October 16, 2007

 

CPF aims to help cast off negative image of Thai pork industry

 

 

In a bid to expand export markets, Thailand's pork producers are seeking foreign partners for joint ventures to tap their respective markets while working to overcome negative perceptions of the Thai pork industry.

 

The effort is characterised by a TV campaign by Thai food conglomerate Charoen Pokphand Foods Plc (CPF), on meat quality that would be airing next year.

 

The commercials would air early next year in Thailand as part of the marketing plans for CPF. 

 

Thai pork producers are known for poor sanitation and their disregard for animal rights. The country's pork exports have often been rejected by EU governments.

 

To overcome this, companies such as S. Khonkaen have set up overseas operations to tap foreign markets.

 

Others have chosen to partner with foreign firms.

 

For example, Thailand's Betagro gained entry to the tough Japanese market by teaming up with Sumitomo Corporation in 1993 to form Thai SPF Products Co. The company produces SPF (specific pathogen-free) swine for local distribution and export to Japan.

 

CPF went down the same path two years ago, setting up a joint venture in Thailand with Japan's fifth largest meat producer to form CP-Yonekyu Co., serving the Thai and Japanese markets.

 

The meat supplied for the CP-Yonekyu operation is from the Bangkok Food Factory, which processes the meat from farms and slaughterhouses that are certified by the Livestock Development Department.

 

More than 80 percent of the pork Thais consume currently is still produced by substandard processes, poor sanitation and without animal welfare methods, said Narai Chimni, vice-president of Bangkok Food Products Co, a unit of CPF.

 

Many are butchered under poor standards even though the Livestock Development Department has been trying for years to make improvements, Narai said.

 

Pigs are subjected to electric shocks prior to slaughter, which is against animal rights law and could toughen the meat, he said.

 

Modern factories now kills pigs by using carbon dioxide, which makes the meat juicier, he said. Meat from the company's slaughterhouse in Chachoengsao has been traceable since 2002, Narai said.

 

Furthermore, modern methods of processing helps CP to export fresh products in the form of chilled meat instead of processed meat such as bacon and sausages.

 

CPF already has access to the chilled pork market in Hong Kong and is looking to access the market in Singapore.