February 12, 2007

Thailand's CPF to concentrate on R&D

Thailand's top poultry producer and exporter Charoen Pokphand Foods (CPF) said it is placing more emphasis on research and development of food products and processing, with the focus on the "farm-to-table" strategy.

The group already has R&D centres at some of its feed-meal, animal and food-processing plants. The company's shrimp R&D centre is the only one in Southeast Asia for shrimp.

President and chief executive Adirek Sripratak said with successful regional expansion, the goal is now to focus on R&D. The company currently spends 2 percent of its sales revenue (or THB 2 billion/ US$ 60 million) on R&D. 

Adirek said the company would expand R&D at its Saraburi plant focusing on food, especially chicken, with one of the plants to concentrate on ready-to-eat meals.

The company said this year's revenue could drop 7.7 percent from THB 140 billion (US$4.15 billion) to THB 130 billion (US$3.86 billion) due to a slower economy, the stronger baht, bird flu and a fall in pork prices.