Cal-Maine Foods Inc
CALM:US US1280302027
Key Information
HQ:
United States
Market Cap:
$2.79bn
Primary Market:
North America
Company Information
Company Summary
Cal-Maine Foods is the largest fully integrated producer and marketer of shell eggs in the US. Its integrated operations consist of hatching chicks, growing and maintaining flocks of pullets, layers and breeders, manufacturing feed, and producing, processing, packaging, and distributing shell eggs. The company is the largest producer and distributor of shell eggs in the US with a 19% market share.![Cal-Maine Foods](http://images.ctfassets.net/kc2xclar6nri/UI4jWwfleQxMFtmAHnfBE/00058fe29166afabe426f33d528d3629/Cal-Maine_Foods.jpg?fit=scale&w=1320&fm=webp)
Revenue
Total revenue:
$1.3bn
Revenue by Geography
Revenue by Protein
Revenue by Product Type
Disclosures
CDP ScoresLast Reviewed: 11/10/2023
CDP Climate | CDP Forests | CDP Water |
---|---|---|
Yes | Yes | No |
Science Based Target initiativeLast Reviewed: 03/10/2023
Target classification | Status | Date |
---|---|---|
Has not set SBT | - | - |
Coller FAIRR Protein Producer Index
Analysis Overview
Greenhouse Gas Emissions Deforestation & Biodiversity Water Use & Scarcity Waste & Pollution Antibiotics Animal Welfare Working Conditions Food Safety Sustainability Governance Alternative Proteins
Analysis Breakdown
Risk Score
28/100
High Risk
Greenhouse Gas Emissions
11/100
Scope 1, 2 & 3 Target
5/100
Type of Target
The company states that it aims to adopt science-based targets based on the guidance for the Forest, Land and Agriculture sector (FLAG). However, no evidence was found that the company has a science-based target, which is validated by the SBTi.
0/3
Strength of Target - Non-SBT
The company remains committed to minimising its greenhouse gas (GHG) footprint. Further, it discloses using the World Resources Institute and the World Business Council for Sustainable Development GHG Protocol internally to measure and help manage the GHG emissions from its operations and value chain. Further, it plans to use this initial benchmark to set measurable goals. Moreover, it has carried out several energy-saving initiatives and continues to look for opportunities to enhance enterprise GHG efficiencies. No evidence was found that it discloses whether it has set targets to reduce GHG emissions from Scope 3. It mentions that it purchases most of its feed ingredients from suppliers, the emissions of which are relevant here but are not disclosed.
0.25/2
Innovation on GHG Emission Reduction
0/100
Innovation to Reduce Agriculture Emissions
The company does not discuss whether it is working with suppliers to reduce emissions from agriculture.
0/1
Feed Farming Innovation
The company does not engage in innovative projects to reduce or mitigate emissions from feed farming
0/2
Animal Farming Innovation
The company does not engage in innovative projects to reduce or mitigate emissions from animal farming
0/2
Quality of GHG Inventory
38/100
Quality and scope of GHG inventory Completeness
The company discloses that its current Scope 1 and 2 GHG emissions estimate for FY2023 is 400,429 metric tons CO2e. It estimates that its Scope 1 sources comprise approximately 75% and Scope 2 sources comprise approximately 25% of this total figure.
0.88/1.5
Feed & Animal Farming Emissions
The company reveals that manure management is responsible for 46% of its overall emissions in Scope 1 and 2. No evidence was found that it disclosed its GHG emissions from feed production. It states that its non-mechanical GHG emissions include manure management and application, land use and composting. However, no evidence was found that it discloses its GHG emissions from land-use change.
0.5/2
Transparency of GHG Inventory
The company has responded to the latest CDP Climate Change questionnaire in 2022.
0.5/1.5
Emissions Performance
0/100
Overall Emission Performance
The company has estimated its emission sources for FY2022 based on preliminary FY2023 data. Moreover, it reports that its current Scope 1 and 2 GHG emissions estimates for FY2023 are 400,429 metric tons of CO2. However, no prior year's data is available for comparison.
