French poultry processor Duc has said consolidation is likely to take place in the country’s poultry sector after rival Groupe Doux’s move into receivership.
Duc, France’s fifth-largest poultry supplier, said it could achieve “synergies” in the sector in the wake of Doux’s financial problems.
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A spokesperson for Duc told just-food the synergies would involve partnerships or acquisitions “complementary” to the business.
“All actors in the poultry sector are doing the same thing,” the spokesperson said. “We are trying to find some synergies in order to fight against a market that is very difficult now for the poultry sector, we are not the only one to do that. It is important to reassure our professional partners and financial partners because of what has happened with Doux, that we are not in the same financial situation and we are ready to be a challenger for the big groups in the poultry sector in France.”
Embattled French poultry giant Groupe Doux decided to move into receivership earlier this month in a bid to try to turn its ailing business around.
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The company, which has faced pressure from lenders to lower its EUR430m in debts, said it was considering such an option as it would allow its debts and any transactions to be frozen while allowing the group to trade normally. The move, Doux said, would help it develop “a business plan focused on its activities in France”.
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By GlobalDataDuc said it had implemented a “policy of disengagement” of certain categories in the poultry industry since 2008, given the “difficulties” faced by the sector. The company has reduced its activities in turkey and refocused on “fresh and value-added” products.
The group, which saw sales increase 12% in 2011, was cautious about the outlook for the sector but said its moves in 2008 and 2009 to cut costs had made the company stronger.
“The group notes the risks to the outlook for economic growth in France and in particular on the future evolution of commodity prices and the call for caution in the coming months,” Duc said. “However, measures of cost control in place since 2008 and the policy of continuous improvement applied to all sites since the last quarter of 2009, have enabled [us to] significantly improve our industrial performance and the results of operations since that period.”
Duc said it now has the assets to support its growth and return to a path profitability this year, as per its strategic plan.
