Source: Andre Sulluchuco, MEATINGPLACE, 6/25/14


Mexico’s Industrias Bachoco is looking to make further U.S. acquisitions to gain a bigger share of the world's largest poultry market.

According to a report by Bloomberg News, the Mexican chicken producer has 35 percent of its home country's national poultry market, but just 2 percent market share in the U.S. after buying OK Industries Inc. in 2011.

“We are in search of and hoping for alternatives for increasing our participation in the U.S.,” Chief Financial Officer Daniel Salazar Ferrer told Meatingplace in an e-mailed response to questions. “We have to increase our critical mass to have a better competitive position.”

Bachoco joins Tyson Foods Inc. and JBS’s North American poultry unit Pilgrim’s Pride in seeking a greater share of North America’s food market.

“The company has strong fundamentals for continued growth and, as protein consumption increases in Mexico, Bachoco will be one of the chief beneficiaries,” Miguel Mayorga, a Latin America food manufacturer equity analyst at Corporativo GBM, told Meatingplace by phone from Mexico City.

He added that “without question there are mergers and acquisitions in the pipeline for the company.”

Bachoco has made three acquisitions in Latin America and two in North American since 1999, according to data compiled by Bloomberg.

For more stories, go to www.meatingplace.com.