MLBA15: June / July 2010
Updates on...
Charoen Pokphand Foods (CPF) forecasts its sales to increase by about 10% this year and 5-10% over the next five years, said Adirek Sripratak, the company's president and chief executive officer.
Sripratak cited key catalysts such as higher exports and growing sales from processed and ready-to-eat food and its aquaculture business that should account for 7% of the total sales this year.
"Our strategy to focus more on ready-to-eat food continues to pay off lucratively," he said, adding that key factors have been the favourable domestic meat prices, especially for pigs, while raw materials have been stocked at relatively low prices.
Additionally, 2010 net profit forecasts were revised up by 18% to THB11.69 billion (US$359 million) and 2011-12 targets were lifted by a similar percentage.
Martek Biosciences Corporation announced recently that it has signed a five-year agreement with leading Chinese dairy, Mengniu Dairy Company Limited, for the use of Martek's life'sDHA in Mengniu-brand UHT milk and potentially other categories.
Mengniu is launching Mengniu Future Star Kid Milk incorporated with algae-based omega-3 fatty acid, life'sDHA nationwide. The product which features the life'sDHA logo on the product packaging, is the first milk with life'sDHA to be launched in China.
Mengniu is currently the leader of the rapidly growing dairy market in China. Milk comprises approximately 60% of the Chinese dairy category, of which Mengniu has a leading share of 35%.
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Arab's emerging seafood enterprises like the Saudi National Prawn Company (NPC) has good prospects of growth and expansion as public awareness on the health benefits of seafood starts to grow in the Gulf.
"The seafood industry in the Gulf is developing and it is mostly because of change in diet. There is a focus on the Middle East on healthier eating and seafood provides a healthy balanced diet," says Laurence Cooke, director of communications of the privately owned NPC.
Situated on the Red Sea coast south of Jeddah, NPC is said to be the largest and fully integrated desert prawn farms in the world.
Tyson Foods stock surges more than 60%
Tyson's stock has soared more than 60% so far this year, outpacing both cattle futures (up 15%) and wholesale beef prices (up 20%).
Recently, however, cattle futures and Tyson shares have declined from multi-year highs, raising questions whether both have peaked, at least for the near future. While surging beef and pork prices have been a feast for Tyson's profit margins, some analysts wonder if the best news is already priced in.
Earlier, shares of Springdale, Arkansas-based Tyson traded around US$19.78, a drop of more than 3% from an April 15 close at US$20.40, the highest since September 2007.
Strength in wholesale meat markets is trickling down to the grocery store, with average retail beef prices rising each of the three previous months, according to government data.
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