Increased competition and rising production costs are causing firms in the sector to revive their production processes with new plants, equipment and electrical systems.
The three companies which dominate 92% of the market for chicken meat and its derivatives are making significant investments to modernize their production processes in an increasingly competitive world where consumption has maintained a steady upward trend.
At least ten companies are competing in a market where the amount of tons sold between 2008 and 2013 grew by 24%.
In Costa Rica, the market for sausages is fought over by at least 10 companies, where Corporación Pipasa, a subsidiary of Cargill International, is the largest participant. Whereas in 2008 20.2 tonnes of sausages sold in, 2013, 25 tons were sold in the country.
Pollo Rey invested $20 million in moving its processing plants while Cargill is spending $25 million in a new distribution center.
The poultry division of Corporación Multiinversiones (Dipcmi), maker of Pollo Rey, moved its processing plant from San Carlos to its central headquarters in Coyol de Alajuela.
“Additionally, the company reported that for the second half of 2013 they will move another processing plant, also located in San Carlos, to a 1.000 m2 space in Barranca de Puntarenas”, reported Elfinancierocr.com.
The supermarket chain plans to expand its presence in the Central American countries where it already operates and not to expand itself to new markets.
In the coming years, Wal-Mart Central America will open 50 locations distributed throughout Nicaragua, El Salvador, Honduras, Guatemala, and Costa Rica. The new supermarkets will create some 8,000 jobs in the region.