CB buys Chippenham egg producer
Published:Wednesday | August 24, 2011 | 12:00 AM
Caribbean Broilers Group (CB) has acquired Chippenham Park Eggs, and plans to pour fresh capital into the business to expand its reach and dominate the 11 million-dozen local egg market.
The purchase, concluded in early August, brings to seven the number of companies in the CB Group, whose main business line is poultry and meat processing.
CB says it already supplies 600,000 dozen eggs to the market, and that Chippenham would add another seven million dozens to its share.
Dr Keith Amiel, corporate affairs manager at CB said Monday that the company paid approximately US$2 million (J$172) to acquire the St Ann-based producers of farm fresh eggs.
Formerly owned and operated by Ian and Suzanne Banks, Chippenham began egg production in 1990 and bills itself as an eco-friendly operation with bio-degradable packaging, a 900,000-gallon rain water reservoir and a state-of-the-art solar-powered pump system, and 25,000 layers.
Ian Banks said that after 21 years in eggs he was ready to move into cattle rearing and forestry. The sale to CB included 35 acres of the expansive Chippenham property, he told Wednesday Business.
"We still have 500 acres left on which we already have 6,000 lumber trees," said Banks. "We are planning to expand."
Amiel said the initial purchase price for the egg business was "just the start" of an investment programme which would see the addition of feed units plus spend on marketing intended to bring local consumption of the protein-rich staple from one egg per Jamaican per week closer to the North American and European habit of three to five eggs weekly.
Hotels and the baking industry, he noted, were growing markets for the product.
"No hotel here can open its stores without having eggs to serve for breakfast in several forms. The local pastry industry is also growing with many supermarkets including a bakery in their operations," he said.
Hopes to double the egg market
CB Group Chief Executive Officer Mark Haskins said his company hopes to use Chippenham to double the egg market from 11 million dozen to 20 million dozen.
"By educating the public as to how good eggs are for your mind and body, we will grow the local demand, and in turn that will require all egg producers to collectively produce more eggs to satisfy this same demand," said Haskins in a statement announcing the acquisition.
Eggs retail for about J$200 to J$220 per dozen.
CB Group is part of the Hendrickson family business conglomerate that straddles hotels, the baking industry and meat production.
Amiel says the new acquisition will benefit from the vertically integrated CB Group which also owns Newport Mills, a company which he describes as one of the largest supplier of feeds in the Caribbean.
Feeds, he said, "is 65 per cent of costs" for egg producers.