State’s Largest Egg Ranch Rising Near Kern / Kings Line
September 13,2016-
California egg producers seemed to throw in the towel once voters here passed Prop 2 requiring eggs from chickens who can stretch their wings and be able to turn around. Some farmers closed their barn doors certain California would be supplied by big new ranches in the Midwest and Southwest who enjoy cheaper costs. Critics said the new state rules would drive up the price of an every day commodity and chase more business from California. Studies done prior to the vote in 2008 predicted the entire $330 million California egg industry would likely be wiped out if the initiative passed.
By the time the new law finally took effect in January 2015 the state’s egg industry had indeed withered. By 2014 California’s laying hen population had dropped to 11 million birds from a high some years back of 40 million and around 20 million in 2012. Meanwhile egg price here soared.
Look On The Sunny Side
But now it’s a new day and we are looking on the sunny side. In contrast to 18 months ago – retail egg prices at the local supermarket have come back to earth and a local industry rebound is at hand.
It seems clear that the Central Valley will again be home to millions more egg layers, happy perhaps, to have room to move around a bit thanks to the new law.
Central Valley Eggs, LLC plans a 2.5 million hen egg ranch to be located between Wasco and Corcoran a few miles south of the Kings County line. The value of the project, considered the state’s largest egg ranch, is $300 million. They plan to be shipping eggs by the early 2017.
Significantly this ranch is just the first of four similar size cage-free ranches in this area that are in the works says partner in the operation Glenn Hickman. “It won’t happen tomorrow but we expect to have around 10 million laying hens coming on line” says Hickman, all operational in the next 2 and 1/2 years. Exact locations for the rest have not been revealed yet.
Based on this one egg operation the population of the state egg laying flock will grow from around 12 million hens today to 22 million.
Added together this ag investment amounts to $1.2 billion, a big bet on egg making in the Golden State by longtime ag families. The partners think they can be competitive with the big Midwest egg principal
operations even if those ranches have corn, the largest cost to raise chickens, growing right out their back door.
The Central Valley Egg partnership had been developing their plans for the past three years.The group includes Arizona-based Hickman’s Family Farms, Opal Foods led by Ejnar Knudsen of AGR Partners based in Tulare County and Western Milling of Goshen, Kevin Kruse – principal.
According to a public notice the ranch will be located at the southeast corner of GunClub Rd and Hanawalt north of Wasco and will employ 53 workers. The ranch will house not just 2.5 million laying hens but 1 million pullets, young replacement hens. Situated on 135 acres the sprawling ranch will have nearly 400,000sf under roof.
Even if corn has to be shipped in – Central Valley Egg ranches have some advantages, says Hickman.”We can ship eggs the same day they are gathered reaching both the Bay Area or southern California” a boost not just for freshness but lower transportation costs than competitors. There are reasons why food makers want to be as close to the big population centers as possible. Plus, California poultry enjoy sunnier weather just like the rest of us, and heating costs for those huge barns are not as pricey as the snowy Midwest.
Proving Them Wrong
So what happened to the argument that its just too costly to harvest eggs in California due to the new law? “We hope to prove them wrong“ declares Hickman.
In 2008 Ag writer Don Curlee expressed outrage in his column over the cage free initiative he said was placed on the ballot by a “compact of kook-fringe animal rights advocates.” But the Proposition passed by a 2 to 1 margin. Kookie or not, the customer rules.
Glenn Hickman adds, “California consumers, retailers and restaurants all desire cage-free eggs, and we want to fulfill this demand.”
Western Milling of Goshen, California will be providing nutrition and feed solutions to this new business. Western Milling is one of the largest feed companies in the United States with three generations of family history in the business. The company has feed lots in Hanford, Famoso and Goshen – all near large poultry raising operations.
Poultry raising is big business in the Valley as witnessed by two large local expansions underway. In Hanford, Pitman Family Farms is building new feed facilities and in nearby Traver along Hwy 99 – Foster Farms is erecting a new organic feed mill.