May 10, 2011

GFPT to set up two broiler farms in Thailand

Poultry producer GFPT has announced an investment of THB1 billion (US$33 million) to set up two broiler farms in the Chon Buri province of Thailand, which will have a combined production capacity of 35,000 hens a day or 15 million a year.

The investment is necessary for GFPT to meet its commitments with its Japanese partner, which earlier co-invested to develop a THB2.2 billion (US$73 million) chicken plant under GFPT Nichirei (Thailand). The plant intends to use raw poultry supplied from GFPT's farms only.

The poultry producer said it will also invest in a grandparent stock farm to produce around half a million chicks each week by the end of this year.

The producer forecasts that it will be able to produce more than 100 million chicks each year by early 2012, to supply its own farms, as well as other joint ventures such as McKey Food Services, which supplies McDonald's restaurants in Thailand and overseas.

GFPT Nichirei's plant in Chon Buri has a capacity to slaughter 100,000 birds per day to produce 1,500 tonnes per month of processed foods, runs at 60% of production capacity at present, and is expected to increase its output to 85% in August and 100% early next year.

GFPT estimated its revenue at THB3 billion (US$99 million) in the first quarter, and targets total sales growth of 10% this year to THB12.5 billion (US$413 million).