Pilgrim’s Mexico is progressing with its plans for a new hatchery and feed mill, with both facilities set to begin operations next month.
Fabio Sandri gave an update on several of the company’s projects in Mexico, speaking during the Pilgrim’s Pride earnings call on February 26. In the call, among other things, Sandri addressed the Pilgrim’s Pride earnings for the fourth quarter of fiscal year 2023.
“Our operational excellence efforts to expand our capacity remain on track as we have completed construction of our hatchery and feed mill in Merida on schedule, with production expected to begin in March of 2024,” said Sundri.
Merida is in the state of Yucatan.
In addition to that, Sandri said, the company’s efforts to enhance redundancy in live operations through relocation of its breeder farms is also progressing as planned. To date, Pilgrim’s has finished over 60% of the project, and anticipate on schedule completion during this first half of this year.
Amid the construction projects, Pilgrim’s Mexico saw its financial situation improve during fiscal year 2023.
Pilgrim’s reported a net income of US$175 million its Mexico business during 2023, compared to a net income of US$43.5 million during the prior year. It’s net sales for Mexico during FY 2023 were US$2.2 billion, up from US$1.8 billion during the prior year.
“Mexico was a little bit weaker than expected in Q4, although better than the prior year,” said Sandri. “I think the major drivers were very cheap imports coming from Brazil, and also from the United States during Q4, and I think that, combined with an increase in production in the overall industry during Q4, put some pressure, especially on the live bird market.”
Pilgrim’s Mexico is the second largest poultry producer in Mexico.
