Recent developments in
the US
ethanol market could impact heavily on profit at the Jamaica Broilers Group.
The company Monday advised the Jamaica Stock Exchange that due to the recent reduction in US ethanol prices and subsequent events, the projected profits of its ethanol division will not be realised for the second quarter.
Jamaica Broilers says this will affect the group's overall performance by US$3 million.
Profits for the third quarter could also be adversely impacted if the US ethanol market price does not improve.
Jamaica Broilers says it remains confident that the investment in ethanol production is sound and will provide shareholders with increased returns in the future.
It adds that this confidence was further confirmed during recent negotiations in Brazil with suppliers who have agreed that purchases of raw material will be more closely linked to US market prices.
The company Monday advised the Jamaica Stock Exchange that due to the recent reduction in US ethanol prices and subsequent events, the projected profits of its ethanol division will not be realised for the second quarter.
Jamaica Broilers says this will affect the group's overall performance by US$3 million.
Profits for the third quarter could also be adversely impacted if the US ethanol market price does not improve.
Jamaica Broilers says it remains confident that the investment in ethanol production is sound and will provide shareholders with increased returns in the future.
It adds that this confidence was further confirmed during recent negotiations in Brazil with suppliers who have agreed that purchases of raw material will be more closely linked to US market prices.
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