Following a longer-running European trend, demand among US consumers for free-range eggs is on the rise. This provides new opportunities for NPM portfolio company Hendrix Genetics, the creator of the Dekalb White chicken breed. As well as thriving in cage-free environments, this breed is known for its high production capacity of white eggs. The Brabant-based company is currently building a new hatchery in the US that is set to produce more than 24 million female Dekalb White chicks a year.
Not all layers can be raised in a cage-free environment, as some breeds exhibit antisocial behaviour that makes them unsuited for living in large groups. In contrast, the Dekalb White thrives in a cage-free environment, having a social nature and showing less stress and feather-pecking behaviour than other hens. While European consumers have traditionally associated brown eggs with cage-free production, and white eggs with battery production, this perception is changing rapidly. White eggs are becoming the preferred choice in many European countries, and we expect the US to follow suit.
High production and quality standards
The construction of the new hatchery, which commenced in September 2016, will soon be completed. The facility will create around 45 new jobs in the local community. Eight contract breeders located near the new hatchery in Grand Island, Nebraska will be rearing and housing the chicks in new barns – each of which can accommodate up to 40,000 birds – so they can grow into mature laying hens. The new barns were built according to strict guidelines imposed by Hendrix Genetics, to ensure that its high quality standards will be maintained right across the supply chain.
The new hatchery and the surrounding infrastructure will help to significantly strengthen Hendrix Genetics’ position in the US. The new breeding facility is expected to meet another 10% of total demand in the US market for layers. This is part of the company’s strategy of significantly increasing its global downstream distribution.
