June 24, 2011

Master Good expands poultry farms

Hungarian agribusiness Master Good on Thursday (Jun 22) said it is executing a capacity enlargement costing HUF4.4 billion (US$23.3 million) at its poultry farms.

Master Good will expand broiler capacity at all six of its poultry farms and open a new hatchery. The investment will raise annual capacity for broiler and farm chickens from 12.1 million to 14.3 million. The company will also buy more birds from contractors, raising the number of broilers it processes from 16.4 million to 22.6 million a year from 2012.

Master Good's share of Hungary's broiler market will rise from 17-18% to 24-25% as a result.

Master Good plans to take out a HUF2.1 billion (US$11.1 million) loan for the project and has already started talks with banks.

Group member Baromfi Coop has won a HUF1.5 billion (US$7.9 million) grant from the New Hungary Rural Development Plan to support the project.

The Master Good group, comprised of Master Good and Baromfi Coop, is owned by the Barany family. Family head Laszlo Barany heads Hungary's Poultry Products Council.

Master Good targets revenue of HUF16.5 billion (US$87.4 million) this year. Baromfi Coop plans turnover of HUF9 billion (US$47.7 million).