Betagro and Itoham enter sausage export joint venture

 

 

Thailand's Betagro Group plans to export more ready-to-cook pork products together with Japanese sausage manufacturer, Itoham Foods, to ensure sustainable incomes for its contracted farmers.

 

Betagro Group executive vice president Nopporn Vayuchote said the new sausage factory in Lop Buri province, still waiting approval by the Agriculture, Forestry and Fisheries Ministry of Japan, will produce 2,500-3,000 tonnes monthly.

 

Vayuchote said the group was expanding its export markets in response to rising demand and would ship more ready-to-cook pork and sausage products. This will help domestic pig farmers sustain their earning capacity and promote the use of locally produced raw materials, which in turn will generate cash flow within the country.

 

The move comes after the sausage products manufactured by subsidiary Better Foods won awards for quality excellence at the International Sausage Quality Competition held by the German Butcher's Association as part of the recent IFFA 2010 in Frankfurt, Germany.

 

Nopporn said the group's sausage business enjoyed 10% annual growth, with a market value of THB25 billion. Domestic sales account for 90% of the total. This growth is attributed to Thailand's dramatic expansion in the tourism industry in recent years, resulting in rising demand for high quality food products by hotels and restaurants. Another factor is lifestyle changes among Thais, who now eat more sausages for breakfast.

 

"The sausage export market is promising in the near term, as the demand from overseas is higher and the Japanese manufacturers are looking for new places for their production bases," said Nopporn, adding that Betagro already operates two sausage production factories with a combined capacity of 3,300 tonnes per month and with the addition of the new plant, this will increase total sausage production to 6,000 tonnes per month.

 

Other key export markets include Singapore and Hong Kong, while border trade with neighbouring countries is also important. Sales of Betagro sausages amount to 36,000 tonnes annually.

 

Betagro operates three sausage factories: one in Samut Sakhon province with a capacity of 1,850 tonnes a month and two in Lop Buri, each with a capacity of 1,450 tonnes a month.