MLBA6: December / January 2009
State-of-the-art technology, skilled management key to Betagro's success
In the face of stiff market competition and the ailing world economy, one food industry giant continuous to move forward - Betagro, a recognized industry leader for more than 40 years. The never ending quest for new opportunities, and the employment of technical management skills and new technology in its operations - these help spur the company ahead.
Last year, the dangerous signs of the world economy plunges many businesses into insecurity. But, the Betagro Group proved that it can turn crisis into opportunity. The latest idea shows that TPm (Total Productivity Management) can lay the foundation for a more sustainable business for Betagro. Meanwhile, the company has an investment of around THB2,500 million to open two new factories. Betagro profits are expected to grow by 15 percent or around THB34,500 million this year.
"The competition - globally and locally - remains very stiff," says Nopporn Vayuchote, executive vice president for Group Business Development of Betagro. "With no new support to grow from the world economy, the Betagro Group has to adjust its management direction to make for a strong system and better efficiency. As in the past, we have always brought new technical tools - such as Kaizen (The Process and Efficiency Adjustment Project) etc. - to develop the company."
Nichirei Corp to set up chicken-processing JV in Thailand
Japan's Nichirei Corp will set up a joint venture in Thailand to process chicken to meet rising global poultry meat demand.
The corporation's subsidiary Nichirei Foods Inc. and Thai chicken processor GFPT Public Co. will set up the new company - GFPT Nichirei (Thailand) Co. in December. The new company will have a capital of THB780 million, of which 51 percent will be put up by Nichirei Foods and the remaining 49 percent by GFPT Public.
The company will begin operations in early July 2010, with annual sales forecast at JPY20 billion.
SKOV enters supply agreement with Charoen Pokphand
SKOV A/S has entered into an agreement with Charoen Pokphand Thailand Co. (CP) for the supply of 28 complete broiler house ventilation systems in China.
The 28 complete Combi-Tunnel ventilation systems will be installed from December 2008 at a CP-owned farm. The farm is located near Changchung in the Jilin Province in northeast China and the area has temperature fluctuations ranging from â€“20 degree Celsius in winter season to +35 degree Celsius in summer season.
Combi-Tunnel ventilation is capable of handling such large temperature fluctuations while maintaining high productivity levels, compared to traditional tunnel ventilation systems that cool the chickens too much in cold periods, said Tommy H. Krogh, Asia poultry specialist of SKOV A/S.
Brazil's Marfrig completes OSI Group acquisition
Brazilian meat company Marfrig completed a US$680-million purchase of Europe's OSI Group assets in Brazil and Europe, Marfrig announced.
Marfrig is one of Brazil's top three beef exporters. The company effectively enters into the lucrative poultry markets in both Brazil and Europe with the OSI deal finalized.
"The investment reinforces our strategy â€“ to access international markets directly, and diversify and increase our product portfolio of animal proteins," said Ricardo Florence, investor relations director of Marfrig.
Florence said the deal allows Marfrig to expand into the processed-food markets, as well as open markets for Brazilian meats in Europe.
Tyson to sustain chicken production
Tyson Foods has lost US$118 million in the chicken business over the past year but the company said it would not reduce production.
Tyson chief executive Richard Bond said the demand supply balance is healthy, with fast-food companies expressing supply concerns and retail sales that are recovering. Bond added that the export market will rebound during the winter.
Tyson's losses in the chicken business have been offset by its beef and pork businesses, leading to a US$48-million fiscal fourth-quarter profit.
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