death, 8.9 million, down 13 percent from August 2024.

The take-away from data in the September release is the steady replacement of the national flock that was reduced by depopulation of 39 million hens during the first five months of 2025. It is probable that the quantum of replacements will be consistent with anticipated demand, hopefully avoiding oversupply and depressed prices as recorded in 2016 and early 2023. If mortality due to HPAI continues over the 5 million hens lost in September and October, coincident with the fall migration of waterfowl or if extension of infection from dairy herds occurs, the size of the national flock will be adversely impacted with implications for retail price.

On October 3^rd the United Nations Food and Agricultural Organization released the Food Price Index for Commodities covering September 2025. The FAO recorded a 0.9 point decrease in the revised August 2025 Index to the most recent value of 128.8 points.

 Components of the Index included:-

• The Meat index was up 0.9 points from August to 127.8 points with escalation in prices for beef and mutton representing an all-time high. Prices for pork and chicken were stable during the month. The U.S. Beef supply is constrained by past droughts, intermittent closure of the border with Mexico following outbreaks of New-World Screwworm myiasis and the effect of tariffs on Brazil.
• The Cereal Index in September was down 0.6 points from August to 105.0 due to lower values for wheat, sorghum and rice that were in plentiful supply.
• The Vegetable Oil Index in September was down 1.2 points from August to 167.9 points, although near a three-year high. FAO recorded lower prices for soy and palm oils offset by increases in sunflower and canola oils. Generally there was a decreased world demand for vegetable oils both for human consumption and biodiesel.
• The Dairy Index was down for the third consecutive month by 2.6 points from August to 148.3 with increased availability

Given the fluid state of tariffs, U.S. exports of corn and soybeans will be constrained during the current and subsequent market year notwithstanding USDA projections.  Traditional importers of U.S. agricultural commodities will be evaluating competitive prices from Argentine and Brazil offering greater availability and lower landed costs compared to the U.S. This will be to the advantage of domestic poultry and hog producers.

In a release dated October 1^st Cal-Maine Foods Inc. (CALM) announced results for the 1^st Quarter of FY 2026 ending August 30^th 2025. This review summarizes data provided in the Company release and the concurrently filed SEC 10-Q Report.

Cal-Maine Foods fell short of analysts’ revenue estimate ($960 million) by 4 percent and on EPS ($5.35) by 23 percent.

It is noted that market conditions during Q1 2026 were favorable with an average Cal-Maine unit revenue of $2.49 per dozen for all eggs, compared with Q1 2025 attaining a corresponding price of $2.39 per dozen. Financial results that were below Street consensus reduced CALM price by 3.0 percent at the October 2^nd opening of trading at $90.33 but with a recovery to $92.58 at the close.

Cal-Maine represents a bellwether for the shell egg sector as the only public-quoted, pure-play egg company in the industry, supplying close to 20 percent of domestic shell egg consumption. The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

Notes: $14.1 million ‘other income,’(excluding interest earned) in Q1 2026 compared to $11.0 million in Q1 FY2025:

             $0.2 million loss on non-controlling interest in Q1 2026 compared to $0.4 in Q1 FY2025.

CALM Trailing P/E =3.8.  Beta = 0.2

52-Week Range in Share Price:  $75.61 to $126.40   50-day Moving average of $107.61

Market close, Wednesday October 1st $92.97 pre-release.

Market open, Thursday 2^nd $90.33 down 2.8 percent, closing at $92.58

94.4 percent of shares held by institutions; 9.8 percent insiders; 12.2 percent of float was short on September 15^th

In reviewing the CALM Q1 2026 report and the SEC 10-Q submission the following values represent key data for the most recent Quarter (with Q1 FY 2025 and percentage differences in parentheses for comparison):-

• Shell Egg sales attained $789.4 million in Q1 2026. Shell eggs comprised 85.6 percent of total revenue. ($741,513 million, in Q1 2025, based on 94.3 percent of revenue. Sales value for shell eggs was up 6.5% reflecting higher average unit value).
• Prepared Foods sales attained $83.9 million in Q1 2026. This category comprised 9.1 percent of total revenue. ($8.9 million, in Q1 2025, based on 1.1 percent of revenue). Sales value for Prepared Foods was up 839% reflecting acquisition of Crepini Foods and Echo Lake Foods.
• Egg Product sales attained $37.1 million in Q1 2026. This category comprised 4.0 percent of total revenue. ($9.1 million, in Q1 2026, based on 1.2 percent of revenue). Sales value for Egg Products was up 32% reflecting higher average unit value).
• Sales to the retail channel attained $739.8 million in Q1 2026, comprising 80.3 percent of total revenue ($669.7 million in Q1 2025, -1.0%) Sales to the Food Service sector attained $152.1 million in Q1 2026, comprising 16.5 percent of total revenue ($109.8 million in Q1 2025, +38.5% reflecting sales of Prepared Foods)
• Dozen shell eggs sold (thousands): 317,587 (309,979; +2.5%)

