July 7, 2006

 

CP to invest in pig farming in Russia
 

 

Thailand's largest agro-business, The Charoen Pokphand Group, Thursday (Jul 6) announced plans to invest THB 310 million (US$8.2 million dollars) in feed meal and pig-farming operations in Russia.

 

The investment, the group's first in Russia, will be made by Chaoren Pokphand Foods (Overseas) LLC, said CPF's President and CEO Adirek Sriprathak.

 

Russia offers huge potential in animal husbandry, especially in pig farming, said Adirek, who noted that Russia's 140 million people consume up to 2.5 million tonnes of pork a year. This demand cannot be met by local supply so they need to import, said Adirek.

 

CPF has been conducting a feasibility study to invest in the Russian chicken industry for the past six months.

 

CPF may also take over a poultry plant in Russia, in a similar move to its investment in a Turkish chicken business.

Apart from investing in Russia, CPF plans to invest in various businesses such as shrimp and fish, next year.

 

The group's sales are projected at THB130 billion (US$3.4 billion) for 2006, compared with 110 billion (US$2.9 billion) this year.

 

The company hopes to boost chicken exports 22 percent to 110,000 tonnes next year and raise shrimp exports 42 percent to 60,000 tonnes.

 

CP was also one of the producers who supported the government's proposal to trade chickens for Russian fighter jets. The cost of 12 of the Russian Su-30 jets cost the equivalent of a whole year of Thai chicken exports. 

 

CP, one of Thailand's first multinationals, started out in the feed meal business in the kingdom several decades ago before branching into commercial chicken farming and frozen chicken meat exports.

 

The group has set up similar integrated networks in other Southeast Asian countries, China and even Europe.

 

CP was one of the first multinational companies to invest heavily in China in the early 1980s when it first opened its doors to foreign direct investment.