January 6, 2009

Charoen Pokphand Foods PLC (CPF) is set to expand its biosecure shrimp farming system in eastern Thailand, Trat province over the next two years after completing a four-year first phase at the end of 2008.

CPF has invested one billion baht in the first phase of its closed-system Roiphet Integrated Shrimp site in the province.

The expansion of the shrimp project which promotes white shrimp cultivation in an environmentally friendly closed system, is expected to start by 2010 once production under the one-billion-baht first phase has stabilised.

The operation currently produces about 600 tonnes of high-quality shrimp products that comply with strict food safety regulations in developed markets such as the EU and expects to increase production capacity to 4,000 tonnes in 2009.

CP Group vice-president Sujit Kaewchum said the biosecure closed farming system guarantees the production of white shrimp that are free of disease and would give the company greater access to markets with stringent safety standards.

The high-tech closed farming system involves temperature control and automatic feeding which facilitates year-long production, as temperatures in the plant are stabilised at 31 to 33 degrees Celsius, even in an unpredictable climate.

Kaewchum said the Trat site will provide the prototype for CPF's future expansion into other countries including China.

CPF expects its shrimp exports to be worth about US$60 million in 2009, a drop of 15 percent from 2008 largely due to shrinking world consumption.