October 8, 2008

LDC sees 2009 a good year for poultry

French poultry processor, LDC, is expecting sales to improve in 2009 as poultry becomes more competitive against pork.


Pork producers would have to pass on more costs to consumers sooner or later, which could lead to poultry becoming more competitive, according to LDC finance director, Andre Delion.


Consumers now tend to purchase the cheapest item, said Delion, referring to weakening consumer spending in France.


Meanwhile, LDC continues to look at consolidation opportunities in both France and Spain, and expects to seal a joint venture deal in Spain by early 2009, said Delion.


LDC's sales in the first half of 2008 increased 8.1 percent to EUR 930 million (US$1.26 billion). Volume sales fell 4 percent in France and dropped 17 percent worldwide but price increases have offset the impact, Delion said.


Delion said LDC may lower prices slightly in 2009, in view of declining feed grain prices, but price cuts will be limited as the company had absorbed some of the higher input costs over the past year.


LDC produces and processes poultry products, and has international poultry operations in Spain and Poland.

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