April 3, 2012

Thailand's GFPT outlines billion-baht poultry investment

SET-listed Thai chicken producer and exporter GFTP will invest THB 1.5 billion to boost sustainability of its business and achieve annual sales of THB 20 billion in three years.

The group will add parent-stock chicken farms this year and two more broiler farm projects during 2013-14, in order to increase its capacity from 250,000 to 300,000 chickens a day. 

Vice president Jutamas Ingpochai said the expansion would lead to stronger exports of poultry meat, which are projected at 480,000 tonnes this year, up by 4% from 2011. Ingpochai said it is likely that the EU would resume imports of fresh chickens from Thailand by mid-year.

The EU and leading importer Japan banned imports of raw meat from Thailand after bird flu cases in 2004. Only imports of heat-treated meat have been allowed since then. Thailand has been free from bird flu since 2009, and most export-oriented poultry farms have adopted biosecurity farming models to ensure hygiene.

GFPT earns THB 1 billion from exports to the EU and expects improved export prices of all chicken products with the lifting of the ban. The EU accounts for 60% of export volume in 2011, which translates to 14,000 tonnes, plus 16,300 tonnes in indirect exports.

Joint venture (JV) company GFN, worth THB 2.2 billion, opened in late 2010. The JV between GFPT and Nichirei Food Inc of Japan is expected to hit full capacity this year, contributing over 20% to GFPT's revenue. GFN processes 100,000 birds from GFPT farms every day into chicken meat products for export, prompting GFPT to expand its broiler farm capacity to 250,000 birds a day in 2011.