Thailand-based Charoen Pokphand Foods Plc. (CPF) has reached a cooperation agreement with SuperDrob Zaklady Drobiarsko - Miesne S.A. (SuperDrob), a poultry meat company based in Poland that supplies leading supermarkets and fast-food chains throughout the European Union. The deal will lead to CPF holding a 33 percent share in the company at a cost of EUR49.5 million (US$51.9 million).
The agreement marks CPF’s first step into poultry production in Europe, according to the company’s President and CEO, Adirek Sripratak. Supporting CPF’s decision to invest in SuperDrob, he cited Poland’s plentiful resources, low cost of production and established poultry exports to the rest of the European Union.
“This will also help respond better to the regional consumer base at a faster pace, as well as the opportunity to expand into other businesses that CPF has expertise in Poland, and connect with CPF’s current network in Asia and Europe in order to create more value in the future,” he added.
“The cooperation between SuperDrob and CPF is a great opportunity for our company,” said Jaroslaw Kowalewski, Strategy SuperDrob vice-president. “We can increase production capacities, thanks to which we will be able to offer new generation products in a wider market. We will extend the range of products and we will integrate production and logistic processes.”
Kowalewski added that the agreement with CPF will allow his company to participate actively in the future consolidation of Poland’s meat and feed markets.
SuperDrob’s business activities
According to the company’s website, SuperDrob has been part of the Grupy Kapitalowej since 2012. The group’s other members cover hatcheries, construction services, logistics, services and Stofarm poultry farms. Founded in 1993 by Henryk Lipka, SuperDrob has since expanded to employ more than 2,000 people in Karczewo and Lodz.
A key turning point for the business was the decision to begin the production of further processed poultry products and convenience foods at its plant in Lodz in 2013. Such products were unknown in Poland at the time, but they have since gained popularity through it’s the company’s own network of stores in Poland, as well as Auchan, Carrefour, Kaufland, Lidl, Polo Market and Macro.
Also working with foreign partners that include Aldi, Asda, Iceland and KFC, the company has become one of the top 10 poultry companies in Poland.
SuperDrob’s annual revenue in 2016 exceeded PLN1 billion (US$241 million), according to Puls Biznesu.
In November of 2016, the firm announced plans to invest PLN200 million (US$48.1 million) in the Lodz area. The proposed new plant will cover the slaughter, cutting and packing of poultry products, and meet the highest environmental standards.
CPF in state of growth
CPF is among of the leading producers, processors and exporters of meat in South-East Asia and one of the world’s leading manufacturer of animal feed. A member of the Dow Jones Sustainability Index, CPF manages a number of animal feed mills producing diets for poultry, swine, shrimp, fish, and companion animals. Headquartered in Thailand, the company also has business operations in Belgium, Cambodia, China, India, Laos, Malaysia, the Philippines, Russia, Sri Lanka, Turkey, Taiwan, the United Kingdom and Vietnam. CPF has investments and operations in 14 countries and sells its products in over 30 countries worldwide with annual turnover of US$14 billion.
In the last quarter of 2016, CPF acquired interests in agri-food businesses in China, Taiwan and the U.K., as well as Chinese poultry firm, Cofco Meat Suqian, and U.S. frozen food company Bellisio Foods Inc.
