US-based Rembrandt Foods is planning to build a cage-free egg production facility in Lake Preston, South Dakota.
The facility will produce nearly three million cage-free layers in phases, with further plans for expansion.
Rembrandt Foods marketing vice-president Jonathan Spurway said: "We look forward to becoming a part of the local community and building long-term, mutually beneficial relationships in this agricultural region.
"Supplying high-quality cage-free egg products is just one way that Rembrandt partners with our customers.
"We help our customers understand what it will take to transition to a cage-free supply, and work with them to develop a plan to ensure success."
The construction of the new plant is slated to start later this year, while the first hens will be brought to the site next year.
The South Dakota site has been chosen for its central location, biosecurity benefits and its easy access to feed.
South Dakota governor Dennis Daugaard said: "Rembrandt Foods will be a welcome addition to South Dakota's robust agriculture industry."
The new site will help Rembrandt Foods increase its existing cage-free egg production and processing capacity, which is in line with the commitment made last year by the US company to expand in the field of cage-free eggs and egg ingredients.
Rembrandt Foods president Dave Rettig said: "We recognise the growing consumer demand for cage-free eggs and egg products and as a leader in this industry, we are committed to supporting our customers' cage-free needs.
"The Lake Preston operation reflects our interest in a cage-free future."
Based in Iowa, Rembrandt Foods delivers eggs and related products to catering companies, food manufacturers, retail grocers and restaurants.
