December 17, 2010

Sri Lanka's Bairaha Farms to expand broiler production with new farm

Sri Lankan poultry firm Bairaha Farms aims to increase production by more than 50% in three years, with a total estimated investment of almost INR360 million (US$12 million) on a new farm.

The poultry producer, which owns and manages a large-scale chicken processing factory and also operates breeder farms, will set up the new farm on 48 acres of land in the Anamaduwa area in the north-western Puttalam district.

It said in a stock exchange filing that the farm will be set up by a new fully-owned subsidiary, Nature's Best Industry, under the Board of Investment.

The new firm will get a 10-year tax holiday from the first year of making profit or not later than two years from the day it starts commercial operations, whichever comes first.

The size of each poultry house in the new farm will be much bigger than existing ones, the statement said.

The expected investment in the first year will be almost LKR120 million (US$1.1 million) and total additional investments in the second and third years will be INR240 million (US$2.2 million), Bairaha Farms said.

"We estimate that this investment will increase our commercial broiler production capacity by about 20% in the first year, about 20% in the second year, and about 15% in the third year," they said.

"Accordingly, depending on market conditions, the turnover of the company is also expected to increase in those years."

The first batch of birds is expected to come out of the farm by April or May 2011

Bairaha Farms manufactures, distributes, and sells pre-cooked meats, including chicken sausages, chicken meat balls, chicken sandwich slices, and marinated chicken.