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Industrias Bachoco on the Acquisition Trail

by 5m Editor
30 July 2009, at 10:06a.m.

MEXICO - Industrias Bachoco has strengthened its north-east business with new agreements and assets acquisitions, including a feed mill, chicken processing plant and increased poultry breeder and incubation capacity.

Industrias Bachoco S.A.B. de C.V. (Bachoco), Mexico's leading producer and processor of poultry products, has announced a series of measures to improve its productivity and efficiency in the Northeast production complex headquartered in Monterrey, N.L.

Among the initiatives implemented are the:

  • acquisition of a feed mill and a soybean processing plant from Productora de Alimentos Pecuarios de Nuevo Leon, S.A. de C.V., through the subsidiary, Campi, to improve the quality and production capacity of balanced feed. The mill's production capacity is about 3,000 tons of pelleted feed per week.
  • acquisition of a chicken processing plant from Avi Carnes Monterrey, S.A. de C.V. with a production capacity of 9,000 chickens per hour, through the subsidiary, Bachoco. The goal of this acquisition, other than reducing production costs, is to replace the Monterrey processing plant that caught fire last year as well as increasing production capacity and diversifying the chicken business in that region.
  • agreement was reached to rent breeder farms and egg incubation plants from Reproductoras Asociadas, S.A. de C.V. and one-day-old breeder capacity farms and egg incubation plants from Produccion Avicola Especializada, S.A. de C.V.
  • to take advantage of the production capacity of the processing plant acquired, the Company also acquired their inventories and looks forward to obtain live chicken from several local producers through a contract growers scheme.

CEO's comments

Cristobal Mondragon, Bachoco's CEO, stated: "Even when these arrangements made with several producers in the region have been gradually emerging, we have finally now completed them, allowing us to complement various production lines of our business, improve our efficiency and further diversify our business lines. A new phase has begun for this complex starting July 28, 2009."

Further Reading

- Go to our previous news item on Bachoco (half-year results) by clicking here.