Pilgrim’s expanding value-added business in Mexico

Responding to changing consumer trends in Mexico, Pilgrim’s is expanding its value-added chicken business in Mexico.

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Pilgrim's announced that it was expanding its value-added chicken production in Mexico in response to consumer demands. | P.Lange, Bigstock
Pilgrim's announced that it was expanding its value-added chicken production in Mexico in response to consumer demands. | P.Lange, Bigstock

Responding to changing consumer trends in Mexico, Pilgrim’s is expanding its value-added chicken production in Mexico.

Bill Lovette, CEO of Pilgrim’s, during the company’s recently held third quarter earnings conference call, updated shareholders on its Mexican operations and its plans to adapt to consumer trends that are moving away from what they used to be.

“We intend to grow our value-added business in Mexico as Mexican consumers increasingly demand that type of product as they mature in their consumption habits relative to history,” he said.

Pilgrim’s is not only expanding it the premium sector, but is also aggressively supporting its popular Del Dia brand, which Lovette said “delivers superior value to one of the fastest growing consumer segments in Mexico.”

Pilgrim’s expanded Mexican operations performing well

With a new broiler complex in Veracruz and its acquisition of Tyson de Mexico assets completed, Pilgrim’s is happy with the way its Mexican operations are performing, and is expecting continued good performance from its Mexican business in 2017.

 “We’re very pleased with the performance of our entire Mexican business, particularly with the integration of the newly acquired assets,” said Lovette.

Slightly more than a year after the Tyson de Mexico acquisition has been completed, Lovette reported that nearly all of the synergies have been captured the Pilgrim’s team is continuing to improve performance “despite the impact of unfavorable grain cost and exchanged rates.”

The company reported in 2014 that it would be building a poultry plant in Veracruz, which is now in operation and has been “performing above expectations,” Lovette reported and will be heavily relied on for future growth and diversification.

“We’re continuing to further expand production at Veracruz and expect to significantly increase the size of supporting operations by early 2017,” he said.

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