January 7, 2008

Thailand's Betagro expands 2008 investments by 30 percent
 

A brighter industry outlook has encouraged Betagro Group in Thailand to invest US$134 million in 2008, 30 percent more than last year's US$101-million investment.

Vasit Taepaisitphongse, executive vice-president and group chief operating officer, said that farm prices, which have dived in the first half of 2007, have improved significantly since the latter half, the Bangkok post reported.

Export prices of processed chicken shot up by 30 percent to US$4,000 per tonne after a sharp fall during the first half last year caused by bird flu in late 2006 and the strong baht.

Limited shipments from China have also pushed up world prices and brightened the industry's outlook.

Vasit said the expansion plans were in accordance with the group's plans to list on the Stock Exchange of Thailand, probably in the second half of this year, after it had filed the application to the Securities and Exchange Commission in late 2007.

Part of the funds raised will be used to finance new projects including a number of small-scaled processing plants to supply food products to community stores such as convenience outlets.

Betagro will add two new plants this year, one each for cooked chicken for exports and tailored pork products for retail channels.

The company is among the top five in Thailand's chicken industry, exporting 40,000 of the country's total of 310,000 to 320,000 tonnes last year. In the swine industry, it processes about 1,600 pigs or 13.33 percent of Bangkok's daily total of 12,000.