Industrias Bachoco Strengthens its Northeast Business with New Agreements and Assets Acquisitions

Jul 29, 2009, 17:00 ET from Industrias Bachoco S.A.B. de C.V.

CELAYA, Mexico, July 29 /PRNewswire-FirstCall/ -- Industrias Bachoco S.A.B. de C.V. ("Bachoco" or "the Company") (NYSE: IBA; BMV: Bachoco), Mexico's leading producer and processor of poultry products, today announced a series of measures to improve its productivity and efficiency in the Northeast production complex headquartered in Monterrey, N.L. Among the initiatives implemented are the:

-- Acquisition of a balanced feed mill and a soybean processor plant from "Productora de Alimentos Pecuarios de Nuevo Leon, S.A. de C.V.", through our Subsidiary "Campi", to improve the quality and production capacity of balanced feed. The mill's production capacity is about 3,000 tons of pellet feed per week.

-- Acquisition of a chicken processing plant from "Avi Carnes Monterrey, S.A. de C.V." with a production capacity of 9,000 chickens per hour, through our subsidiary "Bachoco". The goal of this acquisition, other than reducing production costs, is to replace the Monterrey processing plant that caught fire last year as well as increasing production capacity and diversifying the chicken business in that region.

-- An agreement was reached to rent breeder farms and egg incubation plants from "Reproductoras Asociadas, S.A. de C.V." and one-day-old breeder capacity farms and egg incubation plants from "Produccion Avicola Especializada, S.A. de C.V."

-- Finally, to take advantage of the production capacity of the processing plant acquired, the Company also acquired their inventories and looks forward to obtain live chicken from several local producers through a contract growers scheme.

CEO's Comments:

Cristobal Mondragon, Bachoco's CEO, stated, "Even when these arrangements made with several producers in the region have been gradually emerging, we have finally now completed them, allowing us to complement various production lines of our business, improve our efficiency and further diversify our business lines. A new phase has begun for this complex starting July 28, 2009," concluded Mr. Mondragon.

Company Description

Industrias Bachoco S.A.B. de C.V. is the largest poultry company in Mexico, with over 700 production and distribution facilities currently organized in nine complexes throughout the country. Bachoco's main business lines are chicken, eggs, swine and balanced feed. The Company's headquarters is based in Celaya, Guanajuato, located in Mexico's central region. Its securities are listed and traded on the BMV (Bachoco B) and on the NYSE (IBA). For more information, please visit Bachoco's website at or contact our IR department.

This press release contains certain forward-looking statements that are subject to a number of uncertainties, assumptions and risk factors that may influence its accuracy. Actual results may differ. Factors that could cause these projections to differ include, but are not limited to: supply and demand, industry competition, environmental risks, economic and financial market conditions in Mexico, and operating cost estimates. For more information regarding Bachoco and its outlook, please contact the Company's Investor Relations Department.

    IR Contacts:
    Daniel Salazar, CFO
    Claudia Cabrera, IRO
    Ph. +52(461) 618 3555

    In New York:
    Lucia Domville
    Ph. (646) 284 9416

    Industrias Bachoco, S.A.B. de C.V.
    Av. Tecnologico 401, Celaya, Gto.
    Mexico, 38010

SOURCE Industrias Bachoco S.A.B. de C.V.