One of Latin America’s leading pork producers — Coexca S.A — has joined forces with the Danish Agribusiness Fund via a $12 million (USD) equity raising facilitated by an Edinburgh-based agricultural investment firm, JB Equity Limited.
The agreement, finalized today in Copenhagen, marks the largest of its kind in the Chilean pork sector and will significantly expand Coexca’s production and strengthen its offering to customers domestically and abroad.
Optimistic about the increasing global demand for high quality pork products, Coexca S.A. chief executive officer Guillermo García González says the agreement with DAF and JB Equity represented an exciting new stage of development for Coexca S.A.
“Our union with DAF and JB Equity will allow us to double Coexca’s current pork production capacity and establish a new and modern pig farm in the Maule Region of Chile,” García says.
Coexca is a leading pork producer in Chile, exporting its products to more than 33 countries, with a significant portion attributed to Asian markets. Coexca has turnover of over $85 million (USD) and employs more than 500 people, with sales offices in Asia and Europe.
DAF vice president for Latin America Helle Bjerre says, “Coexca is a good example of what cooperative and progressive farmers and processors can achieve by working with institutional investors who understand their industry.”
“We are delighted with our investment and look forward to working with Coexca and JB Equity,” Bjerre says.
Chile has the highest pork meat consumption in Latin America with close to 22 kilograms consumed per person per year. Due to Chile’s focus on trade, significant industry reinvestment, product safety and improvements in technology, Chile is now the sixthlargest pork exporter in the world.
Recognizing these opportunities facing the Chilean pork industry, JB Equity, who focus exclusively on agribusiness and agri-technology, facilitated the agreement and will join the company as a shareholder.
JB Equity’s chief investment officer Hamish Webb says the transaction represented a “perfect union” between one of Chile’s leading pork producers and one of Europe’s most experienced agricultural investors.