0/5
Climate-related Scenario Analysis
10/100
Climate-related Scenarios Analysis Conducted
The company mentions considering the opportunities and risks to feed sourcing and livestock supply presented by climate change. It also states that extreme weather events, such as derechos, wildfires, drought, tornadoes, hurricanes, storms, floods or other natural disasters, could materially and adversely affect its operating results and financial condition. However, it does not disclose whether it has carried out a formal climate-related scenario analysis.
0/1
Disclosure of Analysis Results on Material Risks
The company discloses that physical risks such as derechos, fires, floods, tornadoes and hurricanes can adversely affect the business. It also mentions that it procures feed ingredients from suppliers, the cost of which may increase due to such extreme weather conditions that negatively impact the operations. However, it does not disclose how it intends to mitigate or adapt to the projected impact of physical risks on feed ingredients' availability and price volatility (e.g., soy, maise, corn). It states that climate change may increasingly expose animals to high heat and humidity stressors that adversely impact poultry production. However, it provides no further detail on how it plans to adapt to the impact of high temperatures on animals. It acknowledges that weak or unstable economic conditions may adversely affect its business by restricting the supply of energy sources or increasing costs to procure energy. However, it provides no further discussion of subsequent impacts or how it will mitigate such risks and adapt. It discloses that derechos, fires, floods, tornadoes and hurricanes have affected its facilities or the facilities of other egg producers in the past. However, no evidence was found that the company disclosed the financial material events that occurred due to climate risk.
0.5/3
Disclosure of Financial Material Events & Alignment of CAPEX
The company does not disclose its commitment to align capital expenditures with its GHG targets.
0/1
Deforestation & Biodiversity
5/100
Deforestation/Conversion-free Target - Soy for Animal Feed
10/100
Risk Assessment to Identify High-risk Locations
The company discloses that it purchases the vast majority of its corn and soybean meal from the US and purchases soy internationally when required. However, the company does not disclose the percentage of procurement spend relating to soy. It discloses that soy and corn are the primary ingredients it purchases, and discloses that a majority of its soy is sourced domestically from the US which is not deemed an area at risk of deforestation. However, no evidence was found that 100% of soy is sourced from areas with no risk of deforestation or that 100% of soy is sourced from deforestation-free suppliers. The company does not seem to currently undertake forest-related risk assessments of its supply chain. In its 2021 Sustainability Report, the company stated that it anticipated reporting about its soy engagement, monitoring and tracing efforts in later reports. However, no further disclosure was found in the company's latest report.
0/0.5
Strength of Deforestation Commitment
The company does not disclose a deforestation/conversion-free target related to soy.
0.25/3.25
Transparency - Progress Against Commitment
The company has responded to the CDP Forests 2022 questionnaire.
0.25/1.25
Engagement, Monitoring & Traceability - Soy for Animal Feed
0/100
Supplier Engagement
In its 2021 Sustainability Report, the company recognised the potential risks associated with soy sourcing that may contribute to deforestation and biodiversity impacts around the world, and stated that it continues to consider how to optimise its procurement practices. In the same report, it disclosed that it anticipated reporting about its soy engagement, monitoring and tracing efforts in future sustainability updates. However, it has not provided an update in its latest report. Further, it does not disclose information on its support to soy producers to encourage deforestation-free production or improve traceability.
0/1.25
Compliance monitoring & Traceability
The company does not disclose information about the level of traceability it has in its soy supply chains.
0/3.25
Feed Innovation
The company does not discuss innovations and/or practices to move towards sustainable feed sources.
0/0.5
Water Use & Scarcity
2/100
Water Use & Scarcity in Facilities
5/100
Monitoring Water Consumption & Withdrawals
No evidence was found that the company has conducted a risk assessment for its processing facilities or that it only operates in areas of low water stress. The company states that it will soon report quantitative data on water withdrawals and consumption but also reports that it used 1.45 billion gallons of water in FY2022. The company describes investment in technology that can detect leaks, recycling egg washing water, and other water-saving measures.
