CPF cooked poultry exports to grow 10 percent

Charoen Pokphand Foods Plc (CPF) expects to export 95,000 tonnes of cooked poultry products this year, up 10 percent from 2008.

Despite the higher export forecast, shipment values are expected to drop by 10 percent from an estimated THB20 billion last year due to lower sales price in line with weaker prices for oil and raw material.

A shrinking global consumption due to the recession, especially in key market the EU, is also seen to affect the company's export prospects.

CPF is expecting sales in the EU to decline 5-8 percent this year, said executive vice-president of food processing and integration operations, Teerasak Urunanon.

The EU accounts for 55 percent of CPF's chicken sales, followed by Japan at 35 percent and other markets in Asia and the Middle East.

Shipments to Japan are expected to grow 10 percent this year, helped by a strong yen and food safety concerns on China-made products.

To offset the sales drop in the EU, the company is seeking new markets such as Africa, said Teerasak.

CEO Adirek Sripratak said recently that CPF is expecting flat growth in its total sales revenue in 2009.

CPF's chicken unit represents 30 percent of sales.