July 6, 2004

 

 

Charoen Pokphand Foods To Focus On Processed Chicken

 

Charoen Pokphand Foods Plc (CPF), Asia's largest agricultural conglomerate, said it will focus more on producing processed chicken, in order to find room for its products after the extension of the European ban on frozen Thai chicken to December. The previous expiration date was at the end of August.

 

CPF senior vice president Teerasak Urunanon said the company's chicken export plan is being revamped. The company has decided to increase the production of processed chicken, which are banned but are more expensive than frozen products.

 

The European Union (EU) is Thailand's second largest chicken importer after Japan. The EU has suspended the imports of Thai poultry products since the bird flu outbreak early in the year. The flu had a severe impact on the poultry industry in Thailand and other parts of the world as many countries decided to cancel their orders.

 

Chicken farmers, however, switched to produce more processed chicken as it meets hygienic standards.

 

"CPF can continue its chicken exports to the EU, Japan, Korea, Singapore and particularly England, who has a bigger order," said Teerasak.

 

CPF expects to export processed chicken of 93,000-95,000 tonnes this year, from the current 35,000-40,000 tonnes. The exports will likely bring in a revenue of 12 billion baht.

 

The EU previously planned to suspend chicken imports from Thailand until August 15. But a high official last week said the EU will extend the suspension to December 15, 2004. The decision will be confirmed this week.

 

Nonetheless, the company said the mad cow disease spread in the US is a positive sign for Thai chicken exports as consumers in the US will eat more chicken.

 

The company last week said its expects export values to increase by about 10-15 percent this year since Singaporean importers have increased their orders for processed chicken from CPF by as much as 1,000 tonnes. The increase is derived from a news report that chicken products shipped from Malaysia are found to have nitrofuran residues.

 

The firm projected that the country's exports of processed chicken products this year would increase to 370,000 tonnes with a total value of 37.8 billion baht.

 

CPF last month resumed its processed chicken exports to South Korea after the export order was suspended following the bird flu outbreak early in the year.