GFPT joint venture gears up to process chicken

GFPT, distributor of GFP brand frozen and processed chicken, expects GFPT Nichirei (Thailand), or GFN, to start chicken processing operations in August.

GFN is a joint venture between GFPT and Japan's Nichirei Foods.

Analysts said that GFN would in August begin slaughtering 20,000-30,000 chickens a month, increasing to 70,000 chickens in October.

According to reports, GFN's operations will enhance GFPT's performance, because the latter will supply the chickens. If the price of chickens drops, GFPT can write off the difference as a cost.

GFPT will also add two more production lines for processing chickens, making a total of seven and increasing production capacity 20-25%.

The new production lines will serve orders from McKey Food, a joint venture that is 49% owned by GFPT. They will start processing in the fourth quarter.

Analysts forecasts GFPT's net profit will rise 17% to THB1.24 billion this year on growth in exports. Thailand is enjoying a bright outlook for its shrimp from lower exports by other countries, while BP's oil spill in the Gulf of Mexico will benefit Thai animal feed products.

Animal feed sales contribute 34% of GFPT's revenue. Most of its revenue - 59% - comes from chicken and other meats and the rest from processed foods. The second half of each year is high season for Thai exporters, and analysts expect GFPT to show impressive revenue in the third and fourth quarters.