Pilgrim's Pride is keeping an eye on Brexit impact
Moy Park facility, a poultry hatchery facility in Newark and operations in France and the Netherlands owned by Pilgrim's Pride are endangered in case of a hard-Brexit, warned the company in a letter sent to investors.
Moy Park unit was acquired last year from Brazil-based JBS SA for $1.3 billion. In the last two years, Moy Park has made significant investments (20 million pounds) in a poultry hatchery unit in Newark, England, with an egg set capacity of 2.9 million eggs per week, informs meatpoultry.com. According to the statistics presented by Pilgrim's Pride, facilities in the UK and operations in France and the Netherlands accounted for 18.2% of sales in 2017.
Nevertheless, in case of hard-Brexit, financial results of each of those facilities are going to be impacted. "Any of the effects of Brexit could adversely affect our business, business opportunities, results of operations, financial condition and cash flows. Brexit could impair our ability to transact business in the UK and in countries in the European Union. Brexit has already and could continue to adversely affect European and/or worldwide economic and market conditions and could continue to contribute to instability in the global financial markets", said the company in the note sent to investors.
Operations at Moy Park plant include our fresh poultry processing plants, 10 prepared foods cook plants, three feed mills, seven hatcheries and one rendering facility in the UK, France and the Netherlands. "If the UK were to significantly alter its regulations affecting the food industry, we could face significant new costs. It may also be time-consuming and expensive for us to alter our internal operations to comply with new regulations", mentioned the letter.
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