• Average selling price of all shell eggs: $2.486 per dozen; ($2.392 per dozen;            +3.9%).
• Average selling price of specialty eggs (excluding co-pack): $2.396 cents per dozen; ($2.335 per dozen; +2.6%).
• Average selling price of generic eggs: $2.539 cents per dozen; ($2.424 cents per dozen; +4.7%).
• Differential between specialty eggs and generic eggs: -14.3 cents per dozen; (-8.9 cents per dozen; +60.6%)
• Specialty eggs as a proportion of volume sold: 37.2%; (35.5%; +4.8%)
• Specialty eggs as a proportion of sales value: 35.9%; (34.6%; +3.8 %)
• Proportion of eggs sold that were produced by Cal-Maine and their contract flocks in Q1 2026: 88.9% (86.1%; +3.3%).
• Feed cost 47.3 cents per dozen (including specialty and breeders) (49.4 cents per dozen, down 4.3%)

The Q1-2026 10-Q report contained the following statements on pricing:-

“The majority of our conventional eggs are priced and sold under frameworks that generally utilize market-based formulas tied to independently quoted regional wholesale market quotes. The majority of our specialty eggs are sold under frameworks that do not utilize market-based formulas, although we do have some customers that prefer market-based pricing for cage-free eggs. As a result, specialty egg prices typically do not fluctuate as much as conventional pricing”.

“During first quarter fiscal 2026, a higher proportion of our conventional eggs were sold on a hybrid pricing model that takes into account both our cost of production as well as wholesale market prices, instead of solely market-based pricing, in response to customer demand. We believe the hybrid pricing arrangement may help some customers better plan and manage their businesses and reinforces our role as a trusted supplier. Although hybrid pricing may reduce our profitability when egg prices are high, compared to pure market-based pricing, it could enhance our profitability when egg prices are low, and lead to reduced volatility in our financial results. A majority of our conventional eggs continue to be priced and sold under frameworks that generally utilize market-based formulas tied to independently quoted regional wholesale market quotes”.

The top three customers represented 49.2 percent of sales value, with Walmart and Sam’s Club comprising 33.6 percent in FY 2025.

Presumed Q1 FY 2026 production costs for all categories of shell eggs expressed as cents per dozen (rounded) comprised:-

• Feed               47.3c
• Production.    45.8
• Nest run.        93.1
• Packing          31.8
• Delivery.          3.3
• Overhead.        3.7

Total.           131.9

Note: Provision for pullet depreciation, is presumably included in the ‘production’ expense category

Cal-Maine Foods maintained a flock of 48.3 million hens on May 31^st 2025 reflecting acquisitions and growth, with 11.5 million pullets plus parent breeders representing under two percent of the total flock. 

• Effective May 31^st 2025 production capacities comprised:-

• Hens: 51.8 million on 49 farms
• Pullets:14.3 million on 37 farms.
• Packing: 22,490 cph in 50 plants.
• Hatching: 356,300 pullet chicks per week in 2 facilities.
• Parent breeders: 215,000 hens.
• Feed : 1,000 tons per hour in 30 plants.
• Egg products: 72,700 lbs. per hour. 

The following observations relate to the comparison of Q1 2026 with the corresponding Q1 2025:-

• Cal-Maine Foods was not affected by the HPAI epornitic during FY 2022. During Late December 2023 (Q3 FY 2024) the Chase, KS. Complex comprising 1.5 million hens and 240,000 pullets, representing 3.3% of the then total flock was depopulated as a result of HPAI. On April 1^st 2024 (Q4 2024) the Farwell, TX complex was diagnosed with HPAI, requiring depopulation of 1.6 million hens and 0.34 million pullets. Both complexes have been re-populated and are in full production. No further outbreaks occurred in FY 2025 or during the most recent quarter. Cal-Maine management are applying appropriate biosecurity precautions as noted in the Analysts’ call.
• Comparing Q4 2025 with Q4 2024, gross profit was positively influenced by higher unit revenue for generic eggs but with minimal to negative benefit from specialty eggs. The average 4.3 percent lower feed cost to 47.3 cents per dozen was offset by an 8.9 percent higher cost in the ‘other’ category including labor and maintenance ,
• In a market characterized by high unit prices for generics, the relative contribution of specialty eggs is less important to net earnings in contrast to a down-market for conventional eggs. Normality in the market should be restored by the end of Q2 FY 2026 with generic eggs at a lower unit price compared to specialty eggs, as flocks are replaced. This presumption is subject to a low incidence rate of HPAI, through early winter months of 2025 and the spring of 2026.

