December 21, 2007

Bachoco partners with Grupo Agra to expand its table eggs business

Bachoco agreed with Grupa Agra to set up a rent scheme to expand its table eggs business and control facilities.

Industrias Bachoco, Mexico's leading producer and processor of poultry products, confirmed teaming with Grupo Agra, a table eggs company located in the states of Nuevo Leon and Coahuila in Northeast Mexico.

The agreement is to set up a rent scheme of the facilities, which include laying hens farms with a capacity of approximately 1.0 million hens, a table eggs processing plant, distribution centres, and the Agra brands. In addition, Bachoco will acquire all the working capital.

Cristobal Mondragon, Industrias Bachoco CEO, said that the agreement would bring flexibility and reinforcement to their table eggs business line in the northeast market of the country.

Mondragon expressed that they will immediately focus on the integration of the operation with existing table eggs operation in Coahuila and take advantage of synergies.

Industrias Bachoco has grown into the largest poultry company in Mexico, with over 700 production and distribution facilities currently organised in seven complexes throughout the country.