Food and Beverage Industry Tops $35.5 Billion in Capital Expenditures, Drives Growth across Latin American

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Food and Beverage Industry continues to be an engine for growth in many economies across Latin America. Increasingly, the region is becoming a leading supplier of food and beverage products to world markets. From Mexico down to Chile and Argentina, food products are grown and processed across the spectrum of industry sectors, including agribusiness, meat and poultry, dairy, frozen foods and beverages. Current capital spending plans for the region point to $35.5 billion. The fastest growth sectors, which are also commanding the largest investments, are Agricultural Processing, Slaughtering & Meat Production and Beverages.

Mexico is attracting huge investments to build new food manufacturing and distribution facilities. One example is a $450 million plan to build what is being proposed as the world's largest meat processing plant. Capital expenditures in the beverage sector are expected to increase and are being driven by expenditures in the beer, soft drink and bottled water categories.

Across Central America, more than $1.9 billion in proposed project spending plans are heavily weighted toward the Sugar Industry, with much of the attraction coming from the ability to generate electricity for the region.

In Brazil, despite the political and economic instability during the past year, the above-mentioned sectors promise large investments to resume the local economy activity. Global leaders in the industry, such as JBS SA (Sao Paulo, Brazil) and BR Foods, have plans to increase processing capacities through plant expansions and building greenfield facilities throughout the region. The underlying basis for those expenditures is part of a strategy to support demand from markets in Asia.

The expansion of the meat processing sector is only possible through the strength of the region's agribusiness sector. Latin American countries are large suppliers of agricultural products, such as grains, including soybean, corn and wheat, as well as fruits and vegetables. The level of investment activity remains high in countries like Brazil, Argentina, Uruguay, Paraguay, Colombia, Guatemala, Peru and Mexico on projects such as Grain Handling and Conditioning Plants and Grain Processing Mills (oil, biodiesel, meal, flour and animal feed plants). Many of these are being developed by the world's biggest players, such as Cargill Incorporated (Minnetonka, Minnesota) Bunge Limited (NYSE:BG) (White Plains, New York), Archer Daniels Midland Company (NYSE:ADM) (Minneapolis, Minnesota) and COFCO Corporation (Beijing, China)

The beverage sector, mainly the beer and soft drinks industries, is continually increasing its presence in Latin America. Big world companies as Anheuser-Busch InBev SA/NV (NYSE:BUD) (Lauven, Belgium), Heineken International (Amsterdam, Netherlands), Constellation Brands Incorporated (NYSE:STZ) (Victor, New York), Coca-Cola Company (NYSE:KO) (Atlanta, Georgia) and PepsiCo Incorporated (NYSE:PEP) (New Bern, North Carolina) are now developing grassroot and expansion projects in Colombia, Chile, Argentina, Mexico and Brazil worth $4.5 billion.

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Industrial Info's database of active capital and maintenance expenditures of the Food & Beverage Industry across the globe has current expenditures of $81.94 billion and more than 6,200 active projects. The North American section, including the U.S., Canada and Mexico, comes out to more than 3,400 active projects that total more than $46 billion.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.