Charoen Pokphand Foods (CPF), the SET-listed flagship of food and agribusiness conglomerate CP Group, expects its total revenue to increase by 7-8% to 610-620 billion baht this year, attributed mainly to contributions from its international business, particularly the Philippines, where the firm's animal feed business is growing.
According to Prasit Boonduangprasert, the company's chief executive, CPF has been investing in pork, chicken, chicken egg and shrimp businesses in the Philippines for more than 10 years and plans to further increase its investment in the country.
CPF allocates an annual budget of around 20-30 billion baht, with a particular focus on investing in the Philippines where the company plans to spend several billion US dollars over the next five years, Mr Prasit said.
In the next five years, revenue from the Philippines would be significant and become a crucial pillar of CPF's income. Revenue from its operations in the Philippines now stands at about 20 billion baht and there would be a possibility to raise it in the future to 50-100 billion baht, Mr Prasit said.
Furthermore, according to Mr Prasit, CPF expects to see increased revenue from exports this year due to growing demand from customers who are concerned about food security, and in response to the company's marketing efforts, focusing on the export of ready-to-eat meals and the promotion of CP Authentic Asia, which claims to offer more authentic Asian flavours.
The dispatch of the first batch of 20-tonne cooked duck meat exported by Charoen Pokphand Foods to Australia.
This has allowed for increasing value and diversification in terms of meal options, with an expansion of Asian-inspired menus such as Vietnamese pho or Korean dishes in addition to Thai dishes, such as tom kha kai (chicken galangal soup). These additions enable the company to serve more Thai restaurants and more customers.
Regarding the impact of drought caused by the El Niño weather phenomenon, Mr Prasit said the dry spells have yet to have any effect on the company's business.
However, he noted that the firm has been closely monitoring the situation and has prepared business contingency measures. CPF has been implementing measures aimed at water conservation for over 20 years, such as using less water in its chicken farming operations, which consume around 40% less water than the standard requirement. It has also implemented water recycling systems, in which treated water is reused, while additional reservoirs have been constructed. The firm has also been developing production lines that require less water.
In a related development, CPF said it has become the first company in Thailand to export cooked duck meat to Australia which has some of the world's highest levels of sanitary and biosecurity measures for food and agricultural goods.
Cooked duck meat exported by Charoen Pokphand Foods to Australia.
The historic export took place following seven years of negotiations. The approval from Australia's Department of Agriculture, Fisheries and Forestry came into effect on May 16.
The first batch, comprising 20 tonnes of cooked duck meat, would arrive in Australia by air this week. CPF plans to export 500-600 tonnes of cooked duck products per year, mainly comprising roast duck, shredded duck meat and crispy duck pancakes.