MEXICO'S largest poultry producer and processor announced July 9 that it reached an agreement to purchase the Arkansas breeding assets of Morris Hatchery.
Industrias Bachoco S.A.B. de C.V., known as Bachoco, said acquiring the Morris operation and its 350,000 laying hens was a key step in the firm's strategy to produce more hatching eggs in Mexico and the U.S.
"This is a strategic acquisition for our company for several reasons," Bachoco chief executive officer Rodolfo Ramos explained. "First, it will rapidly reinforce our supply of hatching eggs for our Mexico and U.S. operations, thus ensuring a proper supply of chicken for our customers. Second, it represents a step towards our organic growth."
Ramos said the location of the hatchery was an important reason for the acquisition as Arkansas is far enough away from Bachoco's current breeding complexes to increase dispersion and reduce sanitary risks for the company's operations.
Bachoco is a vertically integrated poultry, egg, feed, swine, turkey and beef producer and processor. The company owns and manages more than 1,000 facilities, including 64 distribution centers in Mexico, and has more than 25,000 employees.