November 24, 2009

 

CPF to focus on brand-building, packaging and logistics

 

 

Charoen Pokphand Foods (CPF) is expanding its business focus on brand building, packaging and logistics with the aim of becoming Southern Asia's biggest food producer.

 

Thailand's CPF is also mapping out plans to set up its own distribution centre and logistics system, designed to support its expansion as well as meeting demand from rapidly growing regional trade.

 

According to CPF president and CEO Adirek Sripratak the plan is aimed at ensuring sustainable growth of an average 10 percent annually over the next five years, which will achieve THB200 billion (US$6 billion) in annual sales revenue.

 

Sripratak adds that the brand-building strategy aims to direct the company towards global recognition, and has planned to reduce exports of fresh meat and to focus on the company's brand and finished products.

 

CPF has invested THB500 million (US$15 million) to set up an animal feed meal and pork products plant in Russia, which is expected to begin operations late next year and is also planning to expand its animal feed meal and aquaculture businesses in the Philippines.

 

Sripratak said the food industry had reached a turning point because grains like corn are being diverted for use in ethanol manufacturing.

 

Demand for corn to support the ethanol industry in the US has increased from 10 percent last year to 20 percent this year, and major corn importers such as Japan and Vietnam are facing price increases from THB6 per kilogramme last year to THB8 this year.