December 23, 2005

 

Thailand's Charoen Pokphand eyes investment in Russia
 

 

Thailand's Charoen Pokphand Foods PCL, a major exporter of chicken and shrimp, is looking to make an investment in Russia, given that the country is a major food importer in the world, President and Chief Executive Adirek Sripratak told reporters late Thursday.

 

Russia imports about 2 million tonnes of chicken and 500,000 tonnes of pork a year, Adirek said.

 

"We view Russia as a potential place for investment in sectors where we possess great skill, (namely) chicken, shrimp and pork. Being a food producer, Thailand should have trade with Russia," he said.

 

Charoen Phokphand Foods has already conducted an investment feasibility survey in the Russian market, Adirek said.

 

"We expect to conclude (the study) in the middle of next year," he said, without elaborating on the nature of the investment.

 

Along with Russia, Adirek said the company is also looking at Pakistan and the Philippines as potential investment markets.

 

However, there is still no time frame for the start of investment in those markets, Adirek said.

 

Charoen Pokphand Foods' investment budget for 2006 is set at about THB6 billion to THB7 billion, Adirek said. He did not elaborate on details of the investment plan.

 

In 2006, Adirek said Charoen Pokphand Foods expects to generate sales of THB130 billion, higher than the THB110 billion expected this year, due mainly to significant growth in shrimp and chicken exports.

 

Charoen Pokphand Foods, which operates closed farms, expects its chicken exports in 2006 to total 110,000 tonnes, from an expected 80,000 tonnes this year. The company targets shrimp exports at about 60,000 tonnes in 2006, from an estimated 42,000 tonnes this year.