SuKarne to establish $110m beef processing complex in Mexico

SuKarne, a subsidiary of Grupo Viz, plans to invest $110m to establish an integrated beef production and processing complex in Durango, Mexico, as a part of its plan to strengthen its presence in the country.

The project will be carried out in two phases, with the first phase involving the setting up of a meat processing plant with an investment of $40m followed by a feedyard for 70,000 head of cattle in second phase, which will double the company’s existing capacity.

According to the company, the plant will feature cutting edge technology and will adhere to the international sanitary standards.

For the project, the company has entered into a partnership with regional producers, who will jointly invest about $300m.

The group’s main shareholder and chairman of the board Jesus Vizcarra Calderon said that agricultural sector can become an even more important driver of the national economy.

"With this project we are taking a step towards bringing together cattlemen, agricultural suppliers, government and SuKarne in this effort, so that together we can transform this region into the Animal Protein Capital of our country," Calderon added.

The complex is expected to create about 1,200 jobs and 6,000 indirect jobs, in addition to the 680 jobs required for the construction.

Durango State Constitutional Governor Jorge Herrera Caldera said the project will generate positive effects for the region and will offer an unparalleled opportunity for growth.

According to Secretariat of Agriculture, Livestock, Rural Development, Fishing and Food (SAGARPA) figures, Durango is the fifth national beef-producing state in the country and last year, the region produced around 65,139 tonnes of beef.

SuKarne, based in Culiacan, Mexico, supplies meat, beef and poultry products throughout Mexico and its products are exported to Japan, the US, Russia and Hong Kong, among others.

In May 2011, the company announced its plan to invest $100m over a period of 18 months to build a livestock factory in Nicaragua, which will feature ten feed storage centres for direct feeding of livestock, a permanent inventory of 50,000 head of cattle, a slaughterhouse and deboning unit.