Betagro expects new quality system to drive sales

Betagro Group, one of Thailand's leading integrated agribusiness companies, expects its new quality management system to lead to strong market expansion and drive sales to THB55 billion (US$1.65 billion) next year.

Betagro Quality Management 24/7 (BQM 24/7) ensures the group's entire supply and production chains, and exceeds international food safety standards, said Vasit Taepaisitphongse, chief operating officer.

He said the system would allow the group to expand to new export markets, particularly those with restricted food safety regulations. Revenue from exports contributes 20 percent of the group's total sales, which are estimated at THB50 billion this year and THB55 billion in 2010.

The system also allows Betagro to shift its focus to higher value or premium products, which Vasit expects to account for 75 percent of shipments.

Betagro expects to export 46,000 tonnes of chicken this year from Thailand's total of 380,000 tonnes. The group also plans to export 55,000 tonnes of chicken next year because of market expansion from its three subsidiaries: Better Food Co, Ajinomoto Betagro Frozen Foods (Thailand) Co, and BFI Broiler Farm.

The system has also been applied to its swine business. Betagro controls about 60 percent of Thailand's processed pork exports. Suthep Tirapipattanakul, executive vice-president of the group, said more effective management would reduce operating costs by about THB100 million a year.

In farming, the new quality management system helps reduce rejected chicks, increases the survival rate and ultimately lowers consumer complaints, Suthep said.

US$1 = THB33.2691 (Oct 9)