January 8, 2020

 

Thailand's CPF to introduce plant-based meat substitute products this year

 

Prasit Boondoungprasert, Charoen Pokphand Foods Pcl (CPF) chief executive said the company will launch plant-based meat substitutes in Thailand first, with other Asian markets to follow, reported Reuters.

 

Prasit said the new products were developed to meet increased demand for vegetarian options and a rising trend for 'flexitarians', consumers who eat vegetarian meals once or twice weekly.

 

The new meat substitutes are part of CPF's food business expansion strategy, which also includes pre-cooked meats and ready-to-eat meals.

 

The company is planning a 20 billion THB (~US$662.47 million; 1 THB = US$0.033) capital expenditure in 2020, lower than its 30 billion THB (~US$989.67 million) spend in 2019. This year's expenditure will be used to boost existing assets and expand its livestock feed, farm and food business in China, Vietnam and the Philippines.

 

With higher pork prices globally due to the African swine fever crisis, CPF will increase swine production to 18 million in 2020, with seven million planned for Vietnam.

 

Prasit said the company has made significant investments into its biosecurity system, with a long-term goal of generating revenue more evenly throughout its various business segments.

 

He added that each business group (feed, farm and food) should contribute one third revenue each, but this might change if the company has opportunities for mergers or acquisitions.

 

CPF's livestock feed and farm businesses make up 40% of the company's revenue, with the rest accounted to its food business.

 

He said the company will maintain its 10% annual revenue growth goal, with the aim of hitting 800 billion THB (~US$26.39 billion) in revenue by 2023. 

 

In 2018, CPF hit 541.9 billion THB (~US$17.86 billion) in revenue, with an 8% to 10% growth since 2016.

 

CPF acquired HyLife, a Canadian pork producer in 2019 for US$372 million. The company also purchased a Russian poultry firm in 2015 for US$680 million.

 

CPF currently operates in 17 countries and exports to 30 countries. Its domestic business makes up one third of its revenue.

 

-      Reuters