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Bachoco: Sound Structure for Financial Survival

by 5m Editor
15 October 2008, at 9:00am

MEXICO - Bachoco - leading chicken producer with interests also in turkeys, pigs and beef - has revealed its sound financial structure will allow it to survive the current economic storm.

Industrias Bachoco S.A.B. de C.V. (Bachoco) is Mexico's leading producer and processor of poultry products. It has announced the effects that recent worldwide volatility in the financial markets had on its financial position.

The mark-to-market of the Company's financial derivative instruments had an effect of approximately US$50 million as of 13 October 2008. Most of this amount is spread over the rest of the year and first half of 2009.

The Company is following closely the evolution of the financial markets and keeping close communications with the financial players to make appropriate decisions in order to reduce the above-mentioned effects.

Cristobal Mondragon, Bachoco's CEO, stated, "Our solid financial structure is allowing us to deal with the present situation and meet all of our financial commitments."

Industrias Bachoco S.A.B. de C.V. (referred to as Bachoco) is the largest poultry company in Mexico, with over 700 production and distribution facilities currently organized in nine complexes throughout the country. Bachoco's main business lines are chicken, eggs, and balanced feed. The Company is also present in other businesses in Mexico like swine, beef, margarine and turkey. The Company's headquarters are in Celaya, Guanajuato, located in Mexico's central region.