CPF expands into Africa

 

 

Charoen Pokphand Foods Plc has added African countries to its investment plan next year as part of its aggressive overseas expansion.

 

The company will start with feed and chicken farm operations in Kenya and Tanzania, where each operation is expected to cost US$3 million initially, said CPF president and CEO Adirek Sripratak.

 

CPF teams have visited the two countries several times over the past few years and found strong business potential in supplying meat for their combined population of 82 million.

 

Nigeria is also in consideration for CPF's business expansion.

 

The fresh investment is part of the THB5 billion (US$149.6 million) CPF earmarked locally and abroad in 2010, with 50% going to the Thai market.

 

While farm expansion overseas is being accelerated, CPF plans to trim investment in farm businesses in Thailand and put more money into cooked and ready-to-eat meals, which have contributed healthy profits to the company, estimated at more than THB10 billion (US$299.2 million) this year.

 

Investments in meat farms would be minimal as the company tries to lower its role in commodity trade, said Sripratak. Reducing its role in the primary farm sector would not only reduce business risks from epidemics and price fluctuations but would help the company promote sustainable profits.