The Q1 press release repeated comments from the Q4 FY 2025 report noting “Significant progress on proactive steps to add production capacity and help mitigate the egg supply shortage across the country, including:

• A 10% increase in the average number of layer hens during Q1 2026 compared to the prior-year quarter, reflecting repopulation of flocks and both organic and inorganic expansion.
• A 46% increase in the Company’s breeder flocks during Q1 FY 2026 compared to the end of the prior-year quarter.
• A 77% increase in total chicks hatched during Q1 2026 compared to the prior-year quarter.
• Continued progress on ongoing organic expansion projects that are expected to add approximately 1.1 million cage-free layer hens and 250,000 pullets and contract production of 1.2 million free-range layer hens by the end of calendar 2025.
• Added production support through the integration of recently acquired assets”

Commenting on the first quarter of fiscal 2026, Sherman Miller, president and CEO, stated, “We delivered our strongest first quarter in company history, aided by higher specialty egg sales, the expansion of our prepared foods platform and supported by solid performance in conventional eggs. Cal-Maine Foods enters fiscal 2026 from a position of strength and is a uniquely attractive combination of both value and growth in today’s food sector”.

He continued, “Cal-Maine Foods is advancing as a diversified and consumer-driven egg-based food company anchored by three clear priorities: expanding specialty eggs and prepared foods; pursuing disciplined, accretive M&A; and leveraging operational and financial excellence. Executing on these strategic priorities in unison is driving tangible results, and positioning us for accelerated growth, broader diversification, and stronger, more consistent earnings.”

Miller added, “Cal-Maine Foods is advancing its growth strategy by expanding specialty eggs, while building a scaled prepared foods platform across multiple formats and dayparts to meet accelerating demand for differentiated, convenient, and protein-rich foods. Echo Lake Foods and Crepini Foods are compelling recent examples, expanding prepared foods into new formats and dayparts, while deepening differentiation in both retail and foodservice. These acquisitions reflect Cal-Maine’s disciplined approach: targeting assets that enhance mix, improve margin profile, and build capabilities that compound long-term value”.  He noted “Our acquisition of Echo Lake Foods is on track to exceed every financial and operational expectation set at the time of the transaction”.

Miller concluded “With a strong pipeline of opportunities, M&A remains an important lever to deploy capital prudently, build scale, extend reach into value-added categories, and reinforce Cal-Maine’s leadership in eggs and egg-based foods”.

As of April 14^th Cal-Maine Foods ceased to be a “controlled company” with conversion of Class A shares to common stock. As part of the buy-back program the Company purchased shares to the value of $50 million from entities representing the Founder family. Future additional purchases valued at $450 million have been authorized by the Board.

Recent acquisitions include:-

• ISE America was purchased in Q1 2025: for $111.5 million comprised 4.7 million hens, (1.2 million cage-free), pullets, housing, packing plants and other facilities on 4,000 acres in MD., NJ., DE. and SC., representing a unit expenditure of $25/hen with established markets.
• Cal-Maine acquired the remaining 9.2 percent equity in Meadow Creek Foods located in MO. during the 2^nd Quarter of FY 2025
• A majority shareholding in Crepini Foods was acquired in Q2 of FY 2025
• Echo Lake Foods was acquired in Q3 of FY 2025.
• Feed production facilities were acquired from Deal-Rite Foods in North Carolina in Q3 FY 2025 to supply cage-free contract farms in central Nort Carolina.

Cal Maine Foods has expanded by purchase of existing integrated production facilities but has extended acquisitions to value-added products over the past two years.

The 10-Q Report documented approved capital investment of $257.3 million for FY 2026. This comprised a feed mill (3.8%); Egg products equipment (7.6%); Expansion of prepared Foods (5.8%) and new cage-free housing and conversions (82.8%). Of this total $210.2 million (81.7%) has been committed with $47.1 million to be expended.