November 15, 2010
Charoen Pokphand Foods (CPF) is preparing to raise prices of its meat-based products citing the flood crisis that has ravaged livestock farming.
Meanwhile, the company is planning to take advantage of the strong baht by putting more emphasis on foreign investments.
CPF President and Chief Executive Adirek Sripratak stated that even though the government has requested food manufacturers to peg their prices to help flood victims, it is inevitable that meat prices must be raised.
He claimed livestock farming was severely affected by floods, including CPF's chicken and shrimp farms.
Adirek said that the company's shrimp market will likely expand due to the high demand from overseas following falling supply in various countries.
The smaller shrimp supply means market prices have risen by 30% to 40%.
He added this year's total shrimp export is projected at 50,000 tonnes and 70,000 tonnes for next year, benefiting from the baht strengthening.
However, the chicken market has been affected by the baht appreciation and the company expects that the baht will appreciate to as high as THB28-THB28.5 against the US dollar.
CPF forecasts that next year's total sales will exceed the projected THB180 billion (US$6 billion) from domestic and exported food products, as well as offshore investments in 10 countries, including, India, Turkey and Indonesia.
CPF also predicted that this year's profit will increase by no less than 30% after the first nine months in which net profit rose 42% year on-year.
Confidence in overseas and domestic investment has pushed the company's total sales projection higher by 5% to 10%.