Acquisition to accelerate Hickman's recovery from bird flu disaster
Bird flu fallout forces sale of Hickman's Family Farms
Hickman’s Family Farms, a leading regional egg producer, was hit hard by the bird flu this year, losing about 95% of its flock. FOX 10's Taylor Wirtz reports.
PHOENIX - Hickman’s Family Farms, a leading regional egg producer, was hit hard by the bird flu this year, losing about 95% of its flock.
Company president Glenn Hickman said selling the company was a necessary step to save the operation.
What we know:
The last year has been difficult for Hickman’s. The bird flu outbreak at the company’s Maricopa and west Valley farms resulted in the culling of about 6 million birds.
"We basically built a business over 80 years of time and, you know, depopulated it over about a three-week period," Hickman said. "Watching all those chickens have to be put down was horrible."
Hickman said the painful order to cull the flock was necessary to contain the virus. "There's a good reason for the measures that are in place to be followed," he said.
The severe losses played a significant role in the decision to sell its shares to Brazilian company Mantiqueira USA, which announced the acquisition plan Friday. Hickman noted the U.S. Department of Agriculture has not allowed them to vaccinate their flock.
"As a privately held company, there's a limit to how many losses we can sustain," Hickman said. "This gives us a chance to marry up with a company that has a lot more resources and can better withstand these kind of disasters."
What's next:
Mantiqueira said in a statement that the acquisition is a milestone in its strategy to build a strong presence in the U.S. egg market. The company said it is committed to honoring Hickman’s legacy while driving new opportunities for customers and staff.
Hickman believes employees, vendors and customers will not experience much change, as Mantiqueira was attracted to the company's strong market share in the Southwest.
The new resources are expected to speed up the return to full production by about nine months, potentially reaching capacity in the second quarter of 2026 instead of the first quarter of 2027. The sale is expected to close by the end of the year.