In a business move that further concentrated the chicken industry, Don Pollo, one of Chile’s five major chicken companies, has announced the purchase of former competitor La Cartuja.
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The five companies that form Chile’s chicken industry welcomed the announcement of La Cartuja’s sale. The company was disliked because of its dumping policies that contributed to a steady decrease in chicken prices during the past year.
Nevertheless, the sale of La Cartuja to Don Pollo surprised industry analysts, who expected the purchase to be carried out by one of the country’s larger companies, such as Super Pollo or Ariztia. Super Pollo and Ariztia control 56% and 27% of the Chilean chicken industry, respectively.
La Cartuja’s sale worries some analysts who fear the industry is becoming too concentrated. Chicken sales in Chile total US$550m.
Representatives from the five chicken producing companies insist, however, that the concentration is necessary. Don Pollo General Manager Miguel Rojas said “the profit margin of chicken sales has decreased and thus the industry had to respond through consolidation.”say there are no plans for additional consolidation.
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By GlobalDataBy Steve Anderson, just-food.com correspondent