0.25/0.75
Target to Reduce Water Consumption & Withdrawals
The company has not set a time-bound water reduction target to reduce total water withdrawals at facilities in the reporting year.
0/1
Disclosure & Performance of Water Risks in Facilities
In FY2022, the company estimates that it used approximately 1.45 billion gallons of water in its operations. However, it is unclear where this water was sourced based on current disclosure. It plans to provide additional water data in future reports including the percentage of water sourced from regions with High or Extremely High Baseline Water Stress in future reports. The company did not respond to CDP Water Security 2022. As the company has published its water usage data for the first time no comparison of the data can be made.
0/3.25
Water Use & Scarcity in Feed Farming
0/100
Supplier Engagement in Water Use in Feed Farming
The company operates 25 feed mills and states that the majority of the feed is sourced domestically in the US. However, no evidence was found that the company is addressing water scarcity in its feed supply chain.
0/2.5
Disclosure of Water Risks in Feed Farming
The company does not disclose information relating to the water intensity of feed production. It states it does not report the percentage of animal feed sourced from regions with high or extremely high baseline water stress and that it anticipates reporting this in future reports.
0/2.5
Water Use & Scarcity in Animal Farming
0/100
Supplier Engagement in Water Use in Animal Farming
The company discloses that its owned operations withdraw water from municipal and well water sources for use at its facilities. It discloses that it anticipates reporting additional information about its water management practices, including withdrawals in regions of water stress, in future sustainability reports. However, no evidence was found that the company discloses the proportion of animal protein commodities produced and/or sourced in water-stressed areas. It states that it is committed to responsible stewardship of water and that it continues to evolve its water management practices. In its 2020 Sustainability Report, it disclosed how it manages water use in animal farming. However, no evidence was found that the company addresses water scarcity in its animal supply chain/own operations in the current reporting period.
0/3
Disclosure of Water Risks in Animal Farming
The company has not established partnerships with third parties to input into sourcing/farming strategy, including water use.
0/2
Waste & Pollution
9/100
Wastewater at Facilities
18/100
Disclosure & Targets for Wastewater Quality & Volume Discharged
The company discloses that it had no material instances of wastewater discharges in 2022. It reported its water usage data in 2022 for the first time. However, no evidence was found that the company reports quantitative data on the volumes of water used from regions of High or Extremely High Baseline Water Stress in the current reporting period.
0.5/1.5
Transparency on Water Pollution Risks
The company did not responded to CDP Water Security 2022.
0/2
Performance on Wastewater Quality & Volume Discharged
In 2021, the company mentioned repurposing eggshells from select facilities for future beneficial land applications, thereby diverting this waste from going to landfills. The company also reported in 2020 that wastewater from its facilities is used as a fertiliser. However, disclosure around this initiative is no longer included in its reporting. The company does not report wastewater quality data so no comparison can be made.
0.4/1.5
Nutrient Management in Feed Farming
0/100
Supplier Engagement in Nutrient Pollution Risks
The company does not report the amount of animal litter or manure generated which is managed according to a nutrient management plan in its operations. The company states it is considering the best reporting method and anticipates reporting its progress in future sustainability reports.
0/4
Innovation to Improve Nutrient Management in Feed Farming
No evidence was found that the company discloses information about pesticide use in its feed supply chain.
0/1
Manure Management in Animal Farming
10/100
Disclosure of Pollution Risks from Manure
The company discloses that manure is a valuable resource for agribusinesses and considerable demand exists for it. Cal-Maine reports that in FY2022, manure was exported to agribusiness located near its facilities or in some cases used by the company. However, no evidence has been found that the company converts manure to fertiliser or biogas in the current reporting year.
0.19/1.25
Supplier Engagement in Manure Management
In its Sustainability Report 2021, it mentions the use of Nutrient Management Plans on its own farms helps to minimise land use and ecological impacts. In cases in which it applies manure to land, it follows strict compliance with NPDES permits and follows agronomical application rates appropriate for each location. However, it does not disclose that its contract growers are required to have NMPs. In its 2020 and 2021 reports, the company describes the use of nutrient management plans (NMPs), with which transferred wastewater (including manure) is applied. However, this information is not present in the current report, and it is unclear if the company provides technical and/or financial support to suppliers.
