May 19, 2014
Betagro sets up chicken-processing plant in southern Thailand
Betagro Group, one of Thailand's top agricultural conglomerates, has opened a chicken-processing plant in the south to capitalise on high meat consumption in the region, Bangkok Post reports.
The US$18.44 million plant in Phatthalung province, about 70 kilometres from Hat Yai, is considered the first advanced chicken-processing factory in the south, where new investment is rare due to unrest in the southernmost provinces.
"Considering the sluggish economy and declining farm earnings, it's quite challenging for us to make the investment at this time," said president of Betagro Group, Vasit Taepaisitphongse. "But we believe there is a bright outlook in the south's meat market, which still has plenty of room to expand due to high consumption."
Average annual meat consumption in the region is high at 19 kilogrammes per head, compared with the country's average of 17 kilogrammes, led by the growth of hotels and restaurants in the region.
Investment sentiment in the south was weak last year and dropped by 0.1% from 2012. The outlook in the first quarter this year was still poor, with only a small number of investment projects receiving incentives from the Board of Investment of Thailand.
The agency reported that only 17 projects were approved for a combined investment of US$40 million in the first quarter, compared with 21 projects costing US$180 million in the same period last year.
Operated by Betagro Southern Company, the new chicken plant has a capacity of 60,000 birds per day or about 4,000 tonnes of meat per month. Its products will be distributed to 14 provinces in the south.
Capacity will be doubled to 120,000 birds per day in the future to serve export markets including Malaysia, Singapore and Brunei.
The group's business in the south has grown steadily in recent years. In 2012, sales revenue in the region rose significantly to more than US$200 million. This year's target has been set at US$250 million.
The income generated from the new plant will help bring Betagro's overall sales revenue to US$1.05 billion and its consolidated sales to US$2.67 billion this year, up from US$890 million and US$2.34 billion respectively last year.
"We chose to invest in Phatthalung because the province has a good location at the centre of the region, which is good for product distribution," he said.
