August 30, 2007

 

International expansion continues unabated for Thailand's CPF

 

 

Thailand's food processing giant Charoen Pokphand (CP) Group is on track with its international expansion and not only that, is doing well in diversifying its product range to include anything from shrimp sausages to dog food.

 

Vice chairman Ajva Taulananda said the group was continuously expanding its international production bases in markets like Russia, Eastern Europe, India, China, Sri Lanka and Bangladesh.

 

CPF would soon open an integrated chicken business in Russia, while China will become its largest integrated food-manufacturing base in the next five years, according to The Nation, a Thai newspaper.

 

The group should achieve export growth of 4-5 per cent this year, said Ajva.

 

Although he said the strengthening Thai baht may not impact the company's growth, he still called on the government to stabilise the baht's value to no stronger than 34 against the US dollar. The currency hit a high of 30 to the dollar in July this year and has since rebounded to 32.75. In January last year it was 42 baht to the dollar.

 

The CP Group is currently negotiating with Southland Ito-Yokado to supply it with shrimp sausages. Southland Ito-Yokado operates 4,000 7-Eleven convenience stores in the US. 7-Eleven is the biggest convenience-store chain in the US, with a 75-per-cent market share.

 

The move is seen as a response to the ever-tightening restrictions on foreign shrimp imposed by the US government.

 

Shipments would start next year if current negotiations are successful, CP Group executive vice chairman Sarasin Viraphol said.

 

Sarasin said the CP Group is also expanding its business in the US through partnerships with US food companies. It also hopes to export to other countries by establishing manufacturing bases in targeted markets.

 

Meanwhile, CP Retailing and Marketing senior vice president Wisade Wisidwinyoo said sales of frozen, chilled and bakery products would grow about 25 per cent this year to Bt4 billion (USUS$122.16 million).

 

The firm would also spend Bt 450 million (USUS$13.74 million) next year investing in items such as bakeries and chill plants in various parts of Thailand.

 

The Group also expects to see sales growth in its restaurant chain and dog food business and pledged its support for the Thai government's efforts in GM studies.