Bachoco increases egg production in Mexico

Industrias Bachoco

reported that it increased 4.2% its egg production in Mexico in 2020, to 12,500 tons each month.

Previously, the company produced 11,600 tons on average in 2017, to then maintain that indicator at 12,000 tons in each of the following two years.

At the end of 2020, Bachoco owned and managed more than 1,000 facilities, organized in nine production complexes and more than 80 distribution centers in Mexico, and one production complex in the United States.

Based on its own internal estimates, the company currently represents approximately 35.0% of the Mexican chicken production market and is the second largest egg producer with an estimated market share of approximately 5.3 percent.

While its market share in chicken production remained the same in 2019 and 2020, its market share in egg production increased, from 5.1% in 2019.

Egg production

The company is the leader in the Mexican poultry industry and one of the largest poultry producers worldwide. In 2011, it entered the US chicken market through the acquisition of OK Foods.

In Mexico, its main business is poultry (chicken and egg products), but it also produces and sells a wide range of other products, which it refers to as “others,” including balanced food, pet food, pork, value-added beef and turkey products, broodstock and day-old chicks, as well as a laboratory that produces vaccines for the poultry and other similar industries.

The sales generated by these other product lines, with the exception of the sales of feed / pet food and pork, each individually, do not represent more than 1.0% of its total sales.

In 2020, Bachoco registered revenues of 68,792 million pesos, which represented an increase of 11.6% year-on-year.

Eggs are sold mainly packaged with brand identification.

Likewise, Bachoco sells white and brown eggs.

In particular, this company’s branded brown egg carton is a premium product in the Mexican market because consumers perceive it as being of higher quality.

According to Bachoco, their marketing strategy in the egg business is to gradually move from bulk eggs to packaged white eggs.

The reason: packaged eggs are less vulnerable to price fluctuations and create brand loyalty.