September 26, 2013

After halting operations for months due to a liquidity crunch, Saha Farms hopes Krungthai Bank will approve a new credit line this September as it struggles to resume exports of frozen chicken this month.

Saha Farm used to have 22% market share of Thailand's export of frozen chicken, which were exported to Japan, UK, Germany, China, Netherlands and Belgium.

Panya Chotitawan, chairman of the poultry processor, said that if Krungthai Bank's (KTB) loan approval is delayed, he would find funds from other sources to pay workers as well as contracted chicken raisers and corn growers as soon as possible.

He will try to reopen the company's plants, as overseas customers are waiting for products and will expand its export markets to the Middle East.

Pitikan Sitthidej, deputy director-general of the Rights and Liberties Protection Department of the Justice Ministry, chaired a mediation meeting of Saha Farms and workers and contracted farmers in Chaiyaphum and Lop Buri, who were disgruntled over overdue payments.

After the meeting, she said KTB committed to open a THB1-billion (US$32 million) credit line for Saha Farms. However, a source from the bank said the financing depended on the company submitting a sound business-restructuring plan.

The bank has been open to extending assistance to the chicken company, as it views that the financial problem is caused by external factors, particularly the doubling in the price of corn - a major ingredient in chicken feed meal.