The family that controls Cal-Maine Foods, the top US egg seller, has significantly reduced their stake, cashing out almost $320 million. This divestment occurred as egg prices surged to record highs, with wholesale prices reaching $8.58 per dozen, a 70% increase year-over-year. This price hike is largely attributed to a severe bird flu outbreak that has led to the culling of over 100 million poultry in the US since 2022, creating an egg shortage.
The family, descendants of founder Fred R Adams Jr., converted their super-voting shares to common shares, relinquishing control ahead of a "potential diversification of their individual financial portfolios." This move, along with a $500 million share buyback program initiated by Cal-Maine, facilitated the sale of their common shares. Their remaining stake in the company is valued at nearly $532 million, consisting of $434 million in super-voting shares and $98 million in common shares.
Cal-Maine Foods reported a significant financial boost, with quarterly profits increasing fourfold to $356 million compared to the previous year. The company's shares have risen 56% in the past year, reaching a record high in January. This financial maneuver by the family has drawn criticism from advocacy groups like Farm Action, which accuse dominant egg producers, including Cal-Maine, of leveraging the crisis to increase profits and consolidate market power.
