August 16, 2013

Charoen Pokphand expects 10% sales increase in 2013

Boosted by rising meat prices and reviewed investment plans, Adirek Sripratak, president and chief executive of Charoen Pokphand Foods (CPF), expects total sales would grow by more than 10% this year.

The company is focusing more on value-added goods as well as expansion through businesses with high potential to create more profit, such as the acquisition of more shares in CP-Meiji and the purchase of pig farms in Russia.

As it faces such difficulties, CPF has reviewed its investment plans, focusing on investments that are in line with its core strategies. It recently announced a 60% joint investment in CP-Meiji Co, as it foresees that this business has growth potential, especially for export to Asian countries.

CPF also announced investment in swine business Russia Baltic Pork Invest in Russia, and it is in the process of offering to purchase shares from minority shareholders. The transaction is expected to be completed this year, Adirek said.

The company did not achieve its targets for the first half of 2013. This was mainly caused by the shrimp disease early mortality syndrome (EMS) that occurred late last year, which slowed the shrimp industry in Thailand, and it has not yet returned to normal. Shrimp farmers have delayed resuming full operations while waiting for evidence that disease-prevention measures have been successful. However, CPF expects to see more shrimp gradually returning to full operation.