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Sunday, July 12, 2009

Cal-Maine (CALM) egg facility damaged by fire

Cal-Maine Foods Inc. on Friday said that a fire has damaged its egg facility in Farwell, Texas.

The company said a fire on Thursday destroyed four of the nine layer houses at the site as well as killing some hens at a fifth house. Cal-Maine said no people were hurt and only minimal physical damage was done to the rest of the complex as a result of the blaze.

An investigation is under way to determine the origin of the fire.

The complex accounts for approximately 3 to 4 percent of its production.

Fred Adams, chairman and chief executive, said he expects "minimal financial impact on our operations" as a result of the fire and the company does not exect "any long-term disruption to our customers."

Cal-Maine Foods said it is the largest producer and distributor of fresh shell eggs in the United States and sells most of its eggs in about 29 states in the southwestern, southeastern, mid-western and mid-Atlantic regions.

The company said it is fully insured to cover the costs of the fire.

Shares of Cal-Maine fell 10 cents to $24.86 in close Friday trading.

Disclosure I am long CALM shares in my consumer good folio, currently up 1.39% on this holding. Next dividend payment expected around the end of this month. Received $0.34 cents a share back on the 27th of April.

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