May 28, 2021

CP acquires Russian swine farms, anticipates post-COVID rebound

Thailand's Charoen Pokphand Group has acquired swine farms in Russia to strengthen its livestock business in the country, in anticipation of a sharp post-COVID recovery, Nikkei Asia reported.

The 404-million-baht (US$13 million) acquisition came via the purchase of 100% of Russia's BiltOil and its food and agricultural subsidiary.

Charoen Pokphand Foods (CPF) now has the capacity to produce about 2,600 sows and 63,000 fattening pigs per year in Russia. The farms it has acquired are also able to produce about 13,000 tonnes of grain per year, the bulk of which is used as feedstuff.

CPF's latest move follows its acquisition of Russia's fifth-largest integrated poultry company in 2015.

"Sales of poultry and pork are expected to gradually rebound after the COVID pandemic when farming operations and demand get back to normal," an Asia Plus Securities analyst said. "That would help boost CPF's business abroad."

CPF recorded 532 billion baht (US$17 billion) in total revenue in 2020, of which more than two-thirds was generated overseas.

Russia is one of 17 countries in which CPF has operations. Others include China, the US, India, Japan, the Philippines and Vietnam.