Bachoco expands in Mexico with acquisition of meat producer RYC Alimentos 

MEXICO – Industrias Bachoco, one of the largest poultry producers in Mexico, is acquiring 100% of the stocks of meat producer RYC Alimentos. 

Founded in 1983, RYC produces and distributes beef, pork, and chicken and has an estimated net sales of around US$150 million per year. 

With the acquisition, Bachoco will take ownership of RYC’s two facilities in Puebla, Mexico, as well as approximately 21 stores located in four Mexican states: Puebla, Oaxaca, Veracruz, and Tlaxcala. 

Poultry consumption remains popular as ever

The acquisition extends Bachoco’s leadership in Mexico’s meat sector where its biggest business poultry remains as popular as ever, representing nearly 60% of total meat consumption. 

According to a report published by Poultry World, Mexican households spent an estimated US$ 1.4 billion on poultry in 2020.  

As demand rises, chicken production is projected to expand to 875,000 mt in 2022, up 1.7% from 2021. 

Greater domestic pricing power as long-standing tariff-rate-quota allocations lapse, and relatively less volatile feed costs are other factors driving up production as cited by the report. 

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It is forecast that chicken consumption will reach 4,767 mmt in 2022, up about 2% from 2021 mainly driven by higher demand from higher and middle-income consumers, including tourists.  

In 2022, chicken exports are expected to expand by nearly 17% to 8,000 mt on strong US demand for heat-treated ready-to-eat and ready-to-cook products.  

Mexican processors led by Bachoco are slowly expanding exports of these products. 

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Meanwhile, Mexican animal health authorities expect to resume negotiations with China to gain recognition of avian influenza disease-free zones in 2022, seeking new market access to China. 

Egg, another specialty of Bachoco, is expected to see consumption soar by up to 3% to reach 25.23 kg per capita driven by strong demand for affordable protein.  

Production is expected to expand to 3.19 million mt, up 3% from 2021, due to steady growth in domestic demand, improved layer hen genetics and investments into egg production technology and management practices. 

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