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