0.3/1.5
Innovation to Improve Nutrient Management in Animal Farming
The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovation in manure or provide evidence of a community engagement plan in relation to pollution.
0/2.25
Antibiotics
27/100
Policy on Antibiotics Use
39/100
Policy on Antibiotics Use
The company commits to a formal policy that governs the responsible use of medically important antibiotics under veterinary supervision, aligning with the Veterinary Feed Directive (VFD). It limits the use of antibiotics for growth promotion or performance enhancement and reports the use of antibiotics in 1% of animal feed in 2022. Moreover, it has instituted protocols for disease prevention and invested in biosecurity and sterilisation initiatives, including supervised vaccination programmes to diminish antimicrobial use. It further sustains an animal welfare programme complying with recognised standards and engages in regular training and third-party audits to foster sustainable and safe flock management.
1.94/5
Disclosure of Quantity of Antibiotics Used
16/100
Disclosure of Quantity of Antibiotics Used
The company administered a single vital antibiotic constituting less than 1% of feed in FY2020, FY2021, and FY2022, under licensed veterinary supervision. However, it does not disclose a decrease in the proportion of animals receiving antibiotics or the quantity per ton of product compared to previous reporting periods.
0.8/5
Animal Welfare
59/100
Animal Welfare Policy
65/100
Welfare Policy
The company has an Animal Welfare Program (AWP) and commits to the Five Freedoms of Animal Welfare for its poultry operations. All facilities audited in fiscal year 2022 attained certification from United Egg Producers (UEP), American Humane, and Humane Farm Animal Care. It provides multifaceted training to employees on animal welfare topics via the UEP online portal. The company also partakes in initiatives such as disease testing and monitoring, overseen by the United States Department of Agriculture Animal and Plant Health Inspection Service, and supports research through the American Egg Board. Its flocks are certified to National Poultry Improvement Plan (NPIP) standards. However, it does not disclose specific actions taken for policy breaches, although a reporting hotline exists.
1.75/2
Key Welfare Issues
The company commits to freedom of movement for pullet and layer hens, offers speciality cage-free eggs, and upholds humane transport conditions. It employs approved euthanasia methods and invests in ventilation and lighting systems for animal welfare. However, it lacks a commitment to preventing close confinement across operations and to capping transport time at eight hours. It does not disclose its policy on routine mutilation or stunning animals prior to slaughter. Enrichment measures for conventional layer hens remain undisclosed.
1.5/3
Assurance & Certification
60/100
Auditing & Assurance by an Animal Welfare Organisation
The company achieved certification for all facilities undergoing external animal welfare audits in fiscal year 2022. It operates under various tiers of assurance, including United Egg Producers for conventional egg production and Humane Farm Animal Care for organic production. The company obtained animal welfare certifications for all facilities participating in external audits in FY2022. The certifiers include United Egg Producers (UEP), American Humane, and Humane Farm Animal Care which certifies organic and cage-free production practices.
3/4
Public Reporting on Welfare
The company does not disclose information on the percentage of hens in cage-free conditions compared to previous years, nor on any other animal welfare metrics.
0/1
Performance on Key Material Risks
53/100
Performance on Key Material Welfare Risks by Protein
The company is investing in facility expansion for cage-free production and maintains suitable air quality, lighting, and thermal conditions for cage-free birds, who also have access to perches, nest pads, and scratching areas. It adheres to United Egg Producers (UEP) guidelines for resting space for poultry with no access to perches. However, it lacks public commitment to 100% cage-free production, does not disclose the proportion of animals raised cage-free, and provides no information on hen density or the use of nest boxes in conventional operations.
2.63/5
Working Conditions
34/100
Human Rights
10/100
Strength of Policy
The company discloses a human rights statement acknowledging its respect for human rightsthe Board has approvedhe Board of Directors. The United Nations Guiding Principles inform the company's approach to human rights issues on Business and Human Rights and the United Nations Universal Declaration of Human Rights, among other internationally recognised human rights instruments.
