CAL-MAINE FOODS INC

Risk Management and Strategy

We

understand the importance

of cybersecurity and

its role in

the success of

our Company.

Our business operations

depend on

the effective use of

our information systems in order

to properly serve our

customers, manage our business and

track and report

our financial results. Our technology operations consider risks from cybersecurity threats in the implementation and execution of

our business processes.

We have considered and assessed

the risks from

cybersecurity threats as

part of our

overall risk assessment

process using the National Institute of Standards and Technology

(“NIST”) Cybersecurity Framework.

In order to

identify, assess and manage material

risks arising from

cybersecurity threats, we

maintain internal resources to

monitor

and quickly respond to such

threats. We

perform vulnerability scans and penetration

testing designed to test the effectiveness

of

our

security

practices.

We

engage

service

providers

to

assist

in

the

of

our

over

our

information systems

through audit

and consulting

services to

test the

design and

operational effectiveness

of security

controls.

We continually monitor our systems to detect and identify cybersecurity threats. Prior to

contracting with third-party vendors, we

perform risk assessments of the vendors and require the vendors to manage cybersecurity risks to our business operations as well

as

notify

us

of

any

or

known

risks.

We

also

require

our

to

complete

training

programs

to

increase their

awareness of

and sensitivity

to cybersecurity

threats. These

training programs

include the

identification of

such

threats and the proper responses to a potential breach of cybersecurity that

aligns with our adopted processes.

The Company has

implemented a response

process in the

event of a

cybersecurity incident through

its crisis management

plan.

The

process

the

cooperation

of

the

technology

team

and

our

team

to

properly

detect

and

respond to these incidents. These

responses include determination of the

potential impact and materiality of

the incident, potential

disclosure

and

litigation

matters,

and

mitigation

of

actual

or

damage

to

our

systems

or

reputation

arising

from

the

incident. An action plan is implemented to respond to any potential cybersecurity breach in order to continue to effectively serve

our customers and conduct our operations with as little interruption as practicable. The information technology team reviews the

response process

on a

regular basis

to ensure

that it

is designed

to be

effective and

to encompass

current or

new cybersecurity

threats.

As of July

23, 2024, we

are not aware

of any risks

from cybersecurity threats, including

as a

result of prior

cybersecurity incidents,

that have

materially affected

or that

are reasonably

likely to

materially affect

the Company,

including our

strategy,

results

of

or

condition.

See

“Item

1A.

Risk

Factors”

for

further

discussion

about

risks

from

cybersecurity threats.

Governance

The Board is responsible for

the oversight of management’s

process for identifying and mitigating

risks related to cybersecurity

threats. On a quarterly

basis, the Director of

Information Technology provides a report to the

Audit Committee regarding ongoing

processes to improve

and update our

current cybersecurity protocols,

new cybersecurity threats,

results of internal

assessments,

and any recent cybersecurity

incidents. The Audit Committee will make

the Board aware of any information

it deems necessary

or appropriate in order for the Board to effectively oversee the

Company’s cybersecurity risk management

and strategy.

The

of

Information

and

the

team

he manages

are

responsible

for

the

operation

and

maintenance

of

our

information systems, including the assessment, identification and

management of risks from cybersecurity threats. Together,

the

Director of Information

and his team have over

150 years of experience

in the information technology

and security

environment.

Our Chief

Financial Officer, to whom

the Director

of Information Technology reports,

has served

as Chief

Officer and a Board member since 2018 and has over 40 years of risk

management experience.