Egg market conditions hurt Cal-Maine in third quarter
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Lower market prices and demand for eggs pushed Cal-Maine Foods’ net income and net sales down during the third quarter of fiscal year 2017.
The quarter ended on February 25, and the company reported its financial results on March 27.
Cal-Maine Foods, the world’s largest egg producer, reported a net income of $4.1 million for the third quarter, down from the net income of $64.2 million recorded during the same quarter during fiscal year 2016. For the first three quarters, the company reported a net loss of $49.8 million, compared to a net income of $316.4 million during the same time frame a year ago.
“Our results for the third quarter of fiscal 2017 reflect the volatile market conditions the egg industry has experienced throughout this fiscal year,” Dolph Baker, chairman, president and CEO of Cal-Maine Foods stated in a press release. “Our results were affected by lower market prices and weaker demand trends compared with the third quarter last year. Market prices moved significantly higher after Thanksgiving, but dropped back down after Christmas, and our average customer selling prices for the third quarter of fiscal 2017 were down 27.9 percent from the same period a year ago.”
Egg supply ahead of demand
According to Baker, egg markets have remained under pressure, and he does not expect any meaningful improvement until there is a better balance of supply and demand.
After the 2015 avian influenza outbreak led to the deaths of millions of hens, egg producers have since repopulated…view all news