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Cargill Begins Construction of Poultry Plant

by 5m Editor
1 February 2012, at 8:45am

NICARAGUA - With an investment of $ 3.5 million Cargill Nicaragua began construction of Wood Farm, a poultry plant with technology that will be capable of raising 2.52 million birds a year.

The opening of the farm, scheduled for next September, will generate 100 new direct jobs and about 2000 indirect jobs.

The general manager of Cargill Nicaragua, Xavier Vargas Montealegre, said the plant is the first investment totaling US$30 million that will be running in the next three years.

The company will be investing in the construction of a distribution center for the improvement of processing plants and the purchase of more vehicles to strengthen product distribution.

Mr Vargas also stated that in 2012, the company expects production to grow by 5% compared to last year, which recorded an output of approximately 240 million pounds of chicken. Cargill currently has 12,000 clients nationwide.

2012 looms stable

Meanwhile, Cargill corporate vice president, Alfredo Vélez, declared that for the next few months the price of chicken will remain stable because internationally, there is "more stability" in the cost of raw materials used for feeding and breeding birds, but did not rule out a further increase in the energy bill change panorama.

"A shock to the energy is very strong for the agricultural industry because all our chicken is sold frozen, refrigerated, and we spend about a million dollars in energy between the two businesses, smoking pipes and Cargill," he said.

For his part, Mr Vargas reiterated that 2011 was "very challenging for the poultry industry in Nicaragua," which has faced a rise in production costs due to the increase in products such as corn, soybeans and sorghum - basic requirements for poultry production.

However, he stressed that according to expert analyses, the relative stability in these "commodities" makes them think that this year will prove to be more stable.