Bachoco Announces Antidumping Investigation Progress

Industrias Bachoco S.A.B. de C.V.

announced today that on July 2, 2010, Bachoco, S.A. de C.V., Productos Agropecuarios de Tehuacan, S.A. de C.V. and Buenaventura Grupo Pecuario, S.A. de C.V. , appeared before the Mexican Ministry of Economy to apply for the initiation of an antidumping investigation regarding unfair practices in the form of price discrimination of chicken leg quarters imported to Mexico from the United States. On January 19, 2012, the Ministry, through the Official Journal, announced a preliminary determination regarding the antidumping investigation. The resolution established these main points: There are dumping conditions on chicken leg quarters imported from the United States, including margins ranging from 62.90% to 129.77%. These practices damaged the domestic poultry industry. The Ministry possesses all elements for establishing anti-dumping duties, but did not proceed as the interested parties expressed the will to reach an agreement. The antidumping practices investigation process with regards to chicken leg quarters price discrimination will continue. The Ministry agreed to establish a 30 business day period for the interested parties to provide additional arguments or elements deemed relevant to the investigation. This term started the day after the resolution was issued. Together, Bachoco, Patsa and Buenaventura, will continue working to protect the Mexican poultry industry, as it is a source of important investments and is responsible for generating a significant number of jobs in Mexico. These three companies continue to provide poultry products to the Mexican population, an important and affordable source of protein, as well as seeking terms for access of Mexican chicken products to the United States, creating true commercial interactions within the NAFTA region.