Mexico-The poultry industry.

MEXICO-POULTRY COMPANY DOES WELL.

Celaya, Guanajuato, Mexico-based Industrias Bachoco S.A.B. reported the largest sales in the company’s history in its first quarter ended March 31 as price increases more than offset small volume declines.

Sales rose 23.7 percent compared to the first quarter last year to about $440 million (5.867 billion pesos). Operating profit rose 102.5 percent for the quarter to about $37 million (494.8 million pesos).

Sales of chicken products in the quarter rose 28.2 percent as a 30 percent rise in chicken prices was partially offset by a 1.3 percent decrease in volume compared to a year ago. Swine sales rose by 45.9 percent, driven by a 50.3 percent rise in prices partially offset by a 2.9 percent decrease in volume.

While acknowledging a slowing Mexican economy and peso depreciation against the dollar, Bachoco CEO Cristobal Mondragon said in a news release that a favorable supply and demand balance allowed the company to "transfer part of our past cost increases to our prices in our main product lines."

In terms of the depreciating peso, Mondragon said, "We have already restructured most of our derivative portfolio to mitigate this effect and expect minor effects in the second half of the year." He added that he expects to continue to deliver positive results in the second quarter.

Bachoco owns more than 700 production and distribution facilities currently organized in nine complexes throughout Mexico. Its main business lines include chicken, eggs and balanced feed. Additional lines include swine, beef, margarine and turkey.