CP Food to reduce interests in farming
Charoen Pokphand Foods Plc (CPF), the SET-listed flagship of Charoen Pokphand Group, has mapped out a five-year business restructuring plan to reduce its dependence on farm business.
Over the next five years, CPF's core businesses will engage in three main industries: feed, food, and farming.
The restructure aims to increase revenue from the food sector to 30-33% of the total from 18% at present. Animal feed already generates 35% which would be maintained.
Farming revenue, particularly from chicken and duck farms, would be pared from 47% to one-third as well. Sales from this sector stood at 156.23 billion baht ($4.693b) in 2008.
Revenue from the food sector has grown rapidly in recent years thanks to brand-building efforts and new products. Ready-to-eat items such as shrimp wonton soup have increased sales to 32 billion baht ($961.4m) this year.
CPF planned to invest 4 billion baht ($120.1m) locally and overseas. US$30 million is set for the pig business in Russia, and $65 million is to build shrimp- and aqua-feed manufacturing plants in the Philippines.
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