BANGKOK: Betagro, a world-class branded food company, reveals the plan to extend the manufacturing base in ASEAN in light of persisting global economic risks in the year to come.
Under the plan, Betagro will scale up the production of quality swine breeding, fattening pig, broiler and layer and accelerate the animal feed manufacturing capacity expansion in Cambodia and Laos, with confidence in warm response to the products that meet Thailand’s innovation and quality standards.
Mr. Worrawut Vanitkulbodee, Chief Operating Officer International Business of Betagro Public Company Limited (BTG), said that cautious overseas investment and continual risk management have been BTG’s significant strategy. As the growth in Europe and the US is projected to slow down, ASEAN still shows a possible economic recovery following reopening to investment and global travelers. This demonstrates an enticing marketing opportunity. BTG has so far succeeded in investment and marketing in Cambodia and Laos, being one of the companies that reach out to all classes of customers through modern retail channels and strong local partners. BTG stands ready to reap more growth and deliver a quality of life for consumers in the region.
“Thanks to our potential in the integrated food and agribusiness industry and more than a decade of investment experiences in neighboring countries, BTG’s international business group sees the opportunity to expedite new visions and innovations in expanding our manufacturing and marketing bases in the next 5 years, particularly in ASEAN. We will do this strategically, with a good backup plan for our investments concerning feed mills, livestock farms, processing plant and Betagro shops. With our business potential and manufacturing expansion, all that present us an opportunity to reach out to consumers with high-quality products that meet future needs.”
In the first 9 months of 2022 (January-September), the international business group’s revenue from goods and services totaled Bt4,511 million. The revenue was primarily generated by its operations in Cambodia which demonstrated a high growth rate. The operations overseen by a subsidiary, Betagro (Cambodia) Company Limited, covered a feed mill in Phnom Penh and 331 swine and poultry farms. BTG plans to erect the second feed mill in Cambodia and invest more in livestock farms that involve swine breeding, swine fattening, poultry breeding as well as slaughterhouses. The investment will raise the livestock production capacity by about 0.8 million pigs and about 12.7 million chicken per annum within 2026.
In Laos, BTG operates through a subsidiary named Betagro (Lao) Company Limited. The business involves 134 swine and poultry farms and 5 Betagro shops (3 in Vientiane and 1 each in Luang Prabang and Champasak). BTG plans to invest in the first feed mill with annual capacity of 72,000 tons as well as a new breeding swine farm and slaughterhouses. The investment will raise the livestock production capacity to about 3 million chicken and about 0.2 million pigs within 2026
In Myanmar, BTG operates through joint ventures with local partners, which primarily imports breeding pigs, medical supplies, animal feed and pet food from Thailand. Though Myanmar is an attractive market in ASEAN, its domestic situation will be closely watched. BTG will spend more time gathering information so that its business decisions are carried out in the most cautious and thoroughly-considered manner.
Mr. Worrawut added that in making inroads into any country, BTG gives priority to quality and the control system throughout the supply chain. All must meet world-class standards as guided by its 4 missions: 1) Food Quality & Safety to ensure international-standard safety quality and safety as achieved in Thailand 2) Social Development that promotes local employment and transfer of expertise and knowledge to farmers for mutual growth 3) Good Governance that sees the posting of Thai employees in Cambodia, Laos and Myanmar for human resource development as well as the expedition of modern technology that allows efficient market tracking, data analysis and operations and 4) Alliance and Partnership that contributes shared values and benefits to local partners.
In the long term, BTG plans to make inroads into other promising markets like India, China and Vietnam, chiefly through partnership with local operators who are expected to bring along business expertise and commitment for sustainable mutual growth.