Jamaica Broilers to Expand US-based Fertile Egg Production19 December 2013
JAMAICA - Jamaica Broilers plans to further expand its fertile egg production in Georgia, US, when the recently acquired England Farms in Arkansas is fully integrated, according to the company's latest quarterly report.
Jamaica Observer reports that the acquisition has already translated into a big boost to the company's US operations, which now accounts for 19 per cent of the group's segment results.
That line of business posted JMD1.5 billion in sales for the three months ended October this year, more than double the JMD512 million it made in revenues during the corresponding period last year.
"The results of the full expansion is now showing," said Ian Mr Parsard, JBG vice-president of finance. "Once we are comfortable that everything is running smoothly, we will look to expand."
The poultry processor, which also makes animal feed and which produces ethanol, saw its net profit increase by 15 per cent, moving from JMD150.7 million during the three months ended October 26, 2012, to JMD172.7 million during the quarter under review.
Group revenues for the three months ended October this year amounted to JMD7.5 billion, up from JMD6.1 billion during the corresponding period last year, a 23 per cent improvement.
Meanwhile, sales increased by 16 per cent for the company's flagship, Best Dressed Foods poultry division during the three months ended October, up from JMD3.1 billion during the corresponding period last year to JMD3.7 billion during the period under review.
Mr Parsard said that a reduction in imports contributed to the growth in the poultry division.
"Chicken has become more competitive compared to imported meats," he said. "While there has been a slippage in the dollar, the price of chicken hasn't moved with it."
Other operations, which include Haiti Broilers and its co-generation business, also saw a 39 per cent growth in sales, up from JMD353.4 million during the comparative three-month period last year to JMD491.3 million during the current review period.
The segments that didn't see much growth were ethanol and the HIPRO Ace divisions, which saw sales dip by 56 per cent and three per cent respectively.
No tolling of ethanol was executed during the first half of the year.
"That (ethanol) business is difficult to project, sometimes the plant will run to is full capacity and other times it won't," explained Mr Parsard.
As for HIPRO Ace, the VP of finance said pig farmers are cutting back in terms of the rearing and feeding of the animals, while for table eggs, layers have been reduced following a glut last year.
Distribution and selling expenses increased by 39 per cent, up from JMD241 million during the comparative period last year, to JMD335 million during the period under review. Administrative expenses also increased by 33 per cent, up from JMD691 million during the three-month period last year, to JMD923 million during the second quarter this year.
"This reflects inflation increases along with costs related to organisational strengthening and significant increased activities in US operations," the company told Jamaican Observer.
ThePoultrySite News Desk