The regional unit of Betagro Group has outlined THB1.5-billion (US$55.13-million) expansion plans in the integrated livestock and meat-processing business to tap into growing opportunities in provincial markets.

The expansions, to be carried out from 2010 to 2012, would help drive sales of the regional business to THB38 billion (US$1.16 billion) by the end of 2012.

"Our business is growing remarkably in the provinces, especially in the areas of livestock and meat processing (pork and chicken), as well as the retailing of meats, meatballs and sausages," said Narongchai Srisantisaeng, senior vice-president for the regional and feed business of Betagro Group.

The provincial markets have performed strongly, with THB27 billion (US$0.83 billion) earned in 2009, drawing the sale revenue of Betagro, one of the country's leading integrated agricultural business groups, to gross over THB50 billion (US$1.53 billion) last year.

"For that reason, we've planned to set up new processing factories in all regions within the next three years in response to increasing market demands," he said.

At present, the group has three pig-slaughtering and meat-processing plants in Chiang Mai, Khon Kaen, and Phatthalung.

The fresh investments will add two pork facilities in the Northeast and the South. Three chicken-processing plants at locations in the North, Northeast, and South will also be built. In addition, two animal-feed factories will be added to the existing eight locations by 2011 to bring the total animal-feed production to 2.5 million tonnes per year.

Its business in the Southern region has been brisk thanks to high purchasing power boosted by tourism-related businesses such as restaurants and hotels and the fishery industry.

According to regional manager Trairat Thongplod, the average pork consumption in the 14 southern provinces is high at 22 kilogramme per head per year, well above the country's average of 13 kg.

For its operations in southern Thailand, Betagro has 12 facilities, including one pig breeders farm, one feed factory, one hatchery farm, eight Betagro Shops for the wholesale business, and the newly opened Phatthalung pork-processing factory.

The expansion plans reflects a shift of focus to producing meat merchandise from selling livestock and would support its retail distribution unit, Betagro Shop, which presently has 47 outlets nationwide with eight new outlets to be added this year.