January 27, 2004
CPF Face 6% Fall In Total Revenue In Bird Flu Aftermath
Charoen Pokphand Foods PCL (CPF), the leading poultry exporter in Thailand, said Tuesday the company could see a 6% fall in total revenue due to poultry ban from major exporters such as Japan and the European Union.
Analysts said the impact of the bird-flu outbreak on CPF's performance goes beyond the company's frozen chicken exports, as domestic demand is also falling.
"CPF's chicken feed business will also be affected," said an analyst at Kim Eng Securities.
TISCO Securities said chicken products sold domestically account for 12%-13% of CPF's total revenue.
Late last week Japan, the European Union, and other countries imposed bans on Thai chicken products.
Japan suspended imports of both frozen and cooked chicken meat from Thailand, while the European Union banned only frozen chicken.
The Thai health ministry has said the H5N1 virus in chickens can be destroyed by heat generated in the process of cooking.
"Our cooked chicken products continue to be exported to the European Union as usual," the statement said.
Meanwhile, CPF said exports of cooked chicken to Japan makes up around 2% of its total revenue.
Pornsil Patcharintanakul, vice president at Charoen Pokphand Group, a parent of CPF, said in a press conference Monday the government should ask Japan to accept cooked and processed chicken products from Thailand as soon as possible.
Deputy Agriculture Minister Newin Chidchob said he couldn't say when Thailand will be able to resume normal chicken exports, after confirming Monday that 10 provinces have now been hit by the bird flu virus.
The European Union said Monday it would demand independent verification that bird flu had been eradicated in Thailand before it lifts the ban on chicken imports imposed last week.
CPF posted revenues of 75.15 billion baht ($1=THB39.276) and net profit of THB2.61 billion in 2002. The company is due to report its 2003 earnings by mid-Feb.
