Investments increase grandparent and parent stock production capacity on farms and hatcheries.

July 17, 2018

3 Min Read
Aviagen invests $27m in Brazil

Aviagen has invested $27 million over the past two years to increase its grandparent and parent stock production capacity on farms and hatcheries in Brazil. The company said the expanded capacity was needed to meet a growing demand for its Ross 308 AP and Ross 408 birds used in the production of both breeders and broilers in Latin America.

Among Aviagen’s recent investments in Brazil are the recent construction of new facilities as well as the modernization of existing ones in Brazil’s states of São Paulo (SP) and Minas Gerais (MG).

“The new and upgraded facilities integrate the latest advances in hatchery design and technology, ensuring the highest biosecurity and energy efficiency,” Aviagen said. “These investments, along with others throughout the country, are helping the company keep pace with a growing demand for its broiler breeding stock.”

The company also completed a new modern grandparent production hatchery in June 2018 in Santa Cruz das Palmeiras that boasts an incubation capacity of around 1.5 million eggs per month.

A new grandparent production center in Redenção da Serra in the Paraíba Valley was inaugurated in February 2018, and a grandparent farm in São Luis do Paraitinga, also in the Paraíba Valley, was recently established, the company said.

Aviagen’s hatchery in Rio Claro, which was completed in July 2017, was upgraded with new and improved equipment, leading to increased production capacity and excellent biosecurity.

Aviagen said it will also double the production capacity of its parent stock facility in Uberaba in September. The farm will have a modern environment control and breeding system, contributing to improved welfare, better uniformity and higher productivity.

In 2016, Aviagen inaugurated a modern feed mill in Itaí, Sao Paulo. All feed is heat-treated to eliminate potential pathogens and provide the highest-quality feed to maintain the excellent health status of Aviagen’s poultry breeding stock. Additionally, the new feed mill follows strict company biosecurity protocols to ensure that the feed is free from contaminants.

"Aviagen is totally committed to continuous investment to improve quality and efficiency of our Brazilian operations. Our new state-of-the-art hatcheries and farms throughout the country are proof of this commitment," said Ivan Pupo Lauandos, president of Aviagen Latin America. “We also intend to invest in clean and renewable energy in our farms and hatcheries, in line with our long-term sustainability vision to preserve the environment.”

Strategic market

Latin America has emerged as a leader in the global poultry industry, according to Aviagen. Brazil is the second-largest poultry meat producer globally and the world’s largest exporter, and Latin America boasts three of the world’s top 10 broiler companies.

From a breeder perspective, Latin America represents close to 22% of the estimated 540 million parent stock chicks currently produced worldwide, contributing about 100 million parent stock chicks per year, and approximately 50% of this number is placed in Brazil.

"Latin America is a powerful player in the world’s poultry landscape and is, therefore, very important to Aviagen’s global strategy. We’re focusing major effort on developing our business in this region and will continue our strong investment well into the future,” Lauandos said.

The company said its Ross brand of birds has increased in popularity in Brazil and throughout Latin America due to the significant value it adds at the grandparent, parent and broiler levels. “Ross birds are distinguished by superior performance as well as quality, health and welfare,” the company noted. “Their growth rate, livability and feed efficiency offer considerable economic benefits.”

Another advantage Aviagen claims that it introduces to markets is the greatest global selection of breeding stock to satisfy diverse market demands. The variety, which includes the Ross 308 AP, Ross 408, Ross 308, Arbor Acres Plus and Arbor Acres Max, has contributed to the company's growth in Brazil and throughout Latin America, Aviagen added.

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