CPF looks to international markets for business growth

With its domestic meat market already saturated, Thailand-based food giant Charoen Pokphand Foods (CPF) is looking to achieve its target 10 percent annual growth mainly from existing and new markets overseas.

Screenshot from cpfworldwide.com
Screenshot from cpfworldwide.com

With its domestic meat market already saturated, Thailand-based food giant Charoen Pokphand Foods (CPF) is looking to achieve its target 10 percent annual growth mainly from existing and new markets overseas.

Within the next three years, CPF will derive as much as 70 percent of its income from countries outside its home base.

That figure stood at 64 percent in 2017, the firm’s chief executive in charge of the agro industrial operations and co-president, Sooksunt Jiumjaiswanglerg, told The Nation recently. Already accounting for 13 percent of CPF earnings is Vietnam, which remains a promising overseas market, he added. He also identified India, the Philippines and Russia as markets with high growth potential, and the U.S. and Japan as key markets for the group.

According to Sooksunt, further moves to expand CPF’s business in Thailand would provoke unfavorable reaction from domestic competitors.

In assessing foreign markets for investment, the group’s chairman, Dhanin Chearavanont, and top executives agree on the principles that the firm’s commitments must be good for the country, as well as its society, customers and employees there.

Critical to the company’s success overseas are its corporate social responsibility (CSR) programs, said Sooksunt.

He cited the example of CPF’s business in Vietnam, which began 20 years ago when the firm offered farmers there corn seeds to help improve their businesses. Building up good relations and trust over the intervening years, the Vietnamese government now regards CPF as a good partner that has contributed to the country’s growing economy and higher social standards.

Recent international activity of CPF

CPF has demonstrated its intentions for overseas investment in recent times.

In July of 2017, CPF agreed to acquire a 95 percent share in Paulsen Food GmbH of Germany through its European entity, CPF Europe S.A. This move followed the acquisition of Bellisio Foods of the U.S., Chinese poultry producer Cofco Meat Suqian, Polish poultry firm, Superdrob, and Ningbo Chia Tai Agriculture, a Chinese feed company.

CPF expects its 2017 revenue to reach THB500 billion (US$15.5 billion) in 2017, which would represent a 10 percent increase when compared to the previous year, according to a statement on the group’s website. It has operations in a total of 17 countries, and CP Group has been ranked as the world’s fourth largest food company, according to Sooksunt, producing chicken, pork and shrimp to international standards.

Global urbanization opens up new opportunities for CPF, he said, as demand grows for more convenient, safe food products. Meanwhile, the Group will continue to improve production efficiency by harnessing technological advances such as e-commerce, automation and robotics on the production lines, and precision analysis of Big Data.

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