Pilgrim’s Pride CEO Fabio Sandri expressed confidence in the company’s operations in Europe, for the present and the future.
Product diversity
Pilgrim’s expanded into Europe in 2017 with the acquisition of Moy Park, a U.K. poultry company that also produces beef and vegetarian products. Pilgrim’s then furthered its presence there with the 2019 acquisition of Tulip. The Tulip acquisition also gave Pilgrim’s a presence in the pork industry. Then, in 2021, Pilgrim’s Pride completed the acquisition of Kerry Consumer Foods’ Meat and Meals business.
Those acquisitions helped Pilgrim’s ability to offer a wide product range in the region, which has led to success in Europe. During the third quarter, Pilgrim’s profitability in Europe grew more than 65% from the prior year, given continued benefits from manufacturing network optimization, continued recovery of inflationary costs, and enhanced key customer partnerships.
“We have a very well-balanced portfolio, between chicken, fresh pork and prepared foods – both meat and meals,” Sandri said during a quarterly earnings call on October 26. “I think we have invested in innovation, as well. I think that has been one of the great strides in terms of helping our key customers to succeed, just like we do in the U.S.”
Sandri elaborated on the product range, saying that the company has launched more than 100 new products, “especially in the meals scenario.”
Pork supply and demand
Pilgrim’s pork assets are now under the business umbrella of Pilgrim’s U.K. And while Sandri said that the economics of the U.K. pork industry were not ideal in recent years, the situation has improved greatly.
“Pork itself has a more balanced supply and demand, I think. Now the live operation of pork is profitable in Europe, and it was negative for a significant amount of time,” he said.
Sandri also touted Pilgrim’s as having “the highest integration” of all pork players in the U.K.
Other economic factors
Sandri said Pilgrim’s Pride is seeing a significant increase in demand for its Moy Park poultry products, largely because of their affordability.
However, he said other economic conditions in the U.K. and other parts of Europe are also helping.
“We are seeing that wages are actually outpacing inflation, so the consumer has more available income. We’re seeing the translation of that into the consumer confidence in the region, and expect an overall increase in the demand for protein,” Sandri said.
