News 222 views last update:6 Aug 2012

CPF seed business expands across Asia

Thailand based Charoen Pokphand Group is to expand its seed business into major consuming countries, particularly India and China, as part of its plan to gain revenue overseas.

The group's expansion has been operated through the CP Crop Integration Business Group, which has taken responsibility for both marketing strategy and research and development in foreign countries.

Offshore businesses
As part of CP's strategy of setting up more offshore businesses with trading partners the seed business has also been expanded in many countries, including Vietnam, Burma, Cambodia, Laos, Bangladesh, Nepal, Turkey and Ukraine. The company already established a research-and-development centre for seed in China, Vietnam, India and Burma many years ago.
CP plans to invest Bt100 million (€2.3m) this year to expand its seed business in China, particularly in the corn-belt area covering Hunan, Hubei and nearby provinces. Of the total investment, half will be spent on research and development for both maize and animal feed products.
The group has established four R&D centres in China, including Sichuan and Guangxi. In addition, there are three manufacturing plants in targeted areas.
CP is establishing Thai-owned companies in terms of investment and technology in their targeted countries instead of buying from other companies in order to facilitate its offshore business.

The Crop Integrated Business Group's total sales are projected to grow by 10% to Bt4.4 billion (€101m) this year. This amount comes from seed and fertiliser products, from machinery, from rubber and from horticultural crops. However, most of the group's revenue still comes from domestic sales in Thailand, which account for 75% of total sales.

Related website:
Charoen Pokphand Group

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