0.5/1
Due Diligence Process
The company states it intends to conduct human rights due diligence and material risk assessment in the future for its operations and the value chain. However, it does not discuss how it currently assesses actual and potential human rights risks, mitigates risks, or remediates people or communities.
0/3
Evidence of Remediation
The company does disclose the details of cases where human rights risks were found or if any remediation measures were carried out during the reporting year.
0/1
Fair Working Conditions
26/100
Policy for Direct Operations
The company commits in writing to prohibit discrimination, harassment, child labour and forced labour in its operations but does not discuss whether it conducts audits covering these commitments. Furthermore, the company does not ask that suppliers also make these commitments or provide a commitment to fair wages.
0.8/3
Monitoring & Discosure
The company has established a grievance reporting mechanism for its employees. It also discloses that the complainant can remain anonymous or identify themselves. The company does not disclose the number of grievances it received for the reporting year or mention whether suppliers also have access to a grievance mechanism.
0.5/2
Safety & Turnover Data
60/100
Committee representation of workers
The company prioritises the health and safety of its employees and discusses various measures to maintain health and safety throughout its operations. However, it does not discuss having a health and safety certification. The company discloses that in FY2022, it has a safety and health committee that does not discuss the portion of facilities with health and safety committees with worker representatives. No evidence was found that the company evaluated the workforce's antimicrobial resistance risk.
0.5/2
Disclosure of safety and turnover data
The company reports that its total recordable incident rate per 200,000 working hours (TRIR) at the enterprise level was 2.8% in FY2022, a decrease from the figure of 2.9% reported in FY2021. The company reports that in both FY2022 and FY2021, the fatality rate was 0%.
2.5/3
Freedom of Association
40/100
Strength of Policies
The company mentions that it respects employees' right to freedom of association but does not disclose the unionisation rate. Further, no disclosure is found regarding actions evidencing support for freedom of association.
0.5/3
Disclosure of Collective Bargaining Metrics
The company states that collective bargaining agreements in FY2022 covered none of its employees. As of June 2023, the company has 2,976 employees, 5.4% part-time. It also mentions that for FY2022, it utilised an average of 1,349 full-time equivalent temporary contracted workers per month.
1.5/2
Food Safety
78/100
Food Safety System
90/100
Certifications
The company states that all facilities in scope attained SQF certification, a GFSI-recognised program. 100% of processing facilities obtained this certification in FY2020, FY2021 and FY2022. Further, its contract suppliers must conform to the requirements of the SQF certification. It reports its supplier facilities' GFSI certification as a percentage of its fresh shell egg purchases. In FY2020, FY2021 and FY2022, less than one percent of its finished egg sales were provided to customers that did not require certification. Its 2021 Sustainability Report is referenced for further information regarding third-party certification.
3.5/3.5
Performance
The company discloses that its 42 processing facilities were audited to SQF certification standards. It had a significant and minor non-conformance rate of 0.00 and 0.05, respectively, based on two minor non-conformance instances. The corrective action rate for the minor non-conformances was 100%. It reported that this was due to the company acting promptly and SQF auditors accepting corrective action plans. Further, it has a robust product identification system that helps to identify inputs for its finished eggs at each stage, including receipt, production, processing, packaging, shipping and transportation. However, it is unclear whether the company is in the process of developing consumer-facing technology for food safety.
1/1.5
Product Recalls & Market Bans
65/100
Product Recall Systems
The company has established product trace systems, which it reviews at least twice yearly with mock recall protocols. These protocols are part of its standard product recall and withdrawal rehearsal and review. The product recall protocols allow the company to act nimbly to identify, segregate and dispose of the potentially affected eggs and engage in stock reconciliation practices. The company is encouraged to disclose further information. It reported zero product recalls in FY2022.
2.75/3
Performance
The company discloses that it had zero market bans in 2021. No evidence was found that the company discloses the number and locations of market bans in this reporting year. However, no market bans were detected in media screening for the same period.
0.5/2
Sustainability Governance
31/100
Assessment of a Company's Sustainability Governance
31/100
Board Sustainability
The company states that the board oversees the management of its sustainability efforts. In addition, the company discloses that in FY2022, it conducted its first materiality assessment. The assessment has identified 19 key topics for internal and external stakeholders. These topics are categorised into six pillars: people, quality food choices, environment, animal welfare, community and corporate governance. However, the company does not discuss board involvement in the process. Three of the company's board members have expertise in sustainability governance, and four members possess experience in product innovation and quality. The company does not discuss whether it possesses board-level food safety expertise.
1.25/2
Incentives & Policy Engagement
The company has not disclosed executive monetary remunerations linked with climate or sustainability performance.
The company is committed to engaging with trade groups, public policymakers and others to advance dialogues relating to the overall sustainability of the poultry industry. Further, it discloses that its colleagues represent its company engagement on industry issues such as protecting human health and well-being in the workplace, sustainable food safety and quality initiatives, climate change risks, water footprint management, waste and toxicity management, land use impacts, antimicrobial stewardship and animal welfare matters. Additionally, it is a representative at the US Roundtable for Sustainable Poultry & Eggs (US-RSPE). It engages with groups such as the United Egg Producers and the Environmental Protection Agency Animal Agriculture, which hosts focused group discussions on protecting human health and the environment. However, whether the company is a member of trade associations, alliances and coalitions or if its policy-engagement activities align to restrict global temperature rise to 1.5°C is unclear.
0.3/2.5
Innovation & Benchmarking
The company does not provide details of a sustainability innovation strategy. Further, no evidence was found that the company benchmarks itself against peers in sustainability and innovation in this year's reporting.
0/0.5
Alternative Proteins
0/100
Diversification of Products to Alternative Protein Sources
0/100
Existing product portfolio
The company does not explicitly acknowledge that protein diversification is a material business issue. Further, it has not yet set a timebound target to diversify protein sources, nor does not report revenue/sales linked to alternative protein sources
0/2.5
Investing for future growth
In its 2021 Sustainability Report, the company evaluates opportunities that may help expand its product portfolio, such as alternatives to egg protein. However, no evidence was found that the company has an alternative protein product portfolio or an approach to diversifying in the current reporting year.
0/2.5
Members-only Content
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Workstream Information
2023 Risk Score:
28/100
Level:
High Risk
Ranking:
35/60
Main Protein:
Poultry and eggs
Assessed Proteins:
Poultry and eggs
Company Feedback Given:
Yes
Last Updated:
31 October 2023
2023 Resources
2023/24 Index Report Summary (Mandarin) 报告总结摘要(中文) Launch of the Coller FAIRR Protein Producer Index 2023/24 2023/24 Company Dialogue Questions 2023/24 Full Report Coller FAIRR Protein Producer Index
Coller FAIRR Climate Risk Tool
Analysis Overview
Cost Increase
Cost Increase
EBIT Margin
Cost Increase (%)
60%
40%
20%
0%
-20%
-40%
-60%
Net Zero Aligned
BAU
High Climate Impact
Cost Breakdown
2030 | Net zero aligned | BAU | High climate impacts |
---|---|---|---|
Total Costs | 3% | 16% | 39% |
Carbon Tax | 0% | 1% | 1% |
Feed | 3% | 15% | 38% |
Feed Additives | N/A | N/A | 0% |
Heat Stress | 0% | 0% | 0% |
2050 | Net zero aligned | BAU | High climate impacts |
---|---|---|---|
Total Costs | 2% | 18% | 58% |
Carbon Tax | 1% | 2% | 2% |
Feed | 0% | 16% | 56% |
Feed Additives | N/A | N/A | 0% |
Heat Stress | 0% | 0% | 0% |
Members-only Content
To register as a member of the FAIRR network, please fill out the sign up form or if you need additional information on the FAIRR network, please contact investoroutreach@fairr.org.
Workstream Information
Last Updated:
5 April 2023
2023/24 Resources
Walkthrough Video 2023 Public Report 2023 (English) Public Report 2023 (Mandarin) Coller FAIRR Climate Risk Tool