Pilgrim’s Mexico is making significant strides in its expansion plans with the imminent inauguration of a new hatchery and feed mill, both slated to commence operations in March.
During the Pilgrim’s Pride earnings call on February 26, Fabio Sandri provided updates on the company’s projects in Mexico, highlighting the completion of construction for the hatchery and feed mill in Merida, located in the state of Yucatan. Sandri affirmed that production is set to commence in March 2024, in adherence to the original timeline.
Additionally, Sandri outlined the company’s progress in enhancing redundancy in live operations through the relocation of breeder farms, with over 60% of the project already completed. Anticipated completion within the first half of the year underscores Pilgrim’s commitment to operational efficiency and strategic development.
Against the backdrop of ongoing construction endeavors, Pilgrim’s Mexico reported notable financial growth in fiscal year 2023. The company recorded a substantial net income of US$175 million for its Mexico operations in 2023, marking a significant increase from US$43.5 million the previous year. Moreover, net sales surged to US$2.2 billion during FY 2023, compared to US$1.8 billion in the prior year.
Sandri acknowledged a slightly weaker performance in Q4, albeit surpassing the previous year’s figures. Factors such as low-cost imports from Brazil and the United States, coupled with increased industry production, exerted pressure on the live bird market during the period.
As the second largest poultry producer in Mexico, Pilgrim’s Mexico remains poised for continued growth and resilience in the evolving industry landscape.
