July 7, 2010

Thailand's Saha Farm builds new processing plants

Saha Farm, a major Thailand's poultry producer, is investing in three new production facilities to achieve sales growth, particularly in poultry meat exports.

The new THB10-billion (US$308-million) processing plants, which are set to open in Lop Buri and Phetchabun late this year, will double production capacity for Saha Farm, the country's leading chicken exporter, from 600 tonnes a day at present.

Saha Farm chairman Panya Chotitawan said the company was also preparing to renovate two existing facilities in the same provinces to upgrade production, making it the country's largest chicken producer and exporter in the future.

The company exports about 100,000 tonnes of chicken a year, 75,000 tonnes as processed products and 25,000 tonnes as fresh produce.

Its sales are estimated at THB40 billion (US$1.23 billion) this year, a rise of 53% over a year earlier. Exports this year are expected to reach THB32.5 billion (US$1 billion) with local sales at THB7.4 billion (US$227.8 million).

Panya said exports would become even more promising should authorities convince foreign buyers to reinstate shipments of frozen poultry.

"Thailand has been free of bird flu for almost a year, and Thai farms have already improved their compliance with the guidelines of the World Organisation for Animal Health," he said, adding that the group has invested heavily to upgrade its farming system to ensure maximum safety.

Total chicken exports are expected to reach 360,000 tonnes this year compared to a target of 300,000 tonnes, Panya said, predicting that Thailand's chicken exports would top 400,000 tonnes next year.