July 7, 2006

Thailand's S. Khonkaen to venture into Indochina market

S. Khonkaen Food Industry Plc, a major producer of Thai processed pork products, is setting its sights on Indochina as its next export market, starting with Vietnam next year.

According to CEO, Charoen Rujirasopon, the company would co-operate with  distributors there to promote its sour-pork sausages and dried shredded pork exports under the S. Khonkaen brand.

The company exports pork and seafood products to countries such as Japan, South Korea, Hong Kong, Taiwan, the EU and the US.

Exports account for about 15 percent of the company's sales, with the most profitable market being Hong Kong.

Although S. Khonkaen intends to export more to Japan, it is hindered by concerns of foot-and-mouth diseases there.

Sales revenue last year rose 11 percent to THB 1.019 billion (US$26.6 million). However, profit fell 9 percent to 18.36 million baht (US$480,000) due to higher advertising and promotional expenses of product launches. 

Charoen said the company expects its sales revenue to grow by at least 10 percent this year.

Sales of traditional Thai food, such as steamed minced pork sausage and crispy sliced pork, makes up for over 65 percent of the company's total sales revenue.

According to Mr Charoen, the company also planned to upgrade its existing pig farm by making the animals antibiotic free.