August 30, 2018
Jamaica Broilers Group buys US feed mill in Georgia state
As part of an expansion in the US market, Jamaica Broilers Group (JBH) has bought a feed mill based in Georgia, US, for an undisclosed sum.
The company is currently finalising the asset purchases agreement with Crystal Farm Mills through its subsidiary Wincorp Properties, but has already taken over daily operations at the facility.
Speaking with Loop News, Ian Parsard, JBG's group senior vice president (finance and corporate planning), said the company has been growing its business in Jamaica, US and Haiti - the three markets in which it operates.
"So now, the acquisition of the feed mill is a continuation of that expansion we are experiencing in the US. We expect our revenues to grow as a result, as well as the profitability of the company," Parsard said.
He expects to see as much as 15% growth from that acquisition over the next five years, noting: "We could experience higher growth rate if additional acquisitions are done during that time period."
The purchase of the feed mill will enable the company to supply feed to their customers in Georgia and neighbouring states. It will also allow JBG to control the feed supply to its breeder flock operations located in north and south Georgia, according to Parsard.
"So it's beginning to build out an integrated poultry operation in the US, similar to what we have here in Jamaica," he explained. "It has synergies in terms of what we are currently doing as well as the prospects to continue the growth."
As it relates to JBG's most recent investment in its hatcheries, Parsard said the operation has been performing well.
"The performance of the hatchery is excellent, we have been done a lot of work, freshening up the hatchery, getting it up to the JB standards. So far, it has been performing well for us," Parsard said.
In the company's annual report, Stephen Levy, president of US operations for JBG, said the operations up north had experienced another remarkable year in profitability, growth, market diversification and presence.
For 2017 - 2018, Jamaica Broilers saw its profit decrease by 11% compared to the prior year. Revenue for the period, however, increased by 9%, with total assets of $31 billion, 13% more than the prior year.