Industrias Bachoco: capital investments in 2022

Industrias Bachoco, Mexico‘s poultry industry leader and the sixth largest poultry company in the world, recorded capital expenditures of Ps. 4,666.2 million in 2022, a year-over-year increase of 34.1 percent.

Overall, investments were focused on organic growth and the integration of RYC Alimentos (RYC).

For context: in December 2020, Industrias Bachoco announced that it reached an agreement to invest in RYC, a multi-protein processor and distributor with production operations in Puebla, Mexico.

Founded in 1983, RYC is a meat processor and distributor primarily of beef, pork and poultry with national coverage that participates in all distribution channels with fresh and value-added products.

The acquisition was approved and completed in January 2022 by the Comisión Federal de Competencia Económica (Cofece).

The purchase price was Ps. 1,251.5 million. The agreement contemplates the acquisition of 2 plants located in Puebla, Puebla, as well as its scheme of approximately 21 stores located in four states of the Mexican Republic (Puebla, Oaxaca, Veracruz and Tlaxcala).

Industrias Bachoco

In 2022, the company’s net sales totaled 98,890.7 million pesos, 21.0% more than in 2021.

Bachoco has facilities throughout Mexico, previously grouped in production complexes with offices in the cities of Mérida, Coatzacoalcos, Tecamachalco, Celaya, Lagos de Moreno, Monterrey, Gómez Palacio, Culiacán and Hermosillo.

In 2014, the organization changed, a new company structure was implemented, and since then the facilities are organized through «Business Units», where each business unit is responsible not only for the production process, but also for marketing and customer service in a specific region.

Industria Bachoco produced more than 12.1 million chickens per week in 2021, and the layer farms produced about 13,400 tons of eggs per month.

Six of the 20 feed plants are dedicated to the production of balanced feed for sale to third parties and the remaining 15 produce feed for internal consumption.

Production facilities

Industrias Bachoco produces close to 40,000 tons of feed per month for sale to third parties.

It also processes a total of about 13,250 pigs per week at its hog plants.

Bachoco has other facilities, including two composting plants and a vaccine and medicine laboratory for the poultry industry (and for other industries such as livestock), mainly used for self-consumption, but with a small participation in the sale of these products to third parties.

The company is vertically integrated; its main lines of business are chicken, eggs, balanced feed, pork, and value-added turkey and beef products.

It has more than 1,000 facilities organized into nine production complexes and 80 distribution centers in Mexico and a business unit in the United States. It currently generates more than 32,000 direct jobs.