CPF 2010 expansion plan to focus on Africa
Charoen Pokphand Foods Plc, the SET-listed flagship of the Charoen Pokphand Group, will focus on African countries in 2010 as part of its aggressive expansion abroad.
The company will start feed and chicken farm operations in Kenya and Tanzania, where each operation, focusing on supplying meat for their combined population of 82 million, is expected to cost US$3 million initially, says Adirek Sripratak, president and chief executive officer of CPF.
While farm expansion overseas in Africa is being accelerated, CPF plans to trim investment in farm businesses in Thailand, focusing more on cooked and ready-to-eat meals, which have contributed healthy profits to the company, estimated at more than 10 billion baht this year, proving, he says that CPF has chosen the right direction “to become a food provider rather than a commodity trader”.
The move also reflects a desire to create an equal balance in the company’s revenue structure from farms (currently 45%), feed (35%) and food (20%) under a five-year plan, he says, adding that CPF’s sales revenue in 2009 is estimated at 160 billion baht.
Significant revenues from offshore investments, notably in Russia and Turkey, are also expected next year.
