CPF plans large expansion into Laos
A new animal-feed and farming subsidiary with an
initial capital of baht 310 million (€7.5 million) to supply the high demand for
meat products in Russia, is to be established by Charoen Pokphand Foods (CPF),
flagship of the CP Group agribusiness group.
The subsidiary, Charoen Pokphand Foods
(Overseas) will commence operations
later this year, according to Mr Adirek Sripratak, president and CEO of CPF, who
added that a feasibility study had found great potential for the livestock
business in Russia, particularly pork.
In an interview Mr Adirek said
"Russia's population of 140 m consumes about 2.5 m tonnes of pork and a similar
amount of poultry annually, but local production failed to meet the growing
demand. CPF's investment would start with feed production and pork processing,
which would benefit CPF's future business expansion."
An analyst at local
Kim Eng Securities considered the impact on CPF's performance from the Russian
investment would be long term, with a contribution to parent company revenue in
three to five years. CPF's second quarter performance was expected to show a
good recovery from the first quarter, but could be affected by the rising cost
of fishmeal, and important feed supplement.
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