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.
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.
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
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
To subscribe to the free AllAboutFeed newsletter click here.
To comment, login here
Or register to be able to comment.