Charoen Pokphand Foods to restructure business

Thailand's Charoen Pokphand Foods (CPF) has mapped out a five-year business restructuring plan to reduce its dependence on farm business.

Over the next five years, CPF's core businesses will engage mainly in feed, food and farming. The restructure aims to increase revenue from the food sector to 30-33 percent of the total from the current 18 percent.

CPF will retain the 35-percent revenue animal feed generates.

The company will invest THB4 billion (US$120.1 million) locally and overseas - US$30 million will be invested in the pig business in Russia, while US$65 million will be used to build shrimp and aquafeed manufacturing facilities in the Philippines.

Farming revenue, particularly from chicken and duck farms, would be reduced from 47 percent to one-third. Sales from this sector reached THB156.23 billion (US$4.7 billion) in 2008.

Brand-building efforts and new products have significantly increased CPF's revenue from the food sector. Ready-to-eat items such as shrimp wonton soup have also boosted sales to THB32 billion (US$961.2 million) this year.

Revenue from the food sector has grown rapidly in recent years thanks to brand-building efforts and new products. Ready-to-eat items such as shrimp wonton soup have increased sales to 32 billion baht this year.