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News 1327 views last update:14 Jan 2016

Chia Tai heavily invests in China

Chia Tai, the Chinese arm of Thailands Charoen Pokphand Group’s, is taking up a plan for modern farm management and property development with a combined value of 23.62 billion yuan (€3 billion).

Trusted by the Chinese government, Chia Tai has been selected to manage the modernisation of the farm model through a so-called four-in-one cooperation project, involving government, farmers, the private sector and banks.

So far, Chia Tai is managing or setting up 13 modern farm projects with a combined investment value of 30.283 billion yuan (€3.845 billion). Of the total project value, four projects with a combined value of 23.62 billion yuan have inked agreements with the Chinese government.

Chia Tai supplies breeding stock for shrimp, pig and poultry farming, as well as feeds, technology and marketing management.

The Chinese government wants the project to help revolutionise its farm sector to ensure the country's food security and better living standards. Farmers will be encouraged to use modern techniques and equipment to increase revenue.

Chia Tai is a minor shareholder holding at least 15% of each project. This will encourage Chia Tai to grow more in the field of professional project management rather than only focusing its expertise on the agriculture, food and retail sectors.

China market penetration
Thanakorn Seriburi, vice chairman of CP Group, said it was stepping up its investment in China to ensure expansion of its business in the future.

It is CP's policy to increase investment in China by 15% per year to ensure annual sales growth by the same percentage.

In addition, the production from these modern farms can directly supply the group's retail business in China, Lotus Supercenter.

"Our whole strategy is aimed at strengthening the group's production from upstream to downstream as well as generating wealth for people there. The group's philosophy is to make a contribution with what we are invested in," Thanakorn said.


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