May 31, 2007

 

Charoen Pokphand Foods and Yonekyu Corporation open pork processing plant in Thailand's Chachoengsao province

 

 

Thailand's conglomerate Charoen Pokphand Foods (CPF) and its Japanese partner Yonekyu Corp on May 29 officially opened a plant in Chachoengsao province in central Thailand.

 

The factory will allow CPF to strengthen its exports of pork products to Japan and other overseas markets. Its partnership with Yonekyu will centre its focus on pork products after achieving its goal of becoming an integrated chicken producer and exporter.

 

The companies set up CP-Yonekyu in 2005 with registered capital of Bt200 million (US$6.10 million) where CPF holds a 75-percent stake. The joint venture's investments, including the establishment of the Chachoengsao factory, was Bt530 million (US$16.22 million).

 

The plant will manufacture pork products such as sausage, ham and kakuni. Capacity is expected to be 200 tonnes per month, and products will be marketed under the CP-Yonekyu brand.

 

Virachai Ratanabanchuen, executive vice president of CPF, said the joint venture would strengthen the company's pork exports, particularly in the Japanese market.

 

The target is for 80 percent of products from the new plant to be exported.

 

In addition, the company has space to expand the plant in the future with an investment of Bt60 million to Bt70 million. The second phase will be launched after the European Union announces its regulations for imported pork.

 

Katsuhiko Ishino, president of Yonekyu Corp, said Thailand was the first country in Southeast Asia in which it had formed a joint venture. Its only other joint venture outside Japan is in China, where it has two plants.

 

Ishino added that the investment was part of the Japanese government's policy to invest in the Southeast Asian region, adding their investment in Thailand will strengthen the company's competitiveness in Japan in terms of price.

 

Yonekyu has only two plants in Japan, which are not enough to serve domestic demand.

 

Products from Thailand will be exported not only to Yonekyu but also to its customers in the United States and China.

 

Yonekyu is the fifth-largest Japanese distributor of pork and pork products, with fresh meat accounting for 58 percent of its sales.

 

Despite waiting for implementation of the Japan-Thailand Economic Partnership, Ishino said he hoped that the agreement would lower its import taxes on pork from the current rate of 25 per cent.

 

CPF is planning to expand its number of high-standard pig farms to ensure a supply of good-quality meat to the Chachoengsao plant. It also plans to award more contracts to farmers whose farms have been certified by the Livestock Development Department.