Cal-Maine Foods launches $15M network optimization, capacity-expansion project

Cal-Maine Foods (CALM) is launching a new $15M network optimization and capacity-expansion project at Echo Lake Foods, expected to add 17M pounds of annual scrambled egg production by mid-fiscal 2027. The project consolidates all scrambled egg manufacturing into a single, modernized facility, creating a more efficient, centralized operation, and expands capacity with a new production line at the facility to support both near-term demand and long-term organic growth. By centralizing production, Echo Lake Foods eliminates redundancy across sites, streamlines workflows, and strengthens supply reliability. In addition, the upgraded equipment and automation are expected to improve yields and reduce labor requirements. Together, we believe these improvements will enhance Echo Lake Foods’ operational efficiency, increase throughput, and position the network to meet rising customer demand as part of Cal-Maine Foods’ broader long-term prepared foods strategy. This investment builds on the previously announced $14.8M high-speed pancake line project, which is expected to add an additional 12M pounds of annual production through early fiscal 2027. While these expansion initiatives are underway and expected to drive higher output, improved efficiency, and greater operational flexibility once complete, Echo Lake Foods has and will experience a temporary reduction in production volumes and higher costs, which began late in the second fiscal quarter of 2026 and are expected to continue through the remainder of fiscal 2026. In addition, Cal-Maine Foods announced that its joint venture, Crepini Foods, will invest $7M through fiscal 2028 to add 18M pounds of additional production capacity. This growth will be achieved through a series of new equipment and line installations, which is expected to gradually increase capacity over the next two years and expand Crepini Foods’ volume by more than sevenfold. In total, these planned investments are expected to grow Cal-Maine’s prepared foods production capacity by more than 30% in the next 18-24 months.