January 18, 2008

Mexican companies to expand table eggs business
 

Industrias Bachoco, one of Mexico's leading poultry producer and processor, announced that it has come to an agreement with Grupo Agra, a table eggs company located in the states of Nuevo Leon and Coahuila in Northeast Mexico.

A rent scheme of the facilities is established under the agreement, which will include laying hens farms with a capacity of about 1 million hens, a table eggs processing plant, distribution centres and the Agra brands. Additionally, Bachoco will acquire all working capital.

Bachoco CEO Cristobal Mondragon said the agreement brings flexibility to their business and reinforces their table eggs business line in the country's north-east market. He added that Bachoco will immediately focus on integrating this operation with Coahuila's table eggs operation.

The agreement will be financed with internal resources and Bachoco will take control of the facilities immediately.

Bachoco operates almost 750 poultry production and distribution facilities throughout Mexico. Bachoco breeds, processes, and markets chicken. The company operates nine processing plants, 60 cold-storage warehouses and facilities and its own fleet of trucks.