Mexico Bird Flu Won’t Affect Bachoco Earnings, Company Says
Mexico’s bird flu outbreak, which has infected more than 500,000 chickens, won’t curb earnings from Industrias Bachoco SAB, the country’s largest poultry producer, a company official said.
None of Bachoco’s facilities located “within the quarantined zone are commercial layer farms,” said Claudia Cabrera, a company spokeswoman. Bachoco has breeder farms in the affected zone, though it hasn’t detected any bird flu cases, Cabrera said, without elaborating on the number of farms.
Bachoco’s earnings won’t be affected by the outbreak “because our egg production is located in other states,” she said in a telephone interview today.
The World Organization for Animal Health estimates that 14.4 million birds in western Mexico are at risk of contagion from the virus H7N3, according to a statement from the Paris- based organization yesterday. Mexico’s Agriculture Ministry increased the quarantined area to a 40-kilometer (25 miles) radius from the first cases.
Pilgrim’s Pride, controlled by Brazil’s JBS SA (JBSS3), said it doesn’t have any farms in the quarantined area, according to an e-mailed statement sent to Bloomberg News today.
Bachoco’s American depositary receipts, each representing 12 ordinary shares, fell 2.1 percent, to $21.51 at 4:15 p.m. in New York. They have risen 13 percent this year.
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