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.
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.
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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