CPF targets 7-8% revenue growth, eyes Philippines animal feed sector

The leading food and agribusiness conglomerate Charoen Pokphand Foods (CPF) anticipates a 7 to 8% increase in total revenue to 610 to 620 billion baht this year, primarily due to contributions from its international business, with a focus on the growing animal feed sector in the Philippines.

CPF’s chief executive, Prasit Boonduangprasert, stated that the company has been investing in pork, chicken, chicken eggs, and shrimp businesses in the Philippines for over a decade and plans to further increase its investment in the country.

With an annual budget of around 20 to 30 billion baht, CPF is particularly interested in investing in the Philippines, where the company intends to spend several billion US dollars over the next five years, according to Prasit.

Revenue from the Philippines is expected to become a significant contributor to CPF’s income over the next five years. Currently, revenue from Philippine operations stands at about 20 billion baht, with the potential to increase to 50 to 100 billion baht in the future, said Prasit.

Moreover, Prasit mentioned that CPF expects to see increased revenue from exports this year due to growing customer concerns about food security and the company’s marketing efforts, focusing on exporting ready-to-eat meals and promoting CP Authentic Asia, which offers more authentic Asian flavours.

This strategy has allowed for increased value and diversification in meal options, with an expansion of Asian-inspired menus, such as Vietnamese pho or Korean dishes, in addition to Thai dishes like tom kha kai (chicken galangal soup). These additions enable the company to cater to more Thai restaurants and customers, Bangkok Post reported.

Regarding the impact of drought caused by the El Niño weather phenomenon, Prasit said the dry spells have yet to affect the company’s business. However, he noted that the firm has been closely monitoring the situation and has prepared business contingency measures.

CPF has implemented water conservation measures for over 20 years, such as using less water in its chicken farming operations, which consume around 40% less water than the standard requirement. It has also implemented water recycling systems, in which treated water is reused, while additional reservoirs have been constructed. The firm has also been developing production lines that require less water.

In a related development, CPF announced that it has become the first company in Thailand to export cooked duck meat to Australia, which has some of the world’s highest levels of sanitary and biosecurity measures for food and agricultural goods.

The historic export took place following seven years of negotiations. The approval from Australia’s Department of Agriculture, Fisheries and Forestry came into effect on May 16.

The first batch, comprising 20 tonnes of cooked duck meat, will arrive in Australia by air this week. CPF plans to export 500 to 600 tonnes of cooked duck products per year, mainly comprising roast duck, shredded duck meat, and crispy duck pancakes.