March 21, 2012

Betagro has began operations for a new pork manufacturing plant, which is a joint venture between Betagro MF Deli and the Japanese food processor, Marudai Food.

The new plant, located in Lop Buri, cost THB650 million (US$21 million). It will be able to produce 600 tonnes of sausages and 200 tonnes of frozen cooked food a month for export, mainly to Japan.

Products will include pork sausages on a stick, Japanese seasoned minced pork, and arabiki sausages. The products are made from hygienic pork and chicken from local Thai suppliers. They will be exported to Japan, with Japanese convenience stores the main customers. In Japan, there is a growing demand for premium food products.

Vasit Taepaisitphongse, COO, Betagro Group, said: "We project sales of THB2 billion (US$65 million) per year from the new company."

Marudai Food, a Japanese processed food and meat products distribution firm, holds a 20% stake in the venture. The company will use its years of experience in the production of premium-quality ham, bacon and sausage to support the new company.

The new sausage production line is the fourth for Betagro. In 2009, the group partnered with Japan's Itoham Foods and Ajinomoto and set up Itoham Betagro Foods to produce 5,000 tonnes of premium grade sausages a year for domestic sales and export.

Betagro MF Deli has registered capital of THB250 million (US$8 million) and received incentives from the Board of Investment.

Besides investment in new food production facilities, Betagro also plans to spend THB3-4 billion (US$97 million-$130 million) a year to strengthen the operations of its core businesses. The group says the new investments could raise revenue from food ventures to 5% of the company's total revenue. Domestic sales represent 80% of total revenue.

Betagro Group also said that total revenue growth could rise by 13% to reach THB68 billion (US$2.2 million) this year.