Charoen Pokphand Foods (CPF) Plc will continue to increase the processed food offerings in its portfolio this year.
Prasit Boondoungprasert, chief executive of CPF, said processed food represents 22% of its total revenue, or 50-60 billion baht.
He said demand for processed food is rising, fuelled by increased tourism, adding that the export price is better than fresh food.
"We aim to enhance our processed food exports as they provide stable revenue and profits, helping us mitigate the volatility of commodity prices," said Mr Prasit.
He said CPF's meat exports have declined, now ranking third in terms of revenue generation, with the focus shifting to processed food products.
Meanwhile, pork price cycles have extended, with downturns now lasting two years compared with one year previously.
The company's farms contribute about 10% of total pork production, which stands at 5-6 million pigs annually.
CPF anticipates improved revenue this year, driven by lower raw material costs, particularly for animal feed such as corn, and the strong performance of its processed food products.
For the third quarter of 2024, CPF reported a net profit of 7.31 billion baht, a 504% increase year-on-year, attributed to a higher gross profit margin and increased contributions from joint ventures.
The company reported total sales of 143 billion baht, with 62% from international operations and 38% from domestic operations.
Higher pork prices, especially in Vietnam, coupled with reduced livestock rearing costs, improved production efficiency, and lower animal feed costs, have positively impacted growth.
In addition, CPF's efforts in sourcing alternative, cost-effective and nutritious raw materials have supported profitability, said Mr Prasit.
He said CPF's investment budget for 2025 remains consistent with prior years, emphasising improvements in production efficiency, cost reductions, a transition to clean energy in the production process, and progress towards the company's net-zero emissions goal by 2050.
Mr Prasit said the company is cautiously navigating business operations amid global and domestic economic uncertainties.
He said the company is monitoring the global and Thai economies as well as the potential policies of US president-elect Donald Trump, which could affect global trade and investments.
Mr Prasit said CPF's executive team would meet with the commerce minister to discuss a Thailand-US free-trade agreement, which he believes could benefit Thailand, aligning with anticipated US policies.
CPF does not have direct investments in the US. It previously tested a pork business there two years ago, which ended because pork consumption in the US was lower than expected.