MLBA8: April / May 2009
Updates on...
CP cuts down foreign investments to reduce business risk
To survive the crisis, the company will pay more attention instead on meat retail and food processing, according to Adirek Sripratak, CPF president and chief executive officer.
The THB2 billion, he said, would be used to expand its food processing operation, particularly in the areas of marketing, distribution and branding. Part of it, Adirek added, would be spent on CPF's expansion plans in growth areas like Russia.
As part of its "survival plan," CPF will build more frozen meat outlets, under its CP Fresh Mart brand, across the country from the current 400 to 1,000 over the next three years.
Launched in 2006, the CP Fresh Marts are neighborhood freezer centers selling fresh and frozen CPF processed meat, eggs, fresh chicken, preserved eggs, fish, pork, sausages and ready-to-eat food such as shrimp dumplings and fish cakes.
CPF believes that people in the West and in Japan will be eating out less and eat at home instead during this difficult time. The CP brand of processed food and ready-to-eat meals, Adirek said, would seize this opportunity through aggressive marketing, locally and internationally. And this aggressive approach would include advertising in the Premier League of England.
China's Zhongpin reports strong financial growth in 2008
On the whole, Zhongpin's 2008 revenues were up 85 percent to a record US$539.8 million and gross profit rose 83 percent to US$68.6 million.
Last year, the company reported that it had successfully executed a capacity expansion strategy, increasing its annual production capacity for chilled and frozen pork by 126,000 tons, which more than doubles its annual production capacity of high-margin processed meat products.
According to a statement from Zhongpin, it expects prices and supply of hogs to remain "fairly stable" in the first half of 2009 amid the "high degree of volatility in terms of price and supply" faced by the Chinese pork industry during 2008.
Pilgrim's Pride rejects US$60-million offer for Farmerville plant
The company said it rejected the offer on the basis that it represents a significant financial loss for the company. Further, it said it has given Louisiana Governor Bobby Jindal the acceptable price, but would not reveal the amount.
The company said the given price would be only enough to prevent the company from taking a loss on the sale.
Chief executive Don Jackson reiterated that the complex would only be sold for a price that prevents a loss.
Bartter expands into pork and beef business
The expansion of product range is seen as a key step in broadening the business diversity, after Baiada's failed acquisition of Bartter.
Market researcher IRI found that while consumers are drawn to familiar brands, many manufacturers are cutting back on new products to the detriment of their future success.
Steggles is working closely with Woolworths on the launch, with the products available for the first time this week at Australia's largest supermarket chain. The new range from Bartter consists of finger-food products, including two beef lines and one pork option.
Sureerath Farm ships organic shrimp to Switzerland and Germany
The exports represent Thailand's first foray into the organic shrimp market, a fairly new product even for health-conscious European customers.
Sureerath Farm in Laem Sing district of Chanthaburi province, 220 kilometers east of Bangkok, is the first and still the only Thai farm to receive certification from Naturland, an association of organic farmers in Germany, for meeting standards on raising shrimp and ensuring product quality.
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