US egg producer Cal-Maine Foods has seen higher feed costs hit its quarterly profits.
The company posted net income of US$3.1m for the three months to 27 August. Net sales were up 28% at $243.8m but a 15% increase in feed costs affected Cal-Maine’s earnings.
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President and CEO Dolph Baker said Cal-Maine expected feed costs to remain “very high and volatile” for the remainder of the company’s financial year but was upbeat about its prospects.
“In spite of challenging market conditions, we look forward to the opportunities for growth in fiscal 2012,” he said.
