Betagro Group, one of Thailand's biggest agro-industrial and food companies, is optimistic about its sales prospects this year, despite a spate of challenges including the persistent pandemic, the ongoing Russia-Ukraine war, an increase in animal diseases, changing consumer behaviour and rising raw material costs as well as inflation.
According to Vasit Taepaisitphongse, chief executive and president, the company expects its sales in 2022 to outperform 6.6% growth reported in 2021, driven by agro-business, food and protein business, pet food and the higher prices of livestock products.
In addition, he said its feed meal factory in Nakhon Ratchasima's Nong Bun Mak district, which is scheduled to kick off production, will help boost the company's sales growth this year.
As of Dec 31, 2021, the company recorded 85.4 billion baht in revenue from the sales of goods and provision of services, an increase of 6.6% to 85.4 billion baht from 80.1 billion baht in 2020.
Higher sales were attributed largely to the growth both in domestic and international markets, with the agro-business contributing 29% of total sales, food and protein business representing 63.4%, international business accounting for 5.7%, pet business contributing 1.8% and others representing 0.1%.
Domestic sales accounted for up to 80%, with the remaining 20% from exports, with the important markets including Japan, Europe, South Korea, Hong Kong and Asean.
To cope with such challenges and changing consumer behaviour, the company on Tuesday launched the Powering Change Strategic Plan.
The new plan will focus on research and development to produce a variety of high-quality food innovations, biosecurity in production, and delivering new product alternatives to the market, expanding e-commerce distribution channels and forming collaborations with startup partners to improve competitiveness and better focus the industry on sustainable development.
The company will allocate an average of 5 billion baht per year to improve the sustainability of its operations for supply chain resilience, higher biosecurity systems for animal production, digitalised sales process and collaboration with e-commerce platforms in order to meet consumer demand with more safety and quality.
In addition, the company will continue expanding foreign investment, especially in neighbouring countries including livestock farming in Laos, and processed livestock factory investment and cooperation with supermarkets in Cambodia.
The company will also resume investment in Myanmar after a two-year hiatus.
Mr Vasit said livestock product prices are expected to rise this year, driven mainly by overall higher production costs.
Betagro Group is a leading integrated agro-industrial and food company, established in 1967 with 35 subsidiaries covering animal feed, animal pharmaceuticals and supplements, livestock, swine and poultry products, eggs, related processed food products and pet food, distribution of farm equipment and related research and development.
The group engages in a vertically integrated business model from feed production, growth and sales of broodstock, commercial farming, slaughtering and processing to sales.