March 29, 2022

 

Thailand aims to export 10,000 tonnes of chicken to Saudi Arabia in 2022

 

 

Jurin Laksanawisit, Thailand's Commerce Minister, said the country aims to export 10,000 tonnes of chicken to Saudi Arabia in 2022, following CP Foods first shipment to the Middle Eastern country in 18 years, Bangkok Post reported.

 

He said Thailand will export 980,000 tonnes of broiler chickens worth over THB 100 billion (~US$2.9 billion; THB 10 = US$0.30) globally, 7% higher compared to 2021.

 

Jurin said the Saudi Arabia market is the biggest and most important in the Middle East, especially for halal products.

 

Prasit Boondoungprasert, CP Foods chief executive, said his company will export 600 tonnes of chicken products valued at THB 47 million (~US$1.3 million) to Saudi Arabia in March 2022, and 6,000 tonnes of chicken products valued at THB 473 million (~US$14 million) for the rest of the year.

 

The company is planning to export 60,000 tonnes of chicken products worth THB 4.2 billion (~US$124 million) over the next five years.

 

Saudi Arabia will become the biggest importer of Thai chicken in the Middle East, with the Thai broiler sector expecting 10% to 15% market share gain in the country.

 

Prasit said CP Foods total chicken exports in 2022 will exceed 200,000 tonnes, valued at THB 20 billion (~US$592 million). The company's biggest export market is the UK, followed by Japan and Germany.

 

The company projects a 10% rise in total revenue in 2022 from THB 520 billion (~US$15.4 billion) last year.

 

Its livestock feed business accounts for 50% of the revenue. 30% will come from its farm business and the remainder from the food business.

 

The company's growth is thanks to soaring worldwide demand for meat especially in Europe, Japan, and the Middle East, as well as Thailand's low production costs compared to other nations.

 

CP Foods will invest THB 25 billion (~US$741 million) in 2022 for machinery upgrades to increase efficiency and productivity. They will not pursue merger and acquisition plans because of the current economic situation.

 

-      Bangkok Post