Connect with us

News

Dynasty behind US egg giant looks to cash in as profits soar amid bird flu

Published

on

Dynasty behind US egg giant looks to cash in as profits soar amid bird flu

Stay informed with free updates

The family that controls the largest US egg seller is seeking to cash out amid a bird flu crisis that has driven prices to all-time highs.

The four daughters and son-in-law of Cal-Maine Foods founder Fred R Adams Jr reached an agreement with the company to convert their super-voting shares to common shares, relinquishing control ahead of a “potential diversification of their individual financial portfolios”, according to a securities filing by the company.

The family’s stake in Cal-Maine is held through a shell company called Daughters LLC. At Friday’s close, the stake is valued at nearly $532mn, including $434mn in super-voting shares and another $98mn in common shares.

Advertisement

At the same time, Cal-Maine, based in Ridgeland, Mississippi, said it would undertake a $500mn share buyback programme, its first in two decades, and disclosed it could use the initiative to “repurchase some of the family members’ common shares” as they sold their holdings.

The transaction appeared to smooth the process for the family to pare back or sell its entire stake, said Ben Silverman, vice-president of research at VerityData. “It’s not unusual for a company to buy back shares from a major shareholder,” he added.

Company representatives declined multiple requests for comment.

US egg prices reached $8.58 per dozen in wholesale markets this week amid a severe bird flu outbreak, a 70 per cent increase from year-ago levels, according to a commodity price information service Expana. The outbreak has led farmers to cull 100 million chickens, turkeys and egg-laying hens in the US since 2022, according to the US agriculture department, creating an egg shortage that experts forecast to keep prices near all-time highs for months to come.

Amid the crisis, Cal-Maine Foods last month reported $356mn in gross quarterly profits from a year prior, a fourfold increase.

Advertisement

Adolphus “Dolph” Baker, the son-in-law of Adams and chair of Cal-Maine’s board, said in a statement that the family’s moves to give up control of the company “are personal decisions made in connection with our own respective financial and estate planning efforts”.

Adams, known to friends as “The Big Chicken” according to his obituary in a local newspaper, was a six-foot-four offensive and defensive end for his high school football team. After college and a short career in feed sales, he founded Cal-Maine Foods in 1957, leasing land outside Jackson, Mississippi, to start his first farm.

By the time he died in 2020, it had grown into the producer of one in 10 eggs supplied in the US. His four daughters — Luanne Adams, a psychologist and board member of the Washington Ballet; Nancy Adams Briggs of Virginia; Laurel Adams Krodel of Tennessee; and Dinnette “Dea Dea” Adams Baker, of Mississippi — have controlled the company since. Dolph Baker is Dea Dea’s husband.

The super-voting shares have the same value as common shares but carry 10 times the voting rights. The agreement would reduce the family’s voting power from 53.2 per cent to 12 per cent.

Shares have risen 56 per cent in the past year, touching a record high in January and closing at $90.39 on Friday.

Advertisement

Advocates for small farmers have accused Cal-Maine of limiting egg supplies in the US. The company was among a group of egg producers found liable for price fixing in 2023 and was ordered to pay $53mn in damages to food manufacturers including Kraft Foods, General Mills and Nestle. Cal-Maine and the other egg producers have filed court papers seeking a new trial and contesting the judgment.

“Dominant egg producers — particularly Cal-Maine Foods — have leveraged the crisis to raise prices, amass record profits, and consolidate market power,” advocacy group Farm Action wrote in a letter to the Federal Trade Commission and Department of Justice. “The slow recovery in flock size, despite historically high prices, further suggests co-ordinated efforts to restrict supply and sustain inflated prices.”

The US announced a $1bn effort this week to curb avian influenza and lower egg prices, including importing eggs from other countries and curtailing exports to mitigate the shortage.

News

Waymo called the cops on teen riders, raising privacy concerns

Published

on

Waymo called the cops on teen riders, raising privacy concerns

A Waymo robotaxi drives in San Francisco’s North Beach neighborhood this week.

Heather Diehl/Getty Images


hide caption



toggle caption

Advertisement

Heather Diehl/Getty Images

Police in San Mateo, Calif., posted Monday on social media that they had apprehended a pair of teenagers from a Waymo driverless robotaxi after the company alerted authorities to suspected criminal activity. It’s the latest incident involving video surveillance of passengers and others by autonomous vehicles — raising questions about the limits of privacy in such vehicles.

The Facebook post by the San Mateo County Police said: “Parents do you know where your teens are? @waymo does!”

The 15-year-olds were allegedly drinking alcohol and shooting toy guns from the car, according to the police. They said Waymo’s systems detected behavior that then triggered a safety response, after which the company disabled the vehicle and contacted police.

Advertisement

Waymo’s cars, equipped with an array of cameras, microphones and other sensors to monitor passengers and other nearby vehicles, are becoming more common in cities across the United States. Experts say the detention of the two teens in San Mateo highlights a potential — but not inevitable — trade-off between privacy and convenience. It also questions the extent to which companies similar to Waymo are required to hand over private data, including audio and video of passengers, in situations where a crime is suspected.

NPR reached out to Waymo, which is owned by Alphabet, the parent company of Google, for comment on the details of the San Mateo incident and how the company responded, but did not hear back. But on its website, the company says that as many as 29 cameras in its autonomous cars provide an all-around view and “are designed with high dynamic range and thermal stability, to see in both daylight and low-light conditions, and tackle more complex environments.”

“There already exist laws that govern duty to report or even duty to protect” for carriers such as Waymo, according to Alessandro Acquisti, a professor of information technology at the MIT Sloan School of Management. “The privacy problems arise when and if driverless carrier companies used such laws or ethical obligations as a pretext for blanket, indiscriminate accumulation of identifiable data for unspecified future purposes.”

That includes not just monitoring people inside the cars, but outside too. Take, for example, a hit-and-run investigation last year in Los Angeles. Media reported that the police inquiry was aided by video captured by a Waymo taxi that had a clear view of the crime. Critics suggested at the time that authorities were using the company’s vehicles as a mobile surveillance platform. And during 2025 protests in Los Angeles against Immigration and Customs Enforcement crackdowns, demonstrators vandalized Waymos, apparently angry that video recorded by the vehicles could be used by police, although there is no evidence that happened.

Continue Reading

News

Trump fires last members of election commission, inciting fears of midterm ‘chaos’

Published

on

Trump fires last members of election commission, inciting fears of midterm ‘chaos’

Donald Trump has terminated the remaining members of the independent, federal commission that assists election administration officials nationwide just a few months before the midterm elections, multiple outlets reported Thursday.

The remaining three commissioners of the four-member bipartisan commission ⁠were forced out on Thursday in different ways. The one Republican appointee resigned and the other ⁠two, Democratic appointees were notified of their terminations via email from ​the White House presidential personnel office.

“On ‌behalf of President ‌Donald J Trump, I am writing to inform you that your position ‌as Commissioner of the Election Assistance Commission is terminated, effective immediately. Thank you for your service,” the email, seen by Reuters, said.

The White House did not immediately respond to a request for comment.

The Election Assistance Commission serves as a “national clearinghouse of information on election ‌administration”, accredits testing laboratories and certifies voting systems, and maintains the national mail-voter registration form developed by the National ​Voter Registration Act of 1993, according to the commission’s website. The terminations follow Trump and top administration officials’ advocacy to change vote-by-mail requirements and investigations into the 2020 election outcome, which Trump lost to Democrat Joe Biden.

Advertisement

“It is ⁠irresponsible and dangerous that this Administration remains dead set on ​causing chaos for ​our election officials across this ​country,” Arizona secretary of state Adrian Fontes said in a ​Thursday statement. “This ‌move undermines the integrity ​of nonpartisan ​election administration.”

The 2002 law that established the commission, the Help America Vote Act, states the president can appoint replacements to the commission.

It is unclear how Trump will move ahead with the commission.

Reuters contributed reporting

Advertisement
Continue Reading

News

Former Olympian pleads not guilty in reflecting pool vandalism charges

Published

on

Former Olympian pleads not guilty in reflecting pool vandalism charges

Former U.S. Olympian David Hearn (left) walks with his attorney Norman Eisen to speak to reporters and protesters gathered after his arraignment at the Superior Court of the District of Columbia in Washington, D.C. on Thursday.

Finn Gomez/Getty Images


hide caption



toggle caption

Advertisement

Finn Gomez/Getty Images

Former U.S. Olympic canoeist David Hearn pleaded not guilty to damaging the Lincoln Memorial Reflecting Pool in D.C. Superior Court Thursday morning.

Federal prosecutors charged Hearn with a single count of destruction of property causing more than $1,000 in damage to the pool.

Hearn has previously claimed, which his attorneys repeated during a short press conference outside the court, that he simply touched the water in the pool out of curiosity.

Advertisement

The Trump administration had just completed a $14 million renovation of the pool.

But shortly after the work finished, peeling paint and algae gathered in the water. The remodel has been largely criticized as a massive failure and waste of taxpayer dollars.

Superior Court Judge Carmen McLean released Hearn on his own recognizance. His next hearing is scheduled for Aug. 5.

Norm Eisen, one of Hearn’s attorneys, spoke to reporters outside of court following the hearing. He said the administration is using Hearn as a “scapegoat … for their own failures.”

“It is not a crime to touch the reflecting pool, to touch water in the United States of America,” he said.

Advertisement

Prosecutors say there is a host of evidence against Hearn.

This is a developing story.

Continue Reading
Advertisement